Mar

18

Growth Report – Monday, March 18, 2019

THE WEEK ON WALL STREET
The big story last week was the sudden grounding of Boeing 737 Max 8 and 9 passenger jets in dozens of countries. The financial effects of this ban could potentially impact the airline industry and segments of the economy for months.1
While the news created a headwind for the Dow Industrials, stocks managed to post solid gains for the week. The Nasdaq Composite rose 3.12%; the S&P 500, 2.46%; the Dow, 2.25%.2,3,4
Bullish sentiment was also evident overseas. Looking at the MSCI EAFE index, international stocks advanced 1.93%.5
Any companies mentioned are for illustrative purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Any investment should be consistent with your objectives, time frame and risk tolerance.
tRaDE MEETING DELAYED
Wall Street expected President Trump and Chinese President Xi to discuss trade issues this month. Thursday, Bloomberg reported that their talk had been postponed, with no firm date ahead.6

MUTED INFLATION
The latest Consumer Price Index showed just a 1.5% rise in overall consumer costs in the year ending in February.
This number does not suggest an overheating economy. During a 60 Minutes interview last week, Federal Reserve Chairman Jerome Powell said the central bank did “not feel any hurry” to make a rate move.7

TAX TIP
If you turned 70½ last year, April 1 is your final deadline to receive your initial Required Minimum Distribution (RMD) from a traditional IRA, SEP-IRA, SIMPLE IRA, or employer-sponsored retirement plan. If you take your initial RMD from these retirement accounts this year, you must receive your second RMD from them by December 31, 2019.8
Withdrawals from traditional IRAs, SEP-IRAs, and SIMPLE IRAs are taxed as ordinary income and, if taken before age 59 1/2, may be subject to a 10% federal income tax penalty. Generally, once you reach age 70 ½, you must begin taking required minimum distributions from these plans.

T I P O F T H E W E E K

If it seems you will retire before you are eligible for Medicare, be sure to make the most of your employee health benefits. Schedule doctor, optometrist, and dentist check-ups as well as any major procedures needed. Paying for this health care out of pocket could be hugely expensive, and the premiums for private insurance could be costly.

THE WEEK AHEAD: KEY ECONOMIC DATA
Wednesday: The Federal Reserve wraps up its two-day policy meeting.
Friday: February existing home sales.
Source: Econoday / MarketWatch Calendar, March 15, 2019
The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision. The release of data may be delayed without notice for a variety of reasons.

THE WEEK AHEAD: COMPANIES REPORTING EARNINGS
Tuesday: FedEx (FDX), Michaels Companies (MIK)
Wednesday: General Mills (GIS), Micron Technology (MU)
Thursday: ConAgra Brands (CAG), Darden Restaurants (DRI), Nike (NKE)
Source: Morningstar.com, March 15, 2019
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Any investment should be consistent with your objectives, time frame, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.

Q U O T E O F T H E W E E K

“Committing a great truth to memory is admirable; committing it to life is wisdom.”
WILLIAM ARTHUR WARD

T H E W E E K L Y R I D D L E

Only one bachelor has served as President of the United States. Who was he?

LAST WEEK’S RIDDLE: A mall parking lot has 1,000 parking spaces, and 40% of them are for compact cars. This morning, there are 200 compact cars and some standard-sized cars in the lot, which is 75% full. How many standard-sized cars are in the lot?
ANSWER: 750 – 200 = 550 standard-sized cars.

CITATIONS:
1 – cnbc.com/2019/03/13/boeing-shares-fall-after-report-says-us-expected-to-ground-737-max-fleet.html [3/13/19]
2 – quotes.wsj.com/index/SPX [3/15/19]
3 – quotes.wsj.com/index/DJIA [3/15/19]
4 – quotes.wsj.com/index/NASDAQ [3/15/19]
5 – quotes.wsj.com/index/XX/990300/historical-prices [3/15/19]
6 – bloomberg.com/news/articles/2019-03-14/china-u-s-said-to-push-back-trump-xi-meeting-to-at-least-april [3/14/19]
7 – reuters.com/article/us-usa-economy-inflation-idUSKBN1QT1MF [3/12/19]
8 – irs.gov/newsroom/tax-time-guide-seniors-who-turned-70-and-a-half-last-year-must-start-receiving-retirement-plan-payments-by-april-1 [3/5/19]

CHART CITATIONS:
quotes.wsj.com/index/SPX [3/15/19]
quotes.wsj.com/index/DJIA [3/15/19]
quotes.wsj.com/index/NASDAQ [3/15/19]
quotes.wsj.com/index/XX/990300/historical-prices [3/15/19]
markets.wsj.com [3/15/19]

treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield [3/8/19]

treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldAll [3/8/19]

About Mark K. Lund
Mark is the author of The Effective Investor, a #1 best seller, founder, and CEO of Stonecreek Wealth Advisors, Inc., an independent, fiduciary, Fee-only, Registered Investment Advisor firm. Located at 11650 So. State Street, Suite 360, Draper, UT 84020. Mark helps people with their investments and retirement plans, visit his website at www.StonecreekWealthAdvisors.com

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Category: Blog, Economic Updates

About the Author ()

Mark K. Lund is the firm's founder, CEO and author of The Effective Investor, a #1 Best Seller. He has written articles for or been quoted in: The Wall Street Journal, The Salt Lake Tribune, The Enterprise Newspaper, The Utah Business Connect Magazine, US News & World Report, and Newsmax.com, just to name a few.  Mark publishes two newsletters called, “The Mark Lund Growth Report” and “Mark Lund on Money.”  Mark provides CPE (continuing professional education) courses for CPAs.  You may also have seen him on KUTV Channel 2, or as a guest speaker at a local association or business. Mark provides investment and retirement planning services for individuals and 401(k) consulting for small businesses. In his book, The Effective Investor, Mark exposes the false narrative magazines, media, big Wall Street firms, and most advisors want you to believe. The good news is that Mark will show you that you don’t need their speculative ways of investing in order to be successful. Get a free copy when you schedule your initial consultation.

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