THE WEEK ON WALL STREET
Stocks slid last week as mixed economic data and strong-but-not-spectacular Q3 corporate reports failed to inspire investors. The S&P 500 Index fell 1.36 percent, while the Nasdaq Composite Index declined 1.50 percent. The Dow Jones Industrial Average edged down 0.15 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, slid 0.96 percent.
FACT OF THE WEEK
In the early hours of November 3, 2016, the Chicago Cubs win their first World Series championship since 1908, beating the Cleveland Indians, 8-7, in a thrilling Game 7 delayed by rain. "Let It Reign," reads the headline in the next day's Chicago Tribune sports section. The win snaps the “Billy Goat Curse,” one of the more infamous sports curses, and baseball's longest World Series title drought.
“This fittingly has to be one of the best games of all time,’’ said Theo Epstein, the Cubs’ president of baseball operations. “Our fans deserve this, our players deserve this..."The Curse of the Billy Goat supposedly was placed on the Cubs in 1945 by the owner of the Billy Goat Tavern. At Game 4 of the World Series at Wrigley Field between the Cubs and Detroit Tigers, a Chicago bar owner and his pet goat were not permitted into the game. “You are going to lose this World Series and you are never going to win another World Series again,” the bar owner proclaimed after they were denied entry.
MARKET MINUTE
Q3 Reports UninspiredStocks rallied early Wednesday after the gross domestic product report showed a strong economy that appeared on the path to a soft landing. However, stocks moved lower throughout the day as investors digested mixed Q3 reports from a few mega-cap tech names. Stocks were under more pressure Thursday as disappointing outlooks for some key tech companies pulled the market down. A softer-than-expected jobs report on Friday unsettled investors, but stocks picked up as the day progressed, and attention shifted to how the Fed may interpret the jobs data. By Friday, the Nasdaq’s eight-week winning streak had ended, and the S&P fell for the second week.
Fed Back in Focus After Jobs ReportAt its most recent meetings, the Fed has made it clear that it needed to balance the risks of both inflation and employment. So Friday's jobs report that showed 12,000 jobs created in October caught some by surprise. Economists expected the Labor Department to report 100,000, down from September’s 223,000 jobs. Investors parsed the data and determined the strike at a major aircraft manufacturer and two hurricanes caused the jobs report to fall short of estimates. Investors also appeared to believe the jobs report would prompt the Fed to move on rates at its two-day policy meeting, which ends on November 7.
FINANCIAL STRATEGY OF THE WEEK
If you are wondering if estate planning is right for you, it is important to know even people with modest assets need a written plan. Though no one likes thinking about death, estate planning ensures that your money, property, and assets are distributed according to your wishes upon death. If you've already developed your plan, don't 'set it and forget it.' As your life changes, your estate plan should reflect those changes, too. Here are a few tips to consider as you start estate planning:
- Remember to include a will. Work with a legal professional to create a will that details your wishes regarding the distribution of your property, money, and assets, and who will care for minor children or pets.
- Consider using a trust to preserve valuable assets. A house is an excellent example of something that can be extremely time-consuming and emotionally exhausting to transfer after someone dies.
- Keep an up-to-date inventory of your assets and list who receives each asset and their approximate value in the estate plan.
- Establish your directives, such as a power of attorney, medical care, and trust documents.
- Review your beneficiaries often. A change in beneficiaries would be necessary due to divorce, the birth of a new child, the loss of a loved one, a marriage, etc.
Having financial professionals you trust is crucial. I would be happy to work with your legal and tax advisors to ensure your estate plan is comprehensive and effective. Our goal is to help you ensure that the assets you've spent a lifetime accumulating will transfer to your heirs when it's time. If you have any questions regarding estate planning, your finances, or anything else, please don't hesitate to reach out.