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FINANCIAL FOCUS: A Pegasus Newsletter © April 2015 N e w Ye a r. .. Ne w We b s it e ! Visit us at www.pegasusassetmgt.com to find out about the who, what, where and why of Pegasus. A s the first three months come to a close, few can say that 2015 has been mundane—so far. Marked by fluctuating oil prices and whirling stocks, here’s a look at the driving forces behind an often-volatile 2015 first quarter. By Gabriella Cosentino Jobs & Consumer Confidence Forget about a strong start for the U.S. economy in 2015; consumer spending barely rose in February after a decline in January, pointing to a much slower growth in the first quarter of 2015. Consumer spending rose a scant 0.1%, as rising incomes and slower spending have served to boost the savings rate to the highest level since the end of 2012. The percentage of income individuals saved climbed for the third straight month to 5.8%. Harsh winter weather kept people indoors and steered them away from car dealers and other retailers likely contributed to small gains in February spending. The small increase in spending in the first quarter suggests that the economy failed to match the pace of growth at the end of last year. 4.88 million in February. Compared to one year earlier, February’s sales pace is up 4.7%. Tight inventory is affecting prices, with February’s sales prices rising at the fastest rate in a year. Insufficient supply appears to be hampering prospective buyers in several areas of the country and may be hiking prices to near unsuitable levels. Commodities Record crude oil supplies, tightening storage capacity in the U.S., combined with a stronger dollar sent prices for crude-oil lower. Recent concerns over turmoil in Yemen and the possibility of disruption to oil transport in the region helped offset some of that weakness, pulling oil from six-year lows established in March. Crude oil dropped to $47.60 a barrel. Although prices in gold found some haven from debt concerns in Greece, the overall strength in the U.S. dollar has kept a cap on the precious metal. Gold was marked by a second straight monthly loss, ending the quarter down 0.1%, at $1,183.20 an ounce. The job market has been showing signs of life, with the unemployment rate falling to 5.5% in February. Strength resided in hiring; the economy has added an average of 275,000 jobs a month in the past year to mark the strongest streak of job creation in fifteen years. Housing Home values around the U.S. are growing at a rate far slower than was seen a year ago. U.S. home prices increased 4.5% in the twelve months ending in January, according to Standard & Poor’s/Case-Shiller Home Price report. Market Overview Existing home sales were up 1.2% in February, as tight supply of ‘For Sale’ homes helped to push prices upward. Completed transactions of existing home sales, including single-family homes, townhomes, condominiums and co-ops, increased to an annual, seasonally-adjusted rate of Although the S&P 500 saw several 2% to 3% dips, the index hit record highs in February. Healthcare was the best performing sector, up 7.4% during the quarter, while the utilities sector was the biggest decliner, suffering a 5.8% drop, its largest since the first quarter of 2009. S&P 500 ended the quarter at 2,067.89. (over, please) ww The Dow Jones Industrial Average ended the quarter in the red at 17,776.12. The Nasdaq Composite Index, rising for its ninth consecutive quarter, closed at 4,900.88. Numbers Talk... What’s Ahead? Percent of American families that have some form of debt...74.5 Most economists anticipate that the approaching warmer weather will bring economic acceleration. What could also help are the first hints that wages may begin to rise. Percentage of Americans with mortgages who plan to refinance a mortgage in 2015...9 Consumers sorry to see $2-a-gallon gasoline prices disappear in January may be in for a pleasant surprise, as those prices are anticipated to make a comeback later this year. Sources: MarketWatch/The Wall Street Journal, March 2015; Forbes, w.p ega sus ass et m gt. co m Percentage of working women in management or professional occupations in 2011...51 Percentage of millennials who do not have a credit card...63 March 2015 Percentage of assets held in cash (savings, checking, or bank CDs) by American men...25 Percentage of 50-year-old women working full time...72 Percentage of 50-year-old men working full time...84 Are you a Charles Schwab client? If not, contact our office to inquire about the benefits of becoming one. Current Charles Schwab client? Go Green, Save Green! Visit www.schwaballiance.com today, register your account online, reduce paper clutter, save on trade fees, and much more! It’s a win-win situation. How long Social Security has sent out checks every month...77 years How much time spent watching TV, per day, for the average American...4 hrs, 55 min Average amount per week American workers spend on lunch...$36.17 Percentage of married male workers who outearn their single male colleagues...22 Financial Focus: A Pegasus Newsletter ©1995-2015 Pegasus Asset Management, Inc. Exclusive of charts Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Pegasus Asset Management, Inc.), or any non-investment related content, made reference to directly or indirectly in this newsletter will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter serves as the receipt of, or as a substitute for, personalized investment advice from Pegasus Asset Management, Inc.. Please remember to contact Pegasus Asset Management, Inc., in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services. Pegasus Asset Management, Inc. is neither a law firm nor a certified public accounting firm and no portion of the newsletter content should be construed as legal or accounting advice. A copy of Pegasus Asset Management, Inc.’s current written disclosure statement discussing our advisory services and fees is available for review upon request.