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Dorion-Gray Capital Management® Weekly Commentary May 9, 2016

| May 17, 2016
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THE MARKETS...

Stocks rebounded Friday as investors viewed April job data with less disappointment. While payrolls increased less than expected, average hourly earnings and the average work week rose according to the Labor Department’s report. Still, the market posted a second consecutive week of losses, its first two-week drop since February. For the week, the Dow fell 0.10 percent to close at 17,740.63. The S&P lost 0.33 percent to finish at 2,057.14, and the NASDAQ dropped 0.82 percent to end the week at 4,736.16.

Not As Many Today –

In 2007 (the year before the global financial crisis began), 65 percent of Americans had money invested in the U.S. stock market either through pre-tax accounts or post-tax accounts. In 2016, just 52 percent of Americans have money invested in the U.S. stock market (source: Gallup, BTN Research).

No Change –

Since raising interest rates on Dec. 16, 2015 (its first hike in 9.5 years), the Federal Reserve has held three additional meetings (including last week’s) where no further action has been initiated (source: Federal Reserve, BTN Research).

Lots of Taxes -

The government is projected to collect tax receipts equal to 18.3 percent of gross domestic product during fiscal year 2016, higher than any fiscal year since 2001 (source: Congressional Budget Office, BTN Research).

WEEKLY FOCUS – Money Mistakes Anyone Might Make

Making money isn’t always the hardest part of building wealth. Sometimes, how you spend and save your money can create greater roadblocks to success.

While it’s possible to gamble money away at a casino or lose your nest egg on a bad investment, more often people make smaller, everyday mistakes with their finances that add up over time. These common mistakes include: not having long-range goals; neglecting to budget; failing to track purchases; and using credit cards to pay for conveniences, luxuries and impulse buys.

It’s all too easy to succumb to the “money burning a hole in your pocket” temptation. And this doesn’t just refer to cash anymore. Impulse buying is always more likely to occur when we have easy access to our funds. Keeping credit cards on you or keeping card information stored in apps and online stores may be convenient for a quick checkout, but it also doesn’t leave you much time to decide if you actually need that new lamp you saw online at 2 a.m. when you couldn’t sleep.

Similarly, credit cards eliminate the pain of seeing hard-earned cash turn into the luxury item we want, which might have mentally depreciated that high-end handbag or electronic device. And they increase the odds of overpaying for convenience items, such as transportation, lodging and even meals.

Budgeting often prevents impulse purchases and splurges. But less than 40 percent of Americans actually have budgets in the first place – and many of them don’t follow those budgets. Creating – and sticking to – a budget is a habit that must be built. Once you plan your purchases and expenses ahead of time, stick with that plan and you’ll likely begin to “find” money you never realized you had.

Purposes and goals help you stay focused on your spending and savings plans. Without goals, you keep a budget but then spend the excess – once you view it as excess. Or perhaps you save effectively but only earn minimal interest, wasting years of potential extra growth.

Whether you have $100 to your name or $100 million, even simple and seemingly harmless mistakes can impact your finances negatively and create headaches or even heartaches. If you would like an evaluation of your personal spending and saving habits, or a review of your strategies to grow your financial wealth, contact our office today.

The Dorion-Gray Team

Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. a Registered Investment Advisory Firm. Dorion-Gray Retirement Planning is a trade name of Dorion-Gray Financial Services, Inc. located at 2602 IL Route 176, Crystal Lake, IL 60014. Dorion-Gray and the Securities America companies are separate, unaffiliated entities.

Diversification seeks to reduce the volatility of a portfolio by investing in a variety of asset classes. Neither asset allocation nor diversification guarantee against market loss or greater or more consistent returns.

© 2013. Dorion-Gray Financial Services, Inc.

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