What a different a month (or two) can make. Here is our March 2016, all new…trendy format Monthly Capital Market Review and last minute tax tips, along with a Video for your viewing and listening pleasure. Hope you are enjoying!
March 2016 Video
Final Reminder Tax Tip
As Moto Moto said in Madagascar, these tips are so good we had to say them twice!
Our favorite tax savings ideas that still work for last year (2015 taxes):
- Itemize your standard tax deduction
- HSA- Health Savings Account
- Fund an IRA
- Simplified Employee Pension – SEP deduction/contribution against non W-2 income (1099)
Tax Fraud Alert
As noted here, last month we had our first incidence of fraud in February. We are now up to 9.5 so far, as we have one incident that we think was fraud, but could not be proven!
Be sure to keep your guard up!
Economic Update
PMI Manufacturing Index
PMI (Definition: The ISM manufacturing composite index indicates overall factory sector trends. The relevance of this indicator is enhanced by the fact that it is available very early in the month and is not subject to revision.) Graph from our friends at Econoday.
Less than 50 is contraction, greater than 50 is growth.
Employment Situation
While there was a small increase in unemployment claims late in March, the overall employment picture, via hiring, as can be seen below, again from our friends at Econoday, remains steady. It is worth noting, these reports can be volatile.
Capital Markets Update
Updated Support and Resistance
This Graph, included in our Newsletter, shows the updated Support and Resistance lines and levels of the current market.
As mentioned in our Yellen Speaks post, after telling capital market participants that slower rate increases were more likely (late 2015 she told the world to expect four increases, now only two) capital markets smartly broke through the lower upper resistance. Now, can we go to new highs ? Maybe …
Never go all in or all out !
Oil and Market Correlation Chart
For those that think oil does not affect the sentiment and capital markets, look at this chart from Liz Saunders :
Sorry for the motor mouth/fingers … there were a lot of moves worth noting, especially very near the end of the month !
Have a Great Day!
See you again at the end of April !
John A. Kvale
We are Surprised by NOT being Surprised … Company Surprise Announcement Next Week – Friday
Our comments below, just barely hit the airwaves ….
“It was the Best of Times, it was the Worst of Times
As we look forward, the best part of the year “historically” lies just in our view as we finish the year. Using history as our guide, oddly the first month of the coming quarter has been the most treacherous. Not the time to get to overzealous or glum! “
What is surprising about these comments are that … SO FAR, they have been spot on .. I.e. NO SURPRISES –
Bounce and Re-Test
Using history again as our guide, rarely do market suddenly just go back up – what they do is get their feet under them at some level – called a Test and if they hold then they may be on better footing … This is from earlier in the year, but there are tons of repeat tests like this ….
We will be watching and give you more insights as they unfold…
Company Surprise – Honor
Shhhhh … coming to a newsstand near you (those in Dallas) is ….oh well we cannot say until NEXT FRIDAY- we will be yelling then…
Enough of the heavy stuff, its a Friday … have a good weekend.
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
jkfinancialinc
street-cents
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Posted in Investing/Financial Planning, Market Comments
Tagged Retesting, Support