Challenges in emerging markets affected both U.S. and global stock performance last week, with the S&P 500 experiencing several down days.¹ By market close on Friday, however, two of the three major domestics posted gains for the week. The S&P 500 added 0.59%, the Dow increased 1.41%, and the NASDAQ lost 0.29%.² Meanwhile, the MSCI EAFE international stocks slipped 1.18%.³

As several reports deepened our understanding of the economy’s underlying health, investors balanced the news with updates on Turkey and trade disputes.⁴ Here are some key highlights of the various developments:

Economy: Mixed Picture
The latest unemployment data beat expectations, indicating continuing strength as the labor market is near full employment. However, new home construction missed its 7.4% projected growth, increasing only 0.9% in July—following June’s 12.3% decline.⁵ Nevertheless, more positive news emerged: Thanks to tax cuts, a solid labor market, and economic growth, retail sales increased 6.4% in July year-over-year. Retail sales have now risen for the past 6 months.⁶

Turkey: Sanctions and a Tumbling Lira
On Monday, August 13, the Turkish lira hit its lowest point ever against the U.S. dollar.⁷ The U.S. has threatened more sanctions on Turkey if the country does not release U.S. Pastor Andrew Brunson. In addition, Turkey’s inflation is swelling, and President Recep Tayyip Erdogan may be suppressing the central bank’s ability to increase interest rates. The lira may continue to decline in value until interest rates rise.⁸ Some analysts are optimistic that these developments won’t create contagion in other markets. Not only is Turkey’s economy relatively small and investors have priced in some risk, opportunities still exist to help calm Turkey’s challenges.⁹

Trade Update: Positive Movement
Later in the week, we received positive updates on trade challenges with China and the North American Free Trade Agreement (NAFTA). Mexican economy minister, Ildefonso Guajardo, announced that he hoped to finalize some NAFTA negotiations by this week.¹⁰ In addition, officials from the U.S. and China will be meeting in Washington, D.C. this week to discuss the ongoing trade disputes. These talks come before the anticipated meeting in November between President Trump and Chinese Leader Xi. A trade war with China has been one of the market’s largest concerns, so if the tension lessens, that is likely good news for equities.¹¹

Looking Ahead
This week, we’ll receive more information about the housing market that reveals how this key industry is currently performing. We will also continue to track developments in trade and Turkey. As always, if you have any questions about what you read hereor what you’re hearing elsewherewe’re available to talk.

ECONOMIC CALENDAR

Wednesday: Existing Home Sales

Thursday: New Home Sales, Jobless Claims

Friday: Durable Goods Orders

Notes: All index returns (except S&P 500) exclude reinvested dividends, and the 5-year and 10-year returns are annualized. The total returns for the S&P 500 assume reinvestment of dividends on the last day of the month. This may account for differences between the index returns published on Morningstar.com and the index returns published elsewhere. International performance is represented by the MSCI EAFE Index. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly.

Quote of the Day

“Fortune sides with him who dares.” — Virgil

Recipe of the Week

Zucchini Soup

Serves 4

Ingredients:

1 tablespoon olive oil

1 medium yellow onion, chopped

4 cloves garlic, minced

1 teaspoon black pepper

1 teaspoon fresh ginger

3 large zucchinis, chopped

4 cups low-sodium chicken broth

Optional: olive oil for garnish or cilantro for garnish

Directions:

1. Over medium heat, sauté olive oil, onion, and garlic, about two minutes.
2. Add pepper and ginger. Continue to stir.
3. Mix in zucchini and chicken broth.
4. After bringing the soup to a boil, lower heat to a simmer to let zucchini soften, about 45 minutes.
5. Puree the zucchini soup in an immersion blender until the mix is creamy and smooth.
6. Add pepper, olive oil, or cilantro to season.

Recipe adapted from Regan Baroni¹²

Tax Tips

IRS Provides Helpful Tools, Resources for Retirees*

The IRS provides resources to people who have recently retired or who are planning to retire. The resources can help taxpayers with challenges and tips to prepare for retirement.

Here are some links with information for retirees.

• “The Individual Arrangement FAQs – Withdrawals” answers basic questions about retirement account withdrawals: https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras-distributions-withdrawals.
• “Publication 915” provides an in-depth look at Social Security and Equivalent Railroad Retirement Benefits: https://www.irs.gov/pub/irs-pdf/p915.pdf.
• “The Interactive Tax Assistant” provides answers to questions about taxes on Social Security and Railroad Retirement Tier I Benefits: https://www.irs.gov/help/ita/are-my-social-security-or-railroad-retirement-tier-i-benefits-taxable.
• “Publication 575” discusses pension and annuity income: https://www.irs.gov/forms-pubs/about-publication-575.
• “Publication 590-B” examines distributions from individual retirements accounts: https://www.irs.gov/forms-pubs/about-publication-590b.
• “Retirement Topics” delves into required minimum distributions: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds.
• “Publication 721” is a tax guide to U.S. civil service retirement benefits: https://www.irs.gov/forms-pubs/about-publication-721.
• “Retirement Savings Contributions Credit” explores eligibility for credits for contributing to retirement accounts: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit.

Other details may apply, and you can find more information on the IRS website.

*This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

Tip adapted from IRS.gov¹³

Golf Tip

Uphill Putts Shouldn’t Be Tricky

That long, uphill putt. So unpredictable. So frustrating. Even after carefully examining the terrain, considering the club impact, and analyzing the ball’s trajectory, you know the ball may land just about anywhere. Except for the hole. It’s one of the most challenging shots on the course.

What’s the solution? You imagine the shot just needs a little more punch and power, right?

Not so fast. Your primary aim for these types of shots is simply to get the ball over the hill. And the best way to do that is with more ball speed. Greater ball speed isn’t achieved by tighter putter grips or knocking the ball harder, which reduces ball control.

To gain better ball speed—without sacrificing control—get into a more stable position as you prepare to address the ball, which may include a wider stance. During the shot, the key is to make longer, not harder, strokes. The swing should be smooth and easy.

To put more focus into your putt, imagine you’re hitting a draw. This type of stroke will reduce backspin.

Tip adapted from GolfDigest¹⁴

Heathy Lifestyle

What You Need to Know About Strokes

Strokes are the leading cause of death in the United States. They are caused when blood vessels in the brain develop blockages or burst.

Without immediate treatment, brain cells quickly begin to die, which can lead to disability or death.

Symptoms of stroke include:

• Sudden numbness or weakness of the body (especially on one side).
• Sudden changes in vision or difficulty swallowing.
• Sudden, severe headache.
• Sudden dizziness or difficulty walking.
• Sudden confusion.
• Sudden difficulty speaking or understanding.

Call 911 immediately if you or someone you know experiences these symptoms.

You may conduct a quick stroke test. Here are stroke clues:

• Smile. Does one side of the face droop?
• Raise the arms. Does one arm drift down?
• Repeat a simple sentence. Do the words slur?

Call 911 immediately if you detect these stroke symptoms.

Tips adapted from WebMD¹⁵

Green Living

Fleeing Fleas and Ticked Off Ticks

Fleas, ticks, and warm summer afternoons. They seem sadly inseparable. How can you remain environmentally friendly and enjoy the good old summertime—away from the miniature pests? Here are some tips:

Use the more environmentally friendly sprays. The carbaryl in most flea and tick sprays attacks insects’ nervous systems. It may also harm fetuses in humans and animals. Less-toxic alternatives include geranium, citronella, and lavender. Take a look at these bug spray recipes: https://wellnessmama.com/2565/homemade-bug-spray/.

Get prepared before heading outdoors. Wear long sleeves, pants, and socks when hiking. Do a quick tick check before going for longer trips.

Bathe after spending time outdoors to wash off unembedded ticks. Use unscented soaps, shampoos, and deodorants.

Add garlic and brewer’s yeast to pets’ food. Garlic and brewer’s yeast make pets taste bad to insects.

Do the basics by keeping your pets clean. Fine-toothed flea combs and lint-rollers help you to remove fleas from pets.

Dust and vacuum regularly. Fleas don’t like clean houses.

Tip adapted from EarthShare¹⁶

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Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

Diversification does not guarantee profit nor is it guaranteed to protect assets.

International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors.

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.

The Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of stocks of technology companies and growth companies.

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indices from Europe, Australia, and Southeast Asia.

The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative,

Broker dealer or Investment Advisor, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer or Investment Advisor gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.

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^{1 https://lplresearch.com/2018/08/16/market-update-thursday-august-16-2018/}

^{2 http://performance.morningstar.com/Performance/index-c/performance-return.action?t=SPX&region=usa&culture=en-US}

^{http://performance.morningstar.com/Performance/index-c/performance-return.action?t=!DJI&region=usa&culture=en-US}

^{http://performance.morningstar.com/Performance/index-c/performance-return.action?t=@CCO}

^{3 https://www.msci.com/end-of-day-data-search}

^{4 https://www.cnbc.com/2018/08/17/us-markets-china-us-trade-developments-earnings-data-on-the-agenda.html}

^{5 https://lplresearch.com/2018/08/16/market-update-thursday-august-16-2018/}

^{6 https://www.ftportfolios.com/Commentary/EconomicResearch/2018/8/15/retail-sales-rose-0.5percent-in-july}

^{7 https://www.cnbc.com/2018/08/13/turkish-lira-turkey-currency-hits-new-record-low.html}

^{8 https://www.cnbc.com/2018/08/17/us-markets-china-us-trade-developments-earnings-data-on-the-agenda.html}

^{9 https://lplresearch.com/2018/08/16/market-update-thursday-august-16-2018/}

^{10 https://www.reuters.com/article/us-usa-stocks/wall-street-rises-on-upbeat-trade-news-idUSKBN1L215L}

^{11 https://www.cnbc.com/2018/08/17/us-markets-china-us-trade-developments-earnings-data-on-the-agenda.html}

^{12 https://reganbaroni.com/blog/recipes/zucchini-soup-recipe/}

^{13 https://www.irs.gov/newsroom/retirees-can-visit-irsgov-for-helpful-tools-and-resources}

^{14 https://www.golfdigest.com/story/dont-let-uphill-putts-fool-you}

^{15 https://www.webmd.com/stroke/ss/slideshow-stroke-overview}

^{16 http://www.earthshare.org/2008/09/fleas.html}