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Weekly Market Commentary

 

 

 

The Markets

 

 

 

Splash!

 

 

 

How do employers lure staff in a tightening labor market? The curly tail grubs and spinnies of the business world are higher wages and better benefits. 

 

 

 

During the past decade, the employment picture in the United States has shifted dramatically. In mid-2009, 15.4 million unemployed Americans were chasing 2.2 million available jobs. At the end of 2017, just 6.6 million Americans were unemployed, and employers were casting eagerly to fill 6.6 million open jobs, reports Barron’s.

 

 

 

Bloomberg offered some colorful examples:

 

 

 

“Want ads for truck drivers to haul crude oil in Texas are touting salaries as high as $150,000 a year. Some nurses are getting $25,000 signing bonuses. The U.S. unemployment rate just fell to 3.9 percent, one tick away from its lowest since the 1960s. And, on May 8, the Bureau of Labor Statistics reported there are 6.5 million unfilled jobs in the United States, the most on record. Some employers say they’re feeling the squeeze.”

 

 

 

Clearly, wages are moving higher for some types of jobs, but they’re not increasing everywhere. Last week, the Bureau of Labor Statistics reported real average hourly earnings for all employees were flat from March to April. ‘Real wages’ mean wages after inflation is subtracted.

 

 

 

The National Federation of Independent Business’ Small Business Optimism Index hit a record high in April, as small companies reported record profits. It was the 17th consecutive month of record optimism.

 

 

 

Major U.S. stock market indices moved higher last week as did many global stock market indices.

 

 

 


Data as of 5/11/18

1-Week

Y-T-D

1-Year

3-Year

5-Year

10-Year

Standard & Poor's 500 (Domestic Stocks)

2.4%

2.0%

13.9%

9.0%

10.8%

6.9%

Dow Jones Global ex-U.S.

1.7

0.4

12.8

3.3

3.5

0.2

10-year Treasury Note (Yield Only)

3.0

NA

2.4

2.3

1.9

3.8

Gold (per ounce)

1.1

2.2

8.3

3.7

-1.5

4.1

Bloomberg Commodity Index

0.1

2.1

8.3

-4.5

-7.4

-8.3

DJ Equity All REIT Total Return Index

1.2

-3.7

3.1

6.0

5.8

6.4

 

S&P 500, Dow Jones Global ex-US, 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.

 

 

 

What do you wish you had known before you became a parent? Mother’s Day is behind us and Father’s Day is ahead.It seems like a good time to consider the challenges and responsibilities of parenting.

 

 

 

National Public Radio’s Science Desk introduced a new series called, ‘How To Raise A Human.’ They kicked off the show by asking bloggers, “What's the one thing you wish someone had told you before you became a parent?” Here are a few of the answers:

 

 

 

“I wish someone told me that there are going to be moments where you're playing chess with speed metal music in your ears. You're trying to make intricate choices but there's so much chaos.”

 

--Alan Lawrence, That Dad Blog

 

 

 

“I wish someone had told me to block out the outside voices that come when you become a parent – and pay more attention to the children and what their needs are.”

 

--Saira Siddiqui, Confessions of a Muslim Mom

 

 

 

“I wish someone had told me that even though your life changes when you become a parent, you still get to create the path you want.”

 

--Drea Duclos, OhDearDrea

 

 

 

“Parents always told me to brace myself for the teen years, because that's when they'll hate you, be disrespectful to you, be sassy, talk back to you, be rude, be generally awful people. But I wish that someone had told me that's completely wrong.”

 

--Karen Walrond, Chookooloonks

 

 

 

One of the many challenges parents face is helping their children understand financial issues. If you would like some ideas about how to talk with your children about money, contact your financial professional.

 

 

 

Weekly Focus – Think About It

 

 

 

I’m relieved I don’t work at SNL [right now]…The level of outrage is so high. It feels like talking to anyone, anywhere in 2018 is just landmine hopscotch.”

 

 --Tina Fey, American actress, comedian, writer, and producer

 

 

 

Best regards,

Lee Barczak

 

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Weekly Market Commentary

 

The Markets

 

What in the world?

 

A lot happened last week. Some of the notable events included:

 

·         Trade talks between the United States and China. The talks were described as “frank, efficient, and constructive,” although significant issues have yet to be resolved.

·         A Federal Open Market Committee meeting. The Federal Reserve indicated it expects to raise rates during 2018, but did not do so last week.

·         Low unemployment in the United States. U.S. unemployment fell to 3.9 percent, which is the lowest it has been since 2000. Typically, low employment is a sign of a strong economy.

·         Sky-high rates in Argentina. In an effort to shore up the nation’s currency, Argentina’s central bank “…hiked rates to 40 percent from 33.25 percent, a day after they were raised from 30.25 percent.”

·         Katy Perry roasted Warren Buffett. Katy Perry revealed the ‘Left Shark’ – a backup dancer famous for being out of sync during Perry’s 2015 Super Bowl performance – was Warren Buffett.*

 

What do asset managers and researchers make of the current state of world economies and markets? A portfolio manager cited by Barron’s said, “…until proved otherwise, we remain in a long bull market, and there is an absence of indicators outside of the equity market itself (most notably in credit markets or financial conditions) to suggest this has ended.”

 

Michael Wilson, Chief U.S. Equity Strategist at Morgan Stanley has a different opinion. “Even strong earnings results haven’t been able to boost most stocks into positive territory. Why? Because rising interest rates have reached a point at which they have become a constraint on valuations.”

 

Some researchers are concerned about growth outside the United States. Alvise Marino, an FX strategist for Credit Suisse told The Wall Street Journal, “This is really a Goldilocks [U.S. employment] report…But investors are worried that global growth is not as strong as some had thought.”

 

We’re tracking events and their potential impact on markets, and we’ll keep you informed.

 

* Warren Buffet wasn’t really the Left Shark. Her comments were part of a humorous video.

 


Data as of 5/4/18

1-Week

Y-T-D

1-Year

3-Year

5-Year

10-Year

Standard & Poor's 500 (Domestic Stocks)

-0.2%

-0.4%

11.5%

8.0%

10.5%

6.6%

Dow Jones Global ex-U.S.

-0.9

-1.2

11.6

2.7

3.2

0.0

10-year Treasury Note (Yield Only)

2.9

NA

2.4

2.1

1.8

3.9

Gold (per ounce)

-0.9

1.0

6.6

3.0

-1.9

4.1

Bloomberg Commodity Index

0.7

2.1

9.5

-4.6

-7.6

-8.2

DJ Equity All REIT Total Return Index

1.2

-4.8

1.7

5.2

5.7

6.2

S&P 500, Dow Jones Global ex-US, 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.

 

Myth Busted! Founders of new companies aren’t who many people think they are. Sure, you’ve read stories about entrepreneurs who leave college to found companies that become behemoths. In fact, The Thiel Fellowship encourages young people to skip college and, “Pursue ideas that matter instead of mandatory tests. Take on big risks instead of big debt.”

 

While helping young people pursue new ideas is admirable, research from the Massachusetts Institute of Technology (MIT) and the National Bureau of Economic Research (NBER) suggest a different age group is more likely to found successful fast-growth companies:

 

“Our primary finding is that successful entrepreneurs are middle-aged, not young. Taking numerous measures to identify potentially high-growth firms as well as studying ex-post growth of each firm, we find no evidence to suggest that founders in their 20s are especially likely to succeed. Rather, all evidence points to founders being especially successful when starting businesses in middle age or beyond…Across the 2.7 million founders in the U.S. between 2007-2014 who started companies that go on to hire at least one employee, the mean age for the entrepreneurs at founding is 41.9.The mean founder age for the 1 in 1,000 highest growth new ventures is 45.0. The most successful entrepreneurs in high technology sectors are of similar ages. So, too, are the most successful founders in the entrepreneurial regions of the U.S.”

 

Almost one-fourth of new entrepreneurs are ages 55 to 64, reports Entrepreneur.com. They often have financial stability, professional support networks, and experience – all things The Thiel Fellowship tries to provide to younger founders.

 

What’s the point of this story? Age is just a number. People of all ages have great ideas and great potential.

 

Weekly Focus – Think About It

 

“The critical ingredient is getting off your butt and doing something. It's as simple as that. A lot of people have ideas, but there are few who decide to do something about them now. Not tomorrow. Not next week. But today. The true entrepreneur is a doer, not a dreamer.”

--Nolan Bushnell, Entrepreneur

 

Best regards,

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Weekly Market Commentary

 

The Markets

 

A meeting of the minds.

 

The Federal Reserve and the U.S. bond market appear to be in agreement about the direction of interest rates. For more years than anyone cares to count, investment professionals have been predicting the end of the bull market in bonds. Bond guru Bill Gross called the end of the bond bull in 2011 – and called it again in 2013. He wasn’t alone. Strategists who participated in Barron’s Outlooks anticipated rising interest rates in 2014 and 2015, too.

 

The Federal Reserve began encouraging interest rates higher in December 2015 when it increased the Fed funds rate for the first time in a decade. However, the yield on 10-year Treasuries remained stubbornly low. In fact, it fell below 2 percent following the rate hike and stayed there until November 2016.

 

Since 2015, the Fed has raised rates six times. The latest increase, along with signs of higher inflation, helped push bond rates higher. Higher interest rates could shift investors’ preferences in some significant ways, according to sources cited by Barron’s:

 

“Two years ago, dividend stocks provided investors a one-percentage point advantage over risk-free rates…Now those places have been swapped…this ability to get a “safe yield” for the first time in a decade, with no risk from falling stock or bond prices, represents a ‘seminal shift and a huge source of competition for the dividend allure of the stock market.’”

 

We may be at a turning point.

 


Data as of 4/27/18

1-Week

Y-T-D

1-Year

3-Year

5-Year

10-Year

Standard & Poor's 500 (Domestic Stocks)

0.0%

-0.1%

11.8%

8.2%

10.9%

6.7%

Dow Jones Global ex-U.S.

-0.5

-0.4

13.3

2.5

3.6

0.2

10-year Treasury Note (Yield Only)

3.0

NA

2.3

1.9

1.7

3.8

Gold (per ounce)

-1.1

1.9

4.7

3.3

-2.1

4.0

Bloomberg Commodity Index

-0.5

1.4

6.9

-4.1

-7.8

-8.4

DJ Equity All REIT Total Return Index

2.9

-5.9

-1.6

3.9

5.8

6.0

S&P 500, Dow Jones Global ex-US, 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.

 

We’ll need a new kind of umbrella for thiS. In February, a new research paper disclosed a finding no one wants to hear about: Viruses are falling from the sky. Literally. Science Daily summarized a report from the University of British Columbia. The report said:

 

“An astonishing number of viruses are circulating around the Earth's atmosphere – and falling from it – according to new research…‘Roughly 20 years ago we began finding genetically similar viruses occurring in very different environments around the globe,’ says [University of British Columbia virologist Curtis Suttle.] ‘This preponderance of long-residence viruses travelling the atmosphere likely explains why – it's quite conceivable to have a virus swept up into the atmosphere on one continent and deposited on another.’”

 

The New York Times reported the researchers journeyed to Spain and used buckets on mountaintops to catch whatever might fall from the sky. The scientists weren’t surprised to find viruses, but they were surprised by the quantity of viruses captured. Best estimates suggest 800 million viruses shower every square meter of the Earth every day.

 

Don’t panic! Viruses are responsible for a lot more than diseases. Scientists theorize viruses and humans may have a symbiotic relationship. According to Popular Science:

 

“Each of us has a unique collection of viruses although there are some species common to us all…endogenous viruses make up some 8 percent of our genetic material. Originally, they were thought to be nothing more than junk pieces of evolutionary history. But we now know they have a variety of functions. One of the most studied topics…focuses on reproduction. A particular protein encoded by one particular virus…appears to be imperative for proper formation of the placenta.”

 

Good or bad, the question remains: where do atmospheric viruses originate? No one knows for sure. There are a variety of theories. One theory is viruses are swept from the planet into the atmosphere. Another is viruses originate in the atmosphere. A third is viruses arrive from outer space.

 

The truth is out there!

 

Weekly Focus – Think About It

 

“The diversity of the phenomena of nature is so great, and the treasures hidden in the heavens so rich, precisely in order that the human mind shall never be lacking in fresh nourishment.”

--Johannes Kepler, German scientist

 

Best regards,

Lee Barczak
President
 
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.  However, the value of fund shares is not guaranteed and will fluctuate. *Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features. * The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index. * The Standard & Poor's 500 (S&P 500) is an unmanaged index. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. * The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index. * 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 afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce. * The Bloomberg 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 Total Return 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. * Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful. * Past performance does not guarantee future results. Investing involves risk, including loss of principal. * You cannot invest directly in an index. * Consult your financial professional before making any investment decision.
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Weekly Market Commentary April 16, 2018

 

The Markets

 

What do you think?

 

·         Are you bullish, bearish, or neutral about the U.S. stock market?

·         Are U.S. stocks undervalued, overvalued, or fairly valued?

·         What is the biggest threat the U.S. stock market faces this year?

 

During the first four months of 2018, U.S. stocks have experienced not one, but two, 10 percent declines. These short-term reversals are known as corrections. They occur relatively often, helping to wring out investor exuberance and, sometimes, to create buying opportunities as share prices drop.

 

The current twinset of corrections appears to have created a fair amount of uncertainty, according to Barron’s bi-annual Big Money Poll of professional investors. The ranks of the bullish have diminished, and the bearish remain relatively unchanged, but the number of those who are ‘neutral’ has swelled:

 

                                    Fall 2017            Spring 2018

Bullish            61 percent            55 percent

Bearish           12 percent            11 percent

Neutral           27 percent            34 percent

 

Professional investors say their clients are also unsure about stock markets. They indicated 60 percent of clients were neutral about stocks, while 23 percent were bullish and 17 percent were bearish.

 

When asked about market valuations, a majority thought U.S. stocks were fairly valued (57 percent) after the corrections. Thirty-five percent believe stocks remain overvalued, and 8 percent believe stocks have become undervalued.

 

If either ‘political/policy missteps’ or ‘rising interest rates’ was your answer to the biggest threat to U.S. stocks, then you’re thinking like a professional investor. Their list of worries included:

 

Political/policy missteps              35 percent

Rising interest rates                     32 percent

Earnings disappointments             7 percent

Geopolitical crises                         7 percent

 

Last week, the Dow Jones Industrial Average gained 1.8 percent, the Standard & Poor’s 500 Index was up 2.0 percent, and the NASDAQ Composite rose 2.8 percent.

 


Data as of 4/13/18

1-Week

Y-T-D

1-Year

3-Year

5-Year

10-Year

Standard & Poor's 500 (Domestic Stocks)

2.0%

-0.7%

14.1%

8.3%

11.3%

7.2%

Dow Jones Global ex-U.S.

1.2

-0.2

16.4

3.4

4.3

0.6

10-year Treasury Note (Yield Only)

2.8

NA

2.2

1.9

1.7

3.5

Gold (per ounce)

0.9

3.6

4.6

3.9

-0.8

3.8

Bloomberg Commodity Index

2.7

1.3

3.5

-3.4

-7.2

-8.2

DJ Equity All REIT Total Return Index

-0.9

-7.9

-4.1

3.3

6.0

6.6

S&P 500, Dow Jones Global ex-US, 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.

 

what does your playlist say about you? Your preference for pop, country, opera, classic rock, or some other type of music may provide clues to your personality, according to an article in Psychological Science entitled ‘Musical Preferences Predict Personality.’

 

Psychologists have been studying ‘personality’ for a long time. Their goal is to understand why people think, feel, and behave differently in the same situation. The prevailing personality model is called the ‘Big Five.’ It holds there are five factors that describe a broad range of personality traits and characteristics. No single factor describes personality by itself:

 

·         Extroversion includes people on two ends of a spectrum, introverts and extroverts. Extroverts thrive on interactions with others while introverts thrive on solitude. This factor reflects a person’s tendency to be sociable, assertive, talkative, and friendly.

·         Agreeableness describes how well people get along well with others. This factor encompasses altruism, trust, tact, and loyalty.

·         Conscientiousness describes how well people control their impulses and act in socially acceptable ways. It encompasses persistence, ambition, energy, and resourcefulness.

·         Neuroticism describes how comfortable and confident people are with themselves. It encompasses awkwardness, pessimism, insecurity, and wariness.

·         Openness to experience describes willingness to try new experiences and think outside the box. This factor reflects perceptiveness, curiosity, insightfulness, and imagination.

 

As it turns out, musical preferences are pretty good predictors of some personality factors, especially openness, extroversion, and agreeableness. Openness is associated with a preference for ‘sophisticated’ music (classical, operatic, world, and jazz), extroversion is associated with ‘unpretentious’ music (country and folk), and, as you might expect, agreeableness is associated with liking all types of music.

 

It’s notable that musical preferences fail to predict conscientiousness.

 

Weekly Focus – Think About It

 

“Sometimes they would take two ropes and turn them as a single rope together, but you could separate them and turn them in like an eggbeater on each other. The skipping rope was like a steady timeline – tick, tick, tick, tick – upon which you can add rhymes and rhythms and chants. Those ropes created a space where we were able to contribute to something that was far greater than the neighborhood.”

--Kyra Gaunt, Professor, Songwriter, Performer

 

 

Best regards,

Lee Barczak

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Weekly Market Commentary

Weekly Market Commentary (April 10, 2018)
 
The Markets
 
 You could almost hear the spurs jingling.
 
Trade tensions ratcheted higher last week as the United States and China staked new positions on the not-so-dusty main street of trade. It was the latest round of posturing in what has the potential to become a trade war between the world's largest economies. Barron's explained:
 
"The trade battle has escalated since President Trump announced steel tariffs in March. China retaliated to those tariffs with its own duties, and the resulting back and forth resulted in announced tariffs on $50 billion worth of goods on both sides. Late on Thursday, Trump also directed the U.S. trade representative to identify $100 billion more in potential tariffs on Chinese goods."
 
It was unwelcome news in financial markets where one-upmanship created uncertainty and unnerved investors. Distress in stock and bond markets may have been exacerbated by analysts' warnings about worst-case scenarios, including the possibility of China reducing its $1.2 trillion position in U.S. Treasuries and diversifying its foreign exchange reserves into other nation's currencies, according to Financial Times.
 
American manufacturing businesses have concerns about supply chain and other issues that may be created by tariffs, reported Forbes. In addition, farmers are bracing for the impact of a potential trade war. The New York Times wrote:
 
"China's aggressive response to Mr. Trump's tariffs is aimed squarely at products produced in the American heartland, a region that helped send him to the White House. A trade war with China could be particularly devastating to rural economies, especially for pig farmers and soybean and corn growers. Nearly two-thirds of United States soybean exports go to China."
 
Major U.S. indices finished lower last week for the third time in four weeks. The Dow Jones Industrial Average was down 10.1 percent from its January closing high. Technically, that puts the Dow in correction territory.
 

Data as of 4/6/18
1-Week
Y-T-D
1-Year
3-Year
5-Year
10-Year
Standard & Poor's 500 (Domestic Stocks)
-1.4%
-2.6%
10.5%
7.6%
10.8%
6.6%
Dow Jones Global ex-U.S.
0.1
-1.4
14.7
3.5
4.1
0.2
10-year Treasury Note (Yield Only)
2.8
NA
2.3
1.9
1.7
3.6
Gold (per ounce)
0.6
2.7
6.3
3.2
-3.3
3.7
Bloomberg Commodity Index
-0.6
-1.4
1.4
-4.9
-8.4
-8.3
DJ Equity All REIT Total Return Index
-0.4
-7.0
-2.2
2.3
6.0
6.2
S&P 500, Dow Jones Global ex-US, 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.
 
THE NOT-SO-SECRET MARCH MADNESS EFFECT. Have you ever wondered how students select colleges? Economic theory suggests, "Models of college choice typically assume that high school students are fully informed and choose to apply to and eventually attend a school that maximizes their expected, present discounted value of future wages less the costs associated with college attendance."
 
It's a good theory, if you're an economist who believes people act in perfectly rational ways. Of course, there aren't many high school students (or parents) who can explain the present discounted value of something, much less use it as a tool to choose a college.
 
The filters on college search tools include criteria that may be more relevant to the decision. College Board's BigFuture online interactive guide asks students to consider their test scores - as well as a college or university's geography, size, type, cost, diversity, and support services - among other factors.
 
Those other factors include college sports. As it turns out, the success of a school's sports teams plays a significant role in the college selection process for some students. The Journal of Sports Economics published 'Understanding College Application Decisions: Why College Sports Success Matters.' It's the work of economists at the University of Chicago (UC) who found:
 
"A school that is invited to the NCAA basketball tournament can on average expect an increase in sent SAT scores in the range of 2 percent to 11 percent the following year depending on how far the team advances in the tournament. The top 20 football teams also can expect increases of between 2 percent and 12 percent the following year."
 
Having a sports team make it to the Final Four is roughly equivalent to a college adjusting tuition or financial aid by 6 percent to 32 percent or moving halfway up the list on the U.S. News College Rankings, according to UC researchers.
 
Weekly Focus - Think About It
 
"They say that nobody is perfect. Then they tell you practice makes perfect. I wish they'd make up their minds."
--Wilt Chamberlain, American basketball player
 
Best regards,
 
Lee Barczak
President
 
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.  However, the value of fund shares is not guaranteed and will fluctuate. *Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features. * The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index. * The Standard & Poor's 500 (S&P 500) is an unmanaged index. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. * The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index. * 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 afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce. * The Bloomberg 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 Total Return 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. * Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful. * Past performance does not guarantee future results. Investing involves risk, including loss of principal. * You cannot invest directly in an index. * Consult your financial professional before making any investment decision.
Morgan Kenwood Advisors
5130 West Loomis Road, Greendale, Wisconsin 53129
Phone: (414) 423-4020
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Contact Details

Morgan Kenwood Advisors, LLC
5130 West Loomis Road
Greendale, WI 53129-1424
Phone: (414) 423-4020
Fax: (414) 423-4023
Email: This email address is being protected from spambots. You need JavaScript enabled to view it.