November 18, 2015
Dear Client(s):
Well, the 2015 year in the markets has certainly been interesting. Every time it looks as if we are starting to secure some traction with equity gains, we take a few steps back. As bad as September was, October was fantastic; if you happened to hang in there and not cash in your chips. Amazon, Nike & Disney have been very big winners for us in 2015 and we continue to be fully invested in these positions. The Federal Reserve continued its usual position of doing nothing when it comes to raising rates. Will they finally do what we’ve been expecting for quite some time? Stay tuned and we will see in December 16 at the FOMC meeting. This may cause some temporary setbacks in the markets but it’s overdue and necessary. The latest jobs data for October was released and it was overwhelmingly positive. Non-farm payroll additions totaled 271,000 for October, significantly higher than expectations of 185,000, and the best month of job gains in 2015. Unemployment was essentially unchanged at 5%.
The price of crude oil has recently touched $40 a barrel and you may have noticed this as you fill up your tanks at the gas station. Can it go lower? This is interesting as I touched on this fact back in our January letter when it dropped just below $50 a barrel. We may not have bottomed-out yet. New home construction dropped in October, new starts were down 11% and single-family new starts were down 2.4%. Single-family permits were up in every region with the exception of the Northeast as this looks to be the strongest year since 2007 for those.
Lastly, though I do not like to write about politics and religion at all, this is a unique moment in history. The recent activities by ISIS have been written about in the Koran passages and mentioned by Thomas Jefferson back in his time. It is very sad and unfortunate with what has happened to the people of France. They did not deserve these acts nor does any other country. The Russian plane that came down was apparently an act of terrorism as well. ISIS or Islamic State is to be taken seriously, as if we didn’t need more proof, and hopefully our nations unite and end these acts of terror. These are deeply, deeply devoted religious people and they won’t be slowed down or stopped unless we take action. Hug your kids and families a little bit more tonight, it’s great to be living in the United States of America.
Sincerely,
J.B. L’Esperance, ChFC
As always, if you have any questions about your accounts or would like to open an account, call us at 952.500.8854 or 248.687.1040.
Our Minnesota office has moved, our new address is:
320 Manitoba Ave. S.,
Suite 100
Wayzata, MN 55392.