That Was The Week That Was-1st Week July

Required Minimum Distribution for those 70 1/2+One of the worst things about saving in a qualified plan is the IRS rules eventually force you to take out a minimal amount and pay taxes on it whether you need it or not. If you haven’t established a set income withdrawal, or taken your 2014 RMD now may be the time to do so. RMD is calculated based on your account 2013 year-end value, and current age. You can have your Federal and state taxes withheld from your distribution. You can also reinvest your RMD into another single or joint account. Get your RMD forms by calling or e-mail me.

Paul Nolte, portfolio manager at Kingsview Asset Management, told clients 6/30/2014, ‘'The sunny market climate isn’t going to change anytime soon.” When it does, Nolte wrote, it will be something that plants doubt in investor’s minds about the economies health or an interest-rate hike. For now enjoy the markets before they enter the scary season (meaning this coming fall).

Henry Blodget’s latest stock outlook was commented on by Barrons.com 7/1/2014. Henry used to work at Merrill  Lynch and was ‘removed’ from the investment business permanently for a ‘conflict of interest’ during the dot.com heyday. That doesn’t mean he can’t comment on what’s happening in the markets. He is currently editor in- chief of the online ‘Business Insider.’ Henry believes that profit margins, stock prices are extremely high. While that doesn’t necessarily mean an immediate crash eventually gravity will take over. He believes that stocks will perform very poorly from this point on for the next seven to ten years.

Market Mixed Monday. Year to date Utilities and Emerging Markets have had a nice run. Shortened Trading Week. I would imagine a quiet holiday week with no big surprises.

Boy was I wrong! It was a very very good day Tuesday as the DJIA closed up over 125 points, the Naz was up 50 and we’re seeing the Dow close in on 17000. At this point I think reasonable investors have to be thinking ‘what’s driving’ the market? Gold and oil were up by pennies and the VIX fell. Don’t be surprised to see another pullback perhaps before Labor Day. This Middle-East situation is not going to go away.

Unemployment dropped to 6.1%. Better than expected numbers blows by expectations, David Faber, CNBC 7/3/2014. Cramer, on same morning CNBC program, said it was time to get aggressive as rates (employment numbers) get low. Don’t try to outthink this market. Multiples are not hampering further growth. This is the lowest unemployment number since 2008.

Finally- Call it the ‘Muddle Through’ Economy. Molson Coors Brewing Co CEO Peter Swinburn told investors that the last five years were challenging…but the company is now starting to see ‘green shoots’ of recovery. Consumer spending is still muted and that has to do with jobs growth, which is mainly contained in the low-wage fields. U.S. workers have climbed about 2%, just enough to cover inflation but there are few signs that show wages breaking out of that range as an abundance of idled labor allows firms to keep costs low. CEO Nate DaPore, of PMW Technologies, said the company is witnessing the choppiness among its clients in the retail and food-services sectors. ‘The economy’s very fragile.’ He said.

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

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