Stocks Rebound
BI-WEEKLY UPDATE - FEBRUARY 21, 2018
In This Issue
Markets rebounded last week, posting sizable gains and moving back into positive territory for the year. All three domestic indexes experienced their largest weekly growth in years, despite losing some ground on Friday after news of additional indictments in the Russia investigation. [1]
By markets' close on February 16, the S&P 500 added 4.30%, the Dow was up 4.25%, and the NASDAQ increased 5.31%. [2] International stocks in the MSCI EAFE also gained 4.18% for the week. [3]  

This performance, however, did not come from simple, straightforward increases. Instead, the volatility from recent weeks continued. In fact, the S&P 500 lost or gained at least 1% on 8 of the past 10 trading days. The index only experienced that movement level 8 times throughout 2017. [4] 

Key Economic Findings

We received a wealth of data last week, and the readings helped deepen our understanding of the economy. The reports showed some mixed results, but much of the information continues to indicate that the economy is on solid ground. [5]
 
January Highlights
  • Housing starts jumped 9.7%, beating expectations and reaching the 2nd-fastest rate since the recession. Even with mortgage rates increasing and tax reform affecting some buyers' mortgage interest deductions, the data shows positive news for future homebuilding as well.
  • Consumer price index increased 0.5%, rising 2.1% in the past year. This reading indicates that prices are continuing to rise faster than the Federal Reserve's target rate.[6] 
     
  • Retail sales fell, dropping 0.3% in part due to slow motor vehicle sales. In addition, negative updates to December's readings could affect 4th-quarter Gross Domestic Product results.[7] 
February Highlights
  • Consumer sentiment beat expectations, coming in at 99.9 - its 2nd-highest reading in 14 years. The movement came as tax-cut optimism outweighed stock-market concerns.[8]  
The Takeaway

Many reports show that the economy is strong, so watching for inflation will remain important as the markets keep moving. The combination of growing inflation and a strong labor market means the Fed is still likely to hike rates 3 times this year, with a 4th   increase very possible. [9] 

Looking ahead, volatility may continue, so keep this on your radar. Investors caught between conflicting concerns about missing the bull market and losing money may contribute to ongoing uncertainty. [10] Remember, stock fluctuations are normal. We are here to help you understand what's happening in the markets and how to position yourself for the financial life you desire .    


ECONOMIC CALENDAR
Monday:   U.S. Markets Closed for Presidents' Day
Wednesday:  Existing Home Sales
Thursday: Jobless Claims




Blattel News
Calendar

March 2018: New Office Location
We will be moving to our new office, located at 1258 Jungermann Road in St. Peters, in mid-March. We will communicate with you once we have an official moving date.
 
March 30: Office Closed
Our office will be closed for Good Friday .
 
April 6: Open House
We will be inviting our clients, friends, and family to visit our new office building. Be on the look out for more details on this special event.

Tax Document Dates

For the 2017 tax year, the dates for printing and mailing recipient copies are as follows:
  • 1099-Rs (IRAs) available on:
    • SEI mail date: January 31
    • FCC mail date: January 31
  • 1099-Bs (non-Qualified) available on:
    • SEI mail date: February 28
    • FCC mail date: February 15
Helpful phone numbers:
  • SEI - Call Us - 636-397-8303
  • First Clearing 1-800-727-0304
  • IRS help line 1-800-829-1040
Blattel & Associates does not provide tax advice.  Please consult with your tax advisor with regard to your personal situation .


"Know what you own, and know why you own it."

- Peter Lynch

Skillet Turkey Pot Pie

Serves 4

Ingredients:  
  • 1 sheet frozen puff pastry, thawed
  • 1 large egg, lightly beaten
  • 4 ounces reduced-fat cream cheese, at room temperature
  • 1 lemon
  • ¾ cup low-fat sour cream
  • 1 tablespoon Dijon mustard
  • 1 tablespoon fresh thyme leaves
  • Kosher salt and pepper
  • 2 ½ cups shredded leftover turkey or rotisserie chicken
  • 3 ounces Gruyère cheese, coarsely grated
  • 3 ounces leftover sliced ham or thick sliced deli ham, torn into ½ inch pieces (about ½ cup)
  • 2 scallions, finely chopped
  • ½ cup fresh flat-leaf parsley, chopped
Directions:  
  1. Heat oven to 425°F. 
  2. Line a large baking sheet with parchment.
  3. Cut the unfolded pastry into 10-inch round.
  4. Put in the prepared pan.
  5. Brush with the beaten egg then bake until puffed and golden, 18-22 minutes. 
  6. At the same time, squeeze 2 tablespoons lemon zest.
  7. Heat the cream cheese, lemon juice, and 2 tablespoons water over low heat in 9- to 10-inch skillet until melted and smooth.
  8. Stir in the sour cream, mustard, thyme, lemon zest, ½ teaspoon salt, and ¼ teaspoon pepper. 
  9. Slowly pour in the turkey, gruyère, ham, scallions, and parsley. 
  10. Cook until heated through, about 3 minutes. 
  11. Top with puff pastry.

 
Recipe adapted from Good Housekeeping [11]

Why Should I Use Direct Deposit for Tax Refunds? *

Is direct deposit the best way to get your tax refund? The IRS says, "yes," which is why 80% of taxpayers designate direct deposit on their returns.

Here are 4 good reasons why:
  1. Speed: It's the fastest way to get your money. Filing electronically also speeds up the process. Taxpayers can use IRS Free File to prepare and send their forms.
     
  2. Security: Refunds go directly into your bank account. You don't have to worry about lost checks or stolen mail. The IRS uses the same electronic direct deposit system that the Social Security Administration and the Veterans Affairs uses for nearly all their benefits. 
     
  3. Simple: The IRS's e-file software makes direct deposit easy. Paper filing also provides simple instructions, which requires having available your correct figures for your bank account and routing number.
     
  4. Choices: The agency provides convenient alternatives for taxpayers, including splitting refunds into several accounts. Accounts may include checking, savings, health, education, or certain retirement holdings. IRS Form 8888, Allocation of Refund, allows you to divide your refund into up to 3 accounts. 
The IRS recommends having refunds deposited into accounts with your name, your spouse's name, or both. Don't designate accounts owned by others. Check with your bank to learn its requirements for depositing checks.

* This information is not intended to be a substitute for specific individualized tax advice. We suggest that 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 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 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/2018/02/16/us-stocks-strong-week-volatility-rates.html




[8]  wsj-us.econoday.com/byshoweventfull.asp?fid=485844&cust=wsj-us&year=2018&lid=0&prev=/byweek.asp#top

[9]  www.ftportfolios.com/blogs/EconBlog/2018/2/14/the-consumer-price-index-rose-0.5percent-in-january

[10]  www.cnbc.com/2018/02/16/us-stocks-strong-week-volatility-rates.html

[11]  www.goodhousekeeping.com/food-recipes/easy/a46645/skillet-turkey-pot-pie-recipe/

[12] www.irs.gov/newsroom/heres-five-reasons-to-use-direct-deposit-for-a-tax-refund

[13] www.golfdigest.com/story/whats-the-deal-with-the-one-arm-putting-drill

[15] www.earthshare.org/2011/01/green-your-workout-.html


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