THE WEEK ON WALL STREET
Stocks fell for the second straight week on inflation concerns despite a report on consumer prices that was initially well received by investors.
FACT OF THE WEEK
In the spring of 1957, Elvis Presley was completing his second Hollywood movie, Loving You, and his first movie soundtrack album. He had two studio albums and 48 singles already under his belt and two years of nearly nonstop live appearances behind him. If his life had taken a different path, the spring of 1957 might have seen Elvis Presley filling out law school applications or interviewing for his first job as college graduation approached. But the hardworking son of Gladys and Vernon Presley was already his family’s primary breadwinner in the spring of 1957 and already looking, at the tender age of 22, to purchase them a new home for the second time. He found that home on the outskirts of Memphis—a southern Colonial mansion on a 13.8-acre wooded estate. With a $1,000 cash deposit against a sale price of $102,500, Elvis Presley agreed to purchase the home called Graceland on March 19, 1957.
MARKET MINUTE
Stocks Slide
Tuesday was the only bright spot during the week as stock prices rose after the Labor Department report showed the Consumer Price Index rose 3.2% in February compared with a year earlier. It was a bit warmer than economists expected but cooler than investors feared. The news sparked a day-long rally, with the S&P 500 stock index setting its 17th record high of the year. Following Tuesday, caution lingered as investors parsed the underlying data behind headline consumer inflation numbers. Thursday's fresh producer price index (PPI) report showed that wholesale prices increased by 0.6% in February, more than the expected 0.3% increase. Additionally, core PPI (excluding food and energy) was hotter than expected. Retail sales, also reported on Thursday, were disappointing, rising less than expected and adding to the inflation angst. The news rattled investors and contributed to stocks closing lower for three consecutive days to end the week.
Broadening Leadership
Unlike the prior week when the S&P 500 fell the least, last week it lost slightly more than the Dow but less than the Nasdaq. That performance pattern suggests market leadership may be broadening. Also, the energy, financials, and materials sectors all posted gains last week, showing that other groups may join the tech-led rally.
FINANCIAL STRATEGY OF THE WEEK
Determining the value of an estate is a fundamental first step in estate management and a critical requirement for settling a decedent’s estate.
- How to Assess the Value of an Estate
Select the date of calculation. Because values move up and down, you need to set a specific date for a valuation. For a living person, you are free to pick any date. If you’re assessing the value of a decedent’s estate, you may choose either the date of death or the date six months after their death (the “Alternate Valuation Date”). If you use the Alternate Valuation Date, any asset sold or distributed during the first six months following the death must be valued as of the date of sale or distribution. - Determine the assets comprising the estate. This asset list should include everything an individual owns or has an ownership interest.
- Gather all financial statements as of the date of calculation. If an account is owned individually, the entire value should be calculated in the estate. If owned jointly with a spouse who has rights of survivorship, then 50 percent of the value should be included.
- Remember to:
- Deduct any outstanding mortgage balance.
- Include life insurance when the policy owner is the deceased individual or the beneficiary is the decedent’s estate.
- Remember to:
- Calculate deductions. Subtract any debts from the total value of assets. For the decedent, this may also include any regular bills that may be due (e.g., utilities, medical expenses, etc.), charitable gifts, and state tax obligations.
Assessing the precise value of an estate can be complicated, especially when settling an estate. Please consult a professional with estate expertise regarding your individual situation.