Economic Update January 25, 2016

Phillip Allen Inc.   WEEKLY ECONOMIC UPDATE     WEEKLY QUOTE                “Always be nice to people on the way up, because you’ll meet the same people on the way down.” – Wilson Mizner WEEKLY TIP               If you are in your forties and behind on your retirement planning, resist the temptation to direct more money into your child’s college fund than your retirement accounts.    WEEKLY RIDDLE              The more of them you will have, the longer you will live – but as you have more and more of them, the less you have left. What are they?       Last week’s riddle: I weigh nothing, but you can see me. Put me in a box, and the box will become lighter. What am I?    Last week’s answer: A hole.           January 25, 2016     OIL REBOUND DRIVES STOCKS HIGHER Thanks to frosty weather hitting the Northeast and a round of short covering, WTI crude settled at $32.19 on the NYMEX Friday – up 9% for the day and 9.4% for the week. Oil’s surge (and hopes of quantitative easing overseas) bolstered stocks: across four days, the Dow gained 0.66% to 16,093.51, the S&P 500 1.41% to 1,906.90, and the Nasdaq 2.29% to 4,591.18.1     EXISTING HOME SALES PACE IMPROVES 14.7% This December jump in resales was partly due to November transactions being delayed by new closing rules. Regardless, 2015 was a good year for homebuying – existing home sales rose 7.7%, according to the National Association of Realtors.2    WEAK ENERGY PRICES HELP TO CURB INFLATION Falling oil prices, rents, and food costs factored into...