Looking Beyond Politics
BI-WEEKLY UPDATE - DECEMBER 6, 2017
In This Issue
Markets went for a wild ride last week - especially on Friday. In fact, on December 1, the S&P 500 had its largest fluctuations since the day after the 2016 presidential election. [1]  

Nonetheless, two of the major domestic markets hit new record highs on Thursday and ended the week with sizable gains. The S&P 500 added 1.53% and the Dow gained 2.86%. [2] Meanwhile, the NASDAQ lost 0.60% and international stocks in the MSCI EAFE gave back 0.95%. [3]
What drove markets last week?

Politics played a large role in market performance last week with big developments on tax reform and the Russia investigation. [4]  

Tax Reform
On Thursday, news that the Senate bill was more likely to pass contributed to the Dow and S&P 500 closing at record highs. [5] Early Saturday morning, the Senate did end up voting in favor of the proposal. [6

Russia Investigation
On Friday, stocks dropped on news that former National Security Adviser Michael Flynn pleaded guilty to charges of lying to the FBI. [7]  

While politics grabbed many of the headlines, we also received economic updates that are worth noting:

Gross Domestic Product
We received the 2 nd GDP reading for July - October, and the report came back higher than expected. During the 3 rd quarter, the economy grew at 3.3%, which is its quickest pace in 3 years. [8]  

Housing Sales
New home sales beat expectations in the most recent report and increased 18.7% year over year. The sales were higher than they've been in a decade. [9]  

Consumer Spending
Americans spent and earned more money in October, according to the data we received last week. [10]  

What should you focus on?

Political developments are affecting daily market performance, so we understand the interest they hold. While you may be following these reports, we also want to ensure you recognize the economic data coming forward, too.  

We cannot predict what will happen with tax reform or the Russia investigation. However, we can continue to monitor them while focusing on what's really happening in the economy beyond the headlines. If you ever have questions about how current events may affect your financial life, please contact us any time.    


ECONOMIC CALENDAR
Monday: Factory Orders
Tuesday: ISM Non-Mfg Index
Wednesday: ADP Employment Report
Thursday: Jobless Claims
Friday: Consumer Sentiment



Blattel News
Calendar

December 25 & 26: Office Closed
Our office will be closed for the Christmas Holiday.
 
January 1: Office Closed
Our office will be closed for New Year's Day .
 
First Quarter of 2018: New Office Location
We recently announced that we are moving to a new office, located at 1258 Jungermann Road in St. Peters, in early 2018. We will communicate with you once we have an official moving date. 

Year-End Reminders

  • Allow for extra time. Please remember that the holiday season will affect timing on withdrawals and other transactions. Please allow for extra time to process your requests from now until the end of the year.
  • Contributions to IRAS & Roth IRAs. In 2017, you can contribute a maximum of $5,500 or $6,500 if you are age 50 or over. Remember, you have to have taxable income to contribute to an IRA, but if you are married and filing jointly, you can each make contributions even if only one of you is working. Speak to a tax advisor to learn about how your deductions will be affected by an employer-sponsored retirement plan.
  • Take your RMD. If you are at least age 70½, you are required to take minimum distributions from your traditional IRA - but not your Roth. You are generally required to take RMDs by December 31, though you have until April 15, 2018 if you turned 70½ in 2017. Please make sure to verify that you have taken your RMD from any IRA accounts that are not managed by us.

Holiday Joy

Thank you to everyone who attended our annual Holiday Open House, the last year at our 1 Mid Rivers Mall Drive office. We all enjoyed the great conversations with all the clients who attended. 

We also want to thank each and every one of you who donated a toy to our annual Holiday Magic Toy Drive. It is so rewarding to help so many families have a joyful and magical Christmas. 


"Nothing in life is to be feared, it is only to be understood.
Now is the time to understand more, so that we may fear less."
 
- Marie Curie

Mustard-Crusted Mini Meatloaves

Serves 4

Ingredients:  
  • 1 ¼ pound ground meat, beef or dark-meat turkey
  • 1 small zucchini, grated
  • cup seasoned bread crumbs
  • Kosher salt
  • Black pepper, freshly ground
  • 2 tablespoons Dijon mustard
  • 3 small Gala or Empire apples, cored and sliced into 8 pieces
  • 1 teaspoon fresh rosemary, chopped
  • ¼ teaspoon cayenne pepper, ground
  • 1 tablespoon extra-virgin olive oil
  • chopped chives
Directions:

 

Meatloaf
1. Mix ground meat, zucchini, bread crumbs, and ½ teaspoon each salt and pepper in a large bowl.
2. Divvy up meat into 4 mini meatloaves and place on baking sheet lined with foil.
3. Brush each loaf with Dijon mustard.

Apples
4. Toss apple wedges with rosemary, cayenne, olive oil, and a pinch of salt until coated.
5. Place them around the meatloaves on the baking sheet, and bake at 425ºF until thoroughly cooked, either for 30 minutes or until meatloaf heats to 165ºF.

Serve
6. Garnish meatloaf and apples with chopped chives, and serve.

 


Recipe adapted from Good Housekeeping [11]

Report Income From Hobbies *

Many people do side hobbies for fun that also happen to bring in extra income. Whenever taxpayers make money from their hobbies, they must report the income to the IRS. Here are some tips to help you correctly claim your income and expenses:

 

1. Discern between a hobby or business: The IRS taxes income differently depending on whether it's a true hobby or for-profit business. You can answer the IRS checklist for identifying which type of income you have to help guide you.

 

2. Deduct expenses: Your hobby probably has ordinary and necessary expenses that you must spend in order to do it, such as buying yarn to knit scarves. You can deduct any expenses that fall within these categories.


3. Follow deduction limits: You can only deduct approvable expenses up to the amount you brought in for income

 

Other details may apply, and you can find more information on the  IRS website .  

* This information is not intended to be a substitute for specific individualized tax advice. We suggest you discuss your specific tax issues with a qualified tax advisor.


Tip courtesy of IRS.gov
[12]
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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.

Diversification does not guarantee profit nor is it guaranteed to protect assets.

International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors.

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 Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of stocks of technology companies and growth companies. 

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 indices from Europe, Australia and Southeast Asia. 

The S&P/Case-Shiller Home Price Indices are the leading measures of U.S. residential real estate prices, tracking changes in the value of residential real estate. The index is made up of measures of real estate prices in 20 cities and weighted to produce the index.

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.

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, Broker dealer or Investment Advisor, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer or Investment Advisor 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.

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[1]  www.cnbc.com/2017/11/24/us-stocks-black-friday-retail-amazon-holidays.html

www.cnbc.com/2017/12/01/us-stock-futures-data-opec-tax-on-the-agenda.html


  
[4] www.cnbc.com/2017/12/01/us-stock-futures-data-opec-tax-on-the-agenda.html

[5] www.cnbc.com/2017/11/30/us-stocks-dow-record-high-tax-reform-senate.html

[6] www.cnn.com/2017/12/01/politics/senate-tax-bill-vote-uncertainty/index.html
 
[7]  www.bloomberg.com/news/articles/2017-11-30/asian-stocks-set-to-rebound-after-u-s-advance-markets-wrap

[9]  www.ftportfolios.com/Commentary/EconomicResearch/2017/11/27/new-single-family-home-sales-increased-6.2percent-in-october

[10]  abcnews.go.com/Business/wireStory/consumer-spending-rose-solid-03-percent-october-51483354

[11]  www.goodhousekeeping.com/food-recipes/a41235/mustard-crusted-mini-meatloaves-with-roasted-apples-recipe/

[12]  www.irs.gov/newsroom/five-things-to-remember-about-hobby-income-and-expenses  


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