Texas Elite Advisory - Clients' and Friends' Newsletter - January 2017
Market Update
(all values as of 03.29.2024)

Stock Indices:

Dow Jones 39,807
S&P 500 5,254
Nasdaq 16,379

Bond Sector Yields:

2 Yr Treasury 4.59%
10 Yr Treasury 4.20%
10 Yr Municipal 2.52%
High Yield 7.44%

Commodity Prices:

Gold 2,254
Silver 25.10
Oil (WTI) 83.12

Currencies:

Dollar / Euro 1.08
Dollar / Pound 1.26
Yen / Dollar 151.35
Canadian /Dollar 0.73
 

Changes at Texas Elite Advisory – by Vern Bell

This is the first issue of what may be a monthly newsletter to our clients and friends.  I say “may be” because time always in short supply and authoring a monthly newsletter is no small undertaking.  This issue is being sent only to my clients.  I don’t want to write it if you don’t want me to.  So, here’s the deal.  If you won’t read our newsletter, please re-open the email this document was attached to and click on “UNSUBSCRIBE.” You’ll be doing both of us a big favor.   I’m a big believer in democracy.  If more than 1/2 of my clients want me to continue with the newsletter I will.  Otherwise, you won’t see a February 2017 issue.

2016 was Texas Elite Advisory’s first full year as a Registered Investment Advisory.  Here are a few significant changes that occurred during the year:

https://www.linkedin.com/in/robbrothrock

Remember, if you don’t want to be bothered with these newsletters, please unsubscribe from the email to which this one was attached.  Thanks in advance for your vote.

See page 2 for an overview of significant financial events that occurred in 2016.  And, call or email if you would like a report of your account performance.

Vern Bell

 
Macro Overview / Year In Review

Macro Overview / Year in Review

A year-end equity rally induced by a Trump victory lost momentum towards the end of December as doubts surfaced regarding Trump’s success in garnering support for his proposals from both Republicans and Democrats in the House and Senate.

Two thousand sixteen was laden with uncertainty surrounding rates, growth, oil, the election, and Brexit. The S&P 500’s 15% drop in February proved to be temporary, as did the 10-Year Treasury Bond yield drop to 1.36% in July following Britain’s vote to leave the EU. As many times before, the market’s resilience carried it out of negative territory and onward to positive gains.

Oil also made a powerful comeback in 2016, rising from $26 a barrel in February to $53 a barrel at year-end. The rise in oil prices was a result of OPEC production cuts and an abundance of production coming from U.S. producers, helping lead the U.S. towards energy independence.

Equity markets pulled back at year-end as a gradual shift from equities to bonds took place, encouraged by the recent increase in bond yields, making fixed income attractive relative to a couple of months ago. A traditional rebalancing occurs at the end of each year, either shifting assets away from stocks to bonds or from bonds to stocks. This occurs as multi-billion dollar pension funds reallocate asset classes as expectations adjust.

A number of banking and financial industry regulations are in question as Trump is expected to repeal various rules and provisions that many believe have hindered lending and consumer credit expansion. Trump will have the ability to repeal numerous rules and regulations almost immediately under the Congressional Review Act (CRA). The possibility of political hurdles and non-approvals for some of Trump’s appointments may cause uncertainty leading to volatility in the markets.

Two well regarded barometers of consumer confidence rose in December to higher levels. The University of Michigan’s preliminary consumer confidence index rose to 98 and the Conference Board’s Consumer Confidence Index rose to 113.7. Sentiment among U.S. consumers is critical to the health of economic growth as greater spending evolves from growing confidence.

Sources: Univ. of Michigan, Conference Board, Bloomberg, Reuters, S

 

 

Market Returns: All data is indicative of total return which includes capital gain/loss and reinvested dividends for noted period. Index data sources; MSCI, DJ-UBSCI, WTI, IDC, S&P. The information provided is believed to be reliable, but its accuracy or completeness is not warranted. This material is not intended as an offer or solicitation for the purchase or sale of any stock, bond, mutual fund, or any other financial instrument. The views and strategies discussed herein may not be appropriate and/or suitable for all investors. This material is meant solely for informational purposes, and is not intended to suffice as any type of accounting, legal, tax, or estate planning advice. Any and all forecasts mentioned are for illustrative purposes only and should not be interpreted as investment recommendations.