Investment Strategy & Market Updates

Embedded thumbnail for Investment and Economic Strategy Update: October 23, 2018

Investment and Economic Strategy Update: October 23, 2018

October 23, 2018
  • The market has experienced some volatility over the past few weeks

  • Short term market timing has proven to be disastrous for your portfolio

  • All assets experience intra-year volatility, so it is important to concentrate on the big picture

  • Worry about the next 5-year average, not the next 12 months

  • We see an upward trend for GDP

  • Avoid the hype from the mainstream media

Embedded thumbnail for Question: "Can You Curb Market Volatility?"

Question: "Can You Curb Market Volatility?"

October 23, 2018
  • Less volatile investments typically make lower returns

  • Short term investors that chase returns often hurt their portfolio

  • All investments experience volatility

  • Real Money Managers take emotions out of their strategy

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!

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

Embedded thumbnail for Investment & Economic Strategy Update: August 29, 2018

Investment & Economic Strategy Update: August 29, 2018

August 29, 2018
  • Market is experiencing record highs in the market with good numbers YTD

  • Approximately an 8% gain in the major indexes, mostly occurring in the past 6-8 weeks

  • The economy is strong and we expect more volatility in 2018

  • Trade agreement with Mexico is a positive for the U.S.

  • We expect more agreements to be reached with Canada and European Union achieving Fair Trade further strengthening the economy

  • The current administration’s cut backs on unnecessary regulation has netted positive earnings with good revenue growth

  • Corporate and personal tax restructuring are helping the consumer

Embedded thumbnail for Question: "Is Your Portfolio Suffering Because of Bonds?"

Question: "Is Your Portfolio Suffering Because of Bonds?"

August 29, 2018
  • Too many investors are over-allocated in bonds

  • Wall Street firms, banks and insurance companies collect a fee to “buy and hold” which does not account for the evolving market

  • An adaptive strategy adjusts to the changing economic scenario and allocates your portfolio accordingly

  • If interest rates continue to increase, investors that haven’t adapted may only break even or lose money despite the strong economy

Embedded thumbnail for Equity Index Annuity, the Truth on Lousy Returns

Equity Index Annuity, the Truth on Lousy Returns

August 16, 2018
  • A commission-based product sold under suitability

  • Consumers are misled with promises of liquidity, free money bonuses & guaranteed returns

  • Reality is you only make a percentage of how the market performs and no dividend

  • Designed to make 1.5-2% return over a rolling 10 year time period

Embedded thumbnail for Investment Economic Strategy Update: August 15, 2018

Investment Economic Strategy Update: August 15, 2018

August 15, 2018
  • Economy continues to strengthen

  • Trade disputes still continue, but don’t concern our strategy because fair trade is good for all

  • Corporate earnings have been positive with approximately 70% of companies beating expectations

  • Remember, a strong economy doesn’t necessarily translate to short term gain in the equity market and will likely experience normal volatility

  • We continue to own very conservative positions on bonds

  • We are preparing to deploy cash we’ve been sitting on in conservative accounts into additional floating rate securities

  • Our research does not indicate any signs of recession

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