China and Geopolitical Tensions Have Global Markets In a Tizzy!

From: "Horizon Financial Services, LLC" <[email protected]>
Subject: China and Geopolitical Tensions Have Global Markets In a
Tizzy!
Date: March 17, 2014 12:59:26 PM EDT
To: [email protected]
Reply-To: [email protected]
Having trouble viewing this email? Click here
China and Geopolitical Tensions Have Global
Markets In a Tizzy!
Markets In a Tizzy!
Welcome to the video edition of my weekly market update. To
view the video, just click on the arrow below.
Todd Day
Portfolio Manager
Horizon Financial Services, LLC
In This Issue
Quote Of The Week
Recipe Of The Week
Tax Tips
Golf Tip
Healthy Lifestyle
Green Living
China and Geopolitical Tensions Have Global
Markets In a Tizzy!
Well, in a week where we did see the S&P 500 testing
the intra-day all-time high the markets were rifle
focused on China and the Crimea. In China,
weakening economic data had traders and investors
concerned about the global growth story. This news
sent the Copper market in a freefall as weakening
growth means lower shipments of Copper. The
tensions in the Ukraine, and mainly in Crimea, took
center stage as Russia continues to increase their
military presence in the region. And the sabre
rattling eventually took its toll on stocks, with the
Dow now down more than 2.50% for the year, the
S&P 500 virtually flat and the NASDAQ holding onto
only a slight gain.
EARNINGS
It was a slow week for quarterly earnings, but it's still all about the weather.
Sporting goods retailer, Dick's Sporting Goods (DKS) reported earnings that
exceeded expectations thanks to all the winter weather gear they sold, yet
offered weak guidance for the remaining 2014. The stock was up as JP
Morgan (JPM) was out there beating the drum for the stock. Dollar General
(DG) reported a rise in profit on higher sales but results were below
expectations (thanks to the weather) and they provided poor guidance. The
world's largest chemical supplier, DuPont (DD) warned that earnings would be
hurt because of the weather and the Ukrainian situation where they have a
facility that produces a variety of seeds. In other stock news, Men's
Warehouse (MW) agreed to buy Joseph A. Banks (JOSB) for $65/share plus
two suits and four shirts and as many neckties as you could carry. As we
approach April and a new earnings season, remember, they are reporting first
quarter earnings, which had some weather issues, so be ready to hear more of
the blame game.
ECONOMY
Last week offered very little in the way of domestic economic data for traders
and investors to digest. That was a good thing as there were bigger fish to fry.
We did hear from NFIB Small Business sentiment and Small Business owners
were not so optimistic in February after all, and the biggest disappointment
within the number was the drop in hiring expectations since January. Go
ahead, blame winter. You know you want to. Retail Sales surprised to the
upside beating expectations but January's numbers were revised down. We did
see the Weekly Jobless Claims drop to 315,000 which was less than the
330,000 expected. We wrapped up the week with a view of consumer
confidence and it unexpectedly fell. The weakness is in the expectations
component. It would be speculative to wonder, what's behind this dip? Slow
growth in the jobs market is a likely factor, perhaps the building conflict in
Ukraine is also a factor, but we know it's not the weather as Spring is on the
way.
INTERNATIONAL
Across the pond, European stock markets moved lower tracking a negative
trading mood in Asia where lingering concerns about a slowdown in China hit
sentiment. Weak industrial-production data from the euro zone also hampered
the investing mood. But there was some good news. Portugal reported a
recorded year-on-year quarterly growth since the fourth quarter of 2010. The
turnaround surprised economists, who expected the euro-zone country to
continue to be hard hit by the austerity measures the government imposed.
Signs of improvement, however, started showing late last year as the euro-
zone crisis began to ease. In Asia there was significant weakness as Chinese
growth concerns continue to weigh on markets. They also released a weaker
than expected Industrial Output number - now to be clear - it did rise by 8.6%
but the expectation was for 9.5%. And as mentioned earlier, the copper
market got crushed on the slowdown fears and potential bond defaults out of
China. Meanwhile Japan's economy expanded less than estimated in the fourth
quarter and the current-account deficit widened to a record in January and the
yen continues to rise hurting the Nikkei index.
THE WEEK AHEAD
So, with little in the way of earnings to speak of for this week (which is good
we got other things to worry about) the economy, the FED, China and Ukraine
will give us plenty to chew on. We will hear more on the state of the
manufacturing and housing sectors and you can expect the "W" word to be
used a few times. This week's FED meeting will mark Janet Yellon's first as
Chair so this will be widely and I do mean widely watched. We expect for the
FED to continue to reduce their bond purchases and any deviation from this
has the potential to be market moving. And we will be monitoring the
developments between Russia and the Ukraine and will keep you posted.
Coconut Rice Custard
A delicious and gluten free dessert that's easy to make.
Ingredients:
1 13.5-ounce can unsweetened coconut milk
1/4 cup water
1/4 cup plus 2/3 cup sugar
1 cup long-grain white rice
3 cups half-and-half
5 eggs
1 teaspoon vanilla extract
Directions:
1. Preheat your oven to 325°F. Heat a kettle of water to near boiling.
2. Bring coconut milk, water, and ¼ cup sugar to a boil in a small saucepan.
3. Stir in the rice once the liquid is boiling. Reduce heat to medium-low,
cover pot, and simmer gently for approximately 20 minutes until the rice is
tender and the liquid has been absorbed.
4. While the rice is cooking, warm the half-and-half in a small saucepan over
medium heat - do not allow it to boil. Whisk the eggs, vanilla, and
remaining sugar together in a bowl. Slowly pour the warm half-and-half
into the egg mixture, whisking constantly. Stir in the cooked rice.
5. Pour mixture into an 8x8-inch baking dish. Set the baking dish inside a
larger roasting pan or baking dish and transfer to middle oven rack.
Carefully pour enough hot water into the larger dish to reach halfway up
the sides of the smaller dish.
6. Bake approximately one hour, until the custard is set.
7. Serve warm or chilled.
Recipe courtesy of Sara Quessenberry | RealSimple.com
Deducting Medical and Dental Expenses
If you're planning to deduct any healthcare expenses on your federal taxes,
there are some new rules that you should know about.
* Beginning in 2013, the amount of allowable medical expenses you must
exceed before you can claim a deduction is 10% of your adjusted gross
income, unless you or your spouse are age 65 or older. In this case, the AGI
threshold is still 7.5%. This exception will be valid through December 31, 2016.
* You should also keep in mind that only expenses paid in 2013 are eligible for
deductions on 2013 taxes. If you paid by check, the day you mailed or delivered
the check can be considered the date of payment.
* You can only claim medical or dental expenses if you itemize deductions on
your federal tax return.
Tip courtesy of IRS.gov [12]
Reach For the Driver
Drivers have exploded in size in recent years, making them bigger, longer, and
much more forgiving. The next time you're faced with a choice between your
driver and a fairway wood on a tight hole, consider reaching for the driver. You
could choke down on the grip, tee the ball lower, or even make a ¾ swing to
mimic a fairway wood while still taking advantage of the driver's forgiving
nature.
Tip courtesy of A.J. Bonar & Ryan Noll | Golf Tips Mag [13]
Home Remedies That Work
Honey for a cough. A Pennsylvania study found that honey can help reduce
coughing in children and adults.
Liquid dish soap for poison ivy. If you run into poison ivy, washing the
affected area with dish soap within two hours may help prevent the itchy rash.
Ginger for upset stomach and motion sickness. Some studies have shown
that small doses of fresh or powdered ginger can help relieve symptoms of
nausea.
Tip courtesy of Candy Sagon | AARP Bulletin [14]
Mulch to Save Water
There are many reasons to use mulch in your yard or garden. Mulching keeps
weeds down, conditions your soil, and can make your yard look more attractive.
Mulch also plays an important role in preventing water loss. Once the soil is
moist, a layer of mulch helps keep it from drying out, reducing the amount of
watering your garden will need in warm weather.
Mulch doesn't have to be expensive. Many municipalities offer residents mulch
from public works projects. Check with your city or county to see if free mulch is
available for delivery.
Tip courtesy of Oregon State University [15]
Share the Wealth of Knowledge!
Please share this market update with family, friends, or colleagues. If you would
like us to add them to our list, simply click on the "Forward email" link below.
We love being introduced!
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.
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 indexes from Europe,
Australia and Southeast Asia.
The Dow Jones Corporate Bond Index is a 96-bond index designed to represent the market performance, on a
total-return basis, of investment-grade bonds issued by leading U.S. companies. Bonds are equally weighted by
maturity cell, industry sector, and the overall index.
The S&P/Case-Shiller Home Price Indices are the leading measures of U.S. residential real estate prices, tracking
changes in the value of residential real estate. The index is made up of measures of real estate prices in 20 cities
and weighted to produce the index.
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 longterm bond market.
Google 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.
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 Horizon Financial Services, LLC, and should not be construed as investment advice. Neither
Horizon Financial Services, LLC nor its Investment Advisor Representatives or Associates 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.
John Brais, Owner
Investment Advisor Representative
Horizon Financial Services, LLC
3880 Vest Mill Road, Suite 100
Winston Salem, NC 27103
(336) 659-7060
[email protected]
http://www.horizonfs.com
Copyright © 2014. All Rights Reserved.
Investment advisory services are offered through Horizon Financial Services, LLC, a North Carolina State
Registered Investment Advisor. Insurance products are offered through New Horizon Financial Services, Inc. dba
Horizon Financial Services.
Forward this email
This email was sent to [email protected] by [email protected] |
Update Profile/Email Address | Instant removal with SafeUnsubscribe™ | Privacy
Policy.
Horizon Financial Services, LLC | 3880 Vest Mill Road | Suite 100 | Winston Salem |
NC | 27103