The Compass
November 2016
news & tips from The Busola Group
Stocks Down but Long-Term View Up
We’re in t h e m i dd le of a n
i ntere s tin g m om en t f or the
ma r k et s ,
w h ere
s hor t- ter m
v o l ati l i t y a n d u n cer ta int y mi g ht
le a d y ou to b e l i e v e that the
eco no my is f a l ter in g . Af ter a l l , the
ma j o r sto c k in d e xe s los t g round
thi s we ek , w it h t h e S &P 5 0 0 los ing
1. 9 4 %, t h e D ow d ro pping 1 .5 0 % ,
the NA S DAQ d i p p i ng 2 .7 7 % , a nd
the MS C I E A FE d e c l ining 1 .5 9 % .
O n to p of t h e s e l os s es , the S& P
50 0 p o s te d it s l on g e s t los ing s t re a k
since 1 9 8 0 .
O f co u r s e , we n e ver l i k e to s e e
the ma r k et s g o d ow n. Howe v er,
we b e l i e ve t h at w h en y ou lo ok
b ene ath t h e s u r f a ce , the e conomy
i s s ti l l d oin g f a r b etter tha n w hat
thi s we e k ’s p er f or ma nce impl i es.
B e h i nd t h e l os s e s a nd ongoing
el e c ti o n e x h aus t i on, we s e e a
num b er of s t ron g in d i c ator s that
the e co n omy is g row i ng . This week ,
we l e a rn e d t h at t h e t r ade def i cit
sh ra nk , t h e s er v i ce s ector g re w
fo r th e 81 s t cons e c uti v e month ,
a n d m a n u f a c t u r in g continu ed it s
ste a d y g row t h.
e conomi c rep o r t b efo re El ecti o n
Day.
• Peo p l e Lef t Th ei r Jobs at Hi g her
R ates
What d i d the jobs rep or t show us?
L a st m o n th sh o we d t he hi g he st
n umb er o f p eo pl e w ho v o l un t a r i l y
l ef t th ei r j ob s si nce 2007. Thi s
stati sti c m atters b e c ause i t
c a n sh o w th at p e o p l e a re m o re
co n f i d en t th e y’l l b e a bl e to f i n d
n e w j ob s.
• Unempl o y men t R ate D ro p p ed
The u n empl o y m en t rate h i t 4.9%—
onl y 0.1% ab o ve th e Fed era l
R e s er v e’s ta rget un empl o y men t
rate.
• Econo my Ad d ed 161,000 Job s
W hi le th i s j ob c re ati o n rate w a s
b e low eco n o mi st s’ p red i cti o ns,
we don’t th i n k i t i s c ause fo r
concer n. Th e g ro w th w a s m atch ed
by re v ised Aug ust a n d S ep tem b er
rep or t s th at ad d ed a n o th er 44,000
jobs.
• Hour l y Ea rn i n gs In c re a sed
Our Ta ke aw ay
Fo r ye a rs, th i s p l o w ho rse e co n o my
h a s b een ad d i n g n e w j obs at a sl o w
a n d ste ad y p ace. No w t hat we’v e
a l mo st re ach ed t he b en chm a r k
un em p l o y m en t rate , p e o p l e a re
f i n a l l y sta r ti n g to se e t he i r w a g e s
i n c re a se a n d n e w o p p o r t un i t i e s
a r i se. Ty p i c a l l y, b et ter j obs
m e a n mo re d i sp os a bl e i n co m e ,
w h i ch eq ua l s i n c re a se d co nsum er
sp en d i n g—a n d eco n o m i c g ro w t h.
Ea r nings i n c re a sed b y 0.4%,
pus hing th em 2.8% h i g h er th a n
this time l a st ye a r. We h aven’t seen
a n e a r n i n gs i n c re a se th i s l a rge
s ince 2 009.
On Fr i d ay, Novem b er 4 , we a l s o
go t to s e e n e w d at a on jobs a nd
p ay ro l l s — t h e l a s t s i g ni f i c a nt
Meet our Financial Professionals
We are delighted to begin sending out this montly
newsletter to you.
CLICK HERE to learn more about Darien
www.busolagroup.com
Darien Bonney, CFBS
Financial Professional
[email protected]
480.538.2915
Recipe of the Month
Brie Crostini
These tasty appetizers come together in less than 20 minutes.
Serves 4-6
Ingredients:
1 baguette or loaf of crusty bread
2 cloves garlic, halved
1/4–1/2 pound Brie, thinly sliced
1/2 cup orange or quince marmalade
2 tablespoons olive oil
Kosher salt
freshly ground black pepper
2 sprigs of fresh thyme, minced
Directions:
1. Slice the baguette or loaf into 1/2-inch rounds. Halve the slices, if necessary, to keep them bite-sized.
2. Preheat the oven to 400o F. Rub each round with the garlic cloves and brush with the olive oil. Top with a slice of Brie.
3. Place the crostini in a single layer on a baking sheet or pizza stone and sprinkle salt and pepper over top. Place in the pre-heated oven. Bake 3 to 4 minutes until the Brie bubbles. Watch carefully to ensure they don’t burn.
4. Warm the marmalade or jam in the microwave for 30 seconds. Top each crostini with ½ teaspoon of preserve and a sprinkle of thyme. Serve warm.
Check Your Flex Spending Accounts
TAX TIP OF THE MONTH
The end of the year is less than two months away, and it’s time to check the balance on any
flexible spending accounts or health savings accounts you have contributed to throughout the
year. Check with your benefits provider to learn about the specifics of your program. If you don’t
have a grace period and have a balance left in your account, plan to make a trip to the dentist,
drug store, doctor, or optometrist.
Pull the Trigger!
IEver freeze up before a swing? Most golfers have experienced an attack of nerves or had unhelpful
thoughts derail their shot. The cure to pre-shot nerves is both mental and physical. A good pre-swing
mental routine and a couple of warm-up exercises will help you plan your shot and stay loose. Before
addressing the ball, ask yourself some strategic questions:
GOLF TIP OF THE MONTH
•
Where do I want to put the ball?
•
What is the lie?
•
Have I played this kind of shot before?
•
What club is best and why?
Once you have your game plan, warm up with a few practice swings and a visualization of how you
intend to play the ball. With your mind clear and your muscles loose, step up and pull the trigger on your
swing.
Economic Calendar
DATA AS OF 11/04/2016
Standard & Poor’s 500
DOW
NASDAQ
U.S. Corporate Bond Index
International
1-Week
Since 1/1/161-Year5-Year
10-Year
-1.94% 2.02%
-0.81%
13.28%
5.28%
-1.50%
2.66%
0.12%
9.86%
4.92%
-2.77%
0.78%
-1.87%
17.57%
11.65%
0.18%
7.78%
7.24%
4.86% 7.28%
-1.59%
-4.49%
-6.93%
2.26%
-1.74%
Data as of 07/29/2016
Treasury Yields (CMT)
1 Months
0.25% 6 Months
0.52%
1-Year
0.62%
5-Year
1.24%
10-Year
1.79%
Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized. Sources: Yahoo! Finance,
S&P Dow Jones Indices, and Treasury.gov. International performance is represented by the MSCI EAFE Index. Corporate bond
performance is represented by the SPUSCIG. Past performance is no guarantee of future results. Indices are unmanaged and cannot
be invested into directly.
Headlines
•Unemployment Rate Dropped
The unemployment rate hit 4.9%—only 0.1% above the Federal Reserve’s target unemployment rate.
•Economy Added 161,000 Jobs
While this job creation rate was below economists’ predictions, we don’t think it is cause for concern. The growth was matched by revised August and September reports that added another 44,000 jobs.
•Hourly Earnings Increased
Earnings increased by 0.4%, pushing them 2.8% higher than this time last year. We haven’t seen an earnings increase this large since 2009.
•People Left Their Jobs at Higher Rates
Last month showed the highest number of people who voluntarily left their jobs since 2007. This statistic matters because it can show that people are more confident they’ll be able to find new jobs.
“Worrying does not empty tomorrow of its troubles; it empties today of its
strength.”
– Corrie ten Boom
Fight the Flu With These Healthful Foods
Health Tip of the Week
‘Tis the season to catch the flu, and a healthful diet can help
you fight off winter colds. To ward off the flu, add these five
foods to your diet:
•
Almonds are rich in Vitamin E, a powerful antioxidant that boosts the immune system.
•
Black-eyed peas contain zinc, a mineral that can help prevent fatigue.
•
Carrots are full of infection-fighting Vitamin A.
•
Mushrooms are rich in selenium, which has been shown to fight the flu.
•
Tomatoes and citrus fruits have a ton of immune-
boosting Vitamin C.
The Social Media Buzz
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Securities, investment advisory and financial planning services are offered through qualified registered representatives of
MML Investors Services, LLC Member SIPC www.SIPC.org 17550 N. Perimeter Dr. Suite 450, Scottsdale, AZ 85255. (480) 5382900. Busola Group is not a subsidiary or affiliate of MML Investors Services, LLC or its affiliated companies.
Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect
against loss in periods of declining values.
Diversification does not guarantee profit nor is it guaranteed to protect assets.
International investing involves special risks such as currency fluctuation and political instability and may not be suitable for
all investors.
The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.
The Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is
considered a broad indicator of the performance of stocks of technology companies and growth companies.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indices from Europe, Australia and Southeast
Asia.
The S&P U.S. Investment Grade Corporate Bond Index contains U.S.- and foreign-issued investment-grade corporate bonds
denominated in U.S. dollars.
The SPUSCIG launched on April 09, 2013. All information for an index prior to its Launch Date is back-tested, based on the
methodology that was in effect on the Launch Date. Back-tested performance, which is hypothetical and not actual performance, is subject to inherent limitations because it reflects application of an Index methodology and selection of index
constituents in hindsight. No theoretical approach can take into account all of the factors in the markets in general and the
impact of decisions that might have been made during the actual operation of an index. Actual returns may differ from, and
be lower than, back-tested returns.
The S&P/Case-Shiller Home Price Indices are the leading measures of U.S. residential real estate prices, tracking changes in
the value of residential real estate. The index is made up of measures of real estate prices in 20 cities and weighted to produce 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.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future
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Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
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https://www.msci.com/end-of-day-data-search
http://www.usatoday.com/story/money/markets/2016/10/02/deutsche-bank-next-lehman-moment/91314698/
http://www.cnbc.com/2016/09/29/gdp-2q-growth-rises-14-percent-in-final-reading-vs-12-percent-estimate.html
http://www.cnbc.com/2016/09/30/consumer-sentiment-for-september-2016.html
http://www.bbc.com/news/uk-politics-37532364
http://www.cnbc.com/2016/09/30/oil-is-testing-50-and-may-yet-scale-to-60-rbcs-croft.html
http://www.foxnews.com/us/2016/09/26/sales-new-homes-tumbled-76-percent-in-august.html
http://www.foxnews.com/us/2016/09/28/orders-for-us-durable-goods-slipped-slightly-in-august.html
http://www.foxbusiness.com/markets/2016/09/29/weekly-jobless-claims-rise-by-3000.html
http://www.foxnews.com/us/2016/09/29/us-pending-home-sales-slump-in-august.html
http://www.realsimple.com/food-recipes/browse-all-recipes/grapepine-nut-dessert-focaccia-recipe
https://www.irs.gov/uac/Get-Tax-Help-with-Social-Media
http://www.golftipsmag.com/instruction/putting/lessons/use-your-senses.html#.VDEfuCmSxt8
http://www.aarp.org/health/healthy-living/info-07-2013/things-to-do-bedroom-activities.html#slide7
http://www.seattlepi.com/news/article/52-tips-for-living-green-1269861.php