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

WTO

The World Trade Organization is the only international institution that oversees the global trade rules between nations. The WTO is based on agreements signed by the majority of the world's trading nations. The main function of the organization is to help producers of goods and services, exporters, and importers protect and manage their businesses.  Proponents of the WTO, particularly multinational corporations, believe that the WTO is beneficial to business. Skeptics believe that the WTO undermines the principles of organic democracy and widens the international wealth gap. There are 164 member countries in the WTO and 23 'observer' countries, according the official website of the organization.

IN THE MARKETS

Last week

  • Trade remained the topic du jour, but strong jobs data helped to lift equity markets.
  • The DJIA finished the week at 24456.48, up +0.76% on the week.  The S&P 500 closed at 2759.82, up +1.52% on the week. The NASDAQ finished up +2.37% on the week.  U.S. 10-year Treasury ended the week yielding 2.83%.   In the energy markets, crude oil settled at $73.79.  Year-to-date the S&P 500 is up +3.22%.
  • Jobs data for June was strong, with an above-consensus 213K reported.  Unemployment rose to 4% as more people entered the workforce.
  • U.S. tariffs went into effect on Friday.  The Chinese and EU responded with their own tariffs.

 

This week

  • In economic news: the BLS releases consumer price index data; PPI, inventories, and sentiment data are also released.
  • Bank of Canada is expected to raise its key interest rate and issue its monetary policy report.

IN THE NEWS

Last week

  • Washington Recap:  Trade war ramped up; the President suggested the U.S. could exit the WTO and then issued a warning to NATO; immigration battles continued; and Scott Pruitt resigned after months of scandals.
  • Secretary of State Pompeo traveled to North Korea to nail down details of the regime’s plan to reduce nuclear stockpiles.
  • German Chancellor Merkel managed to patch together her governing coalition as immigration concerns persisted.
  • Andres Manuel Lopez Obrador was elected as Mexico’s President.

 

This week

  • The President is expected to announce his pick to replace Supreme Court Justice Kennedy.
  • The President will attend the NATO summit followed by a visit to the U.K.
  • Israeli PM Netanyahu and Russian President Putin are scheduled to meet.  Trump and Putin will meet later in the month.

THOUGHT OF THE WEEK

This week we return to our monthly planning corner as we take a quick look at a wealth transfer strategy.

 

Multi-generational wealth transfer strategies between family members can often be a complex and daunting process, especially when your “family tree” looks more like a “family bush”.  The estate planning and estate tax codes have added layers of complexity for passing assets to future generations, and it is critical to work with an estate planning attorney if situations arise in delayed adolescence, substance abuse, or other financially irresponsible behaviors.  Understanding your family behavior, dynamics, values, and goals are important aspects in creating an effective transfer strategy to the next generation.

 

Certain language in your estate plan may help you preserve family assets, protect your heirs from creditors, control your legacy, and instill your family values.  One example is a Spendthrift Clause written in a trust.  A spendthrift provision may help protect a trust beneficiary from creditors or other parties (i.e. divorcing spouse, dishonest business partners) and generally prevents the beneficiary from transferring the interest out of the trust, thus eliminating the ability of an outside party to obtain the interest.  If you feel your beneficiary is immature or has a history of making unwise financial decisions, then a spendthrift provision may be appropriate that eliminates the ability to give away interest in the Trust.

 

It may be a good idea to set up asset protection language in your trust before a potential threat to your legacy arises.

 

Consult your financial advisor and an estate planning attorney when considering a spendthrift clause in your estate plan.

 

Over the next several weeks we will be sharing our assessment of the first part of the year and then will turn our attention to expectations for the remainder of 2018.

 

Please do not hesitate to call your advisor if you have any questions.  Until we speak again, have a wonderful week.

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.

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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

July 9, 2018

Office: 503-597-2222

Fax: 503-598-8515