Investment Strategy & Market Updates

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

Embedded thumbnail for Question: “Cryptocurrency . . . Good or Bad?”

Question: “Cryptocurrency . . . Good or Bad?”

August 15, 2018
  • Cryptocurrencies are a fad

  • Investments are highly volatile, speculative stocks and are not real investments

  • We warn investors to stay away from the “Cryptocurrency Get-Rich-Quick” schemes

Embedded thumbnail for Investment & Economic Strategy Update: August 1, 2018

Investment & Economic Strategy Update: August 1, 2018

August 02, 2018
  • Wages are increasing & Job numbers are improving

  • US Economy continues to grow with no signs of a recession

  • Policies put in place under current administration are strengthening the US economy

  • Trade Wars or Tariffs don’t concern our strategy because Fair Trade is good for all

  • We recommend Emerging Markets and to stay out of developed Europe

  •  Conservative accounts should hold cash while waiting for buying opportunities

  • We have reduced bond exposure across the board

Embedded thumbnail for Question: Equity Indexed Annuities . . . Good or Bad?

Question: Equity Indexed Annuities . . . Good or Bad?

August 02, 2018
  • Investors are misled by the Annuity Charlatans with 6% returns & 10% bonuses

  • These annuities are designed to return maybe 1.5% over a 10 year rolling period

  • Do your homework! Don’t be suckered into the fake pot of money by a sales pitch

Embedded thumbnail for Investment & Economic Strategy Update: July 26, 2018

Investment & Economic Strategy Update: July 26, 2018

July 27, 2018
  • Broad deal between US & EU reached to drop the tariffs in favor of fair trade

  • Eventually, trade deals with others will be reached strengthening the US economy

  • Just because the economy is good, doesn’t mean investments will skyrocket simultaneously

  • Emerging Market economies are performing well

  • Corporate earnings at record numbers - companies are growing & it's trickling down to the individual

  • We believe the strong economy will eventually translate into higher investment prices & should improve your investment account’s performance

Embedded thumbnail for Question: “Over-Invested in Bonds?”

Question: “Over-Invested in Bonds?”

July 27, 2018
  • When interest rates increase, bond values decrease

  • Bonds can change in value just like any other investment & aren’t as safe as everyone assumes

  • If US economy continues on its current course, those over-invested in bonds can receive poor returns or even significant losses

  • Just because you’re more conservative, owning an oversaturated bond portfolio in a Buy & Hold stock asset allocation is not an appropriate strategy

For more on Bonds, download our special report, “Beware of Bonds!

Embedded thumbnail for Investment & Economic Strategy Update: July 12, 2018

Investment & Economic Strategy Update: July 12, 2018

July 13, 2018
  • Overall, markets are slightly up halfway through the year

  • Less volatility than we saw in the 1st quarter of 2018 & will continue to see normal volatility

  • The trade imbalance has been an issue for decades, Trump aims to resolve this to strengthen the US economy

  • Expect to see growth of the economy of over 3% on an average annual basis

  • We have reallocated our portfolios for increased growth in the 2nd half of the year

  • After trimming bond exposure, we are holding more cash in conservative accounts, waiting for the next opportunity

  • Like what we see in the US economy and Emerging Markets, & have exited positions in Developed Markets like Europe

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