MWM Economic Review

The Week of March 18, 2019

MWM Economic Review

The Week of March 18, 2019

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.

SPECIAL EVENTS:

  • Shred Day - Saturday, April 20, 11:00 AM - 2:00 PM

Don't know what to keep and what to shred? Here is a great article on the MWM blog that can help: Keeping Your Financial Records Straight

Investment Term of the Week

In the Markets

Last Week
  • After a down week, major indexes finished strong with good showings from tech stocks. Markets sustained Friday’s quadruple witching and increased trading volume.
  • The DJIA finished the week at 25848.87, up 1.6% on the week.  The S&P 500 closed at 2830.25, up 2.89% on the week. The NASDAQ finished up 3.8% on the week.  U.S. 10-year Treasury ended the week yielding 2.59%. In the energy markets, crude oil settled at $58.52.  Year-to-date the S&P 500 is up +12.59%.
this Week
  • Both the Federal Reserve and The Bank of England hold meetings this week. Both are expected to hold interest rates steady.
  • Purchasing Managers Index (PMI) is released on Friday. PMI data reflects information about current business operations and is a good indication of manufacturing and service sector health.

In the News

Last Week
  • The World Wide Web celebrated its 30th birthday on March 15th!
  • President Trump ordered the grounding of all U.S. Boeing 737 Max 8 and Max 9 jets, until further investigation, following the company’s second crash of its newest model in the last six months.
  • At least 50 people were killed and 50 wounded, in a hate-filled terror attack targeting two mosques in the New Zealand city of Christchurch.
  • Sunday was St. Patrick’s Day! Fun fact, the Chicago river was first dyed green in 1962. The first year they used 100lbs of vegetable-based dye and the river was green for a week! Now they use 40lbs and the green lasts about 5 hours.
this Week
  • The annual NCAA college basketball tournament starts on March 19th.  Oregon is the No. 12 seed and will play No. 5 seed Wisconsin on Friday.  The women’s bracket will be released on Monday and Oregon State is expected to get a seed in the top 5.
  • UK parliament will vote for a third time Tuesday on a Brexit deal. The two previous votes last week rejected the existing deal and rejected leaving with no deal. Theresa May is expected to ask the EU for an extension on the March 29 deadline.

Thought of the Week

Long-Term Investing – Part IV

“The market is down, maybe I should sell out now and get back in when it’s going up.”  Does this sound familiar.  Odds are friends of yours or maybe even you have thought this at some point when the markets were correcting.  We refer to this thought process as market timing and it can be a dangerous habit.  Sometimes, investors think they can outsmart the market; other times, fear and greed push them to make emotional, rather than logical decisions.

The chart below is a sobering reminder of the potential costs of market timing.  By missing some of the market’s best days, investors can lose out on critical opportunities to grow their portfolio, with devastating results.  Importantly, as the chart also notes, 6 of the 10 best days occurred within 2 weeks of the 10 worst days.  You may get lucky once or twice but over the long term we advocate staying invested and managing volatility, which may result in a better investment outcome.


Next week we will continue our series on long-term investing and will continue to delve into the benefits of diversification and mitigating our emotional biases.

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.

Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory and financial planning 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.

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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The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represent approximately 8% of the total market capitalization of the Russell 3000 Index. The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. As of June 2007 the MSCI World Index consisted of the following 23 developed market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom, and the United States. The MSCI EAFE (Europe, Australasia, and Far East) is a free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the United States & Canada. The EAFE consists of the country indices of 22 developed nations. The MSCI Emerging Markets is designed to measure equity market performance in 25 emerging market indices. The index's three largest industries are materials, energy, and banks. The Nikkei 225 is a stock market index is for the Tokyo Stock Exchange (TSE). It is the most widely quoted average of Japanese equities. The Euro STOXX 50 Index is a market capitalization weighted stock index of 50 large, blue-chip European companies operating within Eurozone nations. The MSCI US REIT Index is a free float-adjusted market capitalization weighted index that is comprised of equity Real Estate Investment Trusts (REITs). The index is based on the MSCI USA Investable Market Index (IMI), its parent index, which captures the large, mid and small cap segments of the USA market. The Alerian MLP Index is a composite of the 50 most prominent energy master limited partnerships calculated by Standard & Poor's using a float-adjusted market capitalization methodology. The index is disseminated by the New York Stock Exchange real-time on a price return basis (NYSE: AMZ). The Barclays Global Aggregate Index is a flagship measure of global investment grade debt from twenty-four local currency markets. Investing in commodities is generally considered speculative because of the significant potential for investment loss. Their markets are likely to be volatile and there may be sharp price fluctuations even during periods when prices overall are rising.

Making Life a Richer Experience

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 eMoney.  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.

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