Portfolio Advisory Council, LLC presents:
 

 

THE WEEKLY ECONOMIC UPDATE

 

August 24, 2020 

 
A note from Phil:

"Relax and enjoy the circus!
Despite dire predictions and repercussions of the upcoming election, the world will not end.  Innovation and technology will continue to flourish.  Businesses will continue to find ways to grow and profit.  People will continue to go about their lives.  At Portfolio Advisory Council, we will continue to work hard and enjoy life. 
 
If you pay attention to the current news, you are probably upset.  The news media designs their  'news' to keep people upset because that is the way they hold our attention.  If you are not enjoying this circus, just turn it off!
 
Our job is to help you with financial success and we will find success regardless of the election."

 
 
QUOTE OF THE WEEK

"Nothing gives one person so much advantage over another as to remain always cool and unruffled under all circumstances."

"Every day is lost in which we do not learn something useful."
 
THOMAS JEFFERSON

THE WEEK ON WALL STREET
Stocks powered to another week of gains as the S&P 500 and Nasdaq Composite set multiple new record highs along the way.

The Dow Jones Industrial Average was essentially unchanged while the Standard & Poor's 500 rose by 0.72%. The Nasdaq Composite index added 2.65% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, slipped 0.71%.1,2,3

The S&P 500 Sets Record High
The S&P 500 closed at a record high on Tuesday, erasing the steep losses suffered in February and March. The recovery has been powered by unprecedented monetary accommodation, fiscal stimulus, and investor willingness to look ahead with confidence that global economies will get past the pandemic challenge. Technology stocks continued to lead the market and helped push the NASDAQ Composite to new highs.
4

Stocks were mixed as the week progressed amid some weak economic news, a message of economic caution from the Fed, and continuing uncertainty over a new fiscal stimulus plan. Technology momentum provided support for the broader market, with a late Friday afternoon rally pushing the S&P 500 and Nasdaq Composite to close out the week at fresh record highs.5
 

Not All Sectors Are Participating
Behind last Tuesday's headline that the S&P 500 had set a new record high lies a story of a deeply bifurcated market.

Despite a new high, more than half the companies in the index were still trading below where they began the year. When dissected on an industry sector basis, the year-to-date performance dispersion was quite wide, with sectors like Technology (+25.53%), Consumer Discretionary (+16.68%), and Communication Services (+12.70%) posting strong performance, while Energy (-37.56%) and Financials (-20.08%) remained sharply down. In fact, nearly half (5 out of 11) of S&P 500 sectors were still in negative territory year-to-date.6,7,8
 
BY THE NUMBER$

BUCS AND BRADY? - Super Bowl # 55 is scheduled to be held on 2/07/21 in Tampa, FL. No NFL team in history has ever played in the Super Bowl on their home field (source: NFL).

THE WORLD'S BIGGEST - The size of the US economy was $19.4 trillion as of 6/30/20. 10 years ago (6/30/10), the size of the US economy was $14.9 trillion. 20 years ago (6/30/00), the size of the US economy was $10.2 trillion. 30 years ago (6/30/90), the size of the US economy was $6.0 trillion (source: Bureau of Economic Analysis). 9

 
THE WEEK AHEAD: KEY ECONOMIC DATA

Tuesday: Consumer Confidence. New Home Sales.

Wednesday: Durable Goods Orders.

Thursday: Jobless Claims. Gross Domestic Product (GDP).

Friday: Consumer Sentiment.

Source: Econoday, August 21, 2020
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. 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 WEEK AHEAD: COMPANIES REPORTING EARNINGS

Tuesday: Salesforce.com (CRM), Best Buy (BBY), Intuit (INTU).

Thursday: Marvell Technology (MRVL), Dollar General (DG), Dollar Tree (DLTR), Dell Technologies (DELL), VMware (VMW).

Source: Zacks, August 21, 2020
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. 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.
 
 
 
 
THE WEEKLY RIDDLE
 
A man jumped out of a small plane without a parachute. When he hit the ground, he wasn't injured at all. Why?
 

LAST WEEK'S RIDDLE: What number should be next in this series: 9, 16, 25, 36?
ANSWER: 49, as 49 = 7 squared. 9 = 3 squared, 16 = 4 squared, and so on.
 





Portfolio Advisory Council, LLC
A Registered Investment Advisory Since 1986
             
Investment advisory services offered through Portfolio Advisory Council, LLC, and an SEC Registered Investment Adviser.
 
We cannot accept trade orders through e-mail. Important letters, e-mail, or fax messages should be confirmed by calling 713.574.6015.  This email service may not be monitored every day, or after normal business hours.  

James W. Hamilton, CFS, AIF
713.574.6025
 
W. Thomas Sutton  CFP(R), ChFC, CLU
713.574.6020
 
Philip B. Moran, MBA, ChFC, CFP(R), AIF
713.574.6030
 
John C. Husbands

Visit us at www.pac1000.com 



This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. The information herein has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs and expenses, and cannot be invested into directly. All economic and performance data is historical and not indicative of future results. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is a market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Standard & Poor's 500 (S&P 500) is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New York Stock Exchange (the "NYSE") and NYSE Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a leading provider of securities listing, trading and market data products and services. The New York Mercantile Exchange, Inc. (NYMEX) is the world's largest physical commodity futures exchange and the preeminent trading forum for energy and precious metals, with trading conducted through two divisions - the NYMEX Division, home to the energy, platinum, and palladium markets, and the COMEX Division, on which all other metals trade. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional.


CITATIONS:
1. The Wall Street Journal, August 21, 2020
2. The Wall Street Journal, August 21, 2020
3. The Wall Street Journal, August 21, 2020
4. The Wall Street Journal, August 18, 2020
5. CNBC.com, August 19, 2020
6. BBC News, August 18, 2020
7. FactSet.com, August 21, 2020
8. FactSet.com, August 21, 2020
9 - Reproduction Prohibited without Express Permission - Copyright © 2011 Michael A. Higley

CHART CITATIONS:
The Wall Street Journal, August 21, 2020
The Wall Street Journal, August 21, 2020
treasury.gov, August 21, 2020