Traditional and roth IRA limits and deadlines
March 10, 2011
Clarksville, TN – The deadline to make a 2010 IRA contribution is April 18th, 2011. The contribution limit is $5,000.00 for individuals under age 50 and $6,000.00 for individuals over age 50. The same limits are in place for 2011 IRA contributions.
The information contained herein has been obtained from sources considered reliable, but we do not guarantee that the foregoing material is accurate or complete.
The Weekly Market Snapshot from Frazier Allen
March 6, 2011
Market Commentary by Scott J. Brown, Ph.D., Chief Economist
Scott J. Brown Ph.D., Chief Economist Raymond James Investment Services
The economic data were mostly on the strong side of expectations. Nonfarm payrolls rose by 192,000 in February, while the two previous months were revised higher by 58,000. February strength partly reflected a rebound from January’s poor weather (payrolls averaged a 127,500 monthly gain in the first two months of the year, nothing to write home about). Private-sector payrolls rose by 222,000 (+1.5 million from a year ago), while state and local government subtracted another 30,000 (-241,000 from a year ago). The unemployment rate fell to 8.9% (it was 9.8% in November), but that is misleading. The employment-population ratio, the preferred measure of slack in the labor market, held steady at 58.4% (vs. 58.5% in February 2010). Average weekly hours were flat (probably reflecting the weather). Average hourly earnings were essentially unchanged (+1.7% year-over-year), with weekly earnings also flat (+2.3% year-over-year). The February ISM manufacturing survey was the strongest since May 2004 and the non-manufacturing survey was the strongest since July 2005. Motor vehicle sales rose to a 13.4 million seasonally adjusted annual rate in February, vs. 12.6 million in January and 10.7 million in February 2010. [Read more]
The Weekly Market Snapshot from Frazier Allen
February 27, 2011
Market Commentary by Scott J. Brown, Ph.D., Chief Economist
Scott J. Brown Ph.D., Chief Economist Raymond James Investment Services
Investors remained focused on political developments in the Middle East and North Africa. The turmoil in Libya led to a drop in oil production (less than 1% of global output), higher oil prices, and a dampening of U.S. stock market sentiment. Assurances that other producers could make up for the Libyan shortfall helped stem the rise oil prices, although broader worries remain. At the end of the week, gasoline futures suggested about a $3.60 average price for a gallon of gasoline – the increase in gasoline prices, if sustained, would offset much of the positive benefit (to consumer spending) of lower payroll taxes.
The economic data were mixed, partly reflecting unfavorable weather in January. The estimate of real GDP growth for Q410 was revised down (to a +2.8% annual rate, vs. +3.2% in the advance estimate). Consumer spending growth was revised lower (to 4.1% from 4.4%), as anticipated, and business fixed investment was a bit higher (mostly business structures). Oddly, there was virtually no revision in either inventories (which subtracted 3.7 percentage points from GDP growth in 4Q10) or in net exports (which added 3.4 percentage points). State and local government expenditures fell at a 2.4% annual rate (vs. -0.8% in the advance estimate), reflecting budget strains. [Read more]
The Weekly Market Snapshot from Frazier Allen
February 20, 2011
Market Commentary by Scott J. Brown, Ph.D., Chief Economist
- Scott J. Brown Ph.D., Chief Economist Raymond James Investment Services
The economic data were mixed. Retail sales and industrial production figures for January disappointed, but softness was seen as likely to have been the result of poor weather. The Fed’s two main regional manufacturing surveys were strong in February, with a further intensification of input price pressures and evidence that firms are a bit more able to pass along higher costs. January inflation figures were mostly higher than expected. The core CPI rose 0.2%, reflecting some one-time increases (such as apparel). Minutes of the January 25-26 Fed policy meeting showed that officials were somewhat more optimistic about 2011 GDP growth, but did not expect much improvement in the unemployment rate over the course of the year.
The stock market seemed to struggle a bit with the economic data, although reactions were limited. The major market averages still managed to forge ahead during the week. [Read more]
The Weekly Market Snapshot from Frazier Allen
February 13, 2011
Market Commentary by Scott J. Brown, Ph.D., Chief Economist
Scott J. Brown Ph.D., Chief Economist Raymond James Investment Services
The economic calendar was thin. The December trade deficit was narrower than expected, implying (all else equal) a small upward revision to the fourth quarter GDP growth figure. Consumer sentiment edged up in the mid-February reading, still relatively low by historical standards.
In testimony to the House Budget Committee, Fed Chairman Bernanke repeated that “we have seen increased evidence that a self-sustaining recovery in consumer and business spending may be taking hold,” but continued to caution that “it will be several years before the unemployment rate has returned to a more normal level.” He said that the Federal Open Market Committee will continue to review its current asset purchase program, but gave no indication that the program (which is set to finish at the end of June) would be cut short. [Read more]
The Weekly Market Snapshot from Frazier Allen
February 6, 2011
Market Commentary by Scott J. Brown, Ph.D., Chief Economist
Scott J. Brown Ph.D., Chief Economist Raymond James Investment Services
Most of the economic data reports were better than expected. The ISM surveys were strong, reflecting solid growth in new orders and employment, albeit with a further increase in input price pressures. The January Employment Report was confusing. Nonfarm payrolls rose by a disappointing 36,000 (median forecast was about +145,000) and average weekly hours edged down, but that likely reflected the impact of poor weather. Manufacturing payrolls rose by 49,000 and factory hours advanced, consistent with the inventory story that came out of the 4Q10 GDP report (that is, lean inventories suggest gains in production in the near term).
The unemployment rate fell unexpectedly to 9.0%, but not all of the drop could be explained by a drop in labor force participation. The employment-to-population ratio, a better measure of slack in the labor market, edged only slightly higher (suggesting improvement, but not as much as the drop in the unemployment rate would seem to suggest). In his speech to the National Press Club, Fed Chairman Bernanke was optimistic that the pace of the economic recovery would improve, but cautioned that it would be years before the job market returned to normal. [Read more]
The Weekly Market Snapshot from Frazier Allen
January 30, 2011
Market Commentary by Scott J. Brown, Ph.D., Chief Economist
Scott J. Brown Ph.D., Chief Economist Raymond James Investment Services
The economic data were mixed, but mostly positive. Real GDP rose at a 3.2% annual rate in Q410, a bit below the consensus forecast, but the details were relatively strong. Inventory growth slowed sharply, subtracting 3.7 percentage points from headline GDP. Exports continued to advance, but imports fell (note that imports have a negative sign in the GDP calculation), and combined, net exports added 3.4 percentage points to GDP growth.
Consumer spending rose at a strong 4.4% annual rate, partly reflecting a drop in the savings rate. Business fixed investment also rose 4.4%, slower than in recent quarters, but still positive. The sharp deceleration in inventory growth (assuming it holds up in revisions) suggests strong GDP growth in the near term (as inventory growth picks back up). Note that the 2% reduction in payroll taxes will boost disposable income and support consumer spending growth in early 2011. [Read more]
The Weekly Market Snapshot from Frazier Allen
January 23, 2011
Market Commentary by Scott J. Brown, Ph.D., Chief Economist
Scott J. Brown Ph.D., Chief Economist Raymond James Investment Services
The economic data were mixed, but generally consistent with a continued recovery. Housing starts fell in December, but building permits (which are reported more accurately than starts) rose sharply (partly reflecting the usual volatility in the multi-family sector). Existing home sales were stronger than anticipated in December, but these represent closings (and hence, lag somewhat). Higher mortgage rates may have dampened housing activity into the new year. The Index of Leading Economic Indicators posted another strong gain in December, boosted by the rise in building permits.
The stock market seemed to struggle with good news (earnings reports and the economic data releases). Bond yields rose, pressured by the economic data and by a disappointing 10-year TIPS auction. Crude oil prices backed down somewhat following reports of higher inventories. [Read more]
The Weekly Market Snapshot from Frazier Allen
January 16, 2011
Market Commentary by Scott J. Brown, Ph.D., Chief Economist
Scott J. Brown Ph.D., Chief Economist Raymond James Investment Services
Scott J. Brown Ph.D., Chief Economist Raymond James Investment Services
The economic data remained consistent with a moderate pace of economic expansion. Retail sales rose 0.6% in December, up 0.5% excluding autos, boosted somewhat by higher gasoline prices. Industrial production rose 0.8%, aided by colder temperatures (utility output up 4.3%, manufacturing up 0.4%). As anticipated, headline inflation figures were boosted by higher energy prices in December and the impact was magnified by the season adjustment. The Consumer Price Index rose 1.5% in the 12 months ending in December, up just 0.8% ex-food & energy (vs. the Federal Reserve’s implicit goal of around 2%). Jobless claims jumped, but the figures are normally choppy during this time of year (due to difficulties in the seasonal adjustment). [Read more]
The Weekly Market Snapshot from Frazier Allen
January 9, 2011
Market Commentary by Scott J. Brown, Ph.D., Chief Economist
Scott J. Brown Ph.D., Chief Economist Raymond James Investment Services
The stock market began the year relatively optimistic about the 2011 economic outlook, but the week’s mixed economic data dampened the euphoria to some extent. The ISM surveys improved in December, but the employment gauges in those reports were relatively soft. While the holiday shopping season was deemed a great success, chain-store sales results were mixed (as many disappointments as upside surprises).The December Employment Report was a mixed bag. The strong ADP estimate of private-sector payrolls (+297,000) led many economists to revise their forecasts of the official Bureau of Labor Statistics figure. The BLS payroll figure disappointed, rising by only 103,000, although a +70,000 revision to the two previous months took away some of the sting. Job gains were led by leisure and hospitality (+47,000) and healthcare (+35,700). Temp-help added 15,900 (+16.1% y/y). State and local government shed 20,000 (down 250,000, or 1.3%, over the last 12 months). The unemployment rate fell to 9.4% from 9.8%, but part of that appears to have been an unwinding of a quirk that boosted the rate in November. In addition, the temporary lapse in extended unemployment insurance benefits likely reduced the rate in December. The employment-to-population ratio has been little changed over the last 12 months. [Read more]
