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WEEKLY QUOTE
“Things
turn out best for the people who make the best out of the way things turn out.”
- Art Linkletter
WEEKLY TIP
Federal
student loans may offer 6-month grace periods before any repayment is
necessary, but having an income-based repayment plan in place soon after
graduation is wise. Repayments can be limited to affordable amounts through
these plans.
WEEKLY RIDDLE
Its
body of stone shields a fiery heart. Under sufficient pressure, its head will
depart. What is it?
Last week’s riddle:
I never complain no matter where I am led; I go around in
circles, yet move straight ahead. What am I?
Last week’s answer:
A wheel.
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March 24,
2015
FED MAY WAIT LONGER TO TIGHTEN
March’s
Federal Reserve policy statement provided less forward guidance than many
investors expected. As anticipated, the word “patient” disappeared – but the Federal
Open Market Committee also lowered its 2015 GDP forecast (to a range of 2.3-2.7%)
and nearly halved its 2015 inflation projection (to a range of 0.6-0.8%).
Seconding this weaker economic outlook, the Fed indicated it might wait until
late 2015 to tinker with interest rates, altering the commonly held
perception that a rate hike might be in store before Q2 ends.1
OIL PRICES RISE
Light sweet crude rose 3.9% on the NYMEX last week,
settling at $45.72 Friday. It was the first winning week in five for the
commodity, and a short-term decline in the dollar and lower U.S. rig counts helped.
Gasoline advanced 2.0% on the NYMEX for the week, natural gas 2.2% and
heating oil 1.2%.2
FEWER STARTS, BUT MORE PERMITS
The
Census Bureau measured a 17.0% drop in groundbreaking for February, which
took housing starts to a 13-month low. Declining builder sentiment, higher construction
costs and fewer available parcels were all contributing factors. Building
permits increased 3.0% last month; apartment permits jumped 18.3%.3
TERRIFIC WEEK FOR U.S. EQUITIES
A little dollar weakness, a rebound in energy prices,
easing in Europe, the latest FOMC statement and pleasing corporate earnings
all supported a 5-day rally. From March 16-20, the S&P 500 gained 2.66%
to settle Friday at 2,108.06. The Dow and Nasdaq posted weekly gains of 2.13%
and 3.17% on their way to respective closes of 18,127.65 and 5,026.42.4
THIS WEEK: Existing
home sales figures for February appear Monday, courtesy of the National
Association of Realtors. On Tuesday, February new home sales data arrives
from the Census Bureau, and the Street also interprets February’s CPI,
manufacturing PMIs for Japan and China and earnings from H.B. Fuller, Sonic
and Steelcase. Wednesday brings durable goods data for February plus earnings
from Pacific Sunwear, Paychex and Red Hat. In addition to the latest initial
jobless claims report, Thursday also brings earnings from Accenture, Restoration
Hardware, Lululemon Athletica, ConAgra Foods, GameStop, Fred’s Super Dollar and
Scholastic. Friday, the University of Michigan publishes its final March
household sentiment survey, the federal government’s final estimate of Q1
growth arrives, and Fed chair Janet Yellen speaks on monetary policy in San
Francisco.
Sources: online.wsj.com, bigcharts.com, treasury.gov - 3/20/155,6,7,8
Indices
are unmanaged, do not incur fees or expenses, and cannot be invested into
directly. These returns do not include dividends. 10-year TIPS real yield =
projected return at maturity given expected inflation.
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«RepresentativeDisclosure»
This material was prepared by MarketingPro,
Inc., and does not necessarily represent the views of the presenting party,
nor their affiliates. This information has been derived from sources believed
to be accurate. Please note - investing involves risk, and past performance
is no guarantee of future results. The publisher is not engaged in rendering
legal, accounting or other professional services. If assistance is needed,
the reader is advised to engage the services of a competent professional.
This information should not be construed as investment, tax or legal advice
and may not be relied on for the purpose of avoiding any Federal tax penalty.
This is neither a solicitation nor recommendation to purchase or sell any
investment or insurance product or service, and should not be relied upon as
such. All indices are unmanaged and are not illustrative of any particular
investment. The Dow Jones Industrial Average is a price-weighted index of 30
actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged,
market-weighted index of all over-the-counter common stocks traded on the
National Association of Securities Dealers Automated Quotation System. The
Standard & Poor's 500 (S&P 500) is an unmanaged group of securities
considered to be representative of the stock market in general. It is not
possible to invest directly in an index. NYSE Group, Inc. (NYSE:NYX) operates
two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE
Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific
Exchange). NYSE Group is a leading provider of securities listing, trading
and market data products and services. The New York Mercantile Exchange, Inc.
(NYMEX) is the world's largest physical commodity futures exchange and the
preeminent trading forum for energy and precious metals, with trading
conducted through two divisions – the NYMEX Division, home to the energy,
platinum, and palladium markets, and the COMEX Division, on which all other
metals trade. Additional risks are associated with international investing,
such as currency fluctuations, political and economic instability and
differences in accounting standards. This material represents an assessment
of the market environment at a specific point in time and is not intended to
be a forecast of future events, or a guarantee of future results. Past
performance is no guarantee of future results. Investments will fluctuate and when
redeemed may be worth more or less than when originally invested. All
economic and performance data is historical and not indicative of future
results. Market indices discussed are unmanaged. Investors cannot invest in
unmanaged indices. The publisher is not engaged in rendering legal,
accounting or other professional services. If assistance is needed, the
reader is advised to engage the services of a competent professional.
Citations.
1 - thestreet.com/story/13084714/1/meaning-of-fed-policy-statement-depends-on-definition-of-is--surprising-market-reaction.html
[3/19/15]
2- marketwatch.com/story/oil-prices-stay-choppy-ahead-of-rig-count-data-2015-03-20
[3/20/15]
3 - eyeonhousing.org/2015/03/housing-production-stumbles/ [3/17/15]
4 - markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp
[3/20/15]
5 - markets.wsj.com/us [3/20/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F20%2F14&x=0&y=0
[3/20/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F20%2F14&x=0&y=0
[3/20/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F20%2F14&x=0&y=0
[3/20/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F19%2F10&x=0&y=0
[3/20/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F19%2F10&x=0&y=0
[3/20/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F19%2F10&x=0&y=0
[3/20/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=3%2F21%2F05&x=0&y=0
[3/20/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=3%2F21%2F05&x=0&y=0
[3/20/15]
6 - bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=3%2F21%2F05&x=0&y=0
[3/20/15]
7 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield
[3/20/15]
8 - treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll
[3/20/15]
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Tuesday, March 24, 2015
Economic Update for the week of March 24th, 2015
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