Loading...
HomeMy WebLinkAbout63191 (2)The U.S. economy continues to gain momentum as the stock market rebounds and home prices rise. On March 8, the Dow Jones Industrial Average rose to a record high of 14,44729. The rally is being propelled by U.S. companies distributing a record windfall to irnestors in the form of dividends and stock buybacks. The Federal Reserve has provided further support by announcing that ihe 17 largest U.S. financial groups passed their "stress tests", and have enough capital to keep lending even if there were a sharp economic downtum. The value of real estate owned by households climbed nearly $450 billion in 4Q2072, increasing the amount of equity that Amencans have in their homes. The key question is if ihis economic rebound will be sustainable as the sequester, a stronger dollar, a struggling retail sector, and 06amacare converge. The sequester, which took effect on March 1, entails an $85 billion reduction in federal spending, mostly in defense. U.S. firtns are reportedly bracing for a"wallop" this quarter as a stronger dollar causes them to lose export sales to European and Japanese competitors. Wal-MaR, a retail bellwether, has reported abnormally slow January and February sales after the expiration of the payroll tax cut. Obamacare creates new direct taxes in the form of a 0.9% Medicare tax; a 3.8% "uneamed income" tax on high-income laxpayers; an annual fee on health insurance providers; a 40% excise tax on "cadillac" health care plans; a 2.3°/ excise tax on medical device makers; and a new indirect tax in the form of artifcially high insurance premiums for young, healthy, middle-income Americans. ✓�RIle.S. �C41� �L�./iZ✓�. �K City Treasurer " Certified California Municipal Treasurer Nonth-End Book Value Month-End Market Value Paper Gain (Loss) Prior Year Book Variance Interest Earnings Yield-To-Maturity Weighted Maturity (Days) Effective Duration $ 201,340 $ $ 201,384 $ $ 44 $ $ (11,127) $ $ 52 $ 0.34% 28 o.oz PORTFOLIO 198,185 $ 198,223 $ 38 $ (32,215) $ 55 $ 0.35% 29 0.03 192,086 $ 192,120 $ 34 $ (14,228) $ 54 $ 0.34°/a 31 O.D3 All data as 28, 2013 Deputy City Treasurer Thomas W. Jeffrey, J.D., M.B.A. The treasurer shall invest all public monies in a manner that ensures safety of principal; sufficient liquidity to finance the Ciry's expenditu�es; and the highest yield possible after the previous lwo objectives have been met. Ciry Treasurer PaW S. Gibson, C.C.M.T. Team 194,781 $ 194.809 $ 28 $ 1,165 $ 58 $ 0.37% 29 0.03 195,056 $ 195,071 $ 15 $ (828) $ 64 $ 0.39% 30 0.04 198,990 199,032 42 (6,063) 64 29 0.04 ECONOMIC COMMENTARY