That Was The Week That Was-1st Week June

 Every time an article on Social Security is published critics contend that it is not a government program but one that is owned and funded by workers. They also argue that it is not an ‘entitlement’, and wish that writers and regulators stop referring to it as such. Sorry, folks, but it is a government program, created by the FDR Administration in 1935. It is an entitlement since control over who may receive benefits, how much and when is not in the hands of those funding Social Security, but the government. It’s a lot like an inheritance or gift- it’s not yours until you receive it.  

Looking for Income? REITS, Real Estate Investment Trusts, have been hot in 2014. These public investments trade like stocks, and sport attractive yields. While popular during periods of low and stable interest periods the principal on a REIT can fall if rates rise. Still there are opportunities for the long-term investor. Call or email me for details.

Utilities have been the surprise winner this year. After a New Year prediction that the sector would be a non-performer in 2014 it came out with a robust performance in the first quarter as the big winner. The reason, according to Barrons.com 5/31, is as an income play. While Treasuries have seen their yield fall utilities have sparked investor interest. May was a bad month for the sector as the utilities posted a loss of 2.4%. Still the sector is up 11% so far in 2014 (through May 31st), and with a 3.7% dividend yield. Looking to add the sector to your current portfolio? Call me for ideas 586 295 0430.

WSJ (6/1/2014) Reported on the rise of Frontier Markets versus Emerging Markets. Individual countries have posted significant returns; especially Bulgaria, Pakistan and Nigeria. Investors disappointed by our domestic returns in 2014 have poured more than $1.5 billion in the first four months of the year. Investors can invest in Frontier Markets through several mutual funds and Exchange Traded Funds.

Federal Reserve June Beige Book Commentary on Current Economic Conditions reported that economic activity expanded ‘moderately’ across almost all districts. Some were relatively strong although there were lingering pockets in the NE where the winter weather weighed on sales. Residential real estate was mixed, with some low inventories constricting sales. Manufacturing expanded throughout, and in an increasingly strong pace in a number of Districts. (Bloomberg 6/4)

Sam Eisenstadt predicts the S&P 500 Index hits 2100 by November. MarketWatch.com (6/4) reported the Bulls are back and there is a growing sense that they’re staying awhile. Research firm S&P Capital IQ raised its 12-month target for the S&P to 2100 from 1985- a 9% increase.  

Thursday DJIA up! The ECB cut the deposit rate and will move to persuade banks to lend. That ‘alleviated’ some investor concerns. Reuters 6/5/2014

Friday was National Donut Day! What’s Your Fav? Mine’s French Cruller.

Finally- Friday Markets Moved Up- Dow set a Record after a solid jobs report. It was the strongest week since mid-April. 

Questions call Paul @ 586 295 0430 or write him at pstanley@westminsterfinancial.com Share this blog with someone who cares about their money.

SECURITIES OFFERED THROUGH WESTMINSTER FINANCIAL SECURITIES, INC. MEMBER FINRA/SIPC.