Greetings,

 

Here are several highlights from last week’s market activity, as well as developing stories the investment team is following this week.  As always, we remain committed to helping you navigate the ever-changing investment environment.

 

The following highlights should not be viewed as a recommendation, nor is this a notification of an impending change in asset allocation.  For more information, please contact your advisor with any questions.

INVESTMENT TERM OF THE WEEK

WTI

West Texas Intermediate (WTI) crude oil is the underlying commodity of the New York Mercantile Exchange's oil futures contracts. Light, sweet crude oil is commonly referred to as "oil" in the Western world. WTI is considered a "sweet" crude because it is about 0.24% sulfur, which is a lower concentration than North Sea Brent crude. WTI is high quality oil that is easily refined.  WTI crude oil is important because it is an oil benchmark. The significance of a benchmark in the oil market is that benchmarks serve as a reference price for buyers and sellers of crude oil. Oil benchmarks are frequently quoted in the media as the price of oil. Although there are many different varieties of crude oil, there are three primary benchmarks: WTI, North Sea Brent crude, often referred to simply as Brent crude, and Dubai crude.

IN THE MARKETS

Last week

  • Equity markets finished down as investors focused on rising treasury yields.
  • The DJIA finished the week at 24715.09, down -0.47% on the week.  The S&P 500 closed at 2712.97, down -0.54% on the week. The NASDAQ finished down -0.66% on the week.  U.S. 10-year Treasury ended the week yielding 3.06%.   In the energy markets, WTI crude oil settled at $71.28.  Year-to-date the S&P 500 is up +1.47%.

 

This week

  • In economic news: new/existing home sales, FOMC minutes from May, durable goods, and consumer sentiment data will be released.
  • The House of Representatives is expected to vote on an overhaul to the 2010 Dodd-Frank financial legislation; the measure has already passed the Senate.

IN THE NEWS

Last week

  • Washington Recap: North Korea warned it might cancel the summit; Trump eased trade talk on China; and sports betting ok’d by the Supreme Court.
  • Britain, France, and Germany continued to support Iran after Trump pulled the U.S. out of the Iran nuclear accord.
  • In Israel, the U.S. opened its Jerusalem embassy on the same day some 60 Palestinians were killed and 2,700 injured by Israeli soldiers at the fence separating Gaza from Israel.
  • At least 10 were killed in a shooting at a Houston high school. Police arrested a student and found explosives on the campus.

 

This week

  • The House plans to vote on an overhaul to the 2010 Dodd-Frank financial legislation, setting the stage for President Trump to sign the bill. The Senate has already passed the measure to scale back compliance rules.
  • Facebook CEO Mark Zuckerberg will be in Paris to meet with tech executives and have a private meeting with French President Emmanuel Macron.
  • The European Union’s new privacy law, aimed at protecting people’s personal information, goes into effect.

THOUGHT OF THE WEEK

Wall Street has become increasingly focused on DC. And who could blame them! There’s more action in that city than a Hong Kong gambling parlor. This week, however, banks will be closely tuned into a House vote that most likely will overhaul Dodd-Frank.As a reminder, Dodd-Frank required significant reform in areas of regulatory regimes, swaps trading, derivatives valuation and corporate performance pay. Many believe the financial crisis was caused in part by issues with swaps trading in credit default swaps and mortgage-backed securities (MBS). These exotic financial derivatives were traded over the counter, as opposed to on centralized exchanges as stocks and commodities are. Many were unaware of the size of the market for these derivatives and the risk they posed to the greater economy. Dodd-Frank set up centralized exchanges for swaps trading to reduce the possibility of counterparty default and also required greater disclosure of swaps trading information to the public to increase transparency in those markets. The implications of such a change could see an increase in risks taken…we’ll have to wait and see.

 

While we are on the subject of our nation’s capital, this week several members of the MWM team will be in Washington, D.C. attending the Raymond James National Conference. This once a year event brings together some of the nation’s leading minds in wealth management. As a team we look forward to the opportunity to share ideas and learn from this community.

 

Please note that even though some of the team will be diligently taking notes near the banks of the Potomac, the rest of the team will be holding down our home base to help with any of your needs. We look forward to sharing lessons learned from what we are sure will be an enlightening few days into the evolving investment landscape.

NEWS AT MWM

As many of you know, the MWM family has a deeply rooted tradition of giving back by supporting charitable causes in our communities. Earlier this month, Theresa and her trusty sidekicks Nicholas, Yogi and Rico, once again joined thousands of two and four-legged friends at Tom McCall Waterfront Park for the Oregon Humane Society’s 2018 Doggie Dash. The goal of the event is to raise money to house pets, fight animal cruelty and heal pet injuries. This year, a record high of more than $700,000 was collected as the Oregon Humane Society celebrates its 150th year anniversary.  Great job, Theresa!

 

 

These highlights should not be viewed as a recommendation, nor is this a notification of an impending change in asset allocation. For more information, please contact your advisor with any questions. Opinions expressed in the attached article are those of Judith McGee and are not necessarily those of Raymond James. All opinions are as of this date and are subject to change without notice.

 

The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of McGee Wealth Management and not necessarily those of Raymond James. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. . Investing involves risk and you may incur a profit or loss regardless of strategy selected.  The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. The Dow Jones Industrial Average (DJIA), commonly known as “The Dow” is an index representing 30 stock of companies maintained and reviewed by the editors of the Wall Street Journal. The NASDAQ composite is an unmanaged index of securities traded on the NASDAQ system. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor's results will vary. Past performance does not guarantee future results. This information is not intended as a solicitation or an offer to buy or sell any security referred to herein. Asset allocation and diversification do not ensure a profit or guarantee against loss. Investing in emerging markets can be riskier than investing in well-established foreign markets. Investing involves risk and investors may incur a profit or a loss. Sector investments are companies engaged in business related to a specific sector. They are subject to fierce competition and their products and services may be subject to rapid obsolescence. There are additional risks associated with investing in an individual sector, including limited diversification. Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any websites's users and/or members. Raymond James is not affiliated with the  Oregon Humane Society or The Circle of Giving.

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Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services offered through McGee Wealth Management, Inc. McGee Wealth Management, Inc. is not a registered broker/dealer, and is independent of Raymond James Financial Services.

 

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members.  Raymond James financial advisors may only conduct business with residents of the states and/or jurisdictions for which they are properly registered. Therefore, a response to a request for information may be delayed. Please note that not all of the investments and services mentioned are available in every state. Investors outside of the United States are subject to securities and tax regulations within their applicable jurisdictions that are not addressed on this site. Contact your local Raymond James office for information and availability.

MWM Economic Review

May 21, 2018

NEWS AT MWM

As many of you know, the MWM family has a deeply rooted tradition of giving back by supporting charitable causes in our communities. Earlier this month, Theresa and her trusty sidekicks Nicholas, Yogi and Rico, once again joined thousands of two and four-legged friends at Tom McCall Waterfront Park for the Oregon Humane Society’s 2018 Doggie Dash. The goal of the event is to raise money to house pets, fight animal cruelty and heal pet injuries. This year, a record high of more than $700,000 was collected as the Oregon Humane Society celebrates its 150th year anniversary.  Great job, Theresa!

 

 

MWM Economic Review

The Week of May 21, 2018

Office: 503-597-2222

Fax: 503-598-8515