SlideShare a Scribd company logo
1 of 4
Download to read offline
Hyre Weekly Commentary
                                                March 26, 2012


The Markets
A trillion here, a trillion there and, pretty soon, you have a nice market rally.

Through a program called quantitative easing, central banks around the world have flooded the
world economy with the equivalent of trillions of U.S. dollars. Quantitative easing involves
central banks making large-scale purchases of debt – usually government or mortgage debt – and
paying for that debt by creating money out of thin air, according to The New York Times. The
hope (and remember, hope is not an investment strategy) is that with more money sloshing
around the global economy, interest rates will drop and that will stimulate demand and increase
economic growth.

If all goes according to plan, the economy will recover and then the central banks will sell the
bonds they purchased and “destroy” the money they received for selling the bonds. When the
whole cycle is completed, the net effect is no new money is created, according to the BBC.
Optimists say this is an appropriate activity for central banks when the economy faces major
hurdles. Pessimists say the central banks are unlikely to turn off the spigot and we could end up
with runaway inflation.

And, yes, it’s a big spigot. Just between the U.S. and the United Kingdom, more than 2.5 trillion
dollars of new money has been created since 2008, according to Reuters and the BBC.

On top of that, the European Central Bank made more than 1 trillion euro available to banks in
the form of cheap three-year loans in just the past few months. The hope (there’s that word
again) is that banks will use this money to lend and invest, and, thereby, boost the economy,
according to Bloomberg.

All this “easy money” has helped fuel a strong start to many of the world’s stock markets this
year. The big question is, will this easy money be the bridge that gets the world economy back
on a self-sustaining growth path or is it simply keeping the patient addicted to an unsustainable
monetary policy?
Effectively answering questions like this keeps our job very interesting!

             Data as of 3/23/12                             1-Week          Y-T-D         1-Year       3-Year       5-Year        10-Year
 Standard & Poor's 500 (Domestic Stocks)                      -0.5%         11.1%           6.3%       19.3%         -0.5%         2.1%
 DJ Global ex US (Foreign Stocks)                             -1.6           11.2           -7.9        16.1          -3.9           5.4
 10-year Treasury Note (Yield Only)                            2.2           N/A             3.4         2.7           4.6           5.4
 Gold (per ounce)                                              0.4            5.7           15.6        20.6          20.5          18.8
 DJ-UBS Commodity Index                                       -1.5            2.4          -13.6         8.0          -3.1           3.9
 DJ Equity All REIT TR Index                                  -0.4            8.6           13.5        37.3          -0.9          10.3
  Notes: S&P 500, DJ Global ex US, Gold, DJ-UBS Commodity Index returns exclude reinvested dividends (gold does not pay a dividend)
  and the three-, five-, and 10-year returns are annualized; the DJ Equity All REIT TR Index does include reinvested dividends and the
  three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the
  historical time periods.
  Sources: Yahoo! Finance, Barron’s, djindexes.com, London Bullion Market Association.
  Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not
  applicable.


QUANTITATIVE EASING HAS LED TO A STEALTH “TAX” ON SAVERS in what’s
been called “financial repression,” according to Bloomberg. As mentioned above, one goal of
quantitative easing is to lower interest rates. On that score, it’s succeeded since interest rates are
super low all along the yield curve. Unfortunately, there’s a problem with that – interest rates on
many bonds and savings accounts are lower than the rate of inflation. This means savers are
losing purchasing power (the stealth tax) while debtors are able to pay back their debts in inflated
(i.e., “cheaper”) dollars. Savers are effectively being “financially repressed.”

The public debt of the U.S. is more than $15 trillion, according to the Treasury Department. The
annual interest expense on that mountain of debt is more than $400 billion. Not surprisingly, the
government wants to keep interest rates low because that will keep their interest payments low.
Also, by tolerating some inflation, that debt pile can be paid back in inflated dollars. So, who
loses in this deal? It’s the diligent American saver who lives below their means and has to endure
very little interest on their savings.

Government policy makers are well aware that their actions are, to some extent, helping debtors
at the expense of savers. They also know that in this complicated, global economy, there’s no
easy way to make everybody happy and still get us out of the fiscal hole we’re in. Knowing that,
we’ll keep doing our best to help you prosper.

Weekly Focus – Just for Fun
If you could spend one year traveling around the U.S. and Canada, how many different bird
species do you think you could see? Well, there’s actually an informal competition that does just
that and it’s called a Big Year. Last year, a movie starring Steve Martin, Jack Black, and Owen
Wilson chronicled the Big Year exploits of three men who tried to set a new Big Year record in
1998. Sure enough, one of the men set a new record of seeing 748 bird species that year. Check
out the movie and you’ll never look at birding quite the same.

Best regards
Jim Hyre, CFP®
Registered Principal

P.S. Please feel free to forward this commentary to family, friends, or colleagues. If you would
like us to add them to the list, please reply to this e-mail with their e-mail address and we will
ask for their permission to be added.

Securities offered through Raymond James Financial Services, Inc., Member FINRA/SIPC.

* 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.
* The 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.
* Gold represents the London afternoon gold price fix as reported by www.usagold.com.
* The DJ/AIG Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The
Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen
as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
* The DJ Equity All REIT TR Index measures the total return performance of the equity subcategory of the Real Estate Investment
Trust (REIT) industry as calculated by Dow Jones
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future
performance.
* Consult your financial professional before making any investment decision.
* You cannot invest directly in an index.
* Past performance does not guarantee future results. mc101507
* This newsletter was prepared by PEAK for use by James Hyre, CFP®, registered principal
* If you would prefer not to receive this Weekly Newsletter, please contact our office via e-mail or mail your request to 2074 Arlington
Ave, Upper Arlington, OH 43221.
* The information contained in this report does not purport to be a complete description of the securities, markets, or developments
referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that
the forgoing material is accurate or complete. Any opinions are those of Jim Hyre and not necessary those of RJFS or Raymond
James. Expressions of opinion are as of this date and are subject to change without notice. This information is not intended as a
solicitation or an offer to buy or sell any security to herein. Tax or legal matters should be discussed with the appropriate
professional.




Jim Hyre, CFP®
Registered Principal
Raymond James Financial Services, Inc.
Member FINRA/SIPC
2074 Arlington Ave.
Upper Arlington, OH 43221
614.225.9400
614.225.9400 Fax
877.228.9515 Toll Free

www.hyreandassociates.com


Find Us Here:
Raymond James Financial Services does not accept orders and/or instructions regarding your account by email, voice mail, fax or
any alternate method. Transactional details do not supersede normal trade confirmations or statements. Email sent through the
Internet is not secure or confidential. Raymond James Financial Services reserves the right to monitor all email. Any information
provided in this email has been prepared from sources believed to be reliable, but is not guaranteed by Raymond James Financial
Services and is not a complete summary or statement of all available data necessary for making an investment decision. Any
information provided is for informational purposes only and does not constitute a recommendation. Raymond James Financial
Services and its employees may own options, rights or warrants to purchase any of the securities mentioned in email. This email is
intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any review,
transmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other
than the intended recipient is prohibited. If you received this message in error, please contact the sender immediately and delete
the material from your computer.



                                 2074 Arlington Avenue, Columbus, Ohio 43221
                        614.225.9400 local | 877.228.9515 toll-free | 614.225.9400 fax
                         www.hyreandassociates.com | info@hyreandassociates.com

                     Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC.

More Related Content

What's hot

Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentaryhyrejam
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentaryhyrejam
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentaryhyrejam
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentaryhyrejam
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentaryhyrejam
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentaryhyrejam
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentaryhyrejam
 
Hyre Weekly Commentary Template
Hyre Weekly Commentary TemplateHyre Weekly Commentary Template
Hyre Weekly Commentary Templatehyrejam
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentaryhyrejam
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentaryhyrejam
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentaryhyrejam
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentaryhyrejam
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentaryhyrejam
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentaryhyrejam
 
Review of the Markets - 1st Quarter 2013
Review of the Markets - 1st Quarter 2013Review of the Markets - 1st Quarter 2013
Review of the Markets - 1st Quarter 2013Barry Mendelson
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentaryhyrejam
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentaryhyrejam
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentaryhyrejam
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentaryhyrejam
 

What's hot (20)

Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentary
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentary
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentary
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentary
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentary
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentary
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentary
 
Hyre Weekly Commentary Template
Hyre Weekly Commentary TemplateHyre Weekly Commentary Template
Hyre Weekly Commentary Template
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentary
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentary
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentary
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentary
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentary
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentary
 
Review of the Markets - 1st Quarter 2013
Review of the Markets - 1st Quarter 2013Review of the Markets - 1st Quarter 2013
Review of the Markets - 1st Quarter 2013
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentary
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentary
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentary
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentary
 
Peak
PeakPeak
Peak
 

Viewers also liked

Student 1 Subtraction Year1
Student 1 Subtraction Year1Student 1 Subtraction Year1
Student 1 Subtraction Year1veronicagomez
 
Tham van cho nguoi bi nhiem HIV dang dung ma tuy
Tham van cho nguoi bi nhiem HIV dang dung ma tuyTham van cho nguoi bi nhiem HIV dang dung ma tuy
Tham van cho nguoi bi nhiem HIV dang dung ma tuyforeman
 
Outrageous Predictions - Helicopter Yellen
Outrageous Predictions - Helicopter YellenOutrageous Predictions - Helicopter Yellen
Outrageous Predictions - Helicopter YellenSaxo Capital Markets
 
Ignite london 2010 b
Ignite london 2010 bIgnite london 2010 b
Ignite london 2010 bDK
 
prim
primprim
primoscus
 
Llengua Catalana
Llengua CatalanaLlengua Catalana
Llengua CatalanaPilar Soro
 
Tramp 2008 kpt order
Tramp   2008 kpt orderTramp   2008 kpt order
Tramp 2008 kpt orderJayesh Bheda
 
Úvod semináře
Úvod seminářeÚvod semináře
Úvod seminářeJiri Pavlik
 
Dominican Republic Trip
Dominican Republic TripDominican Republic Trip
Dominican Republic TripAmy Eyler
 
Capital - Desenvolvendo a proposta
Capital - Desenvolvendo a propostaCapital - Desenvolvendo a proposta
Capital - Desenvolvendo a propostaLeonardo Seabra
 
ExáMen InformáTica Daniela
ExáMen InformáTica DanielaExáMen InformáTica Daniela
ExáMen InformáTica Danielalarenasdaniela
 
會計報告 著作權
會計報告 著作權會計報告 著作權
會計報告 著作權KHCHOTEL
 
Práctica 4
Práctica 4Práctica 4
Práctica 4Grupo-8
 
Aggregator appoverview
Aggregator appoverviewAggregator appoverview
Aggregator appoverviewianibbo
 

Viewers also liked (20)

Student 1 Subtraction Year1
Student 1 Subtraction Year1Student 1 Subtraction Year1
Student 1 Subtraction Year1
 
Tham van cho nguoi bi nhiem HIV dang dung ma tuy
Tham van cho nguoi bi nhiem HIV dang dung ma tuyTham van cho nguoi bi nhiem HIV dang dung ma tuy
Tham van cho nguoi bi nhiem HIV dang dung ma tuy
 
Outrageous Predictions - Helicopter Yellen
Outrageous Predictions - Helicopter YellenOutrageous Predictions - Helicopter Yellen
Outrageous Predictions - Helicopter Yellen
 
Ignite london 2010 b
Ignite london 2010 bIgnite london 2010 b
Ignite london 2010 b
 
prim
primprim
prim
 
Llengua Catalana
Llengua CatalanaLlengua Catalana
Llengua Catalana
 
Tramp 2008 kpt order
Tramp   2008 kpt orderTramp   2008 kpt order
Tramp 2008 kpt order
 
Capacitores
CapacitoresCapacitores
Capacitores
 
Siao
SiaoSiao
Siao
 
Úvod semináře
Úvod seminářeÚvod semináře
Úvod semináře
 
Dominican Republic Trip
Dominican Republic TripDominican Republic Trip
Dominican Republic Trip
 
Capital - Desenvolvendo a proposta
Capital - Desenvolvendo a propostaCapital - Desenvolvendo a proposta
Capital - Desenvolvendo a proposta
 
ExáMen InformáTica Daniela
ExáMen InformáTica DanielaExáMen InformáTica Daniela
ExáMen InformáTica Daniela
 
Certificado CIADE
Certificado CIADECertificado CIADE
Certificado CIADE
 
26 Fin
26 Fin26 Fin
26 Fin
 
What is Imaan in Islam? | Fisabilillah publications
What is Imaan in Islam? | Fisabilillah publicationsWhat is Imaan in Islam? | Fisabilillah publications
What is Imaan in Islam? | Fisabilillah publications
 
會計報告 著作權
會計報告 著作權會計報告 著作權
會計報告 著作權
 
Práctica 4
Práctica 4Práctica 4
Práctica 4
 
Aggregator appoverview
Aggregator appoverviewAggregator appoverview
Aggregator appoverview
 
Microteaching
MicroteachingMicroteaching
Microteaching
 

Similar to Hyre Weekly Commentary

Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentaryhyrejam
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentaryhyrejam
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentaryhyrejam
 
Weekly Commentary Sep26 2011
Weekly Commentary Sep26 2011Weekly Commentary Sep26 2011
Weekly Commentary Sep26 2011constanp
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentaryhyrejam
 
Hyre Weekly Commentary Feb 27
Hyre Weekly Commentary Feb 27Hyre Weekly Commentary Feb 27
Hyre Weekly Commentary Feb 27hyrejam
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentaryhyrejam
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentaryhyrejam
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentaryhyrejam
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentaryhyrejam
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentaryhyrejam
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentaryhyrejam
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentaryhyrejam
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentaryhyrejam
 

Similar to Hyre Weekly Commentary (14)

Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentary
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentary
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentary
 
Weekly Commentary Sep26 2011
Weekly Commentary Sep26 2011Weekly Commentary Sep26 2011
Weekly Commentary Sep26 2011
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentary
 
Hyre Weekly Commentary Feb 27
Hyre Weekly Commentary Feb 27Hyre Weekly Commentary Feb 27
Hyre Weekly Commentary Feb 27
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentary
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentary
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentary
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentary
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentary
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentary
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentary
 
Hyre Weekly Commentary
Hyre Weekly CommentaryHyre Weekly Commentary
Hyre Weekly Commentary
 

Hyre Weekly Commentary

  • 1. Hyre Weekly Commentary March 26, 2012 The Markets A trillion here, a trillion there and, pretty soon, you have a nice market rally. Through a program called quantitative easing, central banks around the world have flooded the world economy with the equivalent of trillions of U.S. dollars. Quantitative easing involves central banks making large-scale purchases of debt – usually government or mortgage debt – and paying for that debt by creating money out of thin air, according to The New York Times. The hope (and remember, hope is not an investment strategy) is that with more money sloshing around the global economy, interest rates will drop and that will stimulate demand and increase economic growth. If all goes according to plan, the economy will recover and then the central banks will sell the bonds they purchased and “destroy” the money they received for selling the bonds. When the whole cycle is completed, the net effect is no new money is created, according to the BBC. Optimists say this is an appropriate activity for central banks when the economy faces major hurdles. Pessimists say the central banks are unlikely to turn off the spigot and we could end up with runaway inflation. And, yes, it’s a big spigot. Just between the U.S. and the United Kingdom, more than 2.5 trillion dollars of new money has been created since 2008, according to Reuters and the BBC. On top of that, the European Central Bank made more than 1 trillion euro available to banks in the form of cheap three-year loans in just the past few months. The hope (there’s that word again) is that banks will use this money to lend and invest, and, thereby, boost the economy, according to Bloomberg. All this “easy money” has helped fuel a strong start to many of the world’s stock markets this year. The big question is, will this easy money be the bridge that gets the world economy back on a self-sustaining growth path or is it simply keeping the patient addicted to an unsustainable monetary policy?
  • 2. Effectively answering questions like this keeps our job very interesting! Data as of 3/23/12 1-Week Y-T-D 1-Year 3-Year 5-Year 10-Year Standard & Poor's 500 (Domestic Stocks) -0.5% 11.1% 6.3% 19.3% -0.5% 2.1% DJ Global ex US (Foreign Stocks) -1.6 11.2 -7.9 16.1 -3.9 5.4 10-year Treasury Note (Yield Only) 2.2 N/A 3.4 2.7 4.6 5.4 Gold (per ounce) 0.4 5.7 15.6 20.6 20.5 18.8 DJ-UBS Commodity Index -1.5 2.4 -13.6 8.0 -3.1 3.9 DJ Equity All REIT TR Index -0.4 8.6 13.5 37.3 -0.9 10.3 Notes: S&P 500, DJ Global ex US, Gold, DJ-UBS Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; the DJ Equity All REIT TR Index does include reinvested dividends and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods. Sources: Yahoo! Finance, Barron’s, djindexes.com, London Bullion Market Association. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not applicable. QUANTITATIVE EASING HAS LED TO A STEALTH “TAX” ON SAVERS in what’s been called “financial repression,” according to Bloomberg. As mentioned above, one goal of quantitative easing is to lower interest rates. On that score, it’s succeeded since interest rates are super low all along the yield curve. Unfortunately, there’s a problem with that – interest rates on many bonds and savings accounts are lower than the rate of inflation. This means savers are losing purchasing power (the stealth tax) while debtors are able to pay back their debts in inflated (i.e., “cheaper”) dollars. Savers are effectively being “financially repressed.” The public debt of the U.S. is more than $15 trillion, according to the Treasury Department. The annual interest expense on that mountain of debt is more than $400 billion. Not surprisingly, the government wants to keep interest rates low because that will keep their interest payments low. Also, by tolerating some inflation, that debt pile can be paid back in inflated dollars. So, who loses in this deal? It’s the diligent American saver who lives below their means and has to endure very little interest on their savings. Government policy makers are well aware that their actions are, to some extent, helping debtors at the expense of savers. They also know that in this complicated, global economy, there’s no easy way to make everybody happy and still get us out of the fiscal hole we’re in. Knowing that, we’ll keep doing our best to help you prosper. Weekly Focus – Just for Fun If you could spend one year traveling around the U.S. and Canada, how many different bird species do you think you could see? Well, there’s actually an informal competition that does just that and it’s called a Big Year. Last year, a movie starring Steve Martin, Jack Black, and Owen Wilson chronicled the Big Year exploits of three men who tried to set a new Big Year record in 1998. Sure enough, one of the men set a new record of seeing 748 bird species that year. Check out the movie and you’ll never look at birding quite the same. Best regards
  • 3. Jim Hyre, CFP® Registered Principal P.S. Please feel free to forward this commentary to family, friends, or colleagues. If you would like us to add them to the list, please reply to this e-mail with their e-mail address and we will ask for their permission to be added. Securities offered through Raymond James Financial Services, Inc., Member FINRA/SIPC. * 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. * The 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. * Gold represents the London afternoon gold price fix as reported by www.usagold.com. * The DJ/AIG Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998. * The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market. * The DJ Equity All REIT TR Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones * Yahoo! Finance is the source for any reference to the performance of an index between two specific periods. * Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. * Consult your financial professional before making any investment decision. * You cannot invest directly in an index. * Past performance does not guarantee future results. mc101507 * This newsletter was prepared by PEAK for use by James Hyre, CFP®, registered principal * If you would prefer not to receive this Weekly Newsletter, please contact our office via e-mail or mail your request to 2074 Arlington Ave, Upper Arlington, OH 43221. * The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the forgoing material is accurate or complete. Any opinions are those of Jim Hyre and not necessary those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice. This information is not intended as a solicitation or an offer to buy or sell any security to herein. Tax or legal matters should be discussed with the appropriate professional. Jim Hyre, CFP® Registered Principal Raymond James Financial Services, Inc. Member FINRA/SIPC 2074 Arlington Ave. Upper Arlington, OH 43221 614.225.9400 614.225.9400 Fax 877.228.9515 Toll Free www.hyreandassociates.com Find Us Here:
  • 4. Raymond James Financial Services does not accept orders and/or instructions regarding your account by email, voice mail, fax or any alternate method. Transactional details do not supersede normal trade confirmations or statements. Email sent through the Internet is not secure or confidential. Raymond James Financial Services reserves the right to monitor all email. Any information provided in this email has been prepared from sources believed to be reliable, but is not guaranteed by Raymond James Financial Services and is not a complete summary or statement of all available data necessary for making an investment decision. Any information provided is for informational purposes only and does not constitute a recommendation. Raymond James Financial Services and its employees may own options, rights or warrants to purchase any of the securities mentioned in email. This email is intended only for the person or entity to which it is addressed and may contain confidential and/or privileged material. Any review, transmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient is prohibited. If you received this message in error, please contact the sender immediately and delete the material from your computer. 2074 Arlington Avenue, Columbus, Ohio 43221 614.225.9400 local | 877.228.9515 toll-free | 614.225.9400 fax www.hyreandassociates.com | info@hyreandassociates.com Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC.