Broker Check

Weekly Market Update

December 2, 2019

A Review of the Weekly Market Update

December 2, 2019

Nearly 46 years ago (January 1974), then President Richard Nixon boldly declared that “in 1980, the United States will not be dependent on any other country for the energy we need.” The U.S. has not achieved Nixon’s goal of total energy independence, but the United States did export more barrels of crude oil and petroleum products in both September and October this year than our country imported, the first time that our nation’s oil exports have exceeded its imports based upon monthly records maintained since 1949, i.e., for the last 70 years (source: Energy Information Administration).


The real estate crisis that devastated the U.S. housing market in 2007-2010 was a function of “too many buyers” borrowing “too much money” to purchase “too many homes.” The resulting housing bubble forced a deluge of existing homes to hit the market “for sale” at the same time – a stunning 4.433 million in October 2007 (by
comparison, there were just 1.770 million existing homes “for sale” in October 2019). By the year 2037, 21 million of the 79.5 million homes in the country (26% of all current homes) are projected to go on the market “for sale” as the “Baby Boomer” generation dies. “Baby Boomers” were born between 1946-1964, making the group age
55-73 in 2019 (source: NAR, Zillow).


Economists have suggested that when Americans are feeling upbeat about their finances, they are more likely to adventure out and accept a new job or business opportunity, and thus more likely to move. Surprisingly, just 9.8% of Americans changed their residence for the 12 months ending 6/30/19, the lowest percentage of
Americans moving over the course of a year based upon annual records maintained since 1947. In 1985, 20.2% of Americans had moved in the previous year (source: Census Bureau).


Notable Numbers for the Week:


1. ONE STOCK - 56 stocks within the S&P 500 are up at least +50% YTD through the close of trading last Friday 11/29/19. There are also 13 stocks that are down at least 30% YTD (source: BTN Research).


2. LIGHTS ON - 38% of U.S. electricity next year is forecasted to be generated by natural gas, 22% from coal, 20% from nuclear power plants, 7% from hydropower and the remaining 13% from wind, solar and other suppliers (source: Department of Energy).


3. POTUS - Americans have had a “Baby Boomer” serving as President for the last 27 years, i.e., 1993-2019. “Baby Boomers” are the 78 million Americans born between 1946-1964 (source: BTN Research).


4. TARIFFS - The U.S.A. is scheduled to implement a new 15% tariff on $156 billion of Chinese imports as of 12/15/19. If enacted, nearly all imports from China will subject to a tariff (source: CNBC).


This material does not constitute a recommendation to engage in or refrain from a particular course of action. The information within has not been tailored for any individual. The opinions expressed herein are those of Michael A. Higley as of the date of writing and are subject to change. MML Investors Services, LLC (MMLIS) provides this article for informational purposes, and does not make any representations as to the accuracy or effectiveness of its content or recommendations. Mr. Higley is not an employee of MMLIS and any comments, opinions or facts listed are those of Mr. Higley.


This commentary is brought to you courtesy of MML Investors Services, LLC (Member FINRA, Member SIPC). Past performance isn’t indicative of future performance. An index is unmanaged and one cannot invest directly in an index. Material discussed is meant for informational purposes only and it is not to be construed as specific tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, it is not guaranteed. Please note that individual situations can vary therefore, the information should be relied upon when coordinated with individual professional advice. Clients must rely upon his or her own professional advisor before making decisions with respect to these matters. This e-mail may include forward-looking statements that are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. CRN202112-257075

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