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The Weekly Wealth Report

June 12, 2023


A late-week rally sent stocks into positive territory, with the S&P 500 index closing just shy of the 4,300 mark. The Dow Jones Industrial Average gained 0.34%, while the S&P 500 added 0.39%. The Nasdaq Composite index improved 0.14% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, rose 0.44%.


On June 14, 1917, as the soldiers of the American Expeditionary Force (AEF) travel to join the Allies on the battlefields of World War I in France, United States President Woodrow Wilson addresses the nation’s public on the annual celebration of Flag Day.

Just the year before, on May 30, 1916, Wilson had officially proclaimed June 14 “Flag Day” as a commemoration of the “Stars and Stripes,” adopted as the national flag on June 14, 1777, when the design featured just 13 stars representing the original 13 states.



Stocks Edge Higher
Stocks bumped along the flatline for much of the week ahead of this week’s two inflation reports and the June meeting of the Federal Open Market Committee. Amid little news, stocks drifted lower to start the week until Wednesday, when a solid early-day rally evaporated on news of the Bank of Canada's surprise interest rate hike. Stocks rose again the following day, holding onto their gains, with the S&P 500 hitting a new closing high for 2023. Stocks added small gains on Friday after weathering some midday weakness, leaving major indices marginally higher for the week.

Better Breadth
One investor concern has been that a handful of mega-cap stocks have driven recent market returns. Last week’s market bucked that trend, with outperformance in small-cap stocks and equally-weighted stock market indices. For instance, the Russell 2000 index (which measures the performance of 2,000 smaller-cap companies) rose 1.90% this week, outpacing the S&P 500 and the technology-heavy Nasdaq. Another example of broadening performance was the outperformance of the equally-weighted S&P 500 index, where each stock has equal weighting regardless of size, versus the market-cap S&P 500 index, where mega-cap companies disproportionately impact index performance. Last week's return of the equally-weighted S&P 500 index exceeded the cap-weighted S&P 500’s return by 0.65%.



In today’s customizable, satisfaction-guaranteed world, it is no surprise that you might want a financial option in retirement that provides both guaranteed income and protection from market volatility. There is a solution that offers both: annuities. Annuities can be the cornerstone of your financial plan. Are misconceptions about annuities holding you back?

MYTH 1: Annuities have high fees
Truth - Annuities typically are less costly than you may think. Some have no direct costs, and for those that do, the costs are usually relative to the benefits they provide—stabilizing your retirement with guaranteed income for life, tax-deferral opportunities, and protection of principal from market volatility.

MYTH 2: Annuities lock in your money forever
Truth - Annuities were designed for the long haul, not for short-term gain. However, shorter-term annuity products are available— such as a 5-year—for those looking for “bridge” income over a smaller time period. In addition, most annuities allow owners access to a portion of their money each year, and some allow a return of premium or the ability to withdraw 10% or less of the annuity’s value annually with no charge.

MYTH 3: Annuities don’t grow
Truth - As an indexed annuity owner, you can help significantly reduce your risk while providing the growth you’re looking for. No yearly contribution limits and compounded tax-deferred earnings in the accumulation stage allow you to safely and steadily increase your retirement savings.

If you have a specific question, please call Ashley at the office, and let's schedule some time to talk. We are here for you. 

Annuities are generally considered long-term investments. It is intended for a person who has sufficient cash or other liquid assets for living expenses and other unexpected emergencies, such as medical expenses. A fixed indexed annuity is not a registered security or stock market investment and does not participate directly in any stock or equity investment or index. An income rider or benefit is an additional feature available with some annuities and generally optional and come with additional cost. The contract's values could be reduced by the cost of the rider. This may result in a loss of principal and interest in any year in which the contract does not earn interest or earns interest in an amount less than the rider charge. Please note the application of surrender charges could result in a loss of principal. The guaranteed account value of a fixed-indexed annuity only applies if the annuity is held until the end of the contract term. Annuities are not deposits of or guaranteed by any bank and are not insured by the FDIC or any other agency of the US. All guarantees are solely backed by the financial strength and claims paying ability of the issuing insurance company.