Presented by, Mike Fassi
“Rules too soft are seldomly followed; rules too harsh are seldomly executed.”
– Ben Franklin
In retirement, one of your goals should be to grow your assets faster than inflation devalues them. You must sustain your purchasing power.
Robert will paint unit numbers on 100 storage units today. In the course of painting a number from 1 to 100 on the door of each unit, how many times will he have to paint the numeral 3 today?
Last week’s riddle:
Until it is measured it is not accurately known, yet you may miss it when it has flown. What is it?
Last week’s answer:
October 26, 2015
EXISTING HOME SALES ACCELERATE
The National Association of Realtors measured a 4.7% gain in residential resales for September, and the annualized sales pace of 5.55 million units was the second best seen since February 2007. Over the past 12 months, existing home sales are up 8.8% with the average sale price up 6.1% (September’s median sale price was $221,900).1
MORE HOUSING STARTS IN SEPTEMBER
Last month saw a 6.5% increase in groundbreaking according to the Census Bureau. That brought the 12-month increase in housing starts to 17.5%. The rate of building permits issued fell by 5.0% in September, but that still left a 4.7% yearly gain.2
OIL & GOLD RETREAT
On the COMEX, gold settled at $1,162.80 Friday, marking a 1.7% weekly loss. WTI crude dropped 5.6% last week, settling Friday at $44.60 on the NYMEX.3
S&P TURNS POSITIVE YTD; NASDAQ BACK ABOVE 5,000
More easing by China’s central bank and strong earnings from tech giants helped equities. The Nasdaq rose 2.97% for the week to a Friday close of 5,031.86. The Dow rose 2.50% on the week to 17,646.70, the S&P 500 2.07% to 2,075.15.3,4
THIS WEEK: September new home sales figures arrive Monday, plus earnings from Cheesecake Factory, MGM Resorts and Xerox. Tuesday brings September’s durable goods report, August’s Case-Shiller home price index, the latest Conference Board consumer confidence index and earnings from Airgas, Anadarko Petroleum, Alibaba, Apple, Big 5, Bristol-Myers Squibb, Coach, Comcast, Corning, Cummins, Express Scripts, Ford Motor Co., Edison International, JetBlue, Lexmark, Macerich, Magellan Health, Merck, NCR, Panera, Pfizer, Revlon, Spirit Airlines, T-Mobile, Twitter and Waste Management. A new Federal Reserve policy statement appears Wednesday plus earnings from Amgen, Anthem, AutoNation, Buffalo Wild Wings, Ferrari, General Dynamics, Garmin, GoPro, IMAX, Hanesbrands, HealthSouth, Hershey, Hilton Worldwide, LifeLock, Marriott, PG&E, Norfolk Southern, O’Reilly, Public Storage, Starwood Hotels & Resorts, Tesoro, Valero, Western Digital and Yelp. Thursday offers the first estimate of Q3 GDP, a new initial claims report, and earnings from Aetna, Altria, Baidu, Coca-Cola, ConocoPhillips, Electronic Arts, Expedia, Fluor, LinkedIn, Live Nation, MasterCard, Starbucks, Sherwin-Williams, Time Warner Cable, Virgin America and Western Union. Friday, new personal spending figures and October’s final University of Michigan consumer sentiment index are out, plus earnings from Chevron, Colgate-Palmolive, CVS Health, ExxonMobil, Phillips 66, Seagate and Weyerhaeuser.
Sources: wsj.com, bigcharts.com, treasury.gov – 10/23/155,6,7,8
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. 10-year TIPS real yield = projected return at maturity given expected inflation.
Mike Fassi may be reached at email@example.com, or 970.416.0088
Mike Fassi is a Registered Principal/Advisory Associate. Securities and advisory services offered through Centaurus Financial Inc., a Registered Investment Advisor Member FINRA/SIPC.
1 – cnbc.com/2015/10/22/existing-home-sales-hit-555m-units-in-sept-vs-expectations-of-538m.html [10/22/15]
2 – 247wallst.com/housing/2015/10/20/housing-starts-rose-less-than-expected-in-september/ [10/20/15]
3 – 247wallst.com/investing/2015/10/23/the-4-stocks-that-dominated-the-dow-on-friday/ [10/23/15]
4 – markets.on.nytimes.com/research/markets/usmarkets/usmarkets.asp [10/23/15]
5 – markets.wsj.com/us [10/23/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F23%2F14&x=0&y=0 [10/23/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F23%2F14&x=0&y=0 [10/23/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F23%2F14&x=0&y=0 [10/23/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F22%2F10&x=0&y=0 [10/23/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F22%2F10&x=0&y=0 [10/23/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F22%2F10&x=0&y=0 [10/23/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=DJIA&closeDate=10%2F24%2F05&x=0&y=0 [10/23/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=COMP&closeDate=10%2F24%2F05&x=0&y=0 [10/23/15]
6 – bigcharts.marketwatch.com/historical/default.asp?symb=SPX&closeDate=10%2F24%2F05&x=0&y=0 [10/23/15]
7 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyield [10/23/15]
8 – treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=realyieldAll [10/23/15]