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The unique NetWorth Radio broadcast delves deep into the most important headlines and the actual meaning for investors. Interviews with nationally acclaimed authors and Dallas business leaders bring to life investment strategy in a unique and exciting format. The author of two books and 31 investment articles, Spencer is a Certified Investment Management Analyst who manages portfolios for successful families.

Nov 29, 2014

Click here for this week's charts.

 

Headline Round Up

    *Corporate Profits!
    *GDP Growth!
    *The Price of Your House
U.S. Sept. S&P/Case-Shiller Home Prices by City

2014-11-25 14:00:00.18 GMT

By Chris Middleton

Nov. 25 (Bloomberg) -- The following table shows the change in home prices by city. Cities are ranked by largest monthly gain using non-seasonally adjusted data.

  Current Previous 3-Mth YoY% Index
  MoM% MoM% Annual % Change Level
US, 20-City -0.03% 0.21% 3.22% 4.90% 173.72
Miami 0.64% 0.29% 6.96% 10.31% 189.4
Charlotte 0.58% -0.09% 3.88% 3.34% 128.96
Las Vegas 0.42% 0.52% 6.46% 9.15% 137.24
Dallas 0.25% 0.55% 4.75% 7.37% 142.35
Denver 0.22% 0.52% 5.61% 6.25% 156.5
Tampa 0.17% 0.17% 1.42% 5.44% 162.63
Portland 0.15% 0.33% 3.57% 6.69% 170.9
Cleveland 0.07% 0.26% 3.71% 0.77% 107.58
Minneapolis 0.06% 0.32% 5.02% 3.12% 142.63
  Current Previous 3-Mth YoY% Index
  MoM% MoM% Annual % Change Level
Los Angeles 0.03% -0.01% 2.60% 5.67% 224.9
New York -0.03% 0.50% 6.71% 2.83% 178.14
Boston -0.09% 0.13% 0.64% 4.48% 176.59
San Diego -0.13% -0.08% 0.34% 5.06% 203.31
Phoenix -0.14% 0.20% 3.11% 2.96% 147.38
Detroit -0.17% 0.59% 2.32% 5.02% 98.6
Seattle -0.21% 0.00% 6.46% 6.01% 170.54
San Francisco -0.23% -0.42% -3.37% 7.95% 194.21
Chicago -0.23% 0.41% 4.19% 2.57% 131.32
Atlanta -0.25% 0.36% 3.65% 4.50% 119.12
Washington DC -0.43% -0.02% -1.40% 2.14% 209.65
 

NOTE: Non seasonally adjusted data The S&P/Case-Shiller(R) Home Price Indices are constructed from data on sales of individual properties. With this method, changes in the index are derived only from actual changes in selling prices of individual properties. The S&P/Case-Shiller (R) index includes homes of all prices, while the sample for the FHFA index is based only on conforming mortgages which leaves out much of the upper end of the housing market. The composition of the U.S. metropolitan area captured by each of the S&P/Case-Shiller(R) Home Price Indices (SPCSIs) is largely based upon the most recent definitions established by the Office of Management and Budget in 2003. With the exceptions of Chicago (as composed for the S&P/Case-Shiller Home Price Index, akin to the OMB Chicago "Metropolitan Division") and New York (as composed for the S&P/Case-Shiller New York Home Price Index, a variant of the OMB New York "Combined Statistical Area"), these markets are consistent with what OMB refers to as the "Metropolitan Statistical Area (MSA) of each city listed.

For Related News and Information: For housing price tickers see HSST For more on the S&P/Case-Shiller (R) indexes: ALLX SPCS. See HEQ for a list of home-equity loan ABS issuers and issues. See NI ABS BN for news on asset-backed securities, and NI CDRV BN for credit derivatives stories. See NXTW NSN IR38H11A1I4H for a story on the outlook for subprime mortgages. See NI ABS BN for news on asset-backed securities. For Futures and Option tickers:

  Current Previous 3-Mth YoY% Index
  MoM% MoM% Annual % Change Level
Los Angeles 0.03% -0.01% 2.60% 5.67% 22490.00%
New York -0.03% 0.50% 6.71% 2.83% 17814.00%
Boston -0.09% 0.13% 0.64% 4.48% 176.59
San Diego -0.13% -0.08% 0.34% 5.06% 20331.00%
Phoenix -0.14% 0.20% 3.11% 2.96% 147.38
Detroit -0.17% 0.59% 2.32% 5.02% 98.6
Seattle -0.21% 0.00% 6.46% 6.01% 170.54
San Francisco -0.23% -0.42% -3.37% 7.95% 19421.00%
Chicago -0.23% 0.41% 4.19% 2.57% 131.32
Atlanta -0.25% 0.36% 3.65% 4.50% 119.12
Washington DC -0.43% -0.02% -1.40% 2.14% 20965.00%
    *Federal Budget Update

 


 

US now the largest global energy producer!

14% according to the EIA versus 13% Saudi Arabia 


 

2015 Planning

  • Featured Research: JP MORGAN Q4 2014 Guide to the Markets
  • What do the real returns over the past decade tell us about 2015?
  • How do changes in the overall net worth of United States households impact 2015?
  • Potential ending points for the current bull market and how to prepare.
  • What asset classes may find it mathematically impossible to duplicate?
  • Fixed income categories 10 year results
  • Global Bond Markets: $100 Trillion, US $37T, Developed $48T, Emerging, $14T.
  • Asset Class Returns 10 year results with past performance not an assurance of future results: Variance discussion.
  • Alternative Asset Class Returns, Where’s the Beef?
  • Commodity Strategy? The dangers of leverage and price speculation.
  • 20 Year Results, What do they tell us?

 

Success Story

Princeton’s Keyenesian “Mystery” from the “professor of economics and public affairs” vs “The SMU Center for Global Markets and Freedom!”


 

MGAM December 2014 Clients Only Updates

  • 2015 Equity Markets Trading Model Ranges?
  • 2015 Interest Rate Trading Model Ranges?
  • Biggest Dangers to Current Economic Growth?
  • Asset Classes and Security Categories Potentially Exceeding Our Return Targets 2015-2017?
  • Potentially Underperforming Asset Classes and Security Categories 2015- 2017?

 

The sources of year end capital flows that impact prices can be both profitable as well as dangerous. This week’s program explores the potential impact of December investor behavior including the implications for 2015. *Mergers and Acquisitions *Trend Following Portfolios and Institutional Rebalancing *Individual Tax Loss Selling *Commodity Deflation


 

Mergers and Acquisitions

$66 Billion Worth of Botox! The advantages of the 12.5% Irish corporate tax rate likely empowered Activis’ acquisition. A big fat lip for US Tax Policy: Valient and Activis left the United States, and now Allergen will likely be based in Ireland. Botox maker Allergan agrees to be acquired by Activis: Allergan Inc. (AGN US) - 1 Year 

- Graph courtesy of Bloomberg L.P.


 

Trend Following Portfolios and Institutional Rebalancing

The strength in equity prices evidenced by all time new highs in the S&P 500 and Dow Jones Industrial Average this week represent a trend that could be reinforced by institutions completing allocations. S&P 500 (SPX) - 1 Year 

- Graph courtesy of Bloomberg L.P.


 

Individual Tax Loss Selling

The January effect is defined by Stock Trader’s almanac is the tendency for stocks depressed by tax loss selling to rebound after the end of the year. Get the Nuveen guide to year end tax strategies!

Year End Tax Planning Strategies - Nuveen Document

 

Commodity Deflation

Weakness in both materials and oil prices appeared to accelerate selling in the shares of related companies this week. Brazilian mining company Vale made a new 52 week low: Vale SA (VALE US) - 1 Year 

- Graph courtesy of Bloomberg L.P.


 

Special Feature:

China’s real impact on Global GDP.


 

Featured Investment Intelligence:

  • Set your legacy planning appointment today: here