Broker Check

The RFG Weekly Wealth Report

June 11, 2019

The Week on Wall Street

Stocks rallied during a week in which Wall Street was buffeted by headlines. The S&P 500 rose 4.41%. The Nasdaq Composite and Dow Jones Industrial Average respectively added 3.88% and 4.71%. The MSCI EAFE index of overseas stocks improved 2.02% across five days.

FACT OF THE WEEK

A ubiquitous summer treat is watermelon. Watermelon is part of the cucumber, pumpkin, and squash family and consists of 92% water. On average, Americans consume 15 pounds of watermelon annually.

MARKET MINUTE

Following a mixed Monday, the market jumped Tuesday after dovish remarks from Federal Reserve Chairman Jerome Powell. Breaking out of a 6-week losing streak, the Dow had its best week since November.

Jerome Powell’s Comments

Speaking at the Federal Reserve Bank of Chicago, the Fed chair stated that central bank officials “will act as appropriate to sustain the expansion” of the economy in the face of “recent developments involving trade negotiations and other matters.”

The next 2-day Fed policy meeting ends on June 19, with a press conference to follow.

Hiring Cools

Employers added just 75,000 net new jobs to their payrolls in May, according to the Department of Labor. Economists polled by Reuters thought that the gain would be 185,000. The main unemployment rate held at 3.6% last month; the U-6 rate, which includes the underemployed and those who have stopped looking for work, fell 0.2% to 7.1%.

To some analysts, the weak May hiring number hinted at private-sector concern over tariffs. To others, it simply signified the possibility that the economy may be at or near full employment.

Final Thought

While breaking news does often merit investor attention, refrain from letting the headlines of the moment prompt you into emotional decisions. Brace yourself for further headlines that may drive market volatility because new developments are arriving quickly in the financial markets.

FINANCIAL STRATEGY OF THE WEEK

HAVE AN EMERGENCY FUND

Let's face it, life gets messy, whether it's the arrival of a large, unexpected medical bill, a temporary job loss, or your air conditioner suddenly quitting in the middle of a hot summer day. To cope with these situations, you should have three to six months of living expenses in highly liquid funds set aside in a separate account rather than using your credit cards as a crutch.

Looking at your financial situation and investment strategy as a pyramid, a strong base begins with an emergency fund and is fundamentally important to support levels of risk as an investor and ensure long-term stability into retirement.

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

Have a great week!