Concerns about Europe and the global economy set a negative tone last week and markets closed out at a loss. The S&P lost 1.15%, while the Dow lost 1.67%, and the Nasdaq 0.76%. On a positive note, the U.S. economy continues to slowly improve as evidenced by a surprisingly positive consumer sentiment report, showing that American consumers are still upbeat about the economy. Jobless claims held steady for the week and some analysts speculate that the unusually high unemployment claims seen in the first weeks of April were the result of seasonal adjustment and not actual job losses. Earnings season is winding down, but a few key players such as Disney, Macy’s, and Kohl’s posted better-than-expected earnings. [1] (These opinions are not to be construed as investment advice)

Eurozone troubles were at the core of investor concerns last week as realization dawned that in order to keep the European Union (EU) together, the European Central Bank (ECB) will have to pump trillions of euros into the monetary system. Germany is likely to face high inflation rates for the next few years as it struggles to help the economies of its partner countries. Still haunted by the hyperinflation of the early 1920s, German voters may balk at the spending required to keep the euro afloat, pressuring politicians to balance needs with voter concerns – something that is never easy to do.

The recent European elections may also make it difficult for Europe to make headway against its debt troubles. Hollande, the new Socialist president in France, has promised voters not to continue with strict austerity measures. While this is appealing to the masses, it could lead to additional downgrades on French debt, thus making problems worse. In Greece, the majority parties won less than 35% of the votes, giving significant headway to fringe parties. This development, combined with popular sentiment so opposed to necessary austerity measures, has made it increasingly likely that Greece will leave the Eurozone. While the EU can probably survive the exit of Greece, in order to preserve its integrity, it will be critical for the ECB to prevent the default (and exit) of Spain or any of the larger economies. The ECB is the only entity in Europe with the power to save Spain from default – however, the only way to do so is by printing a ton of money, and risking inflation and currency devaluation.[2]

What all this means for U.S. investors is this: The crisis in Europe is far from over, and we should not be surprised by volatility and uncertainty right now. If European politicians, nervous about losing elections, refuse to make hard budget decisions, Europe’s crisis may deepen and threaten the stability of the euro. It is impossible to know what the future holds for Europe, but with every downside usually comes an upside somewhere else. We work hard to identify those upsides, and to adjust our clients’ investment strategies where necessary. Thank you for the trust you’ve placed in us.

ECONOMIC CALENDAR

Tuesday: Consumer Price Index, Retail Sales, Empire State Mfg. Survey, Treasury International Capital, Business Inventories, Housing Market Index
Wednesday: Housing Starts, Industrial Production, EIA Petroleum Status Report, FOMC Minutes
Thursday: Jobless Claims, Philadelphia Fed Survey

PERFORMANCE

Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized. Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not available.

HEADLINES

Falling gas prices cause wholesale prices to drop in April. Wholesale gas prices tumbled to an average of $3.74 last week, nearly 20 cents cheaper than a month ago. With falling energy costs, consumers will have more money to spend on other purchases, which usually boosts the economy.[3]

Chinese industrial production slowed to 9.3% in April, down from 11.9% in March, signaling that the Asian giant may be in trouble. Analysts had predicted a jump to 12.2%. [4]

JP Morgan Chase reports $2 billion loss in derivatives portfolios. The bank, the largest in the U.S. by assets, incurred the trading loss by mishandling a portfolio of complex financial derivatives. Additional losses may occur as the bank unwinds its positions.[5] (These opinions are not to be construed as investment advice)

U.S. records first monthly budget surplus since 2008. The federal government recorded a $59 billion surplus as tax receipts were greater than expenditures. Though this is certainly welcome news, it is unlikely to be the start of a trend. [6]

Investing involves risk including the loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

The Housing Market Index (HMI) is a weighted average of separate diffusion indices based on a monthly survey of NAHB members designed to take the pulse of the single-family housing market. Each resulting index is then seasonally adjusted and weighted to produce the HMI.

The BLS Consumer Price Indexes (CPI) produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. Survey responses are seasonally adjusted and weighted to produce a composite index.

The Conference Board Leading Economic Index (LEI) is a composite economic index formed by averages of several individual leading economic indicators, which are weighted to produce the complete index.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for futher information.

By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.

May 2012

George Washington once said, “All I am I owe to my mother. I attribute all my success in life to the moral intellectual and physical education I received from her.” Likewise from Abraham Lincoln, “I regard no man as poor who has a godly mother.”

Mothers are one of God’s most special creations, yet they often go greatly unappreciated, even at this time of year. Theirs is the most stressful occupation with hours upon hours of overtime and no option for sick days, vacation pay, or resignation. They fearlessly endure the terrible twos, the teenage attitudes, and empty nests. They are the ever-dependable short order cooks, taxi drivers, psychologists, traffic cops, nurses, hairdressers, janitors, teachers, computer technicians, laundry operators, and negotiators.

Their shoulders carry the weight of the world yet are gentle enough to provide tear-soaked comfort. They have an inner strength to endure childbirth and the rejection that often comes from their children. They keep going when everyone else gives up and take care of their families despite illness and fatigue, never complaining. They love their children under all circumstances, even when their child has hurt them deeply. They have the magic touch that somehow makes skinned up knees and broken hearts heal just a little bit faster. Moms treat our messy crayon drawings like they belong in a museum, giving them the highest place of honor on the fridge. They celebrate our first everything: first tooth, first steps, and first love. They tell us we can be anything we want to be and actually believe it, even when we don’t. They wake up for 3am feedings, then stay up late to make sure we don’t come home at 3am. They hold our hands and cry with us when the bottom seems to fall out then jump with joy, rejoicing in our success.

Moms give us a tangible reminder of the fruits of the spirit: love, joy, peace, patience, kindness, goodness, faithfulness, gentleness, and self-control. So, Happy Mother’s Day to all you moms out there! You are such a blessing! And children, don’t let Sunday, May 13^th be the only day you say thank you to your mother.

“Her children arise and call her blessed; her husband also, and he praises her: “May women do noble things, but you surpass them all.” Charm is deceptive, and beauty is fleeting; but a woman who fears the Lord is to be praised. Honor her for all that her hands have done, and let her works bring her praise at the city gate.”

Proverbs 31: 28-31

Congratulations Are In Order!

On Saturday, May 12^th, our Marketing Coordinator, Kimberly Jenkins, will graduate Summa Cum Laude from Liberty University. She has a new bachelor’s degree in Business with concentrations in Marketing and Financial Planning and hopes to take the CERTIFIED FINANCIAL PLANNER^TM exam in early to mid 2013. For the most part, she has been working remotely for the past several months but looks forward to being in the office on a more regular basis and meeting many of you in person.

The Applications Are In!

The first-ever Shining Lights Scholarship was a great success and we received applications from many worthy students. We don’t envy our Client Advisory Board having to choose the winner! Be on the lookout in the next couple of weeks for an announcement on our website and social media pages.

Last week was a rough one for U.S. stocks. The markets started off the week positive, pushed upward by positive corporate earnings, but retreated the last three days to close at a low point, hammered by a disappointing jobs report and renewed fears about a stuttering economic recovery. The S&P lost 2.44% – its worst weekly performance this year, while the Dow lost 1.44% and the Nasdaq fell 3.68%.^[1]

The week’s sell off began on Wednesday when the latest ADP Employment Report – usually released before the official Labor Department report – suggested that employment had improved by less than expected. The news was confirmed on Friday when the official numbers showed that employers had added just 115,000 jobs in April, falling well short of the expected 170,000 new jobs. Although the unemployment rate dropped to 8.1%, we can’t get excited about it because the fall is primarily due to job-seekers giving up their job search.  If we see continued slowness in the job market, it is possible that the Federal Reserve will step up efforts to boost the economy again. Since inflation is still well below the danger zone, the Fed still has room to take action.

Solid corporate earnings have provided a breath of fresh air, showing that business is still humming along. First-quarter earnings among companies in the S&P 500 are currently at 7.8%, well ahead of expectations. However, companies are forecasting a much slower second quarter, a sign that executives are bracing for declining sales.^[2] Analysts believe that a warm March and an early Easter may have shifted sales to March, cutting into second quarter revenues. Please also keep in mind that companies often sandbag their forecasts in order to artificially beat expectations when the official earnings are posted.

Last week’s poor market performance and disappointing jobs report reminds us that our economy and investors nerves are still “recovering.” Just as an injured person who undergoes a major surgery will have good days and bad days while recovering, so our healing economy will experience ups and downs

ECONOMIC CALENDAR

Wednesday: EIA Petroleum Status Report
Thursday: Ben Bernanke Speaks 9:30am, International Trade, Jobless Claims, Import and Export Prices, Treasury Budget
Friday: Producer Price Index, Consumer Sentiment

PERFORMANCE

Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized. Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not available.

HEADLINES

I’ll Have Another beat Bodemeister at the 138th Kentucky Derby. I’ll Have Another chased down Bodemeister in the stretch to capture the win with a finish time of 2:01.83, while pre-race favorite Union Rags finished seventh. ^[3]

Gas prices fall for 18 straight days and oil drops below $100/barrel. The precipitous drop in gas prices will likely continue as global demand weakens, providing much-needed relief during peak summer driving months. Nationally, gas averaged $3.80 a gallon, nearly 20 cents below 2011’s $3.99 a gallon.^[4]

April retail sales fall short of predictions, but retail analysts say it is not necessarily a sign of weakened consumer spending. Same-stores sales grew just 0.8%, missing a predicted increase of 1.5%, according to Retail Metrics, Inc.^[5]

Mortgage rates fall to near-60 year lows. 30-year mortgage rates fell to 3.84% this week, potentially spurring a round of refinancing and encouraging housing purchases. However, with mortgage standards remaining tight, it may be difficult for some buyers to qualify for ultra-low rates.^[6]

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

The Housing Market Index (HMI) is a weighted average of separate diffusion indices based on a monthly survey of NAHB members designed to take the pulse of the single-family housing market. Each resulting index is then seasonally adjusted and weighted to produce the HMI.

The BLS Consumer Price Indexes (CPI) produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. Survey responses are seasonally adjusted and weighted to produce a composite index.

The Conference Board Leading Economic Index (LEI) is a composite economic index formed by averages of several individual leading economic indicators, which are weighted to produce the complete index.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.

By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.

^[1] http://biz.yahoo.com/mu/update.html

^[2] http://www.reuters.com/article/2012/05/04/us-usa-stocks-earnings-idUSBRE84318620120504

^[3] http://www.vancouversun.com/sports/Kentucky+Derby+2012+full+results+Have+Another+beats+Bodemeister/6573278/story.html

^[4]http://www.usatoday.com/money/industries/energy/story/2012-05-04/oil-dips-as-gasoline-prices-fall/54748536/1

^[5] http://www.chicagotribune.com/business/sns-mct-april-retail-sales-fall-short-of-predictions-20120504,0,7987070.story

^[6] http://www.usatoday.com/money/economy/housing/story/2012-05-03/mortgage-rates-new-record-lows/54720362/1

The trading week started off slowly as investors absorbed further troubling news about the state of the global economy: Disappointing manufacturing reports from China, France, and Germany, plus news that the Netherlands might be heading for its own fiscal crisis.[1] Things turned around later in the week though, as domestic equities closed higher on positive news surrounding U.S. corporate earnings. The Dow managed to recoup all its April losses, closing up 1.53% for the week, while the S&P rose 1.80%, and the Nasdaq gained 2.29%. For the moment, corporate earnings are providing a positive counterpoint to lackluster economic news.

The state of our nation’s economy was also in the spotlight last week. Gross Domestic Product (GDP) grew by 2.2% in the first quarter, down from 3.0% in the fourth quarter of 2011. The biggest factors in the slowdown were slower inventory-building by private companies and less defense spending by the federal government. Thankfully, consumer spending – the largest contributor to GDP – is still strengthening, which should lead to ongoing improvement in our overall economic picture.[2] In keeping with its upbeat tone, the Fed added 20 basis points to its 2012 GDP forecast, increasing predicted growth to between 2.4%-2.9% this year. The Fed also agreed to keep interest rates between 0.00%-0.25%, and expects inflation to remain below 2.0% for the next two years. During the follow-up press conference, Chairman Ben Bernanke stated that the Fed was still prepared to take an active role in the recovery.[3]

Unemployment claims continue to remain near a three-month high, indicating that employers have stepped-up layoffs and are reluctant to increase hiring. However, economists believe that the mild winter distorted first-quarter hiring, making it appear unusually strong. Overall, the economy has continued to add jobs and unemployment is falling well ahead of estimates.[4]

Regardless of what happens with short-term market movements and news from abroad, we are grateful to see that the U.S. economy is recovering from the financial crisis better than any other economy in the world right now. This is likely a major reason why we have seen domestic equities performing so well lately – when compared with the rest of the world, U.S. companies are the prettiest girl at the dance. While there are sure to be bumps in the road ahead, corporate balance sheets are strong, the job market is slowly improving, consumers are still spending, and our economy is chugging along.

ECONOMIC CALENDAR

Monday: Personal Income and Outlays, Chicago PMI, Dallas Fed Mfg. Survey
Tuesday: Motor Vehicle Sales, ISM Mfg. Index, Construction Spending
Wednesday: ADP Employment Report, Factory Orders, EIA Petroleum Status Report
Thursday: Jobless Claims, Productivity and Costs, ISM Non-Mfg. Index
Friday: Employment Situation

PERFORMANCE

Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. N/A means not available.

HEADLINES

U.S. Gas prices are lower now than they were a year ago. After falling for most of the month of April on slowing global demand, gas prices are lower in most of the U.S. than they were last year. This should give consumer confidence a boost as we move into the peak summer driving season.[5]

Spain’s economic crisis worsens as unemployment rises. A recent report shows that Spain’s overall unemployment rate hit 24.2% while the unemployment rate for youths under 25 reached a staggering 52%. Underscoring the bad news, the S&P downgraded Spain’s debt rating to BBB+.[6]

Home sales jumped by 4.1% in March to reach the highest level since April 2010, indicating that the battered housing market is recovering. In a separate report, mortgage buyer Freddie Mac says that the average rate on 30-year loans averaged 3.88%, very close to the historic low reached in the 1950s, keeping home financing affordable. [7]

Heavy debt may be depressing consumer spending. The housing bust may have burdened households with high debt levels, preventing them from spending more. Record student-loan debt and poor job prospects may be prompting younger workers to put off marriage and live at home longer, reducing household formation and furniture purchases.[8]

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

The Housing Market Index (HMI) is a weighted average of separate diffusion indices based on a monthly survey of NAHB members designed to take the pulse of the single-family housing market. Each resulting index is then seasonally adjusted and weighted to produce the HMI.

The BLS Consumer Price Indexes (CPI) produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. Survey responses are seasonally adjusted and weighted to produce a composite index.

The Conference Board Leading Economic Index (LEI) is a composite economic index formed by averages of several individual leading economic indicators, which are weighted to produce the complete index.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.

By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.

[2] http://www.usatoday.com/money/economy/story/2012-04-27/first-quarter-gross-domestic-product/54574828/1

[3] http://biz.yahoo.com/mu/update.html

[4] http://www.usatoday.com/money/economy/story/2012-04-26/unemployment-claims/54547952/1

[5] http://www.dailyfinance.com/2012/04/24/gasoline-prices-cheaper-than-year-ago/

[6] http://www.usatoday.com/money/world/story/2012-04-27/spain-financial-crisis-unemployment/54577324/1

[7] http://www.usatoday.com/money/economy/housing/story/2012-04-26/pending-sales-mortgage-rates/54550188/1

Strong corporate earnings caused stocks to rally last week for the first time this month. The S&P closed up 0.6% for the week, while the Dow closed 1.4% higher, and the Nasdaq trimmed 0.36%. With no domestic economic reports released on Friday, traders turned their attention back to lingering concerns over Europe and China, and markets lost some momentum in afternoon trading. Even so, last week’s positive earnings reports are alleviating concerns about the economy and making investors feel more confident about the rallies we’ve seen this year. With 23% of S&P 500 companies having reported results so far, more than four out of five have beaten expectations by an average of 8.8%. Profit growth in this quarter has also been up 6.2%, according to Thomson Reuters Proprietary Research.[1]

While some analysts are concerned that stocks are poised to repeat their 2010 and 2011 performance – when a mid-year retreat followed an April peak – there are many differences between the economy of the past two years and today. The 2010 and 2011 pullbacks largely occurred because of recession fears and shocks created by the Japanese Tsunami, but the U.S. economy is on more solid footing than at any other time in the recovery. Current indicators point to slow and steady economic growth, and we have already moved away from index highs. If we continue to see positive earnings among the nearly 180 S&P 500 components reporting next week, we may see markets sustain their upward trajectory.[2]

Investors will also be closely watching Tuesday’s meeting of the Federal Reserve FOMC. With an optimistic economic outlook and improving jobs situation, it is unlikely that the Fed will conduct another round of bond purchases. Even so, we will be monitoring the Fed’s statement on Wednesday, and will be certain to fill you in on any outstanding developments. We hope you have a great week!

ECONOMIC CALENDAR

Tuesday: S&P Case-Shiller HPI, New Home Sales, Consumer Confidence
Wednesday: Durable Goods Orders, EIA Petroleum Status Report, 5-Yr Note Auction, FOMC Meeting Announcement, FOMC Forecasts, Chairman Press Conference
Thursday: Jobless Claims, Pending Home Sales Index
Friday: GDP, Employment Cost Index, Consumer Sentiment

PERFORMANCE

Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized. Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not available.

HEADLINES

Spain’s bond auction sees strong demand from investors. Spain’s central bank sold all the 2.54bn euros of bonds it was offering, with demand higher than expected. These eased global worries about Europe’s lingering debt problems and shows that investors are eager to snap up bargain-basement debt.[3]

Fewer U.S. states reported job gains in March, indicating a slowing of job growth nationwide. According to Labor Department figures, 29 states reported job gains last month while 20 states lost jobs. In more positive news, the unemployment rate fell in most states.[4]

Sales of previously-owned houses dropped in March, despite low mortgage rates. According to National Association of Realtors figures, home sales fell last month by 2.6%. Seasonal factors might be behind the disappointing figures: the first months of 2012 were the strongest in five years, indicating that a mild winter may have encouraged buyers to close earlier, stealing sales from March.[5]

High energy prices may be slowing rural economic growth. According to the Rural Mainstreet survey, higher energy and fuel costs are slowing growth in 10 Midwest and Plains areas dependent on agriculture. Slowing global demand for key crops may also be having an effect on growth.[6]

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

The Housing Market Index (HMI) is a weighted average of separate diffusion indices based on a monthly survey of NAHB members designed to take the pulse of the single-family housing market. Each resulting index is then seasonally adjusted and weighted to produce the HMI.

The BLS Consumer Price Indexes (CPI) produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. Survey responses are seasonally adjusted and weighted to produce a composite index.

The Conference Board Leading Economic Index (LEI) is a composite economic index formed by averages of several individual leading economic indicators, which are weighted to produce the complete index.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.

By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.

It was a rough one for the stock market last week as major indices closed out their worst session of 2012 on the back of disappointing economic growth in China and renewed fears about debt-ridden Europe. The S&P fell 2% for the week, while the Dow lost 1.61%, and the Nasdaq closed down 2.25%.

China, the world’s second-largest economy, reported first-quarter growth figures of 8.1%, the weakest rate in nearly three years, and below expectations of 8.3%. Stocks fell sharply on the news, stoking fears that a weakened Chinese economy could have global implications.[1] Concerns surrounding Spain’s debt offering next week renewed fears about the European debt crisis, battering bank stocks and dragging down the euro against the dollar.[2]

On the other hand, domestic indicators continue to provide a positive contrast to global worries. The most recent Beige Book report released by the Federal Reserve shows that the U.S. economy is improving at a “modest to moderate” pace as solid auto sales, warm weather, and growth in high-tech manufacturing outweighed the effect of high gasoline prices.[3] Sales by U.S. wholesalers rose 1.2% in February, and they restocked their inventories at a faster rate in February than January, suggesting they expect a strong spring. Consumer confidence likewise grew in February by the most in seven months. This is especially good news since consumer spending drives nearly 70% of domestic economic activity; if consumers keep spending, the economy will continue to improve.[4]

Domestically, the U.S. economy really seems to be chugging along, and indicators continue to support a broad recovery. Nevertheless, concerns about the fragile global economy will likely lead to continued volatility in equity markets. The declines experienced over the last two weeks are not difficult to comprehend in light of the outstanding first quarter performance we experienced. In the weeks ahead, analysts will be examining quarterly earnings reports to determine whether the pullback has been exhausted, or if we should expect continued profit taking.

As always, when short-term declines test your resolve, it is critically important to remain focused on your long term objectives and trust that the portfolio strategy you have in place can weather a few squalls.

ECONOMIC CALENDAR

Monday: Retail Sales, Empire State Mfg Survey, Treasury International Capital, Business Inventories, Housing Market Index
Tuesday: Housing Starts, Industrial Production
Wednesday: EIA Petroleum Status Report
Thursday: Jobless Claims, Existing Home Sales, Philadelphia Fed Survey

PERFORMANCE

Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. N/A means not available.

HEADLINES

Five years after the U.S. housing bust sent sales and prices plunging, the spring home-buying season is pointing to a long-awaited recovery. Reduced prices, record-low mortgage rates, higher rents, and an improving job market appear to be emboldening many would-be buyers. Earnings reports Friday from two big banks suggested that more people are taking out mortgages. JPMorgan Chase issued 6% more mortgages from January through March than it did a year ago and recived 33% more applications. Wells Fargo issued 54% more mortgages and received 84% more applications.[5]

Oil prices fall on signs of weaker economic growth. Oil slipped below $103 per barrel on news of softening global demand. If the Chinese economy is slowing down, demand for oil could weaken since Chinese industries are one of the primary consumers of petroleum.[6]

Small business confidence dropped sharply in March, indicating that small business owners might be feeling the pinch of high gas prices. According to the report, many entrepreneurs plan on raising prices this year in response to higher energy costs.[7]

Gasoline prices may have already peaked in the U.S. Despite predictions that gas prices would continue their skyward march, the average price of gas nationwide has fallen to $3.90, down 3 cents from a week ago, indicating that the peak might be behind us.[8]

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

The Housing Market Index (HMI) is a weighted average of separate diffusion indices based on a monthly survey of NAHB members designed to take the pulse of the single-family housing market. Each resulting index is then seasonally adjusted and weighted to produce the HMI.

The BLS Consumer Price Indexes (CPI) produces monthly data on changes in the prices paid by urban consumers for a representative basket of goods and services. Survey responses are seasonally adjusted and weighted to produce a composite index.

The Conference Board Leading Economic Index (LEI) is a composite economic index formed by averages of several individual leading economic indicators, which are weighted to produce the complete index.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.

By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.

[2] http://www.bloomberg.com/news/2012-04-14/spanish-bonds-decline-for-second-week-on-debt-contagion-concern.html

[3] http://articles.marketwatch.com/2012-04-11/economy/31323234_1_retail-sales-auto-sales-report

[4] http://www.usatoday.com/money/economy/production/story/2012-04-10/wholesale-inventories-sales-february/54144442/1

[5] http://newssun.suntimes.com/business/11924633-420/home-buying-season-finally-signaling-a-recovery.html

[6] http://news.yahoo.com/oil-falls-signs-weaker-economic-growth-165940471.html

[7] http://www.usatoday.com/money/smallbusiness/story/2012-04-10/small-business-owners-confidence/54158558/1

Following the strongest quarterly performance since 2008 and the best first quarter performance since 1998, major indices retreated this week, weighed down by disappointing economic reports and renewed concerns over Europe’s debt crisis. The string of losses before Friday’s market holiday left the S&P, the Dow, and the Nasdaq all slightly lower. This is only the third weekly loss for the stock market in 14 weeks of trading.

A positive ISM Manufacturing Index report pushed stocks higher on Monday, but sentiment shifted on Tuesday as the Fed’s FOMC meeting minutes revealed that because of an optimistic view of the economic recovery, the Fed is unlikely to buy bonds to further stimulate the economy. It should not come as a surprise to investors that the Fed’s monetary policy is conditional on economic developments. If the economy takes a turn for the worse, there is little doubt that the Fed will step in again.[1] Interestingly, you might be inclined to think that an optimistic view from the Fed would be good for stocks, but this highlights that stocks move for a variety of reasons not always linked to economic performance and pundit predictions.

Friday’s employment report indicated that jobs growth had slowed considerably in March, but there were also significant positive signs to be found in its pages. The unemployment rate dropped, and the underemployment rate – which counts jobless people looking for work, part-time workers who want full-time jobs, and discouraged job seekers – fell to a three-year low of 14.5% from 14.9% in February, one of the largest monthly drops on record.[2] This is a key number in the government’s monthly employment report, and it’s one that we are happy to see moving down.

Concerns surrounding Europe’s sovereign debt crisis flared again after Spain’s latest debt auction drew underwhelming demand, and yields on Spanish government bonds rose on fears that they may have trouble paying back their debt.[3] Clearly, more time will be needed before we can put this drama behind us.

This week’s losses were not at all unexpected. Mediocre economic reports, lingering doubts about the Fed’s future monetary policy, and renewed concerns about Europe’s problems all played a part in the retreat. We might see further losses in the weeks to come, but let’s keep focused on the underlying trends: the U.S. economy is improving, the job market is improving, and we are on track for a solid year of economic performance. When short-term losses threaten your peace of mind, focus on your long-term strategy and remember that we are actively monitoring the economy and world equity markets, and will keep you updated.

ECONOMIC CALENDAR

Wednesday: Import and Export Prices, EIA Petroleum Status Report, 10-Yr Note Auction, Beige Book, Treasury Budget
Thursday: International Trade, Jobless Claims, Producer Price Index
Friday: Consumer Price Index, Consumer Sentiment

PERFORMANCE

Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. N/A means not available.

HEADLINES

U.S. retailers report better-than-expected gains in March. Motivated by unseasonably warm weather and a brighter economic picture, shoppers pushed retail sales for the month of March higher than expected with a 3.9% gain, according to data from research firm Retail Metrics, which originally estimated March sales would rise 3.3%.[4]

Factory orders rose 1.3% in February. The Commerce Department report states that orders to U.S. factories increased in February. Businesses’ ordering of more machinery and equipment indicates that many are investing in their companies despite the expiration of a tax credit.[5]

Independent ratings firm downgrades U.S. credit level. Ratings firm Egan-Jones lowered its senior debt rating on the U.S. to AA, its third highest rating, down one notch from AA-plus. The firm is concerned about the ballooning federal debt, which could rise to $16.7 trillion by the end of 2012.[6]

Gas prices averaged $3.97 nationwide on Friday. The average price for a gallon of gasoline rose 3.74 cents over the past two weeks, the smallest increase since January, according to the nationwide Lundberg Survey. However, according to the report, gas prices already are falling in some cities, such as Chicago and Los Angeles, indicating that we may have already seen the price peak.[7]

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

The ISM Manufacturing Index is an index based on surveys of more than 300 manufacturing firms by the Institute of Supply Management. A composite diffusion index is created that monitors conditions in national manufacturing based on the data from these surveys.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.

By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.

Spring is here! Everywhere around us are signs of renewed life—flowers are blooming, trees are budding, and the warm sunshine beckons us outside. It’s a stark contrast from the cold, barren days of winter that are now behind us. This also means it’s time to start thinking about sowing, weeding, and cultivating in anticipation of the harvest. However, there are some inherent principles in this process that apply not only to the squash and tomatoes we’ll reap from our vegetable gardens later this summer, but also to our investment portfolios.

Take a look at Proverbs 1:10-19. The first thing we can take away from this is passage is that when “the getting of all sorts of valuable things” becomes our primary objective, it leads to “lying in wait for someone’s blood” (at least figuratively). Throughout scripture, it is evident that there are only two kingdoms with conflicting fundamental principles: God’s kingdom and the principle of serving versus the world’s principle of being served.

Verse 19 is particularly important: there is both ill-gotten and well-gotten gain, the first of which inevitably leads to death. Looking back at verse 13, God calls the ill-gotten gain achieved at the expense of others “plunder.” Well-gotten gain, on the other hand, is God’s economic blessing for those who seek to serve.

The warning in this passage is not only directed at those who initiate the plundering, but those who willingly, whether directly or indirectly, participate in it. Many businesses unashamedly generate profits by exploiting, or even harming, rather than helping their customers. There are the obvious examples of tobacco, pornography, and abortion, but what about things like shady lending practices? Investors in these companies are the direct and willing beneficiaries of these ill-gotten gains, a.k.a. plunder. We’ve already been warned of the outcome…

This is why it’s important for Christians to choose wisely. Whether operating a company or investing in one, it just makes good business sense to focus on serving others and let the profits follow. Profiting from plunder, on the other hand, always ends badly for everyone involved.

If you would like more information on Biblically Responsible Investing (BRI) or would like to do a little weeding and cultivating within your portfolio, let us know. We’d love to help!

Some Important Dates to Remember

• April 17^th: 2011 IRA contribution deadline (don’t forget to allow time for processing)
• April 20^th: Shining Lights Scholarship applications due by 4:00pm
• April 28^th: Last day to register as a golfer or sponsor for the BWC Charity Golf Classic

When the closing bell rang on Friday the 30^th, the Dow and the S&P closed out their best first-quarter performance since 1998 and the Nasdaq notched its best performance since 1991.

The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. Chart is for illustration purposes only. Performance excludes reinvested dividends. Past performance is no guarantee of future results. Index is unmanaged and cannot be invested into directly. Source: Yahoo! Finance.

After a string of declines last week, the markets showed modest gains on Friday amidst economic reports indicating that U.S. consumer spending and consumer sentiment are still on the rise. Consumer sentiment rose in February by the highest level in seven months and March consumer confidence bounced to its highest level in more than a year. U.S. Treasuries fell as investors left the refuge of debt to participate in the market rally.[1]

While we’re pleased at the good economic news and the close of a strong quarter for equities, we’re also paying close attention to reports due to be released later this week which include data on manufacturing and construction spending, reports on the labor market, and Fed FOMC meeting notes. With market optimism so high, any mixed news could leave stocks vulnerable to a retreat. If a pullback does occur, many analysts believe that it will be a healthy sign of reduced investor exuberance.[2] However, a retreat is certainly not a given. Historically speaking, the S&P 500 has only gained more than 10% in the first quarter on eight other occasions since 1945, and the market went on to gain in the second quarter six of those eight years.[3]

We’re thankful to see that the picture in Europe has improved somewhat during the first quarter, and the market has rewarded this improvement. Though a permanent solution is still needed, the European Central Bank has managed to avert a liquidity crisis for now. We look forward to further steps being taken to address the underlying solvency issues that still exist.

Rising gas prices continue to be an area of concern, as any further pinch at the pump could lead to decreases in consumer spending, slower retail sales, reduced manufacturing, cuts in hiring, and ultimately to a slower moving economy (Likely in that order). This is clearly not something we want to see. Oil prices – and gas prices by extension – are predominantly affected by supply and demand. And with only 2 million barrels a day of effective excess capacity, versus global oil demand of 75 million barrels a day, it is easy to see why prices remain elevated.[4] Tensions over Iran exacerbate this problem, as any escalation there could easily lead to dramatic spikes in prices here. On the other hand, if the Iran situation cools off, we could also see oil prices fall. As we have mentioned before, oil prices teeter delicately on a combination of supply issues and speculation.

Comments made by Federal Reserve Chairman Ben Bernanke on Monday suggested that the Fed would like to see a more rapid expansion in the economy, and it’s willing to back up its words with additional quantitative easing.[5] Whether or not that would be a good thing is heavily debated, and there are extremely vocal proponents on both sides of the issue. We’ll reserve our thoughts on that matter for a future edition. Either way, if we continue to see solid economic reports and improvement in the global economic situation, the Fed will probably not take further action.

The important thing to keep in mind is that the long-term performance of your investments is not tied to short-term market movements. All the underlying signs point to a continued economic recovery, and we are closely monitoring available information as we chart our course for the next quarter and beyond.

ECONOMIC CALENDAR

Monday: ISM Mfg. Index, Construction Spending
Tuesday: Motor Vehicle Sales, Factory Orders, Federal Reserve FOMC Minutes
Wednesday: ADP Employment Report, ISM Non-Mfg. Index, EIA Petroleum Status Report
Thursday: Jobless Claims
Friday: Markets closed for Good Friday, Employment Situation Report

PERFORMANCE

Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. N/A means not available.

HEADLINES

The U.S. economy grew by 3% in 4^th quarter 2011, which was the fastest growth rate since 2010. However, economists believe that that growth slowed to 1.5% in the first three months of 2012, dragged down by weak exports and rising oil prices.[6]

Moody’s may lower credit rating of world’s largest banks. Moody’s is reviewing 15 of the world’s largest banks – including Morgan Stanley, Bank of America, and Citigroup – for possible credit rating downgrades. If the cuts happen, it would increase the cost of credit and reduce their global competitiveness.[7]

Treasuries end worst quarter since 2010. As fears about the U.S. subsided, investors moved money out of U.S. Treasuries and into stocks. Any monetary stimulus action by the Federal Reserve would erode Treasury yields, while concerns about China or the Eurozone crisis could again push investors into safe-haven investments.[8]

Analysts think gas prices might fall. Gas prices are still climbing, having hit a national average of $3.93 this week, but some analysts think the price might level out and begin to fall as U.S. allies open strategic reserves to curb high prices.[9]

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against lost in periods of declining values.

The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to b representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.

By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.

[2] http://news.yahoo.com/wall-st-week-ahead-stocks-first-quarter-run-010526518.html

[3] http://www.usatoday.com/money/perfi/stocks/story/2012-03-30/first-quarter-stock-rally/53899942/1

[4] http://news.morningstar.com/articlenet/article.aspx?id=541613

[5] http://www.reuters.com/article/2012/03/26/us-markets-stocks-idUSBRE82L0JD20120326

[6] http://www.usatoday.com/money/economy/story/2012-03-29/economic-unemployment-claims-gdp-0329/53852264/1

[7] http://dealbook.nytimes.com/2012/03/29/three-major-banks-prepare-for-possible-credit-downgrades/

[8] http://www.reuters.com/article/2012/03/30/markets-usa-bonds-idUSL2E8EU9PV20120330

Stocks edged higher on Friday after a rough week marked by positive economic news in the U.S. but troubling economic news from Asia. For the week, the S&P and Dow notched their biggest losses of the year, 0.5% and 1.1%, respectively, while the Nasdaq edged up by 0.4%, bolstered by positive earnings in tech stocks.[1]

Despite reports of increased strength in the American jobs market, improved corporate profits, and strong consumer sentiment, some investors feel increasing worry about Asia, Europe, and the impact higher oil prices could have on consumer spending. New reports show that China’s manufacturing sector is slowing due to reduced global demand; in Europe, Ireland slipped back into recession; and oil prices briefly spiked to the highest level in three weeks on Friday, following a report that Iranian oil exports dropped significantly this month.[2]

The markets have posted solid returns in 2012, with the S&P up 11.09% this year. While some data indicates that we are poised for a decline, other data indicates that the markets are likely to move higher. So is it time to pull out of equities and lock in profits? Or is it better to ride things out in hopes the markets will advance further?  The short answer is that no one can say for sure. Stop and consider for a moment – if the market has peaked for the year, it would be the S&P’s cheapest price/earnings ratio in the last 34 market peaks.[3] Furthermore, underlying trends suggest that the global economy is improving, potentially leading to further gains in the latter half of the year. According to a recent report by Ned Davis Research (NDR), a second-half recovery might send markets to levels not seen since 2007.[4]

While it’s only natural to worry about turbulence in the market, it is important to take a deep breath and focus on overall trends and sticking to an active, long-term investment strategy. The media loves to hype stories – that’s how they get ratings. Shrewd investors, on the other hand, understand that markets move up and down, and that buying into the hype can be costly. With the news about weakening economies in Asia, we should probably expect some short-term consolidation, but that doesn’t mean drastic action should be taken.

Just because the major equity indexes are advancing or retreating, it doesn’t necessarily mean our clients’ personal investments are advancing or retreating. We don’t buy the markets, and we don’t try to time the markets. There are worthwhile investments to be found in almost every market environment, and these are the ones we aim to utilize.

ECONOMIC CALENDAR

Monday: Pending Home Sales Index, Dallas Fed Mfg. Survey
Tuesday: S&P Case-Shiller HPI, Consumer Confidence
Wednesday: Durable Goods Orders, EIA Petroleum Status Report
Thursday: GDP, Jobless Claims
Friday: Personal Income and Outlays, Chicago PMI, Consumer Sentiment

PERFORMANCE

Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. N/A means not available.

HEADLINES

EU task force head is optimistic on Greece. The head of the European Commission’s special task force on Greece believes that Greece is well on its way to improve how it monitors its finances. However, the banking system remains in difficulty and needs to be recapitalized in order to reboot the Greek economy.[5]

Unemployment claims fell to a four-year low last week. Thursday, the Labor Department reported that weekly unemployment benefits dropped by 5,000 to a seasonally-adjusted rate of 348,000, the lowest since February 2008. The drop has coincided with the best three months of hiring since 2010, supporting the view that the job market is improving. From December through February, employers added an average of 245,000 jobs per month.[6]

Gas prices are inching toward record highs, says AAA. Regular unleaded gas averaged $3.84 nationwide, 30 cents higher than one month ago. Drivers in eight states are already paying more than $4.00 per gallon, and prices will likely edge higher this year. Cost per gallon typically peaks in May when refineries switch to summer gasoline blends, which are more vulnerable to price shocks.[7]

New home sales fell in February for the second straight month. The Commerce Department reported Friday that new home sales dropped 1.6% last month to 313,000 homes. Sales have fallen nearly 7% since December, a reminder that the housing market has a long way to go despite some recent gains.[8]

Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

Google Finance is the source for any reference to the performance of an index between two specific periods.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.

By clicking on these links, you will leave our server as they are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.