Frazier Allen, WMS, CRPS, Financial Advisor with F&M Bank
Frazier Allen's Articles:
Clarksville, TN – The week began with an 8.5% drop in the Shanghai Composite Index, which sent markets down worldwide (but the Chinese market appeared to stabilize later). The Fed made only slight alterations to the wording of the monetary policy statement, and did not provide a strong signal that a September move is coming.
Real GDP rose at a 2.3% annual rate in the advance estimate for 2Q15, a bit shy of expectations, but the first quarter was revised to +0.6% (from -0.2%). Annual benchmark revisions showed a somewhat slower rate of growth in the past few years (mostly in 2013), which implies that the output gap (the difference between GDP and potential GDP) is higher than it was thought to be earlier (an important consideration for the Fed).
Clarksville, TN – This week the economic calendar is busy. The focus is likely to be on the GDP report (note that financial market participants typically over-emphasize the headline figure – the devil is in the details).
Durable goods orders are expected to have been boosted by a pickup in aircraft orders in June, but the trend in non-transportation orders has been weak in recent months. The Conference Board’s Consumer Confidence Index rose sharply in June – so it wouldn’t be unusual to see a modest pullback in July.
Clarksville, TN – The week began with a renewed sense of optimism that a Greek debt deal would be worked out. Sentiment then faded after negotiations with Greece’s creditors broke down, but then hopes continued that a deal would be reached over the weekend.
The economic data were mixed. Home sales figures improved in May. Durable goods orders were disappointing. The estimate of 1Q15 GDP was revised to show a -0.2% annual rate (vs. -0.7% in the second estimate), up 3.0% from a year ago. Note that the estimate of Gross Domestic Income rose at a 1.9% annual rate (+3.7% y/y).
Clarksville, TN – In its monetary policy statement, the Federal Open Market Committee recognized that “economic activity has been expanding moderately after having changed little during the first quarter.” Labor market slack has “diminished somewhat.” Growth in consumer spending has been “moderate,” while the housing sector “has shown some improvement.”
In the revised Summary of Economic Projections, Fed officials lowered their forecasts of 2015 GDP growth, but raised slightly their expectations for growth in 2016 and 2017.
Clarksville, TN – Economists began the week wondering why consumers hadn’t spent the windfall from lower gasoline prices. By the end of the week, we had a partial answer. Retail sales rose strongly in May, as expected. More importantly, we had upward revisions to the data for March and April.
The Bureau of Census also released its quarterly survey of services. These two reports paint a brighter consumer spending outlook and imply an upward revision to the estimate of 1Q15 GDP growth (the second estimate showed a -0.7% annual rate, but should be revised to show a much more modest decline or perhaps a slight increase).
You may be able to get closer to reaching your goals with some small changes and tough choices
Clarksville, TN – If you’re concerned that you haven’t put enough away to retire, you have plenty of company – about one in four Americans feel the same way.1
The good news? You may be able to catch up – if you’re willing to be realistic and take steps to get on track, such as changing your current lifestyle (so you can save more) and your anticipated retirement lifestyle (so you will spend less).
Clarksville, TN – The economic data reports were mixed. Homebuilder sentiment declined in May, but residential homebuilding was stronger than expected in April.
Some of that reflects a rebound from bad weather, but it’s also a consequence of the high level of volatility in the multifamily sector (single-family permits were higher, but not exactly booming). Consumer price inflation remained negative on a year-over-year basis (-0.2%), but core inflation rose slightly more than anticipated.
Sharing your hopes, fears and wishes can bring you and your adult children closer
Clarksville, TN – Your 30-something daughter gets anxious when she sees how many medications you take in the morning. Your son gets nervous when you drive alone.
You worry your adult children aren’t prepared for how to handle things when you’re gone, even if that could be decades from now. Or worse, they won’t know how to provide the care you want, if you should need it.
But do you ever talk about these concerns?
Consider these ideas to help you make the most of your benefits
Clarksville, TN – Alongside other sources of income, Social Security can be a critical component of your total retirement resources, so it’s important to consider ways to optimize the value it can bring.
After all, these payments account for up to 40% of most retirees’ income, according to the Social Security Administration (SSA), with savings, pensions and retirement accounts making up the rest. Here are a few things you (and your spouse if you’re married) should think about as you get ready to retire.
Clarksville, TN – The mid-month economic data disappointed. Retail sales were weaker than anticipated in April. Industrial production fell short of expectations. Consumer sentiment slid in the mid-May assessment.
However, weekly claims for unemployment benefits remained remarkably low. The reports on import prices and producer prices continued to show disinflationary pressures.
Real GDP for the euro area rose 0.4% q/q (a 1.7% annual rate) in the flash estimate for the first quarter. Bond yields in Europe moved higher, but seemed to meet some resistance.
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