Market Insights

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
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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

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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

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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

Embedded thumbnail for Question: "Oil Prices & Investments?"

Question: "Oil Prices & Investments?"

April 11, 2018
  • Investors are sold on “high dividends” but dividends can be cut or reduced at the investment’s discretion

  • Oil prices are low and are likely to remain low or decrease in our opinion

  • Oil prices have essentially remained flat despite geopolitical events in the past 12 months because U.S. no longer dependent on foreign oil

  • We expect U.S. to not only achieve energy independence but to become a net energy exporter

SEC Hits PNC, Securities America, Geneos with $15M Fine

  • PNC Investments, Securities America & Geneos Wealth Management agree to pay nearly $15M for failing to disclose conflicts and putting clients into higher-cost mutual fund shares

  • These firms breached their fiduciary duties to clients & generated “millions of dollars of improper fees in the process”

  • "Investment advisors putting their clients into higher fee share classes when lower cost ones are available is a widespread problem” – Steven Peikin, co-director of the SEC’s Enforcement Division

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Embedded thumbnail for Investment & Economic Strategy Update...April 4, 2018

Investment & Economic Strategy Update...April 4, 2018

April 04, 2018
  •  Current Market volatility is normal with 2018 YTD returns being mostly flat

  •  Volatility stemming from “finger-pointing” and is not a reflection of the economy

  •  General indicators show a growing economy

  •  Avoid having your emotions stirred by the Talking Heads on TV!

Embedded thumbnail for Question: "Recessions & Volatility?"

Question: "Recessions & Volatility?"

April 04, 2018
  • We are seeing a growing economy and normal volatility

  • Over the next 3-5 years you should be in assets that have potential to grow if you’re trying to create wealth

  • Our opinion, too many people are wrongly invested by being oversaturated in bonds or bond type investments that are hurting their portfolio and retirement nest egg

  • Don’t be sold the outdated allocation pie!