Beating the odds

Quote of the Week:
"Never tell me the odds!" - Han Solo

When Han Solo, the bold fictional pilot of the Millennium Falcon, set out on a mission, he cared little about the odds. Together with his co-pilot, the Wookiee Chewbacca, Mr. Solo clearly believed he’d be successful in spite of them.

Like the brash Mr. Solo of Star Wars lore, millions of Americans boldly purchased “Mega Millions” lottery tickets the over the last week in hopes of obtaining a share of the $656 million prize. Odds of winning: about 1 in 176,000,000. This all seems like good fun to us, but there are any number of things that have better odds of happening than winning Mega Millions.

Becoming President is 1 in 10 million; having identical quadruplets, 1 in 15 million; and, of course getting struck by lightning ,1 in 1 million, just to name a few.

If you’re thinking we are going to say that we think the odds of success in regard to becoming (or staying) wealthy through careful planning, good counsel, and diligent execution, you’re right. In fact, we think those odds are at least a million times better!**

Sources:
http://www.thedailybeast.com/articles/2012/03/30/15-things-more-likely-to-happen-than-winning-mega-millions.html
http://en.wikipedia.org/wiki/Han_Solo
http://online.wsj.com/article/SB10001424052702304023504577318053761744004.html?mod=googlenews_wsj



Market Week: April 2, 2012

The Markets

Domestic equities ended a relatively uneventful week by marking the best first quarter for the S&P 500 since 1998. Despite some downdrafts early in the week, the Dow and the S&P managed to stay above 13,000 and 1,400 respectively, and the Nasdaq continued to lead the pack for the year.

Last Week's Headlines

• Home prices in the 20 cities tracked by the S&P/Case-Shiller index hit their lowest level since 2003 after falling for the fifth month in a row. The 0.8% three-month average decline for November through January means that prices have fallen 3.8% over the last year.

• Orders for durable goods--those intended to last three years or more--saw their fourth increase in the last five months. The Commerce Department said orders were up 2.2% in February, with the single largest increase being the 3.9% growth in the value of transportation equipment. Inventories of durable goods hit their highest level since 1992.

• Final figures for the nation's gross domestic product (GDP) confirmed that the U.S. economy grew at an annual rate of 3% in 2011's final quarter. That was substantially better than Q3's 1.8%. The Bureau of Economic Analysis also said corporate profits rose during the quarter, both pretax (+0.9%) and after-tax (+1.1%), though both increases were less than in the previous quarter.

• Consumer spending was up 0.8% in February, but the increase helped cut the saving rate to 3.7% (the monthly average for the previous year was 4.7%). Higher gas prices accounted for part of the increase, but consumers also spent 0.5% more on other goods and services. Meanwhile, incomes rose only 0.2% for the month.


Eye on the Week Ahead

As a new quarter kicks off, unemployment data will be released Friday, though markets will be closed for the long holiday weekend and won't be able to react until the following week. The Federal Open Market Committee minutes will be watched for the group's thinking about any potential actions after Operation Twist expires. The European Central Bank will review interest rates Thursday, and manufacturing-related data will round out the week.

Key dates and data releases: U.S. manufacturing, construction spending (4/2); Federal Open Market Committee minutes, factory orders, auto sales (4/3); U.S. services sector (4/4); weekly new unemployment claims (4/5); unemployment/payrolls (4/6).

Data sources: Includes data provided by Brounes & Associates. All information is based on sources deemed reliable, but no warranty or guarantee is made as to its accuracy or completeness. Neither the information nor any opinion expressed herein constitutes a solicitation for the purchase or sale of any securities, and should not be relied on as financial advice. Past performance is no guarantee of future results.

The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks. The S&P 500 is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange. The Russell 2000 is a market-cap weighted index composed of 2000 U.S. small-cap common stocks. The Global Dow is an equally weighted index of 150 widely traded blue-chip common stocks worldwide. Market indexes listed are unmanaged and are not available for direct investment.

Prepared by Lee Davis** and Broadridge Investor Communication Solutions, Inc. Copyright 2012