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Weekly Market Commentary

For the week of May 2, 2016

 

The Markets

Wall Street ended the week on a down note following disappointing reports on corporate earnings, the first quarter’s GDP and consumer spending. For the week, the Dow fell 1.28 percent to close at 17,773.64. The S&P lost 1.24 percent to finish at 2,065.30, and the NASDAQ dropped 2.67 percent to end the week at 4,775.36.

 

Returns Through 04/29/16

1 Week

YTD

1 Year

3 Year

5 Year

Dow Jones Industrials (TR)

-1.28

2.83

2.25

8.82

9.52

NASDAQ Composite (PR)

-2.67

-4.63

-3.36

12.78

10.69

S&P 500 (TR)

-1.24

1.74

1.21

11.26

11.02

Barclays US Agg Bond (TR)

0.40

3.43

2.72

2.29

3.60

MSCI EAFE (TR)

-0.44

-0.20

-9.32

1.48

1.69

 

Source: Morningstar.com. *Past performance is no guarantee of future results. Indexes are unmanaged and cannot be invested into directly. Three- and five-year returns are annualized. The Dow Jones Industrials, MSCI EAFE, Barclays US Agg Bond and S&P, excluding “1 Week” returns, are based on total return, which is a reflection of return to an investor by reinvesting dividends after the deduction of withholding tax. The NASDAQ is based on price return, which is the capital appreciation of the portfolio, excluding income generated by the assets in the portfolio in the form of interest and dividends. (TR) indicates total return. (PR) indicates price return. MSCI EAFE returns stated in U.S. dollars. 

 

Preferred Choice for Investing — Of college graduates surveyed in early April, 37 percent believe stocks are the top “long-term investment” available to them, besting bonds, real estate, gold or CDs. However, only 17 percent of noncollege graduates believe stocks are the best “long-term investment” (source: Gallup, BTN Research).

 

 Not Much Since Then — Since reaching an all-time closing high on May 21, 2015 (i.e., 11 months ago), the S&P 500 has gained 0.1 percent (total return) (source: BTN Research).

 

Just Takes Longer Today — Twenty-five years ago (1991), 89 percent of American workers expected to be retired by at least age 65. Today (2016), only 57 percent of American workers expect to be retired by at least age 65 (source: Employee Benefit Research Institute, BTN Research).

 

 

WEEKLY FOCUS – Heir to the Throne? Prince’s Estate in Limbo

 

 On April 21, the world lost yet another high-profile celebrity when 57-year-old iconic musician Prince Rogers Nelson died unexpectedly at his famous Paisley Park complex in suburban Minneapolis.

 

Perhaps even more shocking than his sudden death is the apparent lack of a will. Tyka Nelson, Prince’s full sister, filed documents last Tuesday, April 26, in probate court, petitioning for the appointment of a special administrator over Prince’s estate. Nelson claimed no known existence of a will and listed herself and five living half-siblings as possible heirs and interested parties to the estate. Prince was unmarried at the time of death, with no living parents or known children.

 

It’s unknown exactly how much Prince’s estate is worth. Original estimates claimed he may have amassed a fortune worth approximately $300 million. And Prince’s post-mortem income could rival that of other top-earning deceased celebrities like Elvis Presley and Michael Jackson, whose estate, according to Forbes, has earned more than $1 billion since his death in 2009.

 

While an official will has yet to surface, there could still be one somewhere. According to Rolling Stone magazine, “under Minnesota law, a person can file a will with probate court in secret. If Prince did, the will – along with any trust he created or heirs he named – would be made public once a death certificate is filed.”

 

Without a will or other estate planning structure, Prince’s estate could easily fall victim to probate and court proceedings, causing whatever legacy he had hoped to leave to lose value from costs, fees and taxes.

 

Estate planning is necessary – and not just for celebrities. Creating a will is just one step in setting up an effective estate plan. Telling someone you have a will can help expedite transfer processes should you die unexpectedly. Setting up trust funds to gift your estate to family, friends or charities after your death can protect your assets from heftier tax burdens during the transfer. Personally designating someone to oversee your accounts and to manage your estate can help ensure the people you choose receive their benefits, instead of letting your next of kin, or even the state, decide for you.

 

Contact our office today to discuss what options are available to help you secure, and make the most of, your legacy. We can help you properly plan with an estate planning attorney to avoid costly mistakes even a Prince can make.

 

 

 * 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. 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. The Morgan Stanley Capital International Europe, Australia and Far East Index (MSCI EAFE Index) is a widely recognized benchmark of non-U.S. stock markets. It is an unmanaged index composed of a sample of companies representative of the market structure of 20 European and PacificBasin countries and includes reinvestment of all dividends. Barclays Capital Aggregate Bond Index is an unmanaged index comprised of U.S. investment-grade, fixed-rate bond market securities, including government, government agency, corporate and mortgage-backed securities between one and 10 years. Written by Securities America. SAI#1437079.1

 

 

  

CBT FINANCIAL CENTER

Lyn Moore 417-659-7852
Johnny E. Brown 417-455-8212
Barbara Snow 417-455-8261

Not FDIC Insured. No Bank Guarantee. May Lose Value
Not Insured by any Government Agency. Not a Deposit

Securities offered through Securities America Inc.,
Member FINRA / SIPC.
Services offered at CBT Financial Center in Neosho or 3131 East 7th St, Joplin, or by appointment at other branch locations.
Johnny E. Brown, Lyn Moore, and Barbara Snow, Registered Representatives.
Advisory services offered through Securities America Advisor, Inc., Johnny Brown and Lyn Moore, Financial Advisors.
CBT Financial Center, Community Bank & Trust and Securities America are unaffiliated.

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