Speculation that the Federal Reserve (Fed) will taper its level of bond purchasing has pushed Treasury rates to their highest levels since 2010. The 10-year Treasury yield was as high as 2.87 percent early Monday morning.
The S&P 500 dropped a little more than 2 percent on the week. Correlations were relatively high, with most of the major
domestic indices reporting similar losses. The Nasdaq was an outlier on the positive side, losing just 1.51 percent on strength in
technology stocks.
The S&P 500 Index broke above the important 1,700 level last week, closing at 1,706. In the second quarter, gross domestic
product (GDP) grew 1.7 percent, rising above analyst expectations. Read more in this Weekly Market Update.
The 10-year Treasury yield was down to 1.62 percent late last week before moving back to 2.55 percent, which was closer to where it had started the week. We expect a quiet start to this week as we wait for remarks from this Wednesday’s Federal Open Market Committee (FOMC) meeting. Read more in this PDF.
Treasury yields trended slightly lower last week, as investors digested more commentary from Federal Reserve (Fed) Chairman Bernanke and other Fed speakers. Bernanke reiterated the Fed’s commitment to purchasing bonds as necessary moving forward.
Treasuries rallied at the end of last week after the 10-year touched a high of 2.73 percent. Federal Reserve Chairman Ben Bernanke’s speech on Wednesday calmed markets and gave investors more confidence that the tapering of asset purchases was unlikely to occur during 2013. Read More Now.
Michael Pierce
Michael Pierce, president of Allen Insurance and Financial, joined a select group of financial advisors invited to participate in Commonwealth Financial Network®’s President’s Club, June 18–23, 2013, at the Montage Deer Valley in Park City, Utah. Qualification is based on a ranking of annual production among Commonwealth’s network of financial advisors.
Throughout the conference, a variety of business meetings and sponsor presentations allowed attendees to gain key insights and recommendations from industry leaders. Significant time was also dedicated to networking sessions. Overall, emphasis was placed on financial advisors’ ability to provide the highest level of service and value to their client base.
“Attending this conference was extremely beneficial to my continued learning” said Pierce. “Through the formal sessions and networking opportunities that were offered, I gained knowledge that will help me manage my firm and better serve my clients.”
About Allen Insurance and Financial
Allen Insurance and Financial provides individuals and organizations with financial guidance. Located at 31 Chestnut St. in Camden, Maine, the advisors of Allen Insurance and Financial pride themselves on crafting unique strategies for each client. For more information, please visit www.allenfg.com. Securities and Advisory Services offered through Commonwealth Financial Network®, Member FINRA, SIPC, a Registered Investment Adviser. Fixed insurance products and services and employee benefit services offered by Allen Insurance and Financial are separate and unrelated to Commonwealth.
About Commonwealth Financial Network
Founded in 1979, Commonwealth Financial Network, member FINRA/SIPC, is the nation’s largest privately held independent broker/dealer–RIA, with headquarters in Waltham, Massachusetts, and San Diego, California. J.D. Power and Associates ranks Commonwealth ‘Highest in Independent Advisor Satisfaction among Financial Investment Firms, Three Times in a Row.’ The firm supports more than 1,450 independent advisors nationwide in serving their clients as registered representatives, investment adviser representatives, and registered investment advisers, as well as through hybrid service models. For more information, please visit www.commonwealth.com.
The yield on the 10-year Treasury was as high as 2.73 percent on Monday morning, after a volatile Friday, when it ended the day at 2.74 percent.
Trading volume may have been low during the holiday-shortened week, but the equity markets made a strong push higher on Friday after a better-than-expected payroll report. The S&P 500 climbed 1.63 percent, but the small-cap Russell 2000 Index was the strongest performer with a gain of 2.87 percent.
While many agree that Treasury yields present a decent opportunity at current levels, there’s no lack of volatility in the market. After bouncing as high as 2.64 percent last Monday, yields on the 10-year Treasury fell as low as 2.45 percent late in the week. The 10-year begins what could be a slower holiday week slightly above 2.50 percent.
Read our Weekly Market Summary.
NEW: Brad McMillan, vice president, chief investment officer of the Commonwealth Financial Network, talks with Maria Considine King, vice president of practice management, about the Fed’s announcement of a reduction in stimulus. Brad also offers updates on China and Europe, as well as his thoughts on what to look for in the financial markets going forward. Click for the video.
The yield on the 10-year Treasury was as high as 2.63 percent early Monday morning. This move seems to be in reaction to last Wednesday’s Federal Open Market Committee (FOMC) meeting, during which Chairman Bernanke gave us more clarity on the Fed’s exit plan. Read more now in our Weekly Market Summary.
When it comes to planning for retirement, the more you save today, the better prepared you’ll be tomorrow. That’s why we are sharing five easy steps to take right now that could make all the difference in reaching your goals.
1 Periodic investment plans and dollar cost averaging do not assure a profit or protect against losses in declining markets. Such plans involve continuous investment regardless of market conditions. Markets will fluctuate, and clients must consider their ability to continue investing during periods of low price levels. The above hypothetical example illustrates the potential value of regular monthly investments and assumes an average annual rate of return of 7 percent. The end value doesn’t reflect taxes or fees. Earnings and pretax contributions from Traditional IRAs are subject to taxes when withdrawn. IRA distributions taken before age 59½ may also be subject to a 10-percent penalty. Earnings distributed from Roth IRAs are free from income tax, provided certain requirements are met.
