Market Insights

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

Investment & Economic Strategy Update: May 9, 2018

May 09, 2018
  • Job numbers are positive, Wage Inflation on the rise, Housing & Consumer Consumption numbers are stable

  • Tax cuts starting to take an effect in the economy and we believe its positive results will continue in 2018 & beyond

  • Iran deal has ended, but we believe it will have a minimal impact on U.S. & world economy

  • U.S. growth will help others grow (especially the emerging markets)

  • Normal Volatility is occurring and will continue

Embedded thumbnail for Question: "Stagnant Markets & Adjusting Your Portfolio?"

Question: "Stagnant Markets & Adjusting Your Portfolio?"

May 09, 2018
  • You shouldn’t make changes unless you identify a catalyst

  • Make adjustments when the reasons you bought the investment are changing

  • Historical evidence that the market will behave this way causing investments to be stagnant at times

The Flatter U.S. Yield Curve is Roiling Mom & Pop Investors

  • Structured debt products with initially high yields are now returning little or no income as well as capital losses

  • “They were sold as being conservative investments, which of course they are not” – Jeffrey Pederson, Denver attorney who represents investors in settlements against financial institutions

  • If the curve levels out – as it has been over the past year – buyers can be stuck with measly coupons or even no interest payments

  • “Your average person getting these things is Joe Salesman, and they end up losing a lot of money pretty quickly” if the curve flattens – Pederson

Read more

LPL Financial Fined $26M over Unregistered Securities Sales

  • LPL offered and sold unregistered, nonexempt securities

  • LPL failed to reasonably supervise the flow of information to ensure full & proper compliance with state securities registration requirements

  • Deal between LPL & state securities regulators requires LPL to repurchase securities from investors with interest & pay up to $26M

Read more
Embedded thumbnail for Investment & Economic Strategy Update: April 25, 2018

Investment & Economic Strategy Update: April 25, 2018

April 25, 2018
  • Economy is still healthy and we expect it will grow 2.5-3% GDP
  • Overall, equity markets are up, while Treasury Bonds are negative YTD
  • We expect this normal volatility to continue through 2018
  • We see signs of more stabilization and potential growth as we head towards 2019
Embedded thumbnail for Question: "Dividend Yield & High-Income as Portfolio Saving Investments?"

Question: "Dividend Yield & High-Income as Portfolio Saving Investments?"

April 25, 2018
  • RWM is negative on oil and other MLPs
  • MLPs pushed by brokerage firms for their yields
  • Valuations are high, share prices have dropped these MLPs 50-80% in value & dividends have been cut
  • Don’t chase dividend yield and high-income investments as Portfolio Saviors

Wells Fargo Fined $1 Billion Over Mistreatment of Consumers

  • Fed cited a pattern of abuses and lapses
  • Firm tries to resolve a year & a half of scandals across its operations
  • Wells Fargo still faces scrutiny with the DOJ & SEC examining the wealth management unit
Read more

SEC’s Proposal to Protect Investors Isn’t All That Helpful

  • SEC passed a proposal that would regulate the way broker-dealers provide financial advice

  • Critics believe that the proposal is a step in the right direction, but the agency has a long way to go before any investors are truly safe from conflicts

  • Anything short of the fiduciary standard is an insult to American workers and families” SEC Commissioner, Kara Stein

Read more

Health Care Will Cost $280,000 in Retirement

  • The cost of health care for a 65-year-old American couple retiring this year rose to $280,000 (excludes long-term care costs)

  • The estimate has jumped 75% since 2002 (then $160,000)

  • The cost of health care in retirement is expected to continue to rise

Read more
Embedded thumbnail for Investment & Economic Strategy Update...April 11, 2018

Investment & Economic Strategy Update...April 11, 2018

April 11, 2018
  • China relaxing on import tariffs & trade barriers easing the tension on trade talks

  • Fair trade will help the economy continue to prosper

  • Strong Job Market, Low Unemployment Claims & Corporate Earnings expected to grow

  • Market is experiencing normal volatility - we expect a good year in the foreign and domestic equity market

  • Do your homework on bond investments, not all are appropriate in current state of market

Pages