Weekly Market Update
June 19, 2017
Presented By:  Todd Day, Portfolio Manager



           


In This Issue
The Markets
Recipe
Tax Tip
Golf Tip
Health Tip
Green Fact
WE'RE TAKING ON WATER CAPTAIN!!

It was a mixed week for the major averages as the Dow and S&P gained a little ground, but the NASDAQ and Russell 2000 finished the week lower.

Tech stocks closed at a four week low as investors continue to ring the register on their best performing holdings, and rotating into names that have been laggards of late.

The NASDAQ just keeps leaking - it may still be up 15% year-to-date, but ask yourself, if there's a slow leak in your boat, do you really want to wait for the water to hit your waist before you react?  


STOCKS

In stock news, Amazon announced a deal to buy Whole Food Markets and the market pundits were caught off guard, to say the least.  But not Target.  Target's stock took a beating as they're the odd-man out in this deal.   Amazon takes the high-end, Walmart takes the low-end. Target sells summer dresses...

To be fair, it wasn't just Target that took it on the chin, Walmart, Costco, Kroger and Sprouts were all taken to the woodshed.  The market is acting like no one else will stand a chance.

Here are the 6 most terrifying words in the English language: "Jeff Bezos is entering your market"!

ECONOMY

In a widely anticipated move, the Federal Reserve hiked interest rates by 25 basis points, or a quarter of 1%.  The hike occurred despite some recent weakness in economic data, most notably, inflation, which missed expectations for the third month in a row.  Nonetheless, they feel this is only temporary. 

In another sign of confidence in the economy, the FED also laid out an explicit path to reduce the size of their balance sheet (taper-up).   Now, it's okay for the FED to raise rates and lay out a plan to reduce the balance sheet, but here is the "fly in the ointment" .  Any half sane person would expect that "rates would go up".  But, the 10 year U.S. Treasury bond yield fell from 2.20 to 2.15.  Some of that damage occurred because of the weak data, inflation and retail sales.  As a side note, retail sales were horrible.   

Fun factoid: 10-year Treasury yields are lower now than when the FED started raising rates in December 2015.  Makes sense, huh?   

INTERNATIONAL

European stocks finished at their lowest level in nearly two months Thursday, rattled as investors questioned the U.S. Federal Reserve's outlook for monetary policy as signs of flagging consumer demand have cropped up.  The Stoxx Europe 600 suffered its lowest close since April 21.

THIS WEEK

For the next couple of weeks before earning season gets rolling, and with little economic data to hang our hat on, the markets may be vulnerable to political and geopolitical shocks.  I hope that doesn't come as a surprise.

We will hear from several FED speakers this week jawboning about how strong the economy is and why there is a need to keep raising rates. 

Brits will begin the Brexit proceedings this week, but it appears, early on, that the markets are taking it in stride. 

We may be heading into the doldrums of the summer for the markets, but now is not a time to let your guard down - not happening here.

So, go and enjoy your pool/golf/beach, but stay tuned and stay informed and we'll keep you posted. 
 

 
         
"If we are bold, love strikes away the chains of fear from our soul."

- Maya Angelou
Steak With Kale and White Bean Mash


  
A healthy, hearty dish!

Ingredients:

* 2 boneless beef top loin steaks, trimmed
* 8 ounces parsnips, sliced thinly
* 1/2 cup water
* 1 bunch kale, chopped
* 2 cloves garlic, chopped
* 2 cans cannellini beans, drained and rinsed
* 2 tablespoons pesto
* salt and pepper

Directions:

1. Season steaks with 1/4 teaspoon each of salt and pepper.

2. Cook each steak for 4 minutes per side on medium-high heat (cooks to medium; cook longer for well done).
3. Move cooked steaks to cutting board and let rest for 5 minutes.
4. Add parsnips to pot of boiling water and cook until tender, or cook in microwaveable container in microwave for 5 minutes on High.
5. Prepare saucepot with cooking spray. Add kale, garlic, and 1/4 teaspoon salt.
6. Cook items for 5 minutes on medium heat or until stems become tender. 
Set aside.
7. Blend cooked parsnips in food processor with cannellini beans until combined yet chunky. Stir occasionally.
8. Add processed beans and parsnips to cooked kale mixture.
9. Add 1/8 teaspoon of salt. Heat combined ingredients until thoroughly warm.
10. Cut steak into thin slices and plate.
11. Top with dollop of pesto, and serve with kale and white bean mash.


Recipe adapted from Good Housekeeping
 
In the Military? Receive Free Tax Help

If you are in the military, then you have free support available to you when you address your taxes. Military members and their families can receive the complimentary tax help through the Volunteer Income Tax Assistance (VITA), whether they are in the States or overseas. Worldwide, the Armed Forces Tax Council oversees the support offered through VITA. Here's some insight into how the federal military tax support works.
 
Are the VITA employees trained to understand military needs?
Yes. Every VITA employee receives in-depth training that addresses the unique financial and tax issues relating to the military. They can help guide you through the specific items you may need to address, such as receiving tax benefits when serving in combat zones.
 
Do I have to bring any documents onsite?
You will need to bring specific documents in order to receive tax assistance through VITA.
Some of these documents include:
  • Valid photo ID
  • Taxpayer, spouse, and dependents' Social Security numbers and birth dates
  • Forms claiming wages and earnings, such as Forms W-2 and 1099-R
 
What if I file jointly and my spouse is unavailable to sign?
Should you or your spouse be in a different location and unable to sign documents in person, you typically still need to address the signature. You can do so by bringing a Power of Attorney form to VITA. Some exceptions do apply, be sure to know what applies to your unique situation.

Other details 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 that you discuss your specific tax issues with a qualified tax advisor.


Tip courtesy of IRS.gov



Three Essential Swing Tips

Still perfecting your swing? You're not alone. Remembering techniques like pulling power from your body and avoiding an open club face can make the difference on the course. They are also easy tricks to forget. Because everyone can have an off-day, here are three ways to immediately improve your swing.

1. Keep your hands low.
If you're looking to reduce the height of your shot, remember this mantra: Lower your hands to lower your ball flight. When you keep your hands low in the finish, you limit your follow-through's height and keep the trajectory low.

2. Make impact with thumbs down.
For those who hook their shots, make sure your thumbs point down on impact. Doing so will keep your clubface from closing too soon and help you avoid curving shots to the left.

3. Pull power from your body, not your arms.
Your arms are there to guide the ball, not to drive power. For this, you need your body. To make this fix:

* Place your club behind your ball at address.
* Keep your body in a dead-stop position.
* Drag the ball into the air without taking a back swing.

While pulling power from your body may be challenging at first, with practice, you should consistently get your ball in the air. On the downswing, remember to fully turn through the ball.



Tip courtesy of GolfTips Magazine
 

Health Tips for a Longer Life

Many factors influence our lifespan that are outside of our control. Some of them, however, we can affect on our own. Little changes in our daily habits can help us live healthier and happier lives. Here are a few common health tips you can adopt today for fostering a longer life:

* Take care of your teeth: Floss and brush your teeth regularly, and make ongoing appointments with your dentist.

* Do not smoke:  Cigarette smoking causes a host of health issues, many of which shorten your lifespan. Encourage a longer life by choosing to not smoke.

* Challenge your brain: Learning new activities can help you keep your mind sharp and engaged.

* Keep socializing:  Maintaining a strong social network can help you live longer.

* Eat healthy: Be sure to get enough servings of fruits, vegetables, and whole grains. Also, focus on eating healthier fats like mono- and polyunsaturated fats.


Tip courtesy of Harvard Medical School


The Eco-Friendly Pet Owner

Living a green life doesn't stop when it comes to pet care. You can do your part to help the environment while caring for your favorite non-human loved ones. Here are a few tips to help your pet and the earth:

* Pick up waste with biodegradable bags: Using a plastic bag to clean up pet waste is a common go-to. However, unless the bag's biodegradable, it (and the contents) will take at least 100 years to break down. You can reduce your impact by using a compost-friendly bag that will return back to the earth more quickly.

* Buy natural or organic foods: Heavily processed byproducts fill most commercially available foods. By choosing natural or organic options, you buy products typically grown or raised more sustainably, such as free-range meats. You also remove other factors such as pesticides, hormones, and artificial preservatives added to the food.

* Adopt from a shelter: In the U.S., we abandon roughly 70,000 puppies and kittens every day. Rather than create a demand for new animals, you can help keep populations down - and off the streets - by choosing to adopt from your local shelters or rescues.


Tip courtesy of The Nature Conservancy

Share the Wealth of Knowledge!

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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

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 Pending Home Sales Index, a leading indicator of housing activity,  measures housing contract activity, and is based on signed real estate contracts for existing single-family homes, condos and co-ops.  The PHSI looks at the monthly relationship between existing-home sale contracts and transaction closings over the last four years. The results are weighted to produce the index.

 

The Chicago Board Options Exchange Market Volatility Index (VIX) is a weighted measure of the implied S&P 500 volatility. VIX is quoted in percentage points and translates, roughly, to the expected movement in the S&P 500 index over the upcoming 30-day period, which is then annualized.

 

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 Horizon Financial Services, LLC, and should not be construed as investment advice. Neither Horizon Financial Services, LLC nor its Investment Advisor Representatives or Associates 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. 


John Brais, Owner & Founder
Investment Advisor Representative
Certified Retirement Financial Advisor
Horizon Financial Services, LLC
3880 Vest Mill Road, Suite 100
Winston Salem, NC 27103
(336) 659-7060


INSIGHT, INTEGRITY, INVESTED IN YOUR FUTURE

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