Penn Wealth Publishing

2016.01.10 Journal of Wealth & Success Vol 4 Issue 1.1

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January 10, 2016 wealth & success volume 4 issue 1 5 wealth & success Copyright 2016. All Rights Reserved. bullet points of the week 6 3 1 Chinese New Year Global stocks rang in 2016 by diving off a cliff, compliments of a Chinese stock market rout. After the Shanghai plummeted 7% on the first trading day of the year, new Chinese circuit breakers kicked in, closing the indexes for the remainder of the session. 5 2 First oil exports in 40 years The first tanker to legally carry crude out of the US left the Port of Corpus Christi last week, headed for a refinery in Switzerland. The (silly) ban has been in place since con- gress approved it and President Ford signed it back in 1975. The recent budget deal repealed the restriction. Numbers at a glance The S&P 500 and Nasdaq fell 6% and 7.25% respectively, for the worst opening week for any year in history. Oil fell 13% to $32.88/ bbl, and gold rose 2.4%. A bit of good news—the average 30-year mortgage fell to 3.88%. 4 8 9 7 Saudis cut ties with Iran The US may be dithering with Iran, but Saudi Arabia isn't. After executing a Shiite cleric last weekend, Iran threatened revenge on the Kingdom. The (Sunni) Saudi royal family responded by cutting all diplo- matic ties with the militant regime, ordering all Iranian diplomats out of the country. Strong jobs report SEC bans Cohen for 2 years US auto sales set record High-profile hedge fund manager Steve Cohen, founder of SAC Capital Advisors, has been banned from supervising any hedge funds until 2018. This action stems from a "failure to supervise" case involving trader Matthew Martoma, who is serving 9 years in prison for insider trading. With December's auto sales now in, it has been confirmed that US automakers set a new annual record, selling 17.5 million cars and light trucks in 2015. After a blistering four sessions, stocks opened higher on Friday after a bet- ter-than-expected jobs report. The US economy added 292,000 jobs in December, keeping the unemployment rate at 5%, and the participation rate around 62%. Sprint, the fourth-largest US wireless carrier (falling behind T-Mobile) has announced that a major new round of job layoffs are coming. The Kansas City-based carrier, which employs 33,000 (though the num- ber is dwindling fast), has been burning through cash at an alarming rate. More layoffs at Sprint Powerball hits $1.3 billion No winner yet in the multi-state Powerball lottery, which means the pot has now grown to $1.3 billion—the largest lottery amount ever. The chances of winning are about 1 in 300 million. The paramount news this week was the horrible opening five-session period for the Dow, which hobbled across the finish line with its worst start to a year in history. Oil continued to plummet as well, as cracks continue to appear in the Chinese economy. All of those ghost cit- ies and nobody saw this coming? The US markets will rebound, we expect, in short order.

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