Market Commentary

For the week of May 13, 2013

 

The Markets

U.S. stocks posted a third consecutive week of gains following a rise in technology shares that offset a slide in energy stocks. Stronger-than-expected first-quarter earnings reports from the retail sector also helped stocks. The Dow and S&P 500 both closed at record highs on Friday. For the week, the Dow rose 1.11 percent to close at 15,118.49. The S&P gained 1.29 percent to finish at 1,633.70 and the NASDAQ climbed 1.72 percent to end the week at 3,436.58.

 

Returns Through 05/10/13	1 Week	YTD	1 Year	3 Year	5 Year
Dow Jones Industrials (TR)	1.11	16.43	20.83	14.99	6.45
NASDAQ Composite (PR)	1.72	13.81	17.14	13.11	7.04
S&P 500 (TR)	1.29	15.43	23.07	14.55	5.65
Barclays US Agg Bond (TR)	-0.40	0.22	2.77	5.20	5.53
MSCI EAFE (TR)	0.69	11.19	25.41	9.47	-0.85

 

Source: Morningstar.com. *Past performance is no guarantee of future results. Indexes are unmanaged and cannot be invested into directly. Three- and five-year returns are annualized. The Dow Jones Industrials, MSCI EAFE, Barclays US Agg Bond and S&P, excluding “1 Week” returns, are based on total return, which is a reflection of return to an investor by reinvesting dividends after the deduction of withholding tax. The NASDAQ is based on price return, which is the capital appreciation of the portfolio, excluding income generated by the assets in the portfolio in the form of interest and dividends. (TR) indicates total return. (PR) indicates price return. MSCI EAFE returns stated in U.S. dollars.

 

Many Less – As of March 31, 2013, there were 1.93 million existing homes for sale in the U.S. Just four years earlier (March 31, 2009), the number of homes on the market was 3.65 million (source: National Association of Realtors, BTN Research). 

 

Nice Jump – Private sector jobs increased by 4.65 million in the past two years (through April 30, 2013) while public sector jobs (government) declined by 348,000 over the same period (source: Department of Labor, BTN Research). 

 

Much Worse There – The unemployment rate in the United States is 7.5 percent today. The unemployment rate in the eurozone is 12.1 percent (source: Department of Labor, BTN Research). 

WEEKLY FOCUS – Estate Planning: Before you Begin

 

A person’s legacy cannot be measured by one solitary event in his or her life. Rather, legacies, like lives themselves, must be measured as a whole. If you’ve ever taken a step back and examined your own life and legacy, what have you found?

 

Do you feel comfortable with what you’ll leave behind?  How do you want people to remember you when you’re gone? More importantly, how can you make sure people remember you in death, as you were in life? Estate planning has become an important tool in deciding how your life’s work will be viewed. Without it, the courts may decide who gets what. With the proper planning, you decide which individuals or charities receive your assets.

 

Think Ahead: Before preparing the most crucial documents needed for estate planning, sit down and decide who you’ll put in charge to make medical and financial decisions for you. You’ll also want to decide who gets what. Picking out beneficiaries and an executor of your estate are two of the most critical decisions you can make. If you have younger children, decide what would happen to them in case of an emergency.

 

Know which documents you’ll need: In general, you should have a financial power of attorney, a medical power of attorney and a living will. These documents designate who will make decisions when you’re gone, or if you’re alive but unable to make important choices regarding medical care or finances.

 

Survey your finances: Know what you’ll owe when you die, including the costs of probate. Subtract that from your assets and have a general idea of how much money you’ll have left over. By keeping tabs on your remaining assets, you’ll be more prepared to know what you’ll pay in taxes.

 

When planning your estate, you want to be prepared in all areas of your life. From medical to financial decisions and everything in between, it can be an uncomfortable subject, especially when you involve your family in the planning. In the end, you want your legacy to be protected. By working with our office to carefully plan your estate, you can take the proper steps to protect your family’s future.

 

 

 

* 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 index of 30 actively traded blue-chip stocks. NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Morgan Stanley Capital International Europe, Australia and Far East Index (MSCI EAFE Index) is a widely recognized benchmark of non-U.S. stock markets. It is an unmanaged index composed of a sample of companies representative of the market structure of 20 European and Pacific Basin countries and includes reinvestment of all dividends. Barclays Capital Aggregate Bond Index is an unmanaged index comprised of U.S. investment-grade, fixed-rate bond market securities, including government, government agency, corporate and mortgage-backed securities between one and 10 years. Written by Securities America. SAI#665687