Schwartz
Financial Weekly Commentary
September
29, 2014
The Markets
Last week offered some
lessons in career management, economics, and investor impulse, among other
things. Derek Jeter, the well-loved Yankees shortstop, finished the final home
game of his career by smacking a game-winning hit. Throughout
his last season, ticket prices for Yankees games soared on the secondary market
with $16 bleacher seats selling for more than $200. By the end of the season,
ticket vendors were asking as much as $11,000 a seat.
On the other coast,
Bill Gross, renowned bond guru, did not retire. Gross left the firm he helped
found for a smaller money manager. Shares of stock in his new company rose
about 43 percent as investors anticipated the potential inflow of new assets. They
also anticipated an outflow of assets from his old firm, according to Barron’s, which caused yields on
Treasuries and corporate bonds to move higher on Friday, pushing prices south.
Gross’s shifting
alliance wasn’t the only thing churning bond markets last week, however. Trepidation
about global economic growth and geopolitical matters (e.g., Russia vs.
Ukraine, etc.) had investors fleeing to “safe assets” earlier in the week. That
pushed Treasury yields lower and prices higher. Barron’s reported:
“Thursday’s markets
were all about a flight from risk, in part because of reports of a Russian
draft law to confiscate foreign-owned assets in retaliation for Ukraine
sanctions. More important is the message from “Dr. Copper,” suggesting weakness
globally, whether in faltering Europe or slowing China. All of which suggests
it will be an even more “considerable time” until the Federal Reserve raises
interest rates.”
Volatility may be
the name of the game for a while. Bloomberg
suggested looking backward for guidance about the future. In 2013, Fed Chairman
Ben Bernanke suggested tapering could begin sooner than expected. Treasury
yields leapt by 1 percent as the market threw a “taper tantrum.” Just last
week, Chairwoman Janet Yellen warned markets the Federal Open Market Committee statement
was not a promise about the timing of rate hikes. Bloomberg said investors remained complacent. Apparently, they
weren’t concerned unexpected economic strength in the United States could move
the timetable forward.
At the end of the
week, the Commerce Department reported economic growth was more robust than originally
thought during the second quarter. The economy grew at the fastest rate in more
than two years.
Data as of 9/26/14
|
1-Week
|
Y-T-D
|
1-Year
|
3-Year
|
5-Year
|
10-Year
|
|
Standard
& Poor's 500 (Domestic Stocks)
|
-1.4%
|
7.3%
|
16.7%
|
19.5%
|
13.3%
|
6.0%
|
|
10-year
Treasury Note (Yield Only)
|
2.5
|
NA
|
2.6
|
1.9
|
3.3
|
4.0
|
|
Gold (per
ounce)
|
-0.5
|
1.0
|
-9.0
|
-8.8
|
4.1
|
11.5
|
|
Bloomberg
Commodity Index
|
-0.3
|
-5.2
|
-6.7
|
-6.0
|
-0.8
|
-2.3
|
|
DJ Equity
All REIT Total Return Index
|
-1.0
|
14.0
|
12.2
|
16.1
|
15.4
|
8.7
|
S&P 500,
Gold, Bloomberg Commodity Index returns exclude reinvested dividends (gold does
not pay a dividend) and the three-, five-, and 10-year returns are annualized;
the DJ Equity All REIT Total Return Index does include reinvested dividends and
the three-, five-, and 10-year returns are annualized; and the 10-year Treasury
Note is simply the yield at the close of the day on each of the historical time
periods.
Sources: Yahoo!
Finance, Barron’s, djindexes.com, London Bullion Market Association.
Past performance
is no guarantee of future results. Indices are unmanaged and cannot be invested
into directly. N/A means not applicable.
do you have what it takes? If you’re about 74
inches tall, have a deep voice, and have run a marathon, you may. The Economist’s recent article, Look of a Leader, found, “It is
remarkable, in this supposed age of diversity, how many bosses still conform to
the stereotype.” The article included a mixture of studies describing the
characteristics of chief executive officers (CEOs) and other leaders:
·
30
percent of Fortune 500
companies’ CEOs are 74 inches or taller (less than 4 percent of Americans are
that tall).
·
Voice
quality was more important than content when people were asked to evaluate
executive speeches.
·
Male
CEOs with the deepest voices earn $187,000 more each year, on average.
·
Companies
with CEOs who had finished marathons were worth about 5 percent more, on
average, than those with CEOs that had not.
Don’t
worry. All is not lost. Those who have not been gifted with height,
athleticism, and lower voice registers can give themselves a leg up by adopting
power poses. Amy Cuddy, a Harvard professor (who delivered an exceptionally
popular TED talk in 2012), has found non-verbal expressions of power dominance
(body language) can influence other people’s perceptions and our own well-being:
“There’s one very important thing everyone
should do before heading into a job interview, giving a big speech, or
attempting an athletic feat... Everyone should spend two minutes power posing.
What, you ask, is power posing? It is adopting the stances associated with
confidence, power, and achievement – chest lifted, head held high, arms either
up or propped on the hips.”
These
poses can change body chemistry. High-power poses increase levels of
testosterone and decrease levels of cortisol (a stress hormone), helping people
feel more confident. Low-power poses, on the other hand, increase cortisol
levels, causing people to feel more stressed. If you’re after an
executive-level position competing with equally qualified candidates, power
poses could give you an edge.
Weekly Focus – Think About It
“Your image isn’t your character. Character is what you are as a person.”
--Derek Jeter, New York Yankee’s recently retired shortstop
Value
vs. Growth Investing (9/26/14)
|
-1.50
|
8.00
|
-1.17
|
1.13
|
17.83
|
22.10
|
16.33
|
|
|
-1.29
|
8.98
|
-0.56
|
2.03
|
19.26
|
21.97
|
15.79
|
|
|
-1.35
|
9.24
|
0.45
|
2.13
|
17.99
|
23.77
|
16.54
|
|
|
-0.84
|
10.14
|
-1.29
|
3.15
|
22.18
|
21.93
|
17.11
|
|
|
-1.71
|
7.59
|
-0.81
|
0.79
|
17.58
|
20.50
|
13.83
|
|
|
-1.93
|
7.13
|
-2.38
|
-0.38
|
15.89
|
22.65
|
18.05
|
|
|
-1.49
|
9.52
|
-1.83
|
0.45
|
18.92
|
23.91
|
19.16
|
|
|
-2.04
|
4.99
|
-2.74
|
0.25
|
12.04
|
18.95
|
17.30
|
|
|
-2.28
|
7.16
|
-2.59
|
-1.87
|
17.08
|
25.22
|
17.69
|
|
|
-2.45
|
0.17
|
-4.27
|
-4.07
|
8.58
|
21.55
|
16.45
|
|
|
-2.56
|
1.89
|
-4.16
|
-3.89
|
10.73
|
21.68
|
15.96
|
|
|
-1.88
|
-3.40
|
-4.02
|
-4.13
|
3.04
|
19.72
|
16.41
|
|
|
-2.90
|
1.97
|
-4.64
|
-4.20
|
12.16
|
23.24
|
16.93
|
|
|
-1.46
|
8.76
|
-0.34
|
1.36
|
17.65
|
23.64
|
17.08
|
|
|
-1.14
|
8.19
|
-1.75
|
2.10
|
18.73
|
21.18
|
17.15
|
|
|
-1.90
|
7.13
|
-1.42
|
-0.08
|
17.12
|
21.66
|
14.84
|
©2004 Morningstar, Inc. All Rights Reserved.
The information contained herein: (1) is proprietary to Morningstar; (2) is not
warranted to be accurate, complete or timely. Morningstar is not responsible
for any damages or losses arising from any use of this information and has not
granted its consent to be considered or deemed an “expert” under the Securities
Act of 1933. Past performance is no guarantee of future results. Indices are unmanaged and while these indices
can be invested in directly, this is neither a recommendation nor an offer to
purchase. This can only be done by
prospectus and should be on the recommendation of a licensed professional.
Office Notes:
***MEDIA ALERT***
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610-420-5353
dlmediapartners@comcast.net
SCHWARTZ FINANCIAL SERVICES
OFFERS THE “ICE KEY ” TO THEIR
CLIENT SERVICES
September 25, 2014,
Jenkintown, PA – SCHWARTZ FINANCIAL SERVICES is
pleased to announce the ICE Key (In Case of Emergency) as part of their client
services. The ICE Key is a key-shaped USB that easily attaches to your key chain. The ICE Key is meant to help prevent the
third leading cause of death in Emergency Rooms, which is mixing medications or
giving a patient a medication they’re allergic to. If a patient is unable to communicate with
first responders they simply take the USB key attached to their key ring, place
in a USB drive in any computer and have access to the patient’s complete
medical history including their Advanced Care Directive or Living Will. Michael Schwartz, founder of Schwartz
Financial Services says “the ICE Key is “the key to who you are” allowing First
Responders to give you quality care based on your medical history. Whether a scheduled health care appointment
or emergency situation, the ICE Key is something every adult and child should
have; which is why I’m offering it as a complimentary product for my clients as
well as personally inputting the information on the fillable pdf file on the
key.”
For more than 30 years, Schwartz Financial Services has been
successfully growing, managing and preserving, the wealth of his clients.
Michael’s approach to the ICE Key, compliments his old-fashioned style of
caring for his clients in this fast-paced, every changing economy and world of
technology.
Michael L. Schwartz, RFC®, CWS®, CFS, a registered principal offering
securities and advisory services through Independent Financial Group, LLC., A
Registered Broker/Dealer and Registered Investment Advisor, Member FINRA-SIPC Schwartz Financial and Independent Financial
Group are unaffiliated entities
* * *
Regards,
,
Michael L. Schwartz, RFC®, CWS®, CFS
P.S. Please feel
free to forward this commentary to family, friends, or colleagues. If you would like us to add them to the list,
please reply to this email with their email address and we will ask for their
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Michael
L. Schwartz, RFC, CWS, CFS, a registered principal offering securities and
advisory services through Independent Financial Group, LLC., a registered
broker-dealer and investment advisor.
Member FINRA-SIPC. Schwartz Financial and Independent Financial Group
are unaffiliated entities.
This
information is provided for informational purposes only and is not a
solicitation or recommendation that any particular investor should purchase or
sell any security. The information contained herein is obtained from sources
believed to be reliable but its accuracy or completeness is not
guaranteed. Any opinions expressed
herein are subject to change without notice.
An Index is a composite of securities that provides a performance
benchmark. Returns are presented for
illustrative purposes only and are not intended to project the performance of
any specific investment. Indexes are
unmanaged, do not incur management fees, costs and expenses and cannot be
invested in directly. Past
performance is not a guarantee of
future results.
* 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 DJ Global ex US
is an unmanaged group of non-U.S. securities designed to reflect the
performance of the global equity securities that have readily available
prices.
* 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 long-term bond market.
* Gold represents the
London afternoon gold price fix as reported by the London Bullion Market
Association.
* The DJ Commodity
Index is designed to be a highly liquid and diversified benchmark for the
commodity futures market. The Index is composed of futures contracts on 19
physical commodities and was launched on July 14, 1998.
* The DJ Equity All
REIT TR Index measures the total return performance of the equity subcategory
of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* Yahoo! 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.
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