Santa Monica Daily Press, January 2, 2014

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THURSDAY, JANUARY 2, 2014

30

Volume 13 Issue 42

Santa Monica Daily Press

TAKE IN A MOVIE SEE PAGE 9

We have you covered

COMMUNITYPROFILES KEN JOHNSON

Getting off the bus Top driver retires after 45 years fighting traffic

U.S. home price gains slow in October from September JOSH BOAK AP Economics Writer

BY DAVID MARK SIMPSON Daily Press Staff Writer

STREETS OF SANTA MONICA It’s 12:31 p.m. and Ken Johnson’s last stop of his 45 year career is right on time.

Johnson rolled up to the corner of Sixth Street and Broadway, gathered his things, and stepped off the Big Blue Bus, his hands in the air, looking up at the sky. Johnson, previously the most tenured driver, called the “number one,” retired last week.

As he made his walk back to the bus depot, BBB workers stopped him left and right, congratulating him on retirement. They asked him what he’s going to do next, but he kept taking all the conversations back to the early driving days.

Since March 11, 1968, Johnson’s first day on the job (he’d never driven a bus before), a lot has changed in Santa Monica: “Well, the buses have air conditioning now,” he said.

Johnson doesn’t get into the politics of how Santa Monica has changed, but he has a lot of opinions on how the buses have changed.

“It’s easier today for sure!” he said.

“Everything that they have people in the office doing, we used to do from the seat.”

The way Johnson describes it, it sounds like he was both a bus driver and the entire Transit Store.

“You’d drive with your knees,” he said. “You’d count out change, sell tokens, sell school cards.”

He remembers the year (1971) that he had to stop counting change, but before that he could feel the exact

THE KEEP ROCKIN’ ON ISSUE

David Mark Simpson dave@smdp.com

OFF DUTY: BBB driver Ken Johnson retires after 45 years behind the wheel.

change in his hands without looking.

He could grasp a different paper transfer ticket between each of his fingers, tear them out with one swipe of the hand, and serve four riders at once. For the first eight years of his career he

drove the 2 line, the hardest route, with the most turns. Before all the automation and digital technology that guides the buses today, there were only two

WASHINGTON U.S. home prices rose in October from the previous year at the fastest pace in almost eight years. But price gains slowed in most U.S. cities from September to October, suggesting the increases are leveling off.

The Standard & Poor’s/Case-Shiller 20city home price index rose 0.2 percent from September to October, down from a 0.7 percent increase from August to September.

Monthly price gains slowed in 18 of the 20 cities tracked by the index. And prices declined in nine cities, including Chicago, Denver, and Washington.

For the year, prices are still strong, reflecting big gains in earlier months. They have risen 13.6 percent over the past 12 months, the fastest since February 2006.

“Annual returns have been in doubledigit territory since March 2013 and increasing,” said David Blitzer, chairman of the S&P Dow Jones index committee. “However, monthly numbers show we are living on borrowed time and the boom is fading.”

The Case-Shiller index covers roughly half of U.S. homes. It isn’t adjusted for seasonal variations, so the change partly reflects slower buying in the fall. The index measures prices compared with those in January 2000 and creates a three-month moving average.

The October figures are the latest available.

The housing market has been recovering since 2012 and has helped drive economic growth over the past year.

But the gains have slowed in recent months, as increases in mortgage rates and home prices have crimped affordability. The partial government shutdown in October also delayed some sales.

Sales of existing homes have fallen from September to November, the National Association of Realtors said earlier this month.

Despite the declines, home re-sales

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What’s Up

Westside OUT AND ABOUT IN SANTA MONICA

Thursday, Jan. 2, 2014

Saturday, Jan. 4, 2014

Art for kids Paint:Lab 1453 14th St., 9 a.m.

Kids 5-12 are invited to a special winter art camp. Cost: ranges from $55-$100. All art materials included in the price.

For more information, call (310) 450-9200.

Market mania Downtown & Virginia Avenue Park Times and locations vary Santa Monica’s famous Farmers’ Markets will be going full tilt this weekend.

Visit either the Downtown market at Arizona Avenue and Second Street or the Pico market at Virginia Avenue Park (2200 Virginia Ave.). It’s a fresh thing. For more information, call (310) 458-8712.

Little drummer boy Main Library 601 Santa Monica Blvd., 2 p.m. — 2:45 p.m.

Start the new year off with a bang and drum along with Rhythm Child. Ages 2 and up.

Free tickets available at 1 p.m. the day of the program.

Sacrifice for laughs M.i. Westside Comedy Theater 1323-A Third Street Promenade 8 p.m.

This night of comedy will culminate with the sacrifice of one standup virgin. For more information, visit westsidecomedy.com.

Friday, Jan. 3, 2014 Hit the ice Fifth Street and Arizona Avenue 2 p.m. — 10 p.m.

Hit the rink at ICE at Santa Monica, a popular holiday attraction. For more information, call (310) 461-8333.

Take a walk 1436 Second St., 10 a.m.

Presented by the Santa Monica Conservancy, in approximately two hours and six blocks, the walk traverses more than 130 years of Santa Monica history, from its Wild West frontier beginnings to the sophisticated metropolis of today. RSVP the Thursday prior to the tour at (310) 496-3146.

Tour time Annenberg Community Beach House 415 PCH, 11 a.m., 12 p.m., 1 p.m.

Learn about the rich history of the Beach House from a Santa Monica Conservancy docent. Tours are free, last approximately 30 minutes, and no reservations are required.

For more information, call (310) 458-4904.

To create your own listing, log on to smdp.com/submitevent For help, contact Daniel Archuleta at 310-458-7737 or submit to editor@smdp.com For more information on any of the events listed, log on to smdp.com/communitylistings

Inside Scoop THURSDAY, JANUARY 2, 2014

Visit us online at www.smdp.com

3

2013 was the year of unstoppable stocks STEVE ROTHWELL AP Markets Writer

NEW YORK The stock market was unstoppable in 2013.

A U.S. government shutdown, fear of a default, the threat of military action in Syria, big budget cuts, and a European country looking for a bailout — any number of events might have derailed the stock market.

But they didn’t.

And if skittish investors jumped out of stocks, they lost out.

“2013 would have been good year to wear noise-cancelling headphones,” says Dean Junkans, chief investment officer for Wells Fargo Private Bank. “There were a lot of things that happened and the market kept moving higher.”

The Standard & Poor’s 500 had its best year since 1997, ending up 29.6 percent. The Dow Jones industrial average also turned in a stellar performance: It closed up 26.5 percent, its best gain since 1995. Combined, the two indexes closed at record highs on 97 occasions.

Instead of worrying about the wider world, investors focused on the Federal Reserve and the outlook for its stimulus program.

The Fed bought $85 billion in government bonds each month in 2013. The purchases were designed to hold down longterm borrowing rates and encourage spending and investment. The stimulus also prodded investors to move from low-yielding bonds to stocks.

Investors reacted to every twist and turn of the program’s fate. They sold stocks in the spring and summer over fears the central bank would slow its bond-buying prematurely. They worried that every bit of good economic news signaled the end of support.

But in December, as hiring grew consistently stronger, investors were confident enough in the economy that they reacted positively when Fed officials finally decided to dial back purchases. The Fed also reassured the market by signaling it would keep shortterm rates near zero. The stock market, which had hovered below all-time highs, returned to record territory.

Of course, it wasn’t all about the Fed. Companies also played a part.

Despite a middling economy, U.S. corporate earnings rose for a fourth straight year.

Total earnings for S&P 500 companies in

2013 are forecast to increase 5.37 percent to a record $109.03 a share, according to data from S&P Capital IQ. “It’s tough to argue that companies are in anything other than good health,” says Paul Atkinson, head of North American equities at Aberdeen Asset Management, a global fund management company that oversees about $3 billion.

Investors, emboldened by the Fed’s support and low inflation, were willing to pay more for those earnings. The price-earnings ratio for the S&P 500 index, a measure of earnings compared with stock prices, rose to 15.4 from 12.6 at the start of 2013, according to FactSet data. By that measure, stocks grew more expensive, but weren’t necessarily overvalued. The P/E ratio remained below its 20-year average of 16.5.

Here are 10 lessons from the year of the bull: SMALL COMPANIES CAN GIVE BIG RETURNS

Some of the best performers of the year weren’t the big blue-chip stocks, but smaller ones. The Russell 2000, an index that tracks small stocks, rose 37 percent, more than the Dow and the S&P 500. Smaller companies are more focused on the United States than larger multi-national corporations. That means they benefit more when the U.S. grows faster than other parts of the world, such as Europe. That’s exactly what happened in 2013.

THE BOND PARTY IS OVER

Yes, they were safe, but with 10-year Treasury notes paying interest below 3 percent for most of the year, bonds weren’t sexy.

From 1981 to 2012, government and company bonds rose 35 percent, according to the Barclays Capital U.S. Aggregate Bond Index, a broad measure of the debt market. In 2013, bonds in the index handed investors a loss of 2 percent, the first since 1999.

As the economy improves, many investors believe that interest rates will continue to rise and bonds will only fall further.

DON’T WAIT FOR THE DIPS

Even with all the unsettling headlines, 2013’s stock surge was achieved without a

significant wobble. The S&P 500 has gone 27 months — since Oct. 3, 2011 — without a correction, defined as a drop of 10 percent or more. That compares with an average streak of 18 months between such declines, according to S&P Capital IQ. Investors who sat out the rally in stocks are left with a quandary: Do they buy now that stocks have become more expensive, or do they stay on the sidelines, waiting for a dip, and risk being left further behind?

A STOCK RALLY DOESN’T NEED TO BE LOVED

Signs of euphoria were largely absent from the stock market, despite the big gains.

In fact, the market seemed out of step with a fragile economy.

The pace of mergers and acquisitions lagged as executives remained unwilling to strike large deals amid uncertainty about the economy. Corporate profits rose, but largely due to cost-cutting, not higher sales. Hiring picked up, but at a sluggish pace.

“I’ve never seen a near 30-percent year where investors are so unhappy,” says Jonathan Golub, chief U.S. market strategist at RBC Capital Markets.

Investors put $77.6 billion into U.S. stock funds in the first 11 months of the year, according to Lipper fund data. The last time investors put more money into stocks than they took out was 2005. But the inflows were only a trickle compared with the $451 billion withdrawn from stock funds between 2006 and 2012.

THE IPO MARKET IS BACK

The number of initial public offerings rose to its highest level since before the recession in 2007, according to Dealogic data as of Dec. 17. It’s easier for companies to sell stocks in a climbing and steady market because investors are more confident they can make money.

The average IPO stock rose 35 percent in 2013, outperforming the S&P 500, according Renaissance Capital data.

Hotel chain Hilton Worldwide and social media site Twitter went public. In total, companies sold $61 billion of stock in 2013, as of Dec. 17, an increase of 30 percent from 2012.

In the years that followed the financial crisis and the Great Recession, a volatile stock market made listing new companies more difficult, says Scott Cutler, head of global listings for the New York Stock

Exchange. The smooth ascent of stocks in 2013 ensured that the market for IPOs stayed open all year.

“I expect the environment to continue as we have seen it in 2013,” Cutler says.

“Investors have been making money in equities again.”

CHANGE IS CONSTANT

The 30-member Dow got a makeover in September, swapping out three old members for three new ones. It was the biggest shakeup for the blue-chip index in almost a decade. Out went aluminum producer Alcoa, Bank of America and HewlettPackard. In came Nike, Goldman Sachs and Visa. Despite its name, the Dow Jones industrial average is no longer dominated by industrial companies and now contains financial firms like JPMorgan and Travelers, as well as retailers like Home Depot and Wal-Mart, reflecting the changing nature of the U.S. economy.

EUROPE IS GETTING BETTER

Jitters about Europe subsided. In 2012, concerns about the health of the banking systems in Spain and Italy weighed on U.S. stock markets. In 2013, despite some flashbacks — worrying Italian elections in February and the collapse of the Cypriot banking system in March — investors didn’t panic.

THERE’S ALWAYS A GLITCH IN THE SYSTEM

A technical glitch halted trading on the Nasdaq for three hours in August, embarrassing the stock exchange that hosts the biggest names in technology, including Apple, Microsoft and Google. Though less alarming than the “flash crash” of 2010 that set off a stock market plunge, the glitch once again raised questions about the pitfalls of electronic trading, which now dominates stock exchanges.

The glitch in August was the most notable of 2013 for the Nasdaq, but not the only one.

There were brief outages in September and November.

DIVIDENDS MATTER

Investors also focused on dividends as bond yields started 2013 close to record lows.

The S&P 500 dividend yield, which measSEE STOCKS PAGE 7

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YOUR OPINION MATTERS! SEND YOUR LETTERS TO • Santa Monica Daily Press • Attn. Editor: • 1640 5th Street, Suite 218 • Santa Monica, CA 90401 • editor@smdp.com

Opinion Commentary 4

THURSDAY, JANUARY 2, 2014

We have you covered

Your column here Marsha Friedman

Send comments to editor@smdp.com

PUBLISHER Ross Furukawa

Is fear keeping you out of the spotlight?

R E C E N T LY, I WA S A S K E D TO B E A

panelist for a webinar about using the power of publicity to achieve your goals. The participants asked great questions.

The first: “How do you step into the spotlight when you don’t like the spotlight?”

Getting media attention and speaking engagements — the spotlight — goes right to the heart of my book, “Celebritize Yourself.” By boosting your visibility and your credibility, you set yourself apart from your competition and become a trusted authority in your field.

Should you abandon that avenue if you don’t like the spotlight?

Absolutely not.

I was — and still am — that person. I had no desire to seek the spotlight, and even had trepidation about it, but eventually I realized I had to for the sake of my business.

First I had to figure out why I was so uncomfortable with the idea of being in the spotlight.

The answer for me was simple: The thought of public speaking terrified me. I’d seen wonderful speakers, including my own brother, who could captivate huge audiences and have them hanging on every word. I knew I didn’t have that kind of talent so why bother even trying?

Because, as I came to realize, I had to. I needed to do it in order to grow my business and, on a deeper level, I needed to do it for me! My fear was holding me back — an admission that became increasingly painful as time marched on.

I talked to my brother about the problem.

“It comes naturally to you and the other great speakers I’ve seen,” I told him. “But it doesn’t come naturally to me!”

His response surprised me.

“No, it doesn’t all come naturally,” he said. “I had to work at it.”

For years, he spoke to small audiences at seminars. They proved an ideal training ground. He critiqued himself and got feedback from others so that he could constantly polish his delivery.

So, first tip: Start small. Give yourself time to get used to the spotlight.

Here are a few more tips for public speaking.

• Know your material. You won’t feel comfortable speaking if you don’t thoroughly know your material. How do actors and Olympic athletes make their feats look so easy? They practice! That doesn’t mean memorizing a speech, which can lack enthusiasm and leaves little room for spontaneity.

Know your key talking points, the anecdotes or other means you’ll use to illustrate them, and how you will smoothly segue from one point to the next.

• Energize! Positive energy is contagious — if you’re upbeat, excited and passionate about your message, chances are, your audience will be, too. And you’ll be surprised about the positive cycle that creates: An enthusiastic audience can pump up your energy even more! Use hand gestures to illustrate points and, when appropriate, smile, smile, smile.

• Make eye contact. Find friendly, receptive faces in the audience and speak to them.

Making eye contact with individuals helps prevent you staring off into the distance or reading from notes. It also helps make you feel like you’re engaging in a conversation rather than speaking to a group. I’ve found that visually touching base with engaged audience members gives me little shots of confidence that help propel me through my presentation.

• Look your best! When you look great you feel great and that makes you stand taller and exude confidence. Speaking engagements aren’t the best place to break in a new outfit (who knows what wardrobe malfunctions might surprise you?) Instead wear clothing and shoes you feel good in and that are appropriate to the setting — you can’t go wrong with business formal. Simple is fine, but you should look crisp and polished from head to toe.

A fear of the spotlight shouldn’t prevent you from getting the visibility and credibility that can build your brand and your business. Remember, you’re not alone. The fear of public speaking is said to be one of the top 10 worldwide!

If I can overcome it, so can you.

MARSHA FRIEDMAN is a 23-year veteran of the public relations industry. Follow her on Twitter: @marshafriedman.

ross@smdp.com

EDITOR IN CHIEF Kevin Herrera editor@smdp.com

MANAGING EDITOR Daniel Archuleta daniela@smdp.com

STAFF WRITER David Mark Simpson dave@smdp.com

CHIEF PHOTOGRAPHER Brandon Wise brandonw@smdp.com

STAFF PHOTOGRAPHER Paul Alvarez Jr. editor@smdp.com

Morgan Genser editor@smdp.com

CONTRIBUTING WRITERS Bill Bauer, David Pisarra, Charles Andrews, Jack Neworth, Lloyd Garver, Sarah A. Spitz, Taylor Van Arsdale, Merv Hecht, Cynthia Citron, Michael Ryan, JoAnne Barge, Hank Koning, John Zinner, Linda Jassim, Gwynne Pugh, Michael W. Folonis, Lori Salerno, Tricia Crane, Ellen Brennan, Zina Josephs and Armen Melkonians

NEWS INTERN Greg Asciutto editor@smdp.com

Brian Adigwu editor@smdp.com

VICE PRESIDENT– BUSINESS OPERATIONS Rob Schwenker schwenker@smdp.com

JUNIOR ACCOUNT EXECUTIVE Rose Mann rose@smdp.com

OPERATIONS MANAGER Jenny Medina jenny@smdp.com

PRODUCTION MANAGER Darren Ouellette production@smdp.com

CIRCULATION Keith Wyatt Osvaldo Paganini ross@smdp.com

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Welcome to the new year

1640 5th Street, Suite 218 Santa Monica, CA 90401 OFFICE (310) 458-PRESS (7737) FAX (310) 576-9913

With the new year comes new opportunities to go in a different direction.

So, this week’s Q-Line question asks:

What do you think should be Santa Monica’s resolutions for 2014 and why?

Contact qline@smdp.com before Friday at 5 p.m. and we’ll print your answers in the weekend edition of the Daily Press. You can also call 310-573-8354.

The Santa Monica Daily Press is published six days a week, Monday through Saturday.

19,000 daily circulation, 46,450 daily readership. Circulation is audited and verified by Circulation Verification Council, 2013. Serving the City of Santa Monica, and the communities of Venice Beach, Brentwood, West LA. Members of CNPA, AFCP, CVC, Associated Press, IFPA, Santa Monica Chamber of Commerce.

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© 2013 Newlon Rouge, LLC, all rights reserved.

OPINIONS EXPRESSED are those of the writer and do not necessarily reflect those of the Santa Monica Daily Press staff. Guest editorials from residents are encouraged, as are letters to the editor. Letters will be published on a space-available basis. It is our intention to publish all letters we receive, except those that are libelous or are unsigned. Preference will be given to those that are e-mailed to editor@smdp.com. All letters must include the author’s name and telephone number for purposes of verification. All letters and guest editorials are subject to editing for space and content.

Entertainment Visit us online at www.smdp.com

THURSDAY, JANUARY 2, 2014

5

Play Time Cynthia Citron

Send comments to editor@smdp.com

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Netflix tests new price tiers for video service THE ASSOCIATED PRESS Netflix is testing new price plans for streaming video as it tries to lure more viewers.

Among the plans being tested are a $6.99a-month plan that allows only one video stream to be watched at once, and a $9.99-amonth plan that allows three streams at one time, whether on a TV, tablet or computer.

A Netflix spokesman says not everyone will see the test prices and they may never roll out to all customers.

Netflix’s standard $7.99-a-month plan allows users to watch video on up to 2 screens at once, including TVs and mobile devices. An $11.99-a-month service allows up to four shows at once. Netflix announced that plan in April.

Any move to offer a cheaper service tier would be surprising to some analysts, who expect the company to raise prices eventually to pay for the service’s content.

The lower-priced tier could attract more value-conscious consumers, Sterne Agee analyst Arvind Bhatia wrote in a note to investors. But it also could prompt existing customers to trade down, if they cancel and sign back up for the cheaper service.

At the same time, though, Netflix has had to deal with increased competition for its customers. Amazon’s Prime shipping service comes with a video-on-demand service similar to Netflix’s. Redbox, which mostly rents DVDs through kiosks, has also rolled out a streaming video service.

Netflix subscribers have shown they can be fickle about price changes. The company’s stock plummeted by more than 80 percent from highs reached in 2011 after the company imposed pricing changes that triggered a customer backlash.

Netflix’s stock has since made up all those declines and set a new all-time high just above $389 in October. On Tuesday, its shares fell 21 cents to $366.78 in morning trading.

Introducing original content, such as the shows “House of Cards” and “Orange is the New Black,” helped Netflix gain new customers this year. Netflix added 1.3 million U.S. subscribers in the third quarter and ended September with 31.1 million.

The Los Gatos, Calif.-based company also still offers a DVD-by-mail subscription plan starting at $7.99 a month, though it is moving away from that business in favor of delivering video over the Internet.

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Will they continue to fight with each other, or will they get back together?

And what is the story with Samir’s wife?

She has been hospitalized for eight months, in a coma, after having attempted suicide.

And why is Marie’s older daughter, Lucie (an exquisite Pauline Burlet), so troubled and angry?

The entire film is unremittingly intense, but absolutely gripping. The writing is extraordinarily good and you really come to care for these screwed up people. They all have their reasons for angst and they are doing the best they can in circumstances that are overwhelming and continually shifting.

Ahmad, especially, goes out of his way to be helpful, especially with the three children.

He plays with them and draws them out and listens to their concerns and, trying to help, finds himself in the middle of everyone’s tangled perceptions.

Farhadi directs with a steady beat and great sensitivity, and the production qualities of the film are first rate. Especially the English subtitles, which for once leave you feeling assured that everything that is said in the film appears on the screen.

“The Past” opened in L.A. on Dec. 20 and is currently playing at Laemmle’s Royal Theatre, 11523 Santa Monica Blvd., in Los Angeles.

T. HS 14T

viewing and reviewing an Iranian film written and directed by Asghar Farhadi. The film, “A Separation,” went on to win 70 major awards around the world, including an Oscar and a Golden Globe for the Best Foreign Language Film of 2011. Apparently the whole world loved it as much as I did.

Now Farhadi has done it again. His newest release, “The Past,” is another complicated and heart-rending drama of a family in crisis. Berenice Bejo, a cool and elegant beauty, plays the mother of a troubled 16year-old daughter by an earlier marriage and an 8-year-old daughter (by the same husband or somebody else — her second husband? A lover? It’s not clear.). She and her daughters live in Paris with her boyfriend and his 5-year-old son. It’s her apartment, tiny and crowded and stuffed with too much furniture, right next to the railroad tracks.

It takes a few minutes to sort out the relationships and who belongs to whom, but it soon becomes clear that Marie (Bejo) has sent for her second husband, Ahmad, (a compelling Ali Mosaffa) to come from Tehran to sign divorce papers so she can marry her current boyfriend, Samir (a dark and brooding Tahar Rahim).

Marie and Ahmad have been apart for four years, but it is obvious that there is a great residue of feeling left between them.

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machines: the bus and Ken Johnson.

At the front door of the bus depot, his colleagues beckoned him inside for a celebration, but Johnson wanted to keep talking about the days when he didn’t have outside, right mirrors.

“Once you get to the point where you can’t see the top of the car, you put your blinker on and you start to go over and if you hear a horn, then you go back over,” he said.

What was his hardest day?

“Oh man, I've got so many,” he said,

We have you covered laughing.

His eyes glaze over talking about the 10 line, when there’s an accident and the freeway is blocked. His hands raise up momentarily to an imaginary wheel as he explains the feeling of helplessness. Then he’s back to laughing about some of the crazy passengers he’s had.

He did not choke up on his route during his last day.

“It's just time for me to go,” he said. “It's not a thing of happy or sad. It's just like you’re leaving, going to another town, and leaving your family behind, but you know you’re going to back to see them.” dave@smdp.com

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STOCKS FROM PAGE 3 ures the dividend payment on stocks versus their price, started the year at 2.17 percent, higher than the 1.76 percent yield on 10-year Treasury notes.

Utilities and phone companies, traditionally big dividend payers, began the year strongly as investors sought steady stocks with bond-like characteristics. Utilities companies in the S&P 500 surged 18 percent in the first four months of 2013 before Treasury yields started rising, curbing their appeal.

Companies are also taking note of investor’s desire to see dividend payments.

By the end of the year, 418 companies in the S&P 500 were paying dividends, matching the highest total since 1998.

Including dividends, the S&P 500 returned 32 percent to investors.

THE FED MATTERS MORE THAN CONGRESS

While budget battles have rattled the markets before, investors started to get

HOMES FROM PAGE 1 should reach 5.1 million in 2013, the best total in seven years, the Realtors forecast.

That’s 10 percent higher than 2012. But it is still below the 5.5 million that is consistent with healthier housing markets.

Strong price gains in 2013, fueled in part by a limited supply of homes for sale, may be pricing some buyers out of the market.

Prices are up more than 19 percent year over year in Atlanta, Las Vegas, Los Angeles, San

THURSDAY, JANUARY 2, 2014

wise to Washington’s habit of wrangling until the last minute before reaching agreements on the budget and other fiscal policy.

In 2011, lawmakers shook financial markets when they argued about raising the debt ceiling and pushed the U.S. toward default.

Stock markets slumped before a deal was reached at the start of August and then plunged further as the Standard & Poor’s rating agency cut the nation’s debt rating days later. The S&P 500 dropped 15 percent in a four-week period between July 20 and Aug. 10, 2011.

In 2013, investors stayed calm despite the first government shutdown in almost two decades and brinksmanship over the debt ceiling. After dipping briefly at the start of the shutdown, the S&P 500 rose 2.4 percent between Sept. 30 and Oct. 16, when a deal was reached to fund the government and avoid default.

“Not that Washington has yet become a positive, but I think that the bar got so low it was pretty much on the ground,” says Liz Ann Sonders, chief investment strategist at Charles Schwab & Co.

May 31, 1918 – December 10, 2013 Angels Guarjardo (95) beloved father, grandfather, and uncle will be remembered for his devotion to his family and his kindness to all. A veteran and longtime resident of Santa Monica, he is survived by his wife Carmen; two sons Tom and David; daughters Martha and Valen; grandsons Billy, Tony and Mathew; granddaughters Aimee, Sabrina and Alex; sister Connie; and his brothers Arthur, Manual and Ben.

AND INTERMENT WILL BE HELD

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Diego and San Francisco, according to the Case-Shiller index.

Mortgage rates have also risen by roughly a full percentage point since the spring, though they remain low by historical standards. Mortgage buyer Freddie Mac said last week that the average rate on the 30-year loan is 4.48 percent.

Many economists say the Case-Shiller figures overstate recent price gains because they include foreclosures. Foreclosed homes usually sell at steep discounts. As the proportion of those sales declines, the index rises more sharply.

Angel Guajardo

MASS WILL BE HELD ON JANUARY 9, 2014 AT 10:00A.M. AT ST. ANNE’S CHURCH, 2011 COLORADO AVE, SANTA MONICA

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WHEN BAD THINGS HAPPEN TO GOOD PEOPLE BECAUSE OF THE CARELESSNESS OR NEGLIGENCE OF OTHERS. Free Consultation Over $25 Million Recovered

JANUARY 10TH AT 12:30P.M. AT RIVERSIDE NATIONAL CEMETERY, 22495 VAN BUREN BLVD., RIVERSIDE. We will miss you!

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CATASTROPHIC PERSONAL INJURIES WRONGFUL DEATH MOTOR VEHICLE ACCIDENTS BICYCLE ACCIDENTS SPINAL CORD INJURIES TRAUMATIC BRAIN INJURIES DOG BITES TRIP & FALLS You Pay Nothing Until Your Case Is Resolved

Surf Report 8

THURSDAY, JANUARY 2, 2014

S U R F

Surf Forecasts THURSDAY – POOR TO FAIR –

SURF: DEEP AM HIGH TIDE; WNW swell drops out

We have you covered

R E P O R T

Water Temp: 59.6° 1-2 ft ankle to knee high occ. 3ft

FRIDAY – FLAT – Flat occ. 2ft DEEP AM HIGH TIDE; WNW leftovers

SATURDAY – FLAT – Flat occ. 2ft Extreme angled NW swell possibly builds, but bypasses most areas

Comics & Stuff THURSDAY, JANUARY 2, 2014

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MOVIE TIMES Aero Theatre 1328 Montana Ave. (310) 260-1528

Grudge Match (PG-13) 1hr 53min 11:00am, 2:00pm, 5:00pm, 8:00pm, 10:50pm

It’s A Frame Up (NR) 29min Who Done It? (NR) 1hr 15min Crazy House (NR) 1hr 20min 7:30pm

Mandela: Long Walk to Freedom (PG-13) 2hrs 19min 10:15am, 1:00pm, 4:25pm, 7:50pm, 9:45pm 47 Ronin 3D (PG-13) 2hrs 07min 1:30pm, 7:15pm Walking With Dinosaurs (PG) 1hr 20min 10:30am, 1:45pm, 7:00pm

47 Ronin (PG-13) 2hrs 07min 10:45am, 4:05pm, 11:00pm

AMC 7 Santa Monica 1310 Third St. (310) 451-9440

Hunger Games: Catching Fire (PG-13) 2hrs 26min 10:10pm

Secret Life of Walter Mitty (PG) 2hrs 05min 10:10am, 1:05pm, 4:05pm, 8:45pm, 11:40pm Hobbit: The Desolation of Smaug (PG-13) 2hrs 41min 9:30am, 4:45pm, 11:00pm

AMC Loews Broadway 4 1441 Third Street Promenade (310) 458-3924

Walking With Dinosaurs 3D (PG) 1hr 20min 4:40pm

Anchorman 2: The Legend Continues (NR) 1hr 59min 10:45am, 1:50pm, 4:50pm, 8:30pm, 11:35pm

Frozen (PG) 1hr 25min 9:45am, 12:45pm, 5:30pm, 8:00pm Hunger Games: Catching Fire (PG-13) 2hrs 26min 10:55pm

Laemmle’s Monica Fourplex 1332 Second St. (310) 478-3836 Inside Llewyn Davis (R) 1hr 45min 1:30pm, 4:20pm, 7:10pm, 9:45pm Nebraska (R) 1hr 50min 1:50pm, 4:30pm, 7:20pm, 10:00pm

Hobbit: The Desolation of Smaug in 3D (PG-13) 2hrs 41min 1:00pm, 7:10pm

Philomena (R) 1hr 34min 1:40pm, 7:30pm

Saving Mr. Banks (PG-13) 2hrs 00min 10:00am, 1:05pm, 5:00pm, 8:15pm, 11:30pm

Her (R) 1:00pm, 4:00pm, 7:00pm, 10:00pm

Wolf of Wall Street (R) 2hrs 45min 9:30am, 1:30pm, 3:45pm, 7:50pm, 11:00pm

12 Years a Slave (R) 2hrs 13min 4:10pm, 9:55pm

American Hustle (R) 2hrs 09min 10:15am, 1:40pm, 4:15pm, 7:35pm, 11:45pm

For more information, e-mail editor@smdp.com

Speed Bump

HANG OUT WITH FAMILY, SAG ARIES (March 21-April 19)

LIBRA (Sept. 23-Oct. 22)

★★★★ You or a key person in your life could

★★★ You seem to be releasing pent-up feelings.

become hot-tempered when dealing with an interpersonal issue. The presence of your friends might clear up who is doing what to whom. Remember, it takes two to tango.

Tonight: A dream's realization could be on the horizon.

You easily could snap at a family member over a domestic issue. A close associate might be unpredictable, which is one of the reasons you are disgruntled. Tonight: Let off some steam.

TAURUS (April 20-May 20) ★★★ Tension builds. As much as you might like to diffuse a situation, any action you take could prove to be problematic. Tune in to your higher self, and attempt to see the big picture.

Good will could come through. Tonight: A possibility will become a reality.

GEMINI (May 21-June 20) ★★★★ Keep reaching out for new ideas.

Consider planning a vacation for you and a friend or loved one. Your ability to touch someone and calm him or her down will be more appreciated than you know. Continue being a good listener. Tonight: Surf the Web.

CANCER (June 21-July 22) ★★★★ You might be more in touch with what you need than you realize. Sometimes you feel as if you give too much away, but your need to give feels good in many ways. Perhaps consider establishing stronger boundaries. Tonight: Share with a favorite person.

LEO (July 23-Aug. 22) ★★★★ A gentle, kind attitude will be appreciated. News could surprise many people, including you. Your ability to adapt will emerge. You'll see the total perspective, whereas many people won't. Tonight: Speak your mind.

VIRGO (Aug. 23-Sept. 22) ★★★★ Be careful with your funds and count your change. Make sure your wallet is nicely tucked away. You might want to indulge a child or loved one. Tonight: Get into the pace of a normal week.

Thursday, January 2, 2014

By Dave Coverly

Strange Brew

By John Deering

SCORPIO (Oct. 23-Nov. 21) ★★★ You could be tense over a domestic matter or a misunderstanding with a roommate or family member. Express your concern about what is happening without expectations of a response.

Be patient. Tonight: At home with a good book.

SAGITTARIUS (Nov. 22-Dec. 21) ★★★★ A friend easily could lose his or her cool. Your ability to communicate can and will make a difference here. Don't allow this person to intimidate you. A close friend or loved one could point you toward a new venture or interest. Tonight: Hang out with a family member.

Dogs of C-Kennel

By Mick and Mason Mastroianni

CAPRICORN (Dec. 22-Jan. 19) ★★★ Be aware of the costs of proceeding as you have. You might not be comfortable with everything that is going down. Your finances demand attention and precision. A family member once more could make demands that you might feel you can't meet. Tonight: Pay bills first.

AQUARIUS (Jan. 20-Feb. 18) ★★★★ Many thoughts might be going through your mind. You would be wise not to discuss all of them, as you tend to go back and forth between ideas. Someone from a distance could be irritable. Use caution with this person.

Tonight: Someone wants to court you.

Garfield

By Jim Davis

PISCES (Feb. 19-March 20) ★★★ Defer to someone else, and know full well how this person will approach what you deem a difficult situation. Once this individual walks in your shoes, he or she will have great respect for you, your decisions and how you handle challenges. Tonight: Get some extra R and R.

JACQUELINE BIGAR’S STARS The stars show the kind of day you’ll have: ★★★★★Dynamic ★★ So-So ★★★★ Positive ★ Difficult ★★★ Average

This year you jump into the limelight. You also have good money sense. Try not to become too adventuresome and cause yourself a problem. Someone of the opposite sex finds you very charismatic. If you are single, you could develop an intriguing tie with this person. Others are unusually clear about their interest in you. If you are attached, the two of you could choose to indulge a little more than in past years. Be careful with a higher-up, especially if he or she is an AQUARIUS. You might assume that you are on cruise control when you really aren't.

INTERESTED IN YOUR DAILY FORECAST?

Check out the HOROSCOPES above! office (310)

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The Meaning of Lila

By John Forgetta & L.A. Rose

Puzzles & Stuff 10

THURSDAY, JANUARY 2, 2014

We have you covered

Sudoku Fill in the blank cells using numbers 1 to 9. Each number can appear only once in each row, column, and 3x3 block. Use logic and process of elimination to solve the puzzle. The difficulty level ranges from ★ (easiest) to ★★★★★ (hardest).

MYSTERY PHOTO

Daniel Archuleta daniela@smdp.com The first person who can correctly identify where this image was captured wins a prize from the Santa Monica Daily Press. Send answers to editor@smdp.com. Send your mystery photos to editor@smdp.com to be used in future issues.

NEWS OF THE WEIRD BY

CHUCK

SHEPARD

King Features Syndicate

GETTING STARTED There are many strategies to solving Sudoku. One way to begin is to examine each 3x3 grid and figure out which numbers are missing.

Then, based on the other numbers in the row and column of each blank cell, find which of the missing numbers will work. Eliminating numbers will eventually lead you to the answer.

SOLUTIONS TO YESTERDAY’S PUZZLE

■ Of course: Four villagers in northeast Kenya, angry that cheetahs were killing their goats, lay in wait one night in November and then chased down and captured the cheetahs. Cheetahs are regarded as the fastest mammals on Earth, but they lack endurance; Kenyans are marathon prodigies. Indeed, the cheetahs were captured only when they ran out of gas after about four miles of pursuit by the Kenyans, and were handed over alive, and exhausted, to the Kenyan Wildlife Service.

■Many were shocked to learn in November that some accused "satanic cult" child molesters were still in prison -- even though proven by time, journalism and medical knowledge to have been innocent victims of widespread 1980s and 1990s hysteria. Arrangements have finally been made to release Austin, Texas, day care operators Fran and Dan Keller (after 21 years) and four San Antonio women (imprisoned for 14 years for "assaulting" two adolescent girls). In both cases, juries and judges had been persuaded by testimony about scarring on girls' hymens, and, frightened by the era's high-profile McMartin School and other cases, issued long prison terms. (The Austin case's doctor later admitted he had misdiagnosed the scarring, and the San Antonio doctor's conclusions were vanquished by the Texas Innocence Project and a relentless Canadian researcher.) All six said they intended to pursue full legal exoneration.

TODAY IN HISTORY – The Gale of January 1976 begins, which results in coastal flooding around the southern North Sea coasts, resulting in at least 82 deaths and US$1.3 billion in damage.

– Leaders of armed opposition declare the President Zviad Gamsakhurdia deposed during a military coup in Georgia.

– Sri Lankan Civil War: The Sri Lanka Navy kill 35-100 civilians on the Jaffna Lagoon.

1976

1992 1993

THURSDAY, JANUARY 2, 2014

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