That Was The Week That Was-4th Week June

Inflation is back in the headlines. Bob Doll, Chief Equity Strategist for Nuveen Asset Management, wrote in his June 23rd newsletter, ‘Is the Fed Underestimating Inflation?’ Joe and Jane Consumer are well aware of the rising price of groceries and gasoline. You don’t need a PhD. in economics to ‘get it’ when the paycheck doesn’t stretch as far as it did just a few months earlier. The Fed is still using language that inflation is contained, but Doll wonders if the Fed is underestimating the strength of the economy, the pace of job growth and, most critically, the possibility of higher inflation. Inflation accelerated in May to its highest level in more than a year and a half (WSJ 6/26). Excluding food and energy prices rose 1.5%.

Kiplinger March, 2014 Reported why many people won’t be millionaires. Here’s a few:

• Quit School Early.
• Try to Keep Up with the Joneses.
• You Have Bad Habits.
• You Make Impulse Purchases.
• You Play the Lottery.
• You Make Minimum Payments.
• You Lack Goals.
• You Lack a Mentor.

Monday Markets Mixed.

MarketWatch.com columnist Ken Roberts wrote 6/23 that retirees could get more income by selling ‘covered calls against dividend paying stocks.’ Roberts nicely gives a thumbnail sketch of using covered call strategy without explaining risks older investors could possibly face. Investors seeking more information on using this strategy for part of their portfolio should call Paul Stanley.

Markets Fell- DJIA off over 100 points on Middle-East Concerns. Year to date both utilities and energy sectors solidly up when, at the beginning of the year, financial experts called for both to be lagging other equities. U.S. set to export oil for the first time in four decades! This Middle-East thing isn’t going away anytime soon. Expect it to keep festering throughout the summer as no one seems to have answers. Housing numbers popped unexpectedly but no one expects it to last. WSJ 6/25

What country has the highest percentage of millionaires? According to the Boston Consulting Group- Qatar 17.5%, Singapore 10%, U.S. 5.9%. Canada, with a smaller population, 2.9%.

 

Dorsey Wright Money Management Provided the above and following information from Issue 168, 6/25/2014.

• Markets edged slightly higher Wednesday.

Thursday Markets down 100 on the DJIA at the open. Jobless claims essentially flat from previous month. According to the Federal Reserve personal spending only rebounded some 0.2% in May, and real services consumption fell –0.2%. Barclays downgraded annualized Q2 growth from 4% to 2.9%. TD Ameritrade’s Eric Green cut his estimate from 3.6% to 3%. (Various sources WSJ, Barrons, Bloomberg, CNBC 6/26/2014).

Stocks Ended the Week Mildly Up. Second Weekly Gain for Nasdaq.

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.