Weekly Market Notes – May 6, 2019

Weekly_Market_Notes

For the Week of May 6, 2019

The Markets

The major indexes ended solidly higher Friday following a robust jobs report. The Bureau of Labor reported the U.S. added 263,000 jobs in April, well above analysts’ predictions. The unemployment rate fell to a near 50-year low at 3.6 percent. For the week, the Dow fell 0.14 percent to close at 26,504.95. The S&P gained 0.22 percent to finish at 2,945.64, and the NASDAQ climbed 0.37 percent to end the week at 8,164.00.

Returns Through 5/03/19 1 Week YTD 1 Year 3 Year 5 Year
Dow Jones Industrials (TR) -0.14 14.41 13.35 17.08 12.62
NASDAQ Composite (PR) 0.37 23.04 15.18 19.67 14.64
S&P 500 (TR) 0.22 18.26 14.28 14.91 11.66
Barclays US Agg Bond (TR) -0.06 2.90 5.33 1.86 2.50
MSCI EAFE (TR) 0.29 13.00 -2.54 7.72 2.53

Source: Morningstar.com. *Past performance is no guarantee of future results. Indexes are unmanaged and cannot be invested into directly. Three- and five-year returns are annualized. The Dow Jones Industrials, MSCI EAFE, Barclays US Agg Bond and S&P, excluding “1 Week” returns, are based on total return, which is a reflection of return to an investor by reinvesting dividends after the deduction of withholding tax. The NASDAQ is based on price return, which is the capital appreciation of the portfolio, excluding income generated by the assets in the portfolio in the form of interest and dividends. (TR) indicates total return. (PR) indicates price return. MSCI EAFE returns stated in U.S. dollars.

 

Twice As Long — On Wednesday, May 1, the U.S. began its 119th month of an economic expansion, i.e., the nation has been expanding since July 2009. The average length of all 33 expansions in the country since 1854 (not counting the current expansion) is 58 months (source: National Bureau of Economic Research, BTN Research).

Higher Here Than There — The U.S. economy is projected to grow 2.2 percent in 2019, nearly a percentage point higher than the 1.3 percent projected growth rate for the collective economies of the 19 nations that make up the Eurozone (source: International Monetary Fund, BTN Research).

Gotta Have It — On average, Americans pay out of pocket just 15 percent of the total health care expenditures they generate in a year. Out-of-pocket expenses include deductibles and co-payments for services and prescription drugs but do not include the cost of health insurance premiums. The remaining 85 percent of annual health care expenditures is covered by insurance (source: Health Care Cost Institute, BTN Research).

 

WEEKLY FOCUS – Talking to Loved Ones About Aging

Aging is not for the faint of heart. Seventy-five percent of those 65 and older have one or more chronic health conditions.1 Forty percent have at least one disability.2 And one in 10 has Alzheimer’s.3 Helping a parent or loved one through the aging process can be difficult, too. Following these useful guidelines to start and maintain an open dialog can help.

Be proactive instead of reactive. The ideal time to start a conversation is before any problems arise and emotions complicate matters. Next best is when one or more issues become recognizable, when you still have time for a series of small conversations that take place over time.

Be respectful and considerate. Choose a quiet moment, without distractions. Speak as a partner. Ask open-ended questions. You might say you’ve noticed a task is getting difficult for them and ask, “Is there a way we can make it easier for you?” Or, “As you age, what are your priorities?” Listen to their preferences and concerns. Let them make as many decisions as possible.

Discuss concerns with other family members. Be realistic about responsibilities you are or will be able to assume. Don’t make promises you can’t keep. Discuss what needs to be done now, what might eventually be needed and parts everyone can play.

Ask them to create necessary documents. A HIPAA authorization allows medical professionals to share health information. A medical power of attorney lets a family member make health care decisions if your loved one becomes unable to. A durable power of attorney for finances lets a relative manage financial affairs. A living will details the care your loved one wants to receive if they become incapacitated. A properly written will ensures their final wishes are carried out. Your loved one should also create an in-depth medical history and a financial profile. The financial profile should detail where they keep financial records and list their financial advisor, tax consultant and attorney.

Financial issues related to caring for a parent or loved one can be complicated and difficult to predict. Call our office today to discuss what you can do now to be financially prepared should your loved one require care.

1https://www.seniorliving.org/research/

2https://www.census.gov/newsroom/press-releases/2014/cb14-218.html

3https://www.aplaceformom.com/blog/2013-02-28-scary-facts-about-alzheimers-disease/

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* 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 index of 30 actively traded blue-chip stocks. NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System. The Morgan Stanley Capital International Europe, Australia and Far East Index (MSCI EAFE Index) is a widely recognized benchmark of non-U.S. stock markets. It is an unmanaged index composed of a sample of companies representative of the market structure of 20 European and Pacific Basin countries and includes reinvestment of all dividends. Barclays Capital Aggregate Bond Index is an unmanaged index comprised of U.S. investment-grade, fixed-rate bond market securities, including government, government agency, corporate and mortgage-backed securities between one and 10 years. Written by Securities America, Copyright May 2019. All rights reserved. Securities offered through Securities America, Inc., Member FINRA/SIPC. SAI# 2529677.1

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