Broker Check

The RFG Weekly Wealth Report

May 13, 2019

As we noted recently, Wall Street has a wandering eye. Last week, it focused on the new tariff threats in the ongoing U.S.-China trade dispute. Stocks fell across five trading sessions: the Dow Jones Industrial Average lost 2.12%, the S&P 500, 2.18%; the Nasdaq Composite, 3.03%. International stocks also fell: the MSCI EAFE index declined 3.06%.

FACT OF THE WEEK

The pinball machine has had major transformations since its early ancestor, the Bagatelle received its U.S. Patent in 1871. During the 1930s, machines were mass produced with 145 manufacturers competing in the industry. By 1975, the first digital machine entered the market, weeding out the majority of remaining competitors. By 2002, the industry was left with just one major designer and manufacturer, Chicago based - Stern Pinball. As demand and machine popularity continued, other manufacturers were introduced back into the industry.  

MARKET MINUTE

Earnings and big-name initial public offerings mattered little last week. Traders were more concerned about how consumers and corporations might be affected by higher import taxes in future quarters. 

Tariffs Increase 

At 12:01 a.m. Friday, duties on $200 billion worth of Chinese products coming to the U.S. rose from 10% to 25%. Just days earlier, President Trump had tweeted that the U.S. might also tax another $325 billion of Chinese imports, mainly consumer goods.

While the proposed new taxes might take months to implement, institutional investors reacted negatively to this information, perceiving that trade talks were stalled. 

Final Thought

A few weeks ago, market watchers noted the huge number of initial public offerings anticipated for 2019. One well-known tech firm completed its IPO on Friday, and the wave of tech IPOs is still building. According to research firm CB Insights, the average stock market valuation of the venture-capital-backed tech companies going public this year is $9.6 billion.    

FINANCIAL STRATEGY OF THE WEEK

RISKS TO CONSIDER DURING RETIREMENT

A retirement plan can be affected by many unforeseen circumstances, but you should consider five major challenges most retirees face: the potential for outliving one's assets; the threat of rising living costs; the impact of increasing health care costs; uncertainty about the future level of Social Security benefits; and the damage to long-term financial security that can be caused by excessive withdrawals in the early years of retirement. Understanding each of these challenges can lead to more confident preparation.

As always, please contact my office with any questions or financial concerns you may have.

Have a great week!