That Was The Week That Was-3rd Week February

 

 Some people get stubborn about paying for something they think should be free. Take investing. According to a few it should be like air or bank savings-free. Or, maybe you pay a little once and it’s good for a lifetime of trading.  The fact is free air, depending on where you live, may not be so good for you. A friend of a friend, a reformed three pack a day smoker, came back from a year long slog in China and said it was the worst quality of air he ever experienced, even when he was smoking. Some part of Detroit area are so polluted the ‘free’ air strips paint off cars and houses. Free air isn’t always clean air, and then not so good for you. Bank savings is never free. Banks allow you to park your cash over a variety of time tables and you never see a bill. You never see a substantial return, either. Banks borrow your money. Make money on your money and then return a small amount of cash for your trouble. You agree to all that when you open an account. Free investing is a myth. Every product has some sort of a fee or charge. It is either added to, added on or built in. The day you run into someone who’s in the investment business and tells you they work for free or cheaper than where you are start counting your fingers. The person making the offer may be after more than just your savings.

 

 

Big Day DJIA Closed Over 18,000, S&P New Record High 2097 & Nasdaq Creeping Up on 5,000. 2/13/2015 Brilliant! Just Brilliant. And so quietly done. The week before last the S&P closed at a record high. The Naz is methodically grinding to its high it hit back in 2000. Peter Cardillo, chief market economist at Rockwell Global Capital said the S&P has a little more to go, as high as 2125, before pulling back to below 2000. CNBC 2/13.  Energy was up 1.95%, and utilities were the biggest decliner.  Oil closed at $52.78. With this latest run money will be coming out of bonds as many analysts have voiced their bearish views on the sector. The money should flow to equities and we should see the markets go higher. 

Jeff Reeves at MarketWatch.com Warns: Don’t Be Dumping Stocks Right Now. MarketWatch.com 2/11. Here are a Few Reasons:

• Labor Market is strong.
• Corporate earnings are robust.
• Shorts aren’t winning.
• Cheap energy is boosting spending.
• Housing has a solid foundation.
• Banks are in good shape.
• Consumers are confident.
• Interest rates will stay low longer.
• There are few alternatives to U.S. stocks.

 

You Wanna Know Which Way The Stock Market is Headed?

‘Ask a Four Year Old,’ said Dennis Gartman on CNBC Monday. ‘A four year old would look at the chart and say I’m not sure what it is, but it’s moving from the lower left to the upper right. We try to look too deeply into things…’ explained Gartman.

WHAT’S BETA? If you’ve had your portfolio reviewed by me you know one of the first things we talk about is ‘Beta’. Beta is a calculated on how a security moves in relation to ‘the market’. A beta of 1 indicates that it moves with the market. A beta of less than one means it moves less than the market. A beta of 1.5 means the security is 50% more volatile than the market. Use beta to ensure that your portfolio is on track to meet your risk/reward goals.

 

uNDERStANDING bASiC iNvestMents  is essential in today’s world. Whether you have someone else manage your money or do it yourself knowing the difference in investment sectors and the general market is basic to avoid losing your money or having someone else lose it for you.

MARKETS UP TUESDAY. slightly.

 

 State Department Spokeswoman Marie Harf said on ‘Hardball’ (2/17) that to go after the ‘root’ that causes people to join groups (ISIS) whether it’s lack of opportunity for jobs…’ Even arch liberal Matthews had to blink hard and say that there is always going to be poor people. Yes, some in the State Department thinks a Terrorist Jobs Program may solve problems in the Middle-East. Harf is the #2 in the State Department and obviously shows she understands nothing about the Middle-East.

Basic Materials Rally

Shares of companies that grow or find basic materials are showing signs of recovery. Barrons.com ‘Getting Technical’. Feb. 17, 2015. ‘The stock market, which looks many months into the future, seems to expect demand for basic materials to perk-up, and that’s good news for the market and the economy.’

 

West Coast Labor Dispute Could Be Behind Huge Oil Inventory. Crude supplies saw a whopping 14.3 million barrel jump from the week previous. That news saw prices for crude fall to $50.48 a barrel. The ongoing west coast longshoreman and ship owners dispute has put a slowdown on work that is getting close to a total walkout by the union. NY TIMES & MarketWatch.com 2/19

Markets Closed Mixed Wednesday.

 

IBD News… Marissa Mayer, CEO of Yahoo, said that ‘mobile went from a ‘hobby’, with 50 people working on it, to a quarter of our company.’ Wal-Mart announced a pay hike for 40% of their workers. It announced it will spend $1 billion for its workers, including training. Top home spenders from abroad. From Atlanta to Oklahoma its China house hunters. You bet your chopstick that China took the lead involving dollar volume while Canada still ranks first (eh?) in terms of number of purchases. Chinese not only are buyers of residential real estate but also of commercial investment real estate. Thursday markets ended mixed but restaurant sector was up. Investors Business Daily 2/20/2015

 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.