November Newsletter from Sumner Wealth Management

newsletter-header
 

 

Wealth Management Newsletter

  NOVEMBER 26,  2013

 

 
 

Dear Visitor,

  

I hope this newsletter finds you and your family in good spirts and ready for all the Holidays!  Below is a market recap of last week and a brief over view of the economic situation. 

 

Stock Markets  Continue to Rise     

Equity markets gravitated to round number milestones this week, with the Dow Jones Industrial Average moving above 16,000, the S&P 500 clearing 1,800 and the NASDAQ rapidly approaching 4,000.      

Index Returns (%)

Source: Bloomberg                                               

                    Index

     

 1 Week

     
     

YTD

     
     

1 Year

     
     

Dow Jones 30

     
     

0.65

     
     

22.59

     
     

23.48

     
     

S&P 500

     
     

0.37

     
     

26.54

     
     

28.07

     
     

Russell 2000

     
     

0.78

     
     

32.44

     
     

39.36

     
     

MSCI EAFE

     
     

-0.24

     
     

16.58

     
     

21.64

     
     

S&P GS Commodities

     
     

1.17

     
     

-2.47

     
     

-3.06

     
U.S. Trade-Weighted $      

-0.17

     
     

1.18

     
     

0.65

     

 

Yellen Clears  Another Hurdle  

       

Janet  Yellen, President Obama's nominee to succeed current Federal Reserve Chairman Ben Bernanke when his term ends in January, cleared another hurdle by winning approval of the Banking Committee. Next up will be a vote by the full Senate, expected to occur sometime in early December. In her recent  appearance before the Senate Banking committee, Ms. Yellen indicated that  the Federal Reserve would maintain its stimulative policy until it sees sufficient economic strength to support persistent improvement in the labor market. In fact, it is widely perceived that a Yellen-led Federal Reserve may be even more "dovish" than it has been under the leadership of Ben Bernanke. For example, while Chairman Bernanke originally pegged an unemployment rate of 6.5 percent as a possible milestone for gauging when the Federal Reserve may complete the tapering of its bond-buying program, markets have speculated that a Yellen-led Federal Reserve may want to see a rate lower than that. The Federal Open Market Committee next meets on December 17 and 18. 

         

Economic News  Encouraging         

With earnings season winding down, stocks were encouraged by market-friendly economic numbers this week. Weekly unemployment claims fell to 323,000, bolstering confidence in the job market. With Non-Farm payrolls for October having reported job growth of a better-than-expected 204k, markets will be keenly watching the Non-Farm Payrolls report for November, which comes out December 6. In addition, inflation numbers remain well below both the Federal Reserve's and European Central Bank's (ECB) target, providing both central banks with policy flexibility. For example, euro zone inflation is running at 0.7 percent, well below the ECB's target of two percent. The ECB next meets on December 5 to discuss monetary policy.

       

Lowered Expectations Lead to Earnings Success     

Aggregate corporate profits for the third quarter were slightly better than those of  the last few quarters. That is, expectations were lowered significantly  enough prior to the start of the quarter such that 65.3 percent of S&P   500 companies beat earnings expectations, while only 41.7 percent beat  revenue expectations (Source: Zacks). While expectations for the fourth  quarter have been coming down, it appears that, like previous quarters,  these negative revisions may not be too worrisome since central bank policy looks to remain quite accommodative for the remainder of 2013 at least.        

               

Annual Reviews

Beginning next year,  I will start scheduling annual review to update my current files with any changes that need to be addressed.  In the meantime, if you would like to meet before your review date, please contact me so I can arrange a meetng time.  This review will be in person and is part of my added value to all my clients.

 

 

HAPPY THANKSGIVING

I would like to wish you and family a safe and Happy Thanksgiving.         

 

Securities offered through Securities Service Network, Inc. Member:  FINRA/SPIC

If a recommendation is included in th above email, please contact me for additional investment information supporting the recommendation.

Fee based advisory services offered through SSN Advisory, Inc. a registered investment advisor  


Sumner Wealth Management,Inc. | 517 Alcove Road | Suite 202 | Mooresville | NC | 28117

(704) 660.5510 x401 | www.sumnerwealthmanagement.com | msumner@ssnrep.com

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