Exclusive Content

If you are a client, sign in below to access exclusive content.



     

    Markets gave up gains last week and closed lower, ending the worst week since mid-August. Nerves about a possible December rate hike and faltering commodity prices contributed to selling pressure.1 Also, a number of retailers reported ‘soft’ sales including Macy’s and Nordstrom’s. For the week, the S&P 500 lost 3.63%, the Dow fell 3.71%, and the NASDAQ dropped 4.26%.

    A series of coordinated terrorist attacks shook Paris on Friday, leading to at least 129 dead and hundreds wounded.2

    Our thoughts are with the victims and their families in this terrible time. Coming on top of suicide bomber attacks in Beirut on Thursday and the possible bomb-related downing of a Russian charter flight in October, the attacks have highlighted the global threat posed by ongoing violence in Syria, Iraq, and Afghanistan.3

    American officials were quick to announce that no “credible threat” exists against U.S. targets, for which we are thankful.4 As attention turns to analyzing the attacks, experts around the world are already thinking about the financial, economic, and security implications of these new threats.

    How will markets react to the attacks?

    As always, there is no way to know for sure how single events will affect markets. However, we can take some educated guesses:5

    • Volatility in financial markets around the world is likely as investors react to geopolitical uncertainty and the expectation that western nations may take a more active role in overseas conflicts.
    • Oil may experience a rally as investors hedge their bets against further instability in the Middle East.
    • U.S. Treasuries and other so-called “safe haven” investments may see interest as investors seek shelter from uncertainty.
    • The Euro may drop against the U.S. dollar and other currencies because of increased headwinds.

    Though the deplorable attacks are terrible in their human cost, they likely won’t change the overall market calculus for U.S. investors. We will wait and see what happens this week in European markets and will advise you of any concerns as needed.

    Looking ahead, investors will be concerned with economic reports and the upcoming December Federal Reserve Open Market Committee (FOMC) meeting. Minutes from the last FOMC meeting will be released on Wednesday, and analysts will be searching for clues about a potential December interest rate hike.6
     
     

    Sources

    1  •  2  •  3a  •  3b  •  4  •  5  •  6

    The information in this article is not intended to be tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2014 Emerald Connect, LLC
    © Mahoney Asset Management

    INVESTING RISK DISCLOSURE
    Keep in mind that investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money. Before investing, consider the funds’ investment objectives, risks, charges, and expenses. Contact Mahoney Asset Management for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

    IMPORTANT CONSUMER INFORMATION
    This web site has been prepared solely for informational purposes. It is not an offer to buy or sell any security; nor is it a solicitation of an offer to buy or sell any security.This site and the opinions and information therein are based on sources which we believe to be dependable, but we can not guarantee the accuracy of such information.

    Representatives of a broker-dealer or investment adviser may only conduct business in a state if the representatives and the broker-dealer or investment adviser they represent: (a) satisfy the qualification requirements of, and are approved to do business by, the state; or (b) are excluded or exempted from the state’s licenser requirements.

    An investor may obtain information concerning a broker-dealer, an investment advisor, or a representative of a broker-dealer or an investment advisor, including their licenser status and disciplinary history, by contacting the investor’s state securities law administrator.

    SECURITIES: ARE NOT FDIC-INSURED/ARE NOT BANK-GUARANTEED/MAY LOSE VALUE
    This information is intended for use only by residents of CA, CT, DC, FL,, MA, MD, MN, NC, NJ, NY, OH, PA, and VA. Securities-related services may not be provided to individuals residing in any state not listed above.

    The financial calculator results shown represent analysis and estimates based on the assumptions you have provided, but they do not reflect all relevant elements of your personal situation. The actual effects of your financial decisions may vary significantly from these estimates–so these estimates should not be regarded as predictions, advice, or recommendations. Mahoney Asset Managment does not provide legal or tax advice. Be sure to consult with your own tax and legal advisors before taking any action that would have tax consequences.

    Securities offered through
    Newbridge Securities Corporation,
    member FINRA / SIPC

    Investment Advisory Services offered through
    Newbridge Financial Services Group Inc.,
    an SEC Registered Investment Adviser.

    Office of Supervisory Jurisdiction
    1200 North Federal Highway, Suite 400
    Boca Raton, FL 33432

    Toll-Free: 877-447-9625
    Phone: 954-334-3450
    Fax: 954-489-2390