Dow, S7P, Nasdaq All Rise

The Week on Wall Street

The big story last week was the sudden grounding of Boeing 737 Max 8 and 9 passenger jets in dozens of countries. The financial effects of this ban could potentially impact the airline industry and segments of the economy for months.

While the news created a headwind for the Dow Industrials, stocks managed to post solid gains for the week. The Nasdaq Composite rose 3.12%; the S&P 500, 2.46%; the Dow, 2.25%.

Bullish sentiment was also evident overseas. Looking at the MSCI EAFE index, international stocks advanced 1.93%.

Trade Meeting Delayed

Wall Street expected President Trump and Chinese President Xi to discuss trade issues this month. Thursday, Bloomberg reported that their talk had been postponed, with no firm date ahead.

Muted Inflation

The latest Consumer Price Index showed just a 1.5% rise in overall consumer costs in the year ending in February.

This number does not suggest an overheating economy. During a 60 Minutes

interview last week, Federal Reserve Chairman Jerome Powell said the central bank did “not feel any hurry” to make a rate move.

Tax Tip

If you turned 70½ last year, April 1 is your final deadline to receive your initial Required Minimum Distribution (RMD) from a traditional IRA, SEP-IRA, SIMPLE IRA, or employer-sponsored retirement plan. If you take your initial RMD from these retirement accounts this year, you must receive your second RMD from them by December 31, 2019.

Key Economic Data

Wednesday: The Federal Reserve wraps up its two-day policy meeting.

Friday: February existing home sales.

Source: Econoday / MarketWatch Calendar

Companies Reporting Earnings

Tuesday: FedEx (FDX), Michaels Companies (MIK)

Wednesday: General Mills (GIS), Micron Technology (MU)

Thursday: ConAgra Brands (CAG), Darden Restaurants (DRI), Nike (NKE)

Source: Morningstar.com

Quote of the Week

“Never discourage anyone…who continually makes progress, no matter how slow.”

– Plato

Sources: The Wall Street Journal, Mar. 15, 2019; Treasury.gov, Mar. 15, 2019

The market indexes discussed are unmanaged and generally considered representative of their respective markets. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results. Weekly performance is measured by Monday’s open of trading to Friday’s close for the Dow Jones Industrial Average, Standard & Poor’s 500 index, and NASDAQ Composite. Weekly performance is measured from Friday’s open to Thursday’s close for MSCI-EAFE. U.S. Treasury Notes are guaranteed by federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it might be worth more or less than the original price paid. Weekly and year-to-date 10-year Treasury note yields are expressed in basis points. International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.

Healthy Lifestyle

Intermittent Fasting Benefits

Giving yourself a fasting period each day, plus a limited window of time that you do eat, may be seriously beneficial to your health. Intermittent fasting involves time periods in which you eat and alternating ones in which you don’t. For example, if you have your last meal of the day at 5 pm, and you don’t eat until 9 am the next day, that is a 16-hour cycle of fasting and an 8-hour cycle of eating. Here are some evidence-based benefits:

Weight loss

You’ll eat fewer meals, take in fewer calories, enhance hormone function, and reduce insulin levels to more efficiently use fat for energy. Your metabolic rate can increase too.

Reduction in blood sugar levels

Intermittent fasting may reduce fasting blood sugar and protect against kidney damage.

Resistance to oxidative stress

Studies have shown that intermittent fasting can enhance the body’s resistance to the oxidative stress that could lead to aging and chronic disease.

Tip adapted from Healthline

Recipe of the Week

Fresh-Squeezed Lemon Cake
Yield: 2 (8-inch) loaves

Ingredients:

  • 2 sticks unsalted butter, use at room temperature
  • 2½ cups granulated sugar, divided
  • 4 extra-large eggs, use at room temperature
  • cup grated lemon zest (6 to 8 lemons)
  • 3 cups flour
  • ½ tsp. baking powder
  • ½ tsp. baking soda
  • 1 tsp. kosher salt
  • ¾ cup freshly squeezed lemon juice, divided
  • ¾ cup buttermilk, use at room temperature
  • 1 tsp. pure vanilla extract

For the glaze

  • 2 cups confectioners’ sugar, sifted
  • 3½ Tbsp. freshly squeezed lemon juice

Directions:

Cake

  1. Heat your oven to 350°F. Grease and flour 2 (8½” x 4¼” x 2½”) loaf pans.
  2. In the bowl of an electric mixer, using the paddle attachment, cream the butter and 2 cups of sugar, about 5 minutes. You want a fluffy texture. Add the eggs, one at a time, mixing on medium speed, and then, add the lemon zest
  3. Sift the flour, baking powder, baking soda, and salt in a bowl. Combine ¼ cup lemon juice, the buttermilk, and vanilla in a separate bowl. Alternate adding the flour and buttermilk mixtures to the batter in the mixing bowl. Once combined, pour the final batter evenly into the 2 pans and bake for 45 minutes to 1 hour, until a toothpick comes out clean.

Syrup

  1. Put ½ cup granulated sugar with ½ cup lemon juice into a small saucepan. Simmer over low heat until the sugar dissolves.
  2. Remove syrup from heat.
  3. Cool the cakes for 10 minutes, then turn them out on a sheet pan.
  4. Spoon the lemon syrup over them. Allow the cakes to cool completely.

Glaze

  1. Whisk the confectioners’ sugar and lemon juice together in a bowl until smooth.
  2. Glaze the cakes, drizzling the topping down the sides.

Recipe adapted from Food Network

Golf Tip

Putt Like the Pros

Unlike most of the clubs which require a downward hit on the ball for good contact, the driver requires an upward strike. Unfortunately, most amateur golfers do the opposite, catching the ball when the club is still moving downward – leading to pop-ups and less-than-impressive distance. This might sound a little strange, but this is when you go grab a towel.

This isn’t a new tip, but it is an effective one. Next time you’re practicing your tee shots, take a rolled-up towel and place it a few inches in front of the ball. As you try to avoid the towel, your body will naturally hit higher “up” on the ball.

Changing your angle of attack in this way will create optimal launch conditions for a truly awe-inspiring drive.

Tip courtesy of Alison Curdt, PGA | Golf Tips Magazine

Tax Tips

Pensions and Annuities: What’s Taxed?

Depending on the types of retirement benefits you receive, they could be taxable. Here are some basics:

Fully Taxable Payments

The pension or annuity payments that you receive are fully taxable if you don’t have an investment in the contract because:

  • You didn’t contribute anything to your pension or annuity
  • Your employer didn’t withhold contributions from your salary
  • You have received all your contributions tax free in prior years

Partially Taxable Payments

If you made after-tax contributions to your pension or annuity, your pension payments are partially taxable. You don’t pay taxes on the portion of the payment that’s a return of the after-tax amount you paid.

Additional 10% Tax on Early Distributions

Receiving pension or annuity payments before age 59½ may subject you to an additional 10% tax on early distributions. The additional tax doesn’t apply to the portion of a distribution that is tax-free or distributions made:

  • As a part of a series of substantially equal periodic payments beginning after your separation from service
  • Because you’re totally and permanently disabled
  • On or after the death of the plan participant or contract holder
  • After your separation from service and in or after the year you reached age 55

* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS.gov

Green Living

Where’s My Recycling Really Going?

You may be recycling items that are dirty and have multiple types of materials, which are difficult to separate. Even though you have good intentions, there’s a chance that the items you’re trying to recycle could be going straight to the landfill, since these items need to meet certain cleanliness and material requirements in order to be processed correctly by a recycling center. Check out these tips for more streamlined recycling.

Plastics: Plastics numbered 3 to 7, used to package products such as yogurt, butter, and cooking oils, are no longer accepted.

Greasy takeout containers and pizza boxes: Even recyclable plastic takeout containers will go to the landfill unless they’re clean. Pizza boxes often cannot be recycled, since the oil can’t be separated from the cardboard.

Plastic bags: They cause a nightmare for recyclers, since they stop up recycling machinery. Try taking them to plastic bag drop-off locations, where they’ll be sent to special recycling facilities capable of processing them appropriately.

Tip adapted from The New York Times

Financial planning and investment advisory services offered through Cleveland Wealth, LLC, a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.