Investment Strategy & Market Updates

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

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!

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

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

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

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

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

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

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

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