Margie talks about some of the things you should be doing, now that 2013 is about to wrap up.
Margie discusses what RMD’s are.
- Policymakers in the U.S. providing direct government support for failing companies and creating liquid capital markets that helped companies recover after the financial crisis.
- Companies benefitting from an increase in domestic energy production. Often the fuel comes from unconventional sources.
- American businesses leading the way in social media. They are expected to blaze the trail when finding ways to profit from Big Data and developing a sharing economy.
Data as of 12/6/13
Standard & Poor’s 500 (Domestic Stocks)
10-year Treasury Note (Yield Only)
Gold (per ounce)
DJ-UBS Commodity Index
DJ Equity All REIT TR Index
8.9Notes: S&P 500, Gold, DJ-UBS Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; the DJ Equity All REIT TR Index does include reinvested dividends and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods. Sources: Yahoo! Finance, Barron’s, djindexes.com, London Bullion Market Association. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not applicable. Let’s take a stroll down memory lane… In a recent issue, The Economist pointed out during March 2009 the prospects for American companies were pretty sketchy: “…The Dow Jones Industrial Average closed below 6,627, a 53% decline from its all-time high less than two years earlier. The number of American firms in the global top ten by market capitalization was on its way down from six to three, and America’s share of the top 50 companies from 50% to 40%. Once regarded even in Communist China as the business model for the world, corporate America had lost its crown.” Oh, the difference just a few years can make! According to an November 18, 2013 article on Economist.com, If we look ahead to 2014, American firms are expected to comprise the majority of the global top ten (when measured by market value) and make up almost two-thirds of the top 50 companies in the world. It’s not all that surprising when you consider the fact, as a headline in Forbes announced, corporate profits are at an all-time record peak making up almost 70 percent of U.S. gross domestic product. That may have something to do with the way Americans are spending their money. Citing an expert from Bank of America Merrill Lynch, Barron’s reported: “U.S. import growth has shrunk from 11% to less than 1% between 2010 and 2013, while job growth has repaired from a negative 1.7% to 1.6%… Domestically produced energy now accounts for 87% of what we consume, up from 70% five years ago, and the share of vehicles sold here that are manufactured stateside has risen from 63% to 73%… We’re also spending more on domestic goods and services… Nearly 40,000 Americans turn 65 every week, and aging boomers tend to steer more of their disposable income toward services like medical care, accommodation, and recreation that are typically made in America.” Perhaps what Alexis de Tocqueville, French historian and political thinker, said about America still holds true, “The greatness of America lies not in being more enlightened than any other nation, but rather in her ability to repair her faults.” Weekly Focus – Think About It “When even one American who has done nothing wrong is forced by fear to shut his mind and close his mouth, then all Americans are in peril.” –Harry S. Truman, American President Best regards, Margie Shard, CFP® President and Wealth Advisor P.S. Please feel free to forward this commentary to family, friends, or colleagues. If you would like us to add them to the list, please reply to this e-mail with their e-mail address and we will ask for their permission to be added. Securities offered through LPL Financial Services, Member FINRA/SIPC. * This newsletter was prepared by Peak Advisor Alliance. Peak Advisor Alliance is not affiliated with the named broker/dealer. * The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index. * The Standard & Poor’s 500 (S&P 500) is an unmanaged index. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. * 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. * Gold represents the London afternoon gold price fix as reported by the London Bullion Market Association. * The DJ Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998. * The DJ Equity All REIT TR Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones. * Yahoo! 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. * Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful. *Stock investing involves risk including loss of principal. * Past performance does not guarantee future results. * You cannot invest directly in an index. * Consult your financial professional before making any investment decision. * To unsubscribe from the Shard Financial Services Weekly Market Commentary please reply to this e-mail with “Unsubscribe” in the subject line, or write us at 1537 N. Leroy Street, Suite D, Fenton MI 48430. Sources: http://www.bloomberg.com/news/2013-12-06/michigan-sentiment-index-increased-to-82-5-in-december-from-75-1.html http://www.nytimes.com/2013/12/07/business/economy/us-economy-adds-203000-jobs-as-unemployment-falls-to-5-year-low.html?src=recg http://www.economist.com/news/21589101-corporate-america-surges-ahead-top-world-again http://money.cnn.com/2013/12/07/news/economy/trade-deal-bali/ http://blogs.marketwatch.com/thetell/2013/12/05/stock-market-live-blog-good-news-is-bad-news-threatens-to-extend-losing-streak/ http://blogs.marketwatch.com/thetell/2013/12/06/jobs-report-live-blog-stocks-gold-bonds-keyed-to-biggest-report-of-week/ http://www.forbes.com/sites/robertlenzner/2013/11/30/there-are-far-fewer-bears-on-the-stock-market-today-than-at-the-peaks-in-2000-or-2007/ http://online.barrons.com/article/SB50001424053111903302604579234212420953176.html?mod=BOL_hp_we_columns (or go to http://peakclassic.peakadvisoralliance.com/app/webroot/custom/editor/12-09-13_Barrons_A_Telling_Topography.pdf) http://www.brainyquote.com/quotes/quotes/a/alexisdeto389355.html http://www.brainyquote.com/quotes/authors/h/harry_s_truman.html