“The two powers which in my opinion constitute a wise man are those of bearing and forbearing. – Epictetus
Basking Ridge, NJ- Last week, markets shrugged off concerns about deadlocked Greek negotiations and rallied on strong economic data, sending the NASDAQ to a new historic high. For the week, the S&P 500 grew 0.76%, the Dow rose 0.64%, and the NASDAQ gained 1.30%.[i]
The Federal Reserve wrapped up its June meeting on Wednesday surprising no one with the announcement that the central bank will keep rates at zero percent for a while longer. Though the Fed appears to be confident that the economy is growing modestly, officials prefer to maintain the status quo until they’re more certain that rate hikes won’t harm the recovery.[ii]
We don’t yet know when the Fed will begin raising interest rates, but a number of respondents to a recent survey are betting on a third-quarter rate hike.[iii] Are rate expectations already baked into stock and bond markets? It’s hard to know for certain, but the Fed has been doing a good job of laying the groundwork for future rate moves, so we can hope that markets won’t overreact when rates start to go up.
Negotiations between Greece and its European lenders broke down again Thursday, weighing on European stocks. Greece is trying to negotiate a new round of credit from European lenders that would allow it to make scheduled debt repayments by the end of June. Negotiators have not been able to reach a deal that would satisfy creditors’ need for budget cuts and pension reform. Though Thursday’s meeting was billed as a last-chance effort to break the deadlock, some time remains before Greece formally falls into default.[iv] How will the game of chicken end? We don’t know.
Looking ahead, European and Greek leaders will hold an emergency summit on Monday to attempt to resolve the bailout gridlock. Panicked about what would happen if Greece defaults on its debt payments and leaves the Eurozone, depositors have been withdrawing cash from Greek banks, leaving some insiders speculating that Greek banks may not be able to reopen next week. If negotiators are unable to reach a compromise before the end of the month, we can expect the breakdown to cause markets to turn volatile. We’ll keep you updated as necessary.
Housing starts fall in May. Groundbreaking on new houses fell last month, but a surge in permits for new construction suggests that the pause may be temporary and that the housing sector will see strong growth this season.
Jobless claims fall more than expected. The number of Americans filing new claims for unemployment benefits fell more than expected, remaining below the key 300,000 level for the 15th week in a row.
Inflation sees biggest gain in two years. Consumer prices jumped in May by the largest amount since 2013. The data indicates that price drops relating to gasoline savings may be over and that inflation is returning to trend.
Apartment rentals reach historic high. Occupancy rates in apartments reached 95.3% in May, the highest level on record, as Americans of all ages move into rental housing in droves.
GOLF TIP OF THE WEEK: Don’t Pick Up Your Head
A common reason for missing putts – even the easy ones – is picking your head up too early to watch the ball drop into the cup. It’s normal to be anxious about where the ball is going, but shifting your head just after the stroke can cause you to open or close the blade of your putter, sending the ball off course.
If you find yourself moving your head too soon, try forcing yourself to remain in position and listen for the rattle of the ball instead. Don’t move your head until you hear the ball.
Tip courtesy of Wally Armstrong | Golf Tips Mag[i]
About Wealth Financial Partners, LLC
Wealth Financial Partners is an independent retirement planning and wealth management firm based out of Basking Ridge, New Jersey with expertise in financial life planning including investments, long-term care insurance, life insurance, 401(k) rollovers, retirement planning, tax planning and wealth conservation. For more information about Wealth Financial Partners, LLC, (877) 714-2362
106 Allen Road, 1st Floor, Basking Ridge, NJ 07920 email@example.com
Securities and advisory services are offered through Independent Financial Group, LLC (IFG), a registered broker-dealer and investment advisor. Member FINRA/SIPC. Wealth Financial Partners and IFG are unaffiliated entities. OSJ Branch: 12671 High Bluff Dr. Ste 200 San Diego, CA 92130 licensed in: CA, FL, GA, KS, MN, NY, NJ, IL, PA, OH, SC, CT.
Information provided is from sources believed to be reliable however we cannot guarantee or represent that it is accurate or complete. Because situations vary, any information provided on this site is not intended to indicate suitability for any particular investor. Hyperlinks are provided as a courtesy.
The opinions expressed herein are the writer's alone, and do not reflect the opinions of TAPinto.net or anyone who works for TAPinto.net. TAPinto.net is not responsible for the accuracy of any of the information supplied by the writer.