Market Insights

Embedded thumbnail for Investment & Economic Strategy Update: October 9, 2018

Investment & Economic Strategy Update: October 9, 2018

October 09, 2018
  • First 3 quarters of 2018 are positive

  • U.S. economy is solid and getting stronger

  • Corporate earnings, GDP, unemployment and housing numbers appear favorable

  • We expect more volatility in October in both the equity and bond markets

  • Recently reduced exposure to emerging market economies due to weakness and tax loss selling

  • Interest rates are hitting 7-year highs, therefore, proper exposure to bonds is a must

  • Currently, we don’t see any signs of recession

Embedded thumbnail for Question: “Is My Firm a Fee-Only Fiduciary?”

Question: “Is My Firm a Fee-Only Fiduciary?”

October 09, 2018
  • Banks, brokerage houses, and insurance companies are not fee-only fiduciary firms.

  • Fee-based accounts still have conflicts of interest and have an extra cost structure

  • Trust a fee-only fiduciary firm to avoid conflicts of interest, and get it in writing!

Fed's Powell says U.S. outlook 'remarkably positive'

  • [Powell] feels [the U.S. Economy] is on the verge of a “historically rare” era of ultra-low unemployment and tame prices for the foreseeable future.

  • It is an outlook he feels will even survive the Trump administration’s efforts to rewrite the global trading system.

  • [The Fed] sees a hot job market, steady economic growth, steady 2 percent inflation and only modest rate increases through 2021 - as if the United States had slipped into the sort of pleasant long-run equilibrium described in textbook economic models.

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Retirement Is in Peril for Most Working-Class Americans, Warns New Report

  • Retirement is in peril for most working-class Americans cautions a new report by the National Institute on Retirement Security

  • Oakley (NIRS Executive Director) says causes of the retirement savings shortfalls include fewer workers having stable and secure pensions and the replacement of workplace pensions with 401(k)-style defined contribution accounts which provide less savings and protection

  • NIRS says while the typical American needs 85 percent of their working income to maintain their standard of living in retirement, Social Security provides only 35 percent

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Canada and US Reach Trade Deal to Replace NAFTA

  • U.S. and Canada have agreed to a deal deemed the USMCA – United States-Mexico-Canada Agreement, according to a senior U.S. administration official.

  • U.S. Trade Representative Robert Lighthizer and Canadian Foreign Affairs Minister Chrystia Freeland said the agreement "will strengthen the middle class, and create good, well-paying jobs and new opportunities for the nearly half billion people who call North America home."

  • The plan is for the leaders of the three North American countries to sign before the end of November, after which it would be submitted to Congress.

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Why Investors Fail

6 Crucial mistakes cause investors to earn poor returns or even lose money

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Embedded thumbnail for Investment & Economic Strategy Update: September 19, 2018

Investment & Economic Strategy Update: September 19, 2018

September 19, 2018
  • Decent sell-off over the past day or so due to tariffs or proposed tariffs

  • Current administration is pushing for fair trade which will help the U.S. economy

  • We have adjusted portfolios to soothe downside with respect to trade disputes & hopefully increase the upside on opportunities that we see

  • Earnings are good, inflation is near the Fed’s target, interest rates are stable and we expect another rate hike in 2018

  • We see signs for growth in the market with continued volatility and believe those invested correctly should be pleased over the long term

Embedded thumbnail for Question: “Cryptocurrency & Precious Metals?”

Question: “Cryptocurrency & Precious Metals?”

September 19, 2018
  • Too much fear-mongering on TV is wrongly influencing people’s decisions

  • Precious Metals are a speculation type trade or a possible hedge

  • We do not own physical gold currently, and don’t see a time to in the near future

  • Owning precious metals can hurt your returns and increase your risk

4 Retirement Planning Mistakes You Probably Don't Even Realize You're Making

  1. Relying too heavily on Social Security

  2. Assuming your living costs will drop drastically

  3. Not taking advantage of catch-up contributions

  4. Forgetting about taxes

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Wells Fargo Said to Face DOJ Probe of Wholesale-Banking Business

  • The Department of Justice investigation is focusing on concerns that bank employees improperly altered customer data.

  • Some workers added information to internal customer records without the clients’ knowledge, a person briefed on the situation said in May.

  • Wells Fargo has struggled to move past a wave of scandals, which led to a Federal Reserve ban on increasing assets until the lender fixes its missteps.

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