The KidsSep 25, 2017 | Wealth Management
As most of the Kentucky Big Blue Nation struggle with differing levels of despair as a result of the football game Saturday night, I thought I might offer something to help those who are particularly dejected keep things in perspective. At the end of the first quarter of every home Iowa football game, the fans stand and wave at the kids in the Iowa Children’s Hospital as they watch the game from a special viewing area. What a special moment for the kids and their parents and I believe this simple act, that gives the kids so much joy, must also give them additional strength to fight their battle. For a child, being in the hospital can be a very lonely place. But, what amounts to getting a “high five” from 70,000 people can’t help but remind them they’re not alone and they have a lot of people pulling for them. It gives them one of the greatest gifts which is hope. Yes, I know winning football games is important and my emotions rise and fall with the success or lack thereof of my favorite team. However, let’s remember as we jubilate in their successes or anguish in their failings, the most important battles are not waged on the gridiron.
“But our wishes are like tinder: the flint and steel of circumstances are continually striking out sparks, which vanish immediately, unless they chance to fall upon the tinder of our wishes; then, they instantly ignite, and the flame of hope is kindled in a moment. “
----from Agnes Grey by Anne Bronte
Below is our most recent Market Update.
Have a great week!
Senior Wealth Advisor
Bank of the Bluegrass & Trust Co.
September 25, 2017
FEDERAL RESERVE: UNWINDING WILL BE GRADUAL
Last Wednesday, the country’s central bank detailed how it would shrink its mammoth balance sheet. During the fourth quarter, the Fed will unload $10 billion of maturing bonds per month; in each subsequent quarter, the monthly runoff will increase by $10 billion until reaching a limit of $50 billion. Fed chair Janet Yellen said that this schedule is set in stone, barring a “sufficiently great” economic threat. The Fed made no interest rate move last week, but 12 of 16 Fed officials do project a hike before 2017 ends.1
HOME SALES RETREAT AGAIN
In August, existing home sales fell for the fourth time in five months. Resales decreased 1.7% to a seasonally adjusted annual pace of 5.35 million, a 12-month low, according to the National Association of Realtors. Two factors hindered would-be buyers: a median house price of $253,500 and a 2.1% monthly reduction in inventory (the supply of homes for sale was 6.5% greater in August 2016).2
BUILDING PERMITS UP 5.7% IN AUGUST
This good news was countered by last month’s 0.8% reduction in groundbreaking. The Census Bureau’s report on August construction activity showed the rate of issuance for permits 8.3% above where it was a year earlier; the pace of starts was 1.4% improved. Starts for single-family homes were up 17.1% in 12 months.3
A MIXED WEEK FOR EQUITIES
Leading the way among the three major indices last week, the Dow Jones Industrial Average rose 0.36% in five days to 22,349.59. The S&P 500 made a smaller advance of 0.08% to 2,502.22. The Nasdaq Composite took a weekly loss of 0.33%, settling Friday at 6,426.92.4
1 - nytimes.com/2017/09/20/business/economy/fed-bond-buying.html [9/20/17]
2 - marketwatch.com/story/existing-home-sales-fall-in-august-for-the-fourth-time-in-five-months-2017-09-20 [9/20/17]
3 - forbes.com/sites/samanthasharf/2017/09/19/u-s-housing-starts-slipped-permits-rose-in-august/ [9/19/17]
4 - markets.wsj.com/us [9/22/17]
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