A Shaky Start to September
In This Issue
Domestic markets fell last week due to negative trade news and declining tech stocks, with the S&P 500 and Dow both breaking their multi-week winning streaks. Meanwhile, the NASDAQ posted losses for 4 days in a row for the first time since April and experienced its worst September start since 2008. [1] Overall, the S&P 500 lost 1.03%, the Dow dropped 0.19%, and the NASDAQ gave back 2.55% for the week. [2]  International stocks in the MSCI EAFE also declined, losing 2.89% .[3]
The Cboe Volatility Index (VIX), which can help gauge market fears, increased 15.8% last week. [4] This increase matches what often occurs during September, when volatility returns after waning during the summer months. In fact, since 2007, volatility has been above average in September. [5] 

Of course, the change from one month or season to another isn't enough to trigger market losses and rising volatility. Let's analyze what drove these experiences last week.  

1. Trade tension escalated between the U.S. and China. 
The U.S. is getting closer to resolving trade issues with Mexico, Canada, and the European Union - and the countries may unite against China's trade approach. As a result, the likelihood of calming the trade dispute between the U.S. and China is fading. [ 6] Last week, President Trump said he was prepared to add tariffs to another $267 billion in Chinese goods. These tariffs would be in addition to the $200 billion that may launch soon, which one expert said could reduce the S&P 500 by 5%. [7] 

2. Tech stocks dropped. 
Last week, the technology sector declined by 2.9%. [8] Tech has performed better than any other sector this year and has been a market leader for 3 years. But concerns about increasing regulation - with a focus on social media companies - weighed on investors' minds last week. [9] 

3. Wage growth increased.
The latest jobs report surpassed expectations, with the economy adding 201,000 jobs in August. Year-over-year wage growth also rose more than expected and hit its fastest pace since 2009. [10 ] This wage increase contributed to stock losses, because it could mean that 2018 will have 2 additional interest rate increases - with more on the horizon for 2019. [11] 

Last week certainly provided data and headlines for investors to digest. But the job market, economic fundamentals, and market remain strong. [12] For the moment, we'll continue to review the data we receive and seek new ways to help you prepare for what lies ahead.  

Tuesday: JOLTS  
Thursday: CPI, Jobless Claims
Friday: Retail Sales, Industrial Production, Consumer Sentiment

Notes: All index returns (except S&P 500) exclude reinvested dividends, and the 5-year and 10-year returns are annualized. The total returns for the S&P 500 assume reinvestment of dividends on the last day of the month. This may account for differences between the index returns published on  Morningstar.com   and the index returns published elsewhere. International performance is represented by the MSCI EAFE Index. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly.

"The four most expensive words in the English language are,
'This time it's different.'"
- Sir John Templeton

White Bean and Broccolini Salad
Serves 6

  • Kosher salt
  • Pepper
  • 1 pound broccolini, trimmed (about 3 bunches)
  • 3 tablespoons olive oil
  • 1 teaspoon lemon zest plus 2 tablespoons juice
  • 2 tablespoons honey mustard
  • ½ teaspoon red pepper flakes
  • 2 tablespoons capers, drained and chopped
  • 1 15.5-ounce can small white beans, drained
  1. Cook broccolini in a large pot of salted boiling water for about 2 minutes, until the stalks are crisp-tender. 
  2. Drain water and place the broccolini in an ice bath to cool. Drain. Pat the broccolini dry. Cut into large pieces.
  3. Dash together oil, lemon zest and juice, mustard, red pepper flakes, and ¼ teaspoon each of salt and pepper in a large bowl. Mix in capers. 
  4. Put in broccolini and beans. Toss to coat the mix.
Recipe adapted from Good Housekeeping [13]

How Do You Make Lob Shots Easy?

You weren't that far from the hole when you made that shot. But it missed anyway, and now your ball is in the rough. Your best shot at this distance - maybe 5 feet - is a lob.
You need to knock that ball nice and high and drop it gently near the flag. What's the secret?

Create some cushion under the ball. If the ball's on hardpan, pitch onto the green and hope to do a two putt.  

Hold your club with the most loft. Get into a wider stance. As you set up, keep the handle low. This puts you in position for a shallow swing. The wedge drives through the turf and strikes the ball with high loft. The ball flies high and bounces gently toward the hole.  

Tip adapted from GolfDigest[15]
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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 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/2018/09/07/us-markets-jobs-report-and-data-in-focus.html

[4] www.cnbc.com/2018/09/07/us-markets-jobs-report-and-data-in-focus.html

[5] www.bloomberg.com/news/articles/2018-09-07/summer-s-end-breaks-s-p-500-s-momentum-as-tech-trade-war-bite?srnd=markets-vp

[6] www.marketwatch.com/story/near-term-likelihood-of-us-china-trade-pact-seen-dimming-2018-09-07

[7] www.bloomberg.com/news/articles/2018-09-07/summer-s-end-breaks-s-p-500-s-momentum-as-tech-trade-war-bite?srnd=markets-vp

[8] www.marketwatch.com/story/stock-futures-point-to-lower-open-after-jobs-report-sp-500-could-have-4th-down-day-2018-09-07?dist=markets

[9] www.cnbc.com/2018/09/07/us-markets-jobs-report-and-data-in-focus.html

[10] wsj-us.econoday.com/byshoweventfull.asp?fid=485659&cust=wsj-us&year=2018&lid=0&prev=/byweek.asp#top

[11] www.marketwatch.com/story/stock-futures-point-to-lower-open-after-jobs-report-sp-500-could-have-4th-down-day-2018-09-07?dist=markets

[12] www.marketwatch.com/story/stock-futures-point-to-lower-open-after-jobs-report-sp-500-could-have-4th-down-day-2018-09-07?dist=markets

[13] www.goodhousekeeping.com/food-recipes/easy/a21753403/white-bean-and-broccolini-salad-recipe/ 

[14] www.irs.gov/newsroom/what-taxpayers-should-know-about-amending-a-tax-return

[15] www.golfdigest.com/story/lob-shots-made-easy  

[16] www.webmd.com/sleep-disorders/sleep-apnea/default.htm 

[17] www.earthshare.org/windows-and-ene/

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