{"id":5889,"date":"2017-08-29T02:09:37","date_gmt":"2017-08-29T02:09:37","guid":{"rendered":"https:\/\/swwadvisors2.bradcable.com\/?p=5889"},"modified":"2017-08-29T02:09:37","modified_gmt":"2017-08-29T02:09:37","slug":"weekly-market-commentary-august-7-2017","status":"publish","type":"post","link":"https:\/\/advisors2.bradcable.com\/swwadvisorsdavid\/weekly-market-commentary-august-7-2017\/","title":{"rendered":"Weekly Market Commentary \u2013 August 7, 2017"},"content":{"rendered":"

The Markets<\/strong><\/p>\n

Who\u2019s been buying shares of company stock?<\/p>\n

Since the start of the bull market in 2009, U.S. companies have been buying their own stock. Stock buybacks peaked during the first three quarters of 2016 and have dropped off sharply since then, reports\u00a0Financial Times<\/em>\u00a0citing a report from\u00a0Goldman Sachs<\/em>.<\/p>\n

Companies participate in stock buyback (a.k.a. share repurchase) programs to improve shareholder value. For example, if company management believes a company\u2019s shares are undervalued, it can buy shares on the stock market or offer shareholders a fixed price to purchase their shares. This reduces the number of shares in the marketplace and increases earnings per share, which has the potential to boost the company\u2019s stock price.<\/p>\n

The slowdown in stock buybacks hasn\u2019t hurt stock markets.\u00a0Financial Times<\/em>\u00a0reported:<\/p>\n

\u201cThe slowing pace of companies buying back their own shares has certainly not halted Wall Street\u2019s stellar run so far this year. While there is a reduced tail wind of buybacks helping boost earnings per share via a lower share count, U.S. companies have reported robust year-on-year sales and earnings growth for the recent quarter. That has helped offset the decline in buyback activity, but some warn that the clock is ticking for Wall Street bulls.\u201d<\/p>\n

There was no sign of a slowdown in the bull market last week, though.\u00a0The Department of Labor<\/em>\u00a0reported the United States added more new jobs than anyone had expected during July, and the unemployment rate fell to 4.3 percent \u2013 the same level as May 2017, which was the lowest in 16 years, according to\u00a0Barron\u2019s<\/em>.<\/p>\n

Jobs growth was music to many investors\u2019 ears.<\/p>\n

Financial Times<\/em>\u00a0reported, \u201cU.S. equity indices hovered near record highs \u2013 with the Dow Jones Industrial Average touching an all-time peak of 22,089.05 in early trade \u2013 with financials bolstered by the rise in yields. European [markets] ended the week on a strong note, helped by a sharp retreat for the euro against the dollar.\u201d<\/p>\n

SAVING IS AS EASY AS RIDING A BIKE!<\/strong>\u00a0If you would like to save more money \u2013 for retirement, college tuition, healthcare costs, or some other financial priority \u2013 hop on your bike and ride.<\/p>\n

As it turns out, riding your bike may help boost your savings. Whether you commute to work on two wheels or cycle around town doing errands, opting for manpower instead of horsepower can help generate some additional savings, according to a source cited by\u00a0Bankrate.com<\/a><\/em>:<\/p>\n

\u201cThe average American household spends over $9,000 a year on transportation, making it the second-largest expense after housing\u2026Many families simply take for granted the two-car, driving-to-work arrangement that\u2019s the norm for American households and often don\u2019t consider alternatives like public transportation, carpooling, or biking\u2026That\u2019s a shame, because its status as a major household cost means cutting transportation can radically cut your overall costs and, potentially, increase your ability to save\u2026\u201d<\/p>\n

If you are serious about saving, imagine what your finances would look like if you:<\/p>\n

\u2022\u00a0Drove less.\u00a0<\/strong>AAA<\/em>\u00a0reported owning a small car costs about $6,600 a year, while rumbling around in an SUV costs more than $10,000 annually. (The estimate includes fuel, insurance, depreciation, maintenance, fees and licensing, finance charges, and tires.) Eliminating a car could significantly improve your ability to save.<\/p>\n

\u2022\u00a0Cycled more.<\/strong>\u00a0Not everyone can get by without a car; however, if you bike shorter distances or when the weather is good, then you could qualify for a low mileage discount on your auto insurance.<\/p>\n

\u2022\u00a0Didn\u2019t go to the gym.<\/strong>\u00a0If you\u2019re riding a bike to work or to run errands, then you probably don\u2019t need spin class. The average gym membership runs $54 a month or almost $650 a year.<\/p>\n

\u2022\u00a0Bought less stuff.<\/strong>\u00a0Impulse purchases are less tempting when you\u2019re cycling because bike baskets and saddlebags have limited storage space. Who knows how much that could help you save?<\/p>\n

In addition to saving money, two-wheeled travel options are likely to improve your fitness and reduce the stress of rush hour driving. Cycling may even eliminate the need for dieting and some medications. Here\u2019s an added bonus: If biking improves your longevity, you may have more time to spend the money you save!<\/p>\n

Weekly Focus \u2013 Think About It\u00a0<\/strong><\/p>\n

\u201cLife is like a 10-speed bicycle. Most of us have gears we never use.\u201d\u00a0—Charles M. Schultz, Cartoonist<\/em><\/p>\n

 <\/p>\n

* These views are those of Peak Advisor Alliance, and not the presenting Representative or the Representative\u2019s Broker\/Dealer, and should not be construed as investment advice.
\n* This newsletter was prepared by Peak Advisor Alliance. Peak Advisor Alliance is not affiliated with the named broker\/dealer.
\n* 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.
\n* 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.
\n* 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.
\n* All indices referenced are unmanaged. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment.
\n* 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.
\n* 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.
\n* 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.
\n* 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.
\n* 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.
\n* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
\n* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
\n* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
\n* Past performance does not guarantee future results. Investing involves risk, including loss of principal.
\n* You cannot invest directly in an index.
\n* Consult your financial professional before making any investment decision.
\n* Stock investing involves risk including loss of principal.<\/p>\n

Sources:<\/strong>
\nhttps:\/\/www.ft.com\/content\/c4de73e2-17a1-11e7-9c35-0dd2cb31823a<\/a>\u00a0(or go to\u00a0https:\/\/s3-us-west-2.amazonaws.com\/peakcontent\/+Peak+Commentary\/08-07-17_FinancialTimes-Five_Markets_Charts_that_Matter_for_Investors-Footnote_1.pdf<\/a>)
\nhttp:\/\/www.investopedia.com\/terms\/s\/sharerepurchase.asp<\/a>
\nhttps:\/\/www.dol.gov\/newsroom\/releases\/osec\/osec20170804<\/a>
\nhttp:\/\/www.barrons.com\/articles\/july-jobs-report-called-near-perfect-as-payrolls-and-wages-rise-1501850651<\/a>\u00a0(or go to\u00a0https:\/\/s3-us-west-2.amazonaws.com\/peakcontent\/+Peak+Commentary\/08-07-17_Barrons-July_Jobs_Report_Called_Near_Perfect_as_Payrolls_and_Wages_Rise-Footnote_4.pdf<\/a>)
\nhttps:\/\/www.ft.com\/content\/b4257d20-78b8-11e7-a3e8-60495fe6ca71<\/a>\u00a0(or go to\u00a0https:\/\/s3-us-west-2.amazonaws.com\/peakcontent\/+Peak+Commentary\/08-07-17_FinancialTimes-Dollar_and_Treasury_Yields_Lifted_by_US_Jobs_Data-Footnote_5.pdf<\/a>)
\nhttp:\/\/www.bankrate.com\/personal-finance\/smart-money\/save-7-grand-by-ditching-your-car-and-biking-to-work\/#slide=2<\/a>
\nhttp:\/\/newsroom.aaa.com\/auto\/your-driving-costs\/<\/a>
\nhttps:\/\/www.edmunds.com\/car-reviews\/top-10\/top-10-ways-to-lower-your-car-insurance-bill.html<\/a>
\nhttps:\/\/www.cheatsheet.com\/health-fitness\/gym-membership-costs.html\/?a=viewall<\/a>
\nhttp:\/\/www.bikeradar.com\/us\/gear\/article\/22-inspirational-cycling-quotes-34881\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Since the start of the bull market in 2009, U.S. companies have been buying their own stock. Stock buybacks peaked during the first three quarters of 2016 and have dropped off sharply since then.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","wds_primary_category":0,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5889","post","type-post","status-publish","format-standard","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/advisors2.bradcable.com\/swwadvisorsdavid\/wp-json\/wp\/v2\/posts\/5889","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/advisors2.bradcable.com\/swwadvisorsdavid\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advisors2.bradcable.com\/swwadvisorsdavid\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advisors2.bradcable.com\/swwadvisorsdavid\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/advisors2.bradcable.com\/swwadvisorsdavid\/wp-json\/wp\/v2\/comments?post=5889"}],"version-history":[{"count":0,"href":"https:\/\/advisors2.bradcable.com\/swwadvisorsdavid\/wp-json\/wp\/v2\/posts\/5889\/revisions"}],"wp:attachment":[{"href":"https:\/\/advisors2.bradcable.com\/swwadvisorsdavid\/wp-json\/wp\/v2\/media?parent=5889"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advisors2.bradcable.com\/swwadvisorsdavid\/wp-json\/wp\/v2\/categories?post=5889"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advisors2.bradcable.com\/swwadvisorsdavid\/wp-json\/wp\/v2\/tags?post=5889"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}