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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)
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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,
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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
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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.
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