Treasury Yields Prompt Concerns
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BI-WEEKLY UPDATE - MARCH 25, 2019
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The Week on Wall Street
Friday, the yield of the 3-month Treasury bill exceeded the yield of the 10-year Treasury note for the first time in 12 years. For some analysts, this "inverted yield curve" may imply a short-term lessening of confidence. (Treasury yields move inversely to Treasury prices.)[1]
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Fed Sees No Hikes in 2019
On Wednesday, the Federal Reserve held interest rates steady, but lowered its estimate of 2019 economic growth to 2.1%.
Last December, the central bank forecast two rate hikes in 2019. It now expects to leave rates unchanged this year, with one quarter-point hike projected for 2020.
This pivot may acknowledge a slight change in economic conditions. The Fed's latest policy statement noted that the "growth of economic activity has slowed from its solid rate in the fourth quarter."
[6]
Oil Hovers Near $60
At Friday's closing bell, a barrel of West Texas Intermediate (WTI) crude oil was valued at $59.04 on the New York Mercantile Exchange (NYMEX). Its value briefly climbed to $60 earlier in the week.
Month-over-month, the price of WTI crude has risen nearly 5%. Historically, higher oil prices can have a significant impact on retail gasoline prices.
[7]
What's Next
A U.S. delegation is scheduled to accompany Treasury Secretary Steven Mnuchin to China this week for further trade negotiations. Finally, Brexit will not occur this Friday, as the European Union has extended the United Kingdom's deadline in response to Prime Minister Theresa May's request.
[8][9]
THE WEEK AHEAD: KEY ECONOMIC DATA
Tuesday: The Conference Board's latest reading on consumer confidence.
Thursday: February pending home sales, and the federal government's second estimate of fourth-quarter Gross Domestic Product (GDP).
Friday: Reports on consumer spending and new home sales, and March's final University of Michigan consumer sentiment index, another measure of consumer confidence levels.
Source: Econoday / MarketWatch Calendar, March 22, 2019
The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision. The release of data may be delayed without notice for a variety of reasons, including the shutdown of the government agency or change at the private institution that handles the material.
THE WEEK AHEAD: COMPANIES REPORTING EARNINGS
Monday: Winnebago (WGO)
Tuesday: KB Home (KBH)
Wednesday: Lennar (LEN), Lululemon Athletica (LULU), Paychex (PAYX)
Thursday: Accenture (ACN)
Friday: Blackberry (BB), CarMax (KMX)
Source: Morningstar.com, March 22, 2019
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Any investment should be consistent with your objectives, time frame and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.
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April 15: Tax Day
May 27: Office Closed
Our office, and the stock market, will be closed on Memorial Day.
July 4 & 5: Office Closed
Our office will be closed for Independence Day.
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For the 2018 tax year, the dates for printing and mailing recipient copies are as follows:
- All 1099-Rs (IRAs) and 1099-Bs (non-Qualified) have been mailed out and are available on investor web sites.
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If you or your tax preparer need us to help gather any information, please give us sufficient notice to fulfill your request. Please note that the new 2018 tax laws will mean a few new do's and don'ts, such as you do need to report your Qualified Charitable Distribution amount, but you don't need to report your advisory fees. Check with your tax preparers to make sure you understand what is needed for your specific situation this year. Do not hesitate to call our office at 636-397-8303 with any questions.
Blattel & Associates does not provide tax advice. Please consult with your tax advisor with regard to your personal situation.
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Please note that in 2019, many of the contribution limits have increased. You still have until April 15 to contribute under the 2018 tax year, so please be clear as to which year you intend your contribution for. Contact our office if you have any questions.
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"One person can make a difference, and everyone should try."
- John F. Kennedy
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Classic Tomato and Bread Soup
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Serves 6
Ingredients:
- 1 medium onion
- 4 Tbsp. olive oil (divided)
- 4 to 6 cloves garlic, minced
- 2, 28-oz. cans whole, peeled tomatoes
- 2 to 3 bay leaves
- 2 cups of chicken stock
- 1½ cups of cubed, rustic bread (best to use day old)
- 1 tsp. dried oregano
- Pinch of chili flakes
- Approximately ½ tsp. salt, to taste
- Fresh ground pepper, to taste
- Freshly grated Parmesan cheese
- Chopped fresh basil or parsley, for garnish
Directions:
- Begin by adding the olive oil to a 5- to 6-qt. Dutch oven, warmed on medium heat. Sauté onions until translucent. Then, season with salt and pepper, add minced garlic, and cook for a few additional minutes.
- Next, crush the tomatoes by hand, and transfer into the pot.
- Add the chicken stock, bay leaves, and dried oregano. Heat to a simmer, then reduce heat to maintain a low simmer. Cook for about 20 minutes.
- Warm up a large frying pan on medium heat and add the remaining olive oil into a sauté pan. When the oil is hot, evenly spread the cubed bread in the pan. Toss to coat with oil and brown the sides of the bread evenly.
- After the soup has cooked for approximately 20 minutes, add the browned bread cubes. Cook for about 5 more minutes, then turn off the heat, cover the soup, and let stand for 15 minutes. Remove the lid, then extract the bay leaves and discard.
- Set aside about ⅓ of the soup. Purée the rest with an immersion blender or pour it into a food processor and blend until smooth. Re-incorporate the blended and unblended soup. Pour into bowls and serve with grated Parmesan and chopped fresh parsley or basil.
Recipe adapted from Simply Recipes[10]
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Collagen Regenerates and Renews
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Collagen is an abundant protein in the body, which regenerates and forms new tissues, but is poorly produced and replaced as we age. Studies have shown that supplementing with collagen may yield health benefits:
- Faster exercise recovery: those who supplemented with 3 grams of a collagen extract significantly improved their exercise recovery rates.
- Help for arthritis: collagen supplements reduced pain and inflammation in people diagnosed with osteoarthritis.
- Younger-looking skin: taking 2.5 to 5 grams of collagen daily resulted in significantly higher skin elasticity as well as improved skin moisture. Additionally, women who took 1 gram of collagen extract showed a significant reduction of dry, scaling skin, reduced lines and wrinkles, improved circulation, and a significant boost in overall collagen levels in the skin.
- More benefits. Taking the supplement stimulates tissue regeneration and slows the loss of bone density.
Be sure to research the type or types of collagen to support the benefit you are seeking, and tailor the variety and dosage to your individual needs.
Tip adapted from Amazing Wellness Magazine[13]
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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.bloomberg.com/news/articles/2019-03-22/u-s-treasury-yield-curve-inverts-for-first-time-since-2007
[6] www.cbsnews.com/news/fed-rate-hikes-none-in-2019-federal-reserve-projects-no-rate-hikes-slower-growth-this-year
[8] www.cnbc.com/2019/03/20/trump-says-china-tariffs-could-stay-in-place-amid-trade-deal-talks.html
[9] www.nytimes.com/2019/03/21/world/europe/brexit-extension-eu-uk.html
[10] www.simplyrecipes.com/recipes/tomato_and_bread_soup_pappa_al_pomodoro/
[13] amazingwellnessmag.com/departments/buying-using-collagen
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