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Monthly Market Update
June 5, 2017
Presented By: Todd Day, Portfolio Manager
Click on the Link Below
Hear Todd's Recap of May
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In This Issue
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Despite an 18-hour bear market which occurred in mid-May, stocks closed out the month at their highest monthly close ever.
So, the "sell in May" cliché hasn't been true since 2012 - the Dow, S&P 500, and NASDAQ had their fifth straight year of May gains. The NASDAQ has been positive for seven straight months as it seems nothing can stop this slow grind higher, coming at a time when there were plenty of reasons not to push stocks higher. Geopolitical tensions are running high, politics have become divisive and unproductive, and economic data is painting a mixed picture.
Still, investors are "whistling past the graveyard" - looking past the saber rattling and politics to push the major averages into uncharted territory. This is not a bearish trend, yet it can be hard to put money to work when stocks keep setting new highs almost daily.
You HAVE to think there will be some correction, the question is when, what causes it and how much do we correct. Those are the million dollar questions....
Even around the globe, most major indices finished higher for May. There were exceptions - Brazil and China. Brazilian stocks and their currency were slammed after the newly elected President was being investigated for potential corruption. And China - recent data suggested the Chinese economy is losing momentum as the effect of policy easing has begun to fade.
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ECONOMY
On the economic front, it's a mixed picture at best - we aren't seeing signs of recession, but we aren't seeing signs of hyper-growth either. We are seeing signs of continued strength in the consumer confidence & sentiment surveys and even though they have trended lower over the last couple of months, they still remain at lofty levels.
- In manufacturing, the strong industrial production figures did not match the durable goods figures.
- In the housing markets, sales of new and existing homes were down, all indications point to, quite simply, a lack of supply.
- The jobs picture is looking very strong.
- The retail sales figures are very concerning for the bricks and mortar retailers, with online sales continuing to be the juggernaut.
JUNE OUTLOOK
June can be a rough month for stocks, or it has been in the past, but we'll be watching to see if the major indices can maintain their resiliency while looking for the catalyst that will take stocks higher or lower.
It won't be earnings like April and May to help push stocks higher - earnings season won't get started back until July.
I believe that are 3 things to watch for in June and how the markets respond:
1. Geopolitical tensions are on the rise
- take your pick, North Korea or the Middle East.
2.
Politics - without a doubt, what happens in Washington will have the potential to rattle markets.
3.
The FED
- it is widely expected they will raise rates when they meet next week. As always, their guidance will be more important than an increase of 25 basis points to short term rates. But the catch here is, given weak economic data, could they hold off? That would surprise the markets.
So, stay wary, alert and very, very nimble.
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Click on the link below to find out what your
Risk Score should be.
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"Truth is ever to be found in simplicity, and not in the multiplicity and confusion of things."
- Isaac Newton
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Chicken With Lemony Egg Noodles and Peas
A comforting, colorful meal!
Ingredients:
* 8 ounces extra-wide egg noodles * 4 ounces stringless sugar snap peas * 1 cup carrots, shredded * 1 cup peas (fresh or frozen) * 1 cup chicken broth * ½ cup heavy or whipping cream * 1 teaspoon fresh lemon peel, grated * ½ teaspoon black pepper, coarsely ground * ½ teaspoon salt * 2 cups skinless rotisserie chicken meat
Directions:
1. Fill a 4-quart saucepan with salted water. 2. Heat water on high until boiling. 3. dd noodles and cook according to the package's direction. 4. dd snap peas to noodles 1 minute before noodles finish cooking. 5. Put shredded carrots and peas into a colander in the sink. 6. Drain boiled noodles and snap peas into colander over the carrots and peas. 7. Leave the noodle mixture to drain. Meanwhile, in the same saucepan, bring to boil the broth, cream, salt, pepper, and lemon peel. 8. Stir noodle mixture and chicken into sauce. 9. Warm mixture while constantly stirring until thoroughly warmed and combined.
Recipe adapted from Good Housekeeping
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Report Income Earned From a Hobby
Across the country, millions of people have passions they pursue on the side, earning money from their hobbies and interests. Even if you haven't officially formed your hobby as a business, you still must claim the income you make through these efforts. Here are some tips to help you report your income.
1. Identify if you have a hobby or a business
Hobby:
You earn income but do not do so to make a profit, rather for your pastime recreation
Business: You purposefully work to make a profit.
2. Manage your hobby's allowable expense deductions
When claiming hobby-earned income, you can typically deduct your expenses - but only if they are ordinary and necessary.
Ordinary expense: Considered common and acceptable for the hobby you engage in.
Necessary expense: Considered appropriate for participating in your hobby.
3. Report expenses up to the allowable limit
You can report hobby expenses, but the limit is the amount of income you make from it. If your expenses exceed your income, then you have a loss - however, the IRS doesn't allow you to deduct hobby-income losses.
Other details may apply, and you can find more information on
the IRS website
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* 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
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New to Golf? Beginner Tips for Selecting the Right Clubs
Golf is a sport you can enjoy, no matter what age you begin playing. For those who are new to the game, one of the first steps is choosing the right clubs. Since golf clubs can be expensive - and the right or wrong clubs can greatly affect how you play -
here are some tips to help you get started.
Test a friend's golf clubs first
Before you invest in any clubs for yourself, testing a friend's can help you familiarize yourself with how they feel. Join one of your friend's at the driving range and practice swinging with their clubs. While at the range, you should also talk to a professional who can answer any additional questions you have about the clubs.
Buy a half set of clubs made for beginners
The typical beginner half sets include 5 irons (a 4, 6, 8, pitching wedge, and sand). They also have a 3- and 5-wood, and a putter. The sets leave out the driver, and 2, 3, and 4 irons, which are typically more difficult for beginners to master. You can use the half set to focus on improving your swing before switching to a complete club set.
Use clubs with perimeter-weighted heads
These clubs have an expanded "sweet spot," making them more forgiving. The lighter-weight graphite shafts (instead of steel shafts) allow you to swing the club faster and more quickly get a hang of the game.
Tip courtesy of Golfweek
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Reduce Salt Intake by Avoiding These Foods
Sodium is a natural element we need from our food in order to maintain healthy body functions, such as transmitting nerve impulses and contracting and relaxing muscles. But, many people consume more salt than the recommended intake of 2,300 mg a day. Here are some tips for reducing sodium intake through how you eat.
Reduce processed foods: Most American diets include high levels of sodium from processed foods. This comes from both the levels of salt added to the food, as well as the additives - which also contain sodium. You can manage your salt intake by limiting how much you eat of items such as pizza, cold cuts, and fast food.
Swap salt for herbs and spices: Salt can help add flavor to meals. But, you can swap out salt for fresh herbs, dried spices, and citrus zest, all of which will liven up your dish without adding unnecessary sodium.
Keep an eye on your per-meal intake: Sodium can exist in the foods you eat even without you realizing it. Ingredients such as monosodium glutamate (MSG) and baking soda (sodium bicarbonate) will also add sodium to a dish. So, be sure to read ingredients thoroughly and aim to avoid foods that have no more than 200 mg per serving.
Tip courtesy of Mayo Clinic
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Keep Vegetables Fresher for Longer
As a natural food product, how you store your vegetables can affect how long they stay fresh. Eventually, those carrots and zucchinis will start shriveling or rotting, making the trash can their next best option.
You can keep your vegetables fresher for longer by following these tips for specific foods.
Carrots:
Cut off their tops and then refrigerate them in a closed container that allows for plenty of moisture.
Celery:
Fill a shallow cup or bowl with water. Place the celery stalks into the container, and store on a counter or in the refrigerator.
Eggplant: Store these fruit at room temperature on your counter instead of in the refrigerator. And only wash the eggplants right before you cook with them.
Beets: Cut the tops off each beet, and place them in a container without a lid. Dampen a cloth and lay on top of the container.
Tip courtesy of Care2.com
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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. |
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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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| Investment advisory services are offered through Horizon Financial Services, LLC, a North Carolina State Registered Investment Advisor. Insurance products are offered through New Horizon Financial Services, Inc. |
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