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.
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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