Streeter Riddle Wealth Management Month In Review May 2012
Wealth Management Reinvented May 2012
Wealth Management ReinventedMay’s Market Moving Headlines European Debt Crisis Persists Unemployment Rises Again Facebook IPO Falls Short
Wealth Management Reinvented European Debt Crisis PersistsEquity Markets continued to churn over anxiety that Greece willleave the European Union, further destabilizing the EU andincreasing the risk of default in other fragile EU members like Spainand Italy.Bailout money from the IMF and other EU lenders is tied to austerityprograms taking effect in Greece. The current government does notappear inclined to accept austerity, but an election cycle is uponthem, and the chance to change direction is at hand.
Wealth Management Reinvented Unemployment Rises AgainBad news on the unemployment front caught investors in the U.S.market off guard. May’s unemployment report showed only 69,000jobs added during the month, significantly less than anticipated.Worse still, nearly all of them were part-time jobs, leading to a risein the overall unemployment rate to 8.2%.This is not only bad news for many Americans, but is a potentialsignal that the economic recovery is stalling, a sentiment reflected inthe dramatic drops in the major stock market indices on Friday, June1, as investors reacted to the new economic data from May includingthe unemployment report.
Wealth Management Reinvented Facebook IPO Falls ShortThe Facebook IPO will no doubt linger as one of the most fascinatingstock market stories of 2012. The stock was clearly overvaluedwhen it came to market, a fact proven by its investment banks’ rushto buy shares and support the price. But exactly how many sharesMorgan Stanley and others bought and what was the position ofthose shares versus the short positions they were holding is a talewe may never be told. Morgan may have made out like bandits onthe IPO, but from the outside looking in, it sure looks like a poorinvestment banking performance.Either way, the stock price slid consistently from the IPO, closing outMay more than 20% off of its opening price and leaving analysts todisagree heartily over where it is going from here.
Wealth Management Reinvented May’s Performance NotesIndex Month Open Month Close % ChangeDow Jones 13,213.63 12,466.18 -6.21%Industrial Avg.S&P 500 1397.91 1316.75 -6.27AGG 110.59 111.50 +.88%Notes:1. Information From Google Finance2. AGG is the Barclays Aggregate Bond Fund which generally tracks the overall performance of the United States investment grade bond market.3. AGG is a fund that can be traded. The DJIA and S&P 500 are indexes that cannot be purchased directly. These are benchmarks we believe are noteworthy, but by listing their performance, we are not suggesting they are the only appropriate benchmarks or that any investment decisions should be made based on them. Consult your financial advisor before making any investment decisions.
Wealth Management Reinvented SummaryMay was a difficult month for investors after the seeminglyforever ago bull run of the first quarter of 2012.As market volatility remains the new normal, investors have tobe patient with their long term investments. With negligibleinterest rates and bond yields at all time lows, investorsseeking a safe haven are having to be more creative in theirstrategy. Visit Our Online Magazine: www.wealthplanningatlanta.com
Wealth Management Reinvented DisclaimersCopyright 2012, Streeter Riddle Financial, LLC All Rights ReservedThe opinions in the preceding commentary are as of the date of publication and are subject tochange. Information has been obtained from third-party sources we consider reliable, but we donot guarantee that the facts cited are accurate or complete. This material is not intended to berelied upon as a forecast or investment advice regarding a particular investment or the markets ingeneral, nor is it intended to predict or depict performance of any investment. We may executetransactions in securities that may not be consistent with the report’s conclusions. Investorsshould consult their financial advisor on the strategy best for them. Past performance is not aguarantee of future results.Streeter Riddle Wealth Management is an unregistered designation used to describe our family ofcompanies: Streeter Riddle Financial, LLC; Private Client Tax Solutions, LLC, a registered CPA firm,and Riddle Law Group, LLC, an independent law firm.Securities offered through Kalos Capital, Inc. and investment advisory services offered throughKalos Management, Inc., ("Kalos") both at 3780 Mansell Road, Alpharetta, Georgia 30022. StreeterRiddle Financial, LLC, is not an affiliate or subisidiary of Kalos. Kalos does not offer legal or taxadvice. Streeter Riddle Financial, LLC 2870 Johnson Ferry Road, Suite 150 Marietta, Georgia 30062 Tel: 678.456.5546 www.streeter-riddle.com