Supply Chain and Earnings Kick-Off

supply chain

U.S. equities posted solid gains, the labor market improved offsetting inflation pressures. Investors will be wary of seasonal weakness even as the S&P 500 is showing signs of reversing its recent downtrend. This week’s Q3 earnings reports will feature prominent names like Netflix, Tesla, Intel, AT&T and American Express. Last week all indexes finished up. The Dow up 1.58%, S&P 1.84%, and Nasdaq 2.18%.

Last Week – Supply Chain

The S&P 500 Index returned 1.84% last week, the best week since mid-July and seventh best week for the year. Equities shook off negative supply chain headlines and rallied on the strength of earnings. Labor market improvements also supported the positive week, offsetting ongoing inflation pressures. The U.S. supply chain has been bottlenecked as a result of the COVID pandemic. Inventory is drying up as clogging remains an issue at U.S. ports. Inconsistent passenger airline activity is holding down freight via airlines. U.S. inflation rose higher in September by pandemic-driven shortages. CPI advanced 5.4% from the year earlier and the PPI advanced 8.6% from the year earlier. In meeting notes, the Fed commented that it observed PCE (personal consumption expenditures index) prices well above their targeted 2% rate but that they continue to anticipate this to be transitory.

Despite supply issues, equities rallied as earnings season kicked off with some strong announcements last week. Some of the more notable announcements were from mega cap banks. Strong bank earnings announcements further confirm that the U.S. economy is on solid footing despite some supply chain and employment headwinds.

The Minutes from the September 21-22 Federal Open Market Committee meeting released. The Fed indicated that tapering could begin as soon as mid-November and fully anticipates it will begin before 2022. They expect supply pressures to partially ease as supply chain issues resolve and import prices fall. High resource utilization rates in 2022 are also expected to assist in lowering pricing pressures and in total the Fed anticipates the PCE will fall below 2% in 2022 and “edge” higher to reach 2% in 2024. Retail sales rose 0.7% in September led by general merchandise stores, gas stations and autos.

New unemployment claims fell below 300K for the first time since the pandemic began, a milestone for the job market. Jobs openings also fell for the first time in 6 months but quits pushed to a record high of 4.3 million in August. The “Great Resignation” is real.

Week Ahead

Looking ahead this week, earnings season continues with 76 names in the S&P 500 expected to report quarterly results. Some notable names
include: Tesla Inc., Netflix Inc., Honeywell International Inc., Union Pacific Corp. and American Express Co. The U.S. economic calendar is light, with industrial production numbers today followed by housing data on Tuesday and Thursday. The Fed’s Beige Book and Philly Manufacturing Index will provide additional insights regarding regional economic conditions. Finally, an eye will be on the Evergrande Group situation after China’s central bank sought to ease concerns about spreading economic risks.

Year-to-date index performance; Dow up 15.3%, S&P up 19.0%, and Nasdaq up 15.6% through the close on Friday.

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers.

Debt Ceiling and the Market Impact

debt ceiling

Despite Friday’s disappointing jobs report, U.S. equities managed modest gains after the debt ceiling crisis was temporarily postponed. Global central banks continue to express concerns about higher prices but insist interest rate hikes are still far off, preferring to taper bond purchases first. On Wednesday investors will parse through the minutes from the most recent FOMC meeting for additional clues on policy changes. Last week, the Dow finished up 1.27%, S&P up 0.83%, and Nasdaq 0.1%.

Last Week Debt Ceiling Proposal

The S&P 500 Index returned 0.83% last week, regaining some of the previous week’s 2.19% decline. The index is currently up 1.99% for October, a welcomed trend following September’s -4.65%, its worst performance since March 2020. Equites had a rough start to the week as the index declined 1.29% on Monday with the information technology and communication services sectors leading the way down as inflation and growth fears weighed on investors. Markets rallied back on Tuesday and pushed higher through Thursday. Equities received positive news as a $480 billion increase to the debt ceiling was passed by the US Senate allowing the government to continue to operate as usual for a couple more months without a shutdown or default.

After a poor August payroll number, investors looking for strength in employment numbers were disappointed again. The September non-farm payroll data showed an increase of only 194K jobs. Well below the expectations of 500K. However, U.S. initial jobless claims of 326K were lower than the 348K expected and the previous week’s 362K. The unemployment rate also showed positive data as it declined 0.4% to 4.8%, its lowest level since March 2020. However, the labor force participation rate dropped to 61.6% from 61.7%. Overall, the numbers reflect a remarkably tight labor market, as wages increased by 0.6% Month-over-Month and 4.6% Year-over-Year. The weak jobs report led investors to believe it is less likely the Federal Reserve tapers bond purchases. The tapering process is still expected to begin by the end of this year.

Week Ahead

Central banks across the globe continue to express concerns about higher prices, but insist interest rate hikes are still far off. On Wednesday investors will review the minutes from the most recent FOMC meeting for additional clues on policy changes. This week brings inflation data, highlighted by U.S. CPI on Wednesday and PPI Thursday expected to be flat to slightly lower. Germany reports wholesale prices, Japan brings PPI, and China delivers CPI and PPI throughout the week.

On the labor front, U.S. job openings anticipate to tick up to yet another record high. This week will feature the first major Q3 earnings reports. With the large money center banks releasing numbers on Wednesday and Thursday. Financials have been the second strongest sector the past few weeks, boosted by rising yields. Closing out a busy week, U.S. retail sales will reveal how back-to-school shopping fared and if stores were able to stay stocked in the face of supply chain disruptions. The first look at October consumer sentiment also drops Friday.

Year-to-date index performance; Dow up 13.53%, S&P up 16.92%, and Nasdaq up 13.12% through the close on Friday.

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers.

Evergrande and the Impact on the Markets

Evergrande

U.S. equities overcame a rough start the week, due to Evergrande uncertainty, then finished higher. Stocks went on a roller coaster ride, with the VIX soaring then crashing post-Fed, whom provided expected monetary policy guidance. Questions remain how quickly tapering may be completed and how early rate hikes may appear. Last week all indexes finished up; Dow 0.62%, S&P 0.52%, and Nasdaq 0.03%.

Evergrande Impact Last Week

A volatile week for stocks turned positive mid-week. Initially major indexes dropped 2-3% on fears of systemic risk from Evergrande, the Chinese
real estate company. Indexes rallied later as the Fed downplayed rate hikes while furthering taper discussion. On Monday, investors were skittish by the debt crisis at property developer China Evergrande Group. China President Xi Jinping is trying to reduce property-sector leverage to make housing more affordable for the people of China.

Back in the US, Federal Chair Powell took note of the global supply chain disruptions. Powell said Friday, “I’ve never seen these kind of supply-chain issues, never seen an economy that combines drastic labor shortages with lots of unemployed people and a lot of slack in the labor market.” His comments come after Wednesday’s post meeting statement outlining the Fed’s reduction of monthly asset purchases as soon as its next meeting in November. The other notable projection was half of the 18 officials expect to raise interest rates by the end of 2022. This contrasts with the June meeting where most Fed officials expected rate increases in 2023.

In other news, U.S. housing data was mostly positive, with housing starts and new home sales rising in August, while existing home sales slipped 2% as surging prices hampered first-time buyers.

Week Ahead

Durable Goods Orders released today and showed positive signs. Inventory data follows later in the week. Inflation may be on the backburner right now, but it is not forgotten. With prices potentially staying elevated and the labor market moving back towards full employment, questions remain on how quickly tapering may be completed and how early rate hikes may appear. Futures markets have priced in the first rate increase for December 2022. Year-to-date index performance; Dow up 13.69%, S&P up 18.62%, and Nasdaq up 16.75% through the close on Friday.

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers.

Inflation Expectations Rising

inflation

U.S. equities fell into the weekend despite strong manufacturing data, as inflation expectations weighed. Stocks dropped for a second straight week. Last week all indexes finished down. The Dow down 0.05%, S&P 0.55%, and Nasdaq 0.46%.

Last Week

The S&P 500 and Nasdaq finished down less than 1%. Volatility rose with the VIX closing at a 1-month high. U.S. manufacturing numbers surged, and optimism for the next 6 months remained high. The Empire State index leapt 16 points to 34.3 in September. The Philly Fed index rose 11 points to 30.7, above estimates. Industrial production increased 0.4% in August after a revised 0.8% gain the prior month. The miss was largely due to Hurricane Ida and supply chain inefficiencies. Capacity utilization climbed to 76.4%, the highest rate since December 2019. U.S. retail sales surprised with a 0.7% gain in August despite supply chain issues and escalating Covid-19 cases.

Consumer inflation still showed a significant bump but came in less than feared. A New York Fed household survey showed inflation expectations continued to ramp up in August. Internationally, August wholesale prices sustained gains in Germany and Japan on solid global demand. CPIs in Canada and the UK surged to multi-decade highs. Weak Chinese data also contributed to the market’s choppiness. Retail sales only grew 2.5% in August versus forecasts of 7%. Industrial production came in slightly below predictions at 5.3%. British retail sales fell for a fourth straight month in August, even as payrolls increased by a record 241,000. Australia’s employment dropped more than expected, supporting the Reserve Bank’s decision to delay a review of weekly bond purchases.

Week Ahead – Inflation Expectations

All eyes will be on the FOMC as they wrap up their two-day meeting on Wednesday. Pressure is mounting for more specifics on tapering given recent U.S. economic data. According to a Bloomberg survey of economists, tapering is expected to begin in November 2021. Chairman Powell has indicated the decision to taper is independent of any decision to raise interest rates. With unemployment still above 2019 levels, the Federal Reserve is expected to be patient with increasing rates.

U.S. housing reports will also drop this week. The NAHB Index reported positive numbers. Housing start data reports on Tuesday, existing home sales on Wednesday, and new home sales on Friday. The S&P 500 is only down about 2% this month. More volatility may be on the horizon if issues like the debt ceiling gain momentum. Treasury Secretary Yellen has urged Congress to increase the debt limit as soon as possible to avoid any economic turmoil. The debate could influence the Fed’s actions as well.

Investors will focus on next week’s Fed meeting and the timing of tapering. Tapering is often viewed as a potential negative catalyst in the near term. However, strong economic growth coupled with record corporate profits can potentially keep the market moving higher. Investors will also be watching to see if Evergrande, the Chinese real estate company with a mountain of debt, poses any systemic risks to global markets. Year-to-date index performance; Dow up 13.00%, S&P up 18.02%, and Nasdaq up 16.73% through the close on Friday.

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers.

Impact of a Slowing September

slowing

Stocks pulled back, but the S&P 500 and Nasdaq still sit firmly above their respective 50-day moving averages. U.S. equities eased off record highs as slowing growth prospects and persistent inflation led to some profit taking. With all the global central bank commentary last week, anticipation is building for the Fed’s next meeting on September 21-22. In the meantime, this week presents plenty of additional data for consideration. Last week, all indexes finished lower. The Dow finished down 2.1%, S&P down 1.7%, and Nasdaq down 1.6%.

Last Week – Slowing Data

U.S. equities eased off record highs as slowing growth prospects and persistent inflation led to some profit taking. The S&P 500 and Nasdaq both slipped 1.5%+. Market breadth was quite weak, as all 11 S&P 500 sectors finished in the red, with consumer discretionary the outperformer. The S&P 500 Index returned -1.68% last week, with all four days in the shortened holiday week posting declines. Including the previous Friday, the index has marked five consecutive losing days after hitting an all-time closing high. Equity markets have followed an upward trend most of the year.

Goldman Sachs downgraded its 2021 U.S. growth estimate to a 5.7% annual rate, below the 6.2% consensus. The Fed’s Beige Book noted that growth had “downshifted slightly to a moderate pace”, slowing led by escalating inflation and a shortage of goods. On the labor front, U.S. job openings hit record highs for the fifth straight month, climbing to 10.9 million in July and exceeding total unemployed by 2.5 million. Workers continued to quit jobs at historically high rates, and new unemployment claims fell to another pandemic low of 310,000. The four-week moving average of 339,500 was also a pandemic low, indicating there has not been a rise in layoffs due to the Delta variant.

Producer prices in the U.S. surged 0.7% in August, above estimates but below July’s 1% pace. Excluding food and energy, core PPI only increased 0.3% Month-over-Month, but still 6.3% higher Year-over-Year. August’s year-over-year increase in producer prices is the largest on record. Labor and materials
shortages and supply chain bottlenecks contributed to the price increases. Regarding inflation, the CEO of Union Pacific said in an interview last week that “it doesn’t look like it’s temporary,” and that cargo congestion will likely continue well into next year.

Week Ahead

With all the global central bank commentary last week, anticipation is building for the Fed’s next meeting on September 21-22. This week presents plenty of additional data. U.S. CPI is reported on Tuesday, and consumer inflation updates from Germany, the UK, and Canada will also filter in this week. U.S. manufacturing numbers are expected to decline, with updates coming in the Empire State and Philly Fed indexes along with the industrial production report. U.S. retail sales have stalled over the past 3 months, and Thursday’s August report is anticipated to show a continued drop. China’s retail sales are likely to weaken considerably Year-over-year. The week finishes up with UK retail sales and U.S. consumer sentiment.

Year-to-date index performance; Dow up 13.07%, S&P up 18.7%, and Nasdaq up 17.28% through the close on Friday.

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers.

Job Data Disappoints, How did Markets React

job data

U.S. equity indexes managed to close mostly higher despite disappointing job data. The S&P 500 and Nasdaq established new weekly closing highs. Investors weighed the impact of rising Covid-19 cases on the recovery. Growth outpaced value as the Nasdaq (+1.5%) led the advance last week. A holiday-shortened week is here and the economic calendar will be more focused on events abroad. The U.S. economic data is light. The most anticipated announcement will come from the ECB on Thursday.

Last Week Highlighted by Job Data

The S&P 500 finished August with its 7th straight monthly gain. Financial stocks dropped 2.3%. The dollar continued its slide after the economy added just 235,000 jobs in August. This number was far below expectations of 720,000. The ADP report showed that private payrolls also increased much less than forecast. The labor numbers cast doubt on the Fed’s next move on tapering. Manufacturing jobs rose, but services hiring slowed as the market braces for several jobless aid programs expiring this week. On the positive side, the unemployment rate fell to 5.2%. The underemployment rate dropped sharply to 8.9% from 9.6%, and jobless claims hit 340,000, a new pandemic low.

Other U.S. data reflected a still expanding economy that nonetheless is showing some cracks. Consumer confidence fell in August to the lowest level since February. Chicago PMI deteriorated more than expected to 66.8 from 73.4. Factory orders and the ISM Manufacturing PMI picked up in August. However, the services PMI fell from its July all-time high reading, consistent with the jobs report. U.S. home prices rose 18.6% Year-over-Year in June. The largest annual gain in history. Crude oil saw little volatility despite shutdowns from Hurricane Ida. OPEC decided to keep its modest production increases in place. China’s August manufacturing activity fell to 50.1 from 50.4. But a rebound in Chinese stocks lifted the emerging markets index by 3.4%. Canada’s economy unexpectedly contracted by 1.1% in Q2 as pandemic restrictions weighed.

Week Ahead

A holiday-shortened week and the economic calendar will be more focused on events abroad. The most anticipated announcement will come from the ECB on Thursday. Despite hot inflation data, the committee is expected to wait several more months before deciding on tapering pandemic-related asset purchases, which are due to end in March 2022. Additional monetary policy updates will come from Australia tonight and Canada on Wednesday.

In the U.S. more job data, the JOLTS Job Openings report comes out on Wednesday. Producer prices are expected to ease in Friday’s PPI report. In Asia, China will deliver trade balance and inflation numbers. Japan’s final Q2 GDP reading is released late on today. The Eurozone will present revised Q2 GDP and the UK’s monthly GDP update comes in Friday. The week also closes with Canada’s employment account.

Equity markets will look at the Covid case and death rates for how bad this variant will be, and how much economic activity will be slowed by it. Year-to-date index performance; Dow up 15.56%, S&P up 20.7%, and Nasdaq up 19.2% through the close on Friday.

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers.

Markets Reach All-Time Highs

all-time highs

The S&P 500 and Nasdaq Composite Indexes closed at all-time highs after the Fed Chair reassured markets. Equity indexes rallied as investors weighed the tragic events in Afghanistan against more transparency from the Fed’s monetary policy timeline. The Nasdaq rose nearly 3% and the Dow and S&P 500 added 1-1.5%.

Last Week All-Time Highs

U.S. equity indexes rallied as investors weighed the tragic events in Afghanistan against more transparency from the Fed. Crude oil rebounded with an 11%+ jump, and gold prices rose modestly. Treasury yields held their weekly gains. The U.S. dollar dropped after Fed Chair Powell calmed markets with his comments on inflation and tapering. PCE Core Price Index data show annual price increases at a 30-year high of 3.6%. However, Powell reiterated that higher prices are not broad-based. Surge-price categories are moderating, and that both wages and long-term expectations do not suggest “excessive inflation”. Powell affirmed that asset purchase tapering is likely to begin later this year. (Tapering is the central bank’s plan to start gradually reducing bond purchases by the end of the year.) He also said that interest rate hikes aren’t on the table until the more stringent maximum employment test is met.

In other U.S. economic news, August Flash PMIs showed continued expansion. However, this reading is at a slower pace than July and slightly below expectations. Existing home sales rose 2% in July. All the annual gains in homes priced above $500K, while new home sales ticked up 1% in July. Durable goods orders for July fell 0.1% Month-over-month. These numbers did exceed forecasts, while the second Q2 GDP estimate came in slightly higher at 6.6%. Corporate profits increased at a 9.2% quarterly rate to a record $2.8 trillion, supported by historically tight credit spreads. Overseas, Germany’s August PMIs fell from July but remained solidly in expansion as Q2 GDP grew more than expected at 1.6%. Finally, minutes from the ECB’s latest policy meeting showed some concern of understating inflation risks that may or may not be durable.

Week Ahead

Based on the market’s reaction to Powell’s Jackson Hole speech, investors seem to feel they have more clarity around the Fed’s intended path and can avoid another “taper tantrum”. Geopolitical tensions and coronavirus variants may affect economic growth or dent consumer sentiment. Powell made it clear how strong the link is between jobs and potential rate hikes, and this week will bring several updates on the labor front, with the ADP report on
Wednesday followed by non-farm payroll report on Friday.

China’s Manufacturing PMI arrives Monday, where the government continues regulatory crackdowns that keep Chinese stocks under pressure. Tuesday is busy with German employment numbers, Canadian and Australian GDP updates, and U.S. consumer confidence. Oil’s recent volatility will focus traders on Wednesday’s OPEC meetings. Global growth concerns have eased somewhat, and increased crude production is expected. Lastly, U.S. ISM manufacturing and services PMIs are anticipated to fall Month-over-Month while remaining firmly in growth mode.

Year-to-date index performance; Dow up 15.84%, S&P 500 up 20.06%, and Nasdaq up 17.39% through the close on Friday.

Let’s connect if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers.

Market Volatility: Keep Calm and Carry On

keep calm

I don’t know about you, but this isn’t exactly how I thought we’d be approaching autumn. The Delta variant is causing some of us to pivot and alter plans once again. Amid reports of extreme weather as seasons change along with up and down markets, I’ve decided that I’m heading for much higher ground. Are you with me?

The fact is, storms of life come – often quickly and unexpectedly. And while we can’t stop the storms, we can do our best to prepare for and weather them until they pass. Destruction and loss will cause added stress, and that’s not the best environment in which to make decisions. The optimum time to prepare is now, before the next storm hits, focusing on what we can control and the best route upward. 

Markets naturally go up and down. Over the long run we all know they go up a lot more than they go down. But in these times of market volatility it can be stressful on all of us. The key to managing stress from fluctuations in the market is to ignore noise.

We create portfolio’s based on the clients long term goals. This way clients don’t need to worry about occasional market dips which newspapers and other media tend to sensationalize. Investing is about long term returns not short term ratings.

In fact stocks are actually on sale, so now could be a good time to go shopping. Although significant market dips can be attention-grabbing, they can also present a buying opportunity. If you have any questions about your strategy in light of recent events, let’s talk.

Please let me know if you want to discuss anything at all, from this weeks’ market news to specifics about the portfolio we have implemented.

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers.

School is Back In Session

school

Just like that, it’s back-to-school season. Tell me, where did the summer go?

As kids of all ages go back to school, with all of the apprehension and excitement that may bring in these turbulent times, it’s also a great reminder that in life, summer ends but the learning never does. We are always presented with challenges and opportunities to expand our knowledge and grow.

It appears, though, that Americans are slipping in that regard. According to recent Forbes survey, the U.S. is experiencing a steep decline in financial literacy in recent years – especially when dealing with more complex topics like inflation, financial risk, and mortgage rates.

How is your financial IQ? Are there some topics you could use some brushing up on?

The easiest way to fix any gap in knowledge is to ask a question. I can be a great resource for you, and we can discuss how your strategy is positioned to face these complex times. The market brief below gives current insight as well. Feel free to connect with me and keep the financial literacy conversation going to ensure your circle has the same potential for wealth and wellness.

Last Week

U.S. equities posted mixed results as volatility plummeted towards the lowest levels of the year. The Dow and S&P 500 indexes managed modest gains to once again close at record highs, while the Nasdaq Composite fell slightly. Fed officials commented that while the labor market still has room for improvement, inflation is already at levels that would justify interest rate hikes. U.S. job openings surged in June to a record 10.1 million, but businesses are still struggling to find qualified labor for the rebounding economy. Jobless claims fell to 375,000 and continuing claims dropped to a pandemic-era low of 2.8 million.

U.S. productivity grew less than expected at 2.3% for Q2, igniting stagflation fears. Sentiment numbers also disappointed, as small business optimism reversed in July to 99.7 from 102.5. The University of Michigan Consumer Sentiment also fell to 70.2 in early August, a 10-year low. Americans are more concerned about the economy, inflation, and the delta variant. Crude oil gained as the Biden administration pressured OPEC to increase output. For the week, the Dow finished up 0.94%, S&P up 0.75%, and Nasdaq down 0.07%.

This Week

Despite concerns about sentiment, market breadth, and seasonal weakness, stocks continue to climb the wall of worry. Many pundits are calling for a correction, but there seems to be lack of a legitimate catalyst to create that scenario. This week the economic calendar is rather light. Given recent economic data and a policy committee that is growing impatient on tapering, Fed Chair Powell’s town hall event today will be scrutinized along with the July FOMC meeting minutes on Wednesday.

The July U.S. Retail Sales report this morning showed a contraction based on slumping services spending. Where is all the school spending? Regional manufacturing updates came with the Empire State Index declining on Monday followed by the Philly Fed Index on Thursday. The U.S. calendar rounds out with industrial production numbers today and housing starts on Wednesday. Year-to-date index performance; Dow up 16.04%, S&P up 18.96%, and Nasdaq up 15.01% through the close on Friday.

Happy back-to-school week!

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers.

Summer Tug of War Drags On

tug of war

U.S. equities survived a tumultuous week largely intact. Investors weighed mixed earnings reports, inflation figures, and rising COVID-19 cases attributed to the Delta variant. Labor market headlines will remain in focus after the Fed’s comments, and with jobless claims stubbornly stuck at the 400,000 level, investors will welcome additional data this week with the U.S. ADP employment report on Wednesday, followed by the monthly non-farm payrolls report on Friday.

Last Week

U.S. equities survived a tumultuous week largely intact. Investors weighed mixed earnings reports, inflation figures, and rising COVID-19 cases attributed to the Delta variant. The Nasdaq slipped 1% after Amazon’s first EPS miss in 3 years. The Dow and S&P 500 finished slightly lower. The S&P 500
Equal-Weight Index gained ground as value outperformed growth. U.S. Treasury yields fell after the Federal Reserve indicated it is in no hurry to tighten monetary policy.

The Fed’s accommodative stance sent the dollar tumbling, lifting gold prices and sending crude oil higher by 2%. Fed Chair Powell also indicated that asset purchase tapering would likely be tied to labor market improvements as opposed to consumer price data. The U.S. GDP report highlighted how much the economy is struggling to readjust to the new normal. Second quarter growth accelerated by a robust 6.5%, but well below estimates of 8.4%. Some sectors continue to be held back by supply constraints, while others stress to recover from the pandemic.

U.S. home prices continue to break records, but new home sales stumbled in June, dropping 6.6%. Pending sales of existing homes dropped 1.9%. Consumer confidence remained high, as the Conference board’s index improved for a 6th straight month in July. U.S. durable goods saw continued growth in June, but the 0.8% increase fell short of the 2.1% expected. Chicago PMI surged to 73.4 in July, just shy of a record high. Inflation persisted in June, with the Core PCE Price Index rising 3.5% YoY, the biggest move since 1991. Finally, Chinese stocks remained under pressure as the SEC has stopped processing U.S. IPO registrations of Chinese companies while it considers new disclosures.

Week Ahead – Tug of War continues…

Labor market headlines will remain in focus after the Fed’s comments, and with jobless claims stubbornly stuck at the 400,000 level, investors will welcome additional data this week. The U.S. ADP employment report comes out on Wednesday, followed by the monthly non-farm payrolls report on Friday. U.S. ISM PMIs will also refresh, with services on Wednesday. Two more global central bank meetings await. The RBA may reverse its recent tapering plans amid continued lockdowns in Australia, while the BOE will consider hot inflation figures and a surprise drop in new UK coronavirus cases. Although many of the big names have already reported, Q2 earnings season is only halfway over. S&P 500 Y/Y revenues are up a record 21% and earnings up 86%, expectations for Q3 and Q4 are building.

Year-to-date index performance; Dow up 14.14%, S&P up 17.02%, and Nasdaq up 13.85% through the close last Friday.

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers.

Massive Earnings Week – Market Brief July 26, 2021

earnings

U.S. stocks shook off a Monday selloff sparked by coronavirus variant concerns to finish positive for the week. The Dow, S&P 500, and Nasdaq finished at all-time closing highs. Large-cap growth stocks lifted the Nasdaq Composite by nearly 3% and the S&P500 by 2%. Plenty of potential market-moving events this week, from tech earnings to the Fed meeting and key economic releases.

Last Week

On the positive side, continuing claims declined by 126,000 to a pandemic-era low of 3.24 million. Housing starts increased more than expected in June, despite labor and land shortages which are weighing on homebuilder confidence. Existing home sales rose 1.4% in June after 4 straight months of decline. The median price reached an all-time high of $363,000, up 23.4% compared to a year ago. After Q2’s growth, signs of cooling emerged as the IHS Markit Composite PMI slid to 59.7 in July from 63.7. Finally, shares of many U.S.-listed Chinese companies fell sharply on Friday. This was a result of authorities stepping up restrictions on the private education industry and increased scrutiny on overseas listings.

U.S. economic data was mixed, headlined by a surprise jump in unemployment claims, which totaled 419,000 versus estimates of 350,000. The decline in Treasury yields last week shows investors believe inflation is not the biggest problem facing the U.S. economy. Instead, investors worry about slowing growth. Even though Federal Reserve officials have signaled that they will hold off raising interest rates until after inflation climbed above their 2% target rate, eroding job growth has shown investors that the economy may not run as fast as anticipated.

Week Ahead

Expect discussions to accelerate amongst Fed officials as to when to start reducing asset purchases and how quickly to taper them, although a final decision is not expected until later in the summer. Their remarks will come ahead of the first look at Q2 GDP on Thursday where 8.5% growth is anticipated, the second-fastest pace since 1983 and exceeded only by last summer’s strong rebound. U.S. consumer confidence and durable goods reports will drop on Tuesday. Tesla, Apple, Microsoft, Google, Facebook, PayPal, and Amazon all report earnings this week. The week and the month close on Friday.

Year-to-date index performance; Dow down 14.56%, S&P down 17.46%, and Nasdaq up 15.12% through the close on Friday.

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers.

Delta Variant Ignites Volatility

delta variant

Fears of the spreading delta variant ignited a selloff today. Last week’s weakening under the hood as some areas experience significant drawdowns relative to the broad indexes. Concerns about deteriorating market breadth pushed equity indexes lower. With a light calendar of economic news to start the week, the focus will shift to Q2 earnings announcements.

Last Week

Concerns about deteriorating market breadth pushed equity indexes lower. The S&P 500 and Dow Jones Industrial Average fell 0.5-1.0%, while the Nasdaq slipped 2%. Energy stocks plunged 8%, with the materials, industrials and discretionary sectors also suffering losses. Consumer prices jumped 5.4% from a year ago. The largest increase since August 2008, and rose 0.9% on a monthly basis. Producer prices increased 1% from May and jumped 7.3% Year-over-Year. Most of the increases continued to come from sectors influenced by the shutdown, which Fed Chair Powell reiterated in his Congressional testimony. Powell also noted that the Fed’s benchmarks for tightening monetary policy remain “a ways off”. Crude oil fell 4.5% after Saudi Arabia and the UAE reached a compromise on increasing output, offsetting declining U.S. stockpiles.

Jobless claims reached a new pandemic-era low of 360,000, with continuing claims falling sharply to 3.24 million. U.S. manufacturing reports came in mixed, the New York region rose to a record 43 reading for July. While the Philly Fed said progress was slowing with a decline from 30.7 to 21.9. U.S. industrial production missed estimates in June, posted a 0.4% increase as supply shortages still plagued output. Prospects for Q2 U.S. economic growth were bolstered by a surprising jump in retail sales. Transactions climbed 0.6% Month-over-Month and 18% Year-over-Year, well above pre-pandemic levels. China, the world’s second largest economy expanded 7.9% in the first three months of the year, still strong but down from 18.3% the previous quarter. In Europe Germany’s CPI was in-line at 2.3% Year-over-Year while the UK’s 2.5% outpaced estimates.

Delta Variant and the Week Ahead

With a light calendar of economic news to start the week, the focus will shift to Q2 earnings announcements. Large cap mainstays IBM, Travelers, Netflix, Johnson & Johnson, Verizon, AT&T, Intel and American Express will all provide updates. On Wednesday, the ECB will deliver its monetary policy statement with an eye towards recent inflation dynamics and the difficult-to-assess risk of the coronavirus delta variant. U.S. unemployment claims are expected to fall to another pandemic-era low. Housing starts will highlight the state of the complicated homebuilder market.

Year-to-date index performance; Dow up 13.3%, S&P up 15.2%, and Nasdaq up 11.9% through the close on Friday.

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers.

Exit stage right – What to think about when you’re ready to leave your business

business

A succession plan will help assure business continuity. If you’ve built a successful business, you know that having a plan is critical to making it work. By the same token, readying your business for your retirement is an important piece of the puzzle.

While there are no set rules in a succession plan, you may want to include such details as:

  • The successor: family member, business partner or someone new who will buy out your share
  • Timeframe/transition period
  • Key personnel changes and skill retention
  • Training and development of new leadership
  • Legal considerations: buy-sell agreement, estate plan/will
  • Risk management
  • Communication strategy
  • Financial considerations: retirement income, insurance, sale price, tax implications

Protecting your most valuable asset: You

Your exit strategy recognizes when you are planning to retire from the business. It can also address any potential surprises that may impact your ability to remain in charge.

You may develop a major illness or injury that takes you away from day-to-day operations. Having insurance in place can ensure your company will continue to function in your absence. While also protecting your own earnings and family, particularly if you’re not able to return:

  • Disability Insurance: All owners should have their own insurance that covers their monthly earnings in the case of an illness or injury that requires long-term healing. It may include a buy-out clause.
  • Business Overhead Expense Insurance: Provides funding to the business of any overhead expenses (such as payroll or rent) if these costs are jeopardized by being away for an extended period.
  • Critical Illness Insurance: This is generally a lump sum payment that helps you cover your bills if you have a serious illness.
  • Key Person Life Insurance: A life insurance strategy may include a payout to the business for continuity, or to your estate to minimize any tax implications. Life insurance proceeds equalize payments to heirs.

If you plan to retire, you need a plan

If it’s time for you to hand over the reins, your succession plan should address the time horizon for transition. You may want to execute a buy-sell agreement with partners or co-owners. The agreement outlines the circumstances of the exit and the price for your share of the business. Insurance can be used to help minimize the tax impact of a small business sale and to finance retirement income.

There are many tax-efficient ways to protect your business and help you transition to your retirement.

Contact me if you’d like to learn more about these business-owner strategies.

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, retirement and business planning.

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers.

Preparing for retirement emotionally

retirement emotionally

Retirement paves the way to a new and exciting chapter of our lives, emotionally too. This is the moment of relief when, for the first time ever, we now have ample time to travel the world, take up new hobbies, and scratch whatever itch we’ve been ignoring.

Yes, retirement should be exciting. But for many of us, the thought of leaving our jobs forever can be daunting. After all, our careers play an important role in shaping our identity. And to suddenly cut the cord means we have to find something else to fill the void.

This isn’t helped by the fact that the word ‘retirement’ can be quite limiting – when it’s anything but. All too often, people associate it with old age and the ‘pipe and slippers’ part of life. This is why the financial conversation is often limited to how much you might have to retire on. And that’s that.

But it’s not as simple as that anymore. Today’s typical 60 somethings are nothing like those of a generation ago.

A lot of this comes down to the fact that life expectancy in North America has been on the rise for some time now. A generation ago, men could expect to live up to their late sixties, and for women their mid-seventies. Since then, life expectancy has improved incrementally. The current life expectancy for North American men is 76 and women 85.

This means that for many retirees these days, retirement isn’t a wind-down phase, but a whole new beginning. This means that financially speaking, you might need to consider how to manage your retirement fund more strategically.

But how do you prepare for such a massive transition emotionally?

According to gerontologist Ken Dychtwald, it’s all about mindset. He advises people approaching retirement to do so as they would a career: His advice is to set goals, to visualize a ladder to climb, and to use these targets as motivation to move closer towards your next destination.

Unfortunately, the statistics show how detrimental it can be to find yourself without purpose and meaning at retirement: depression is prevalent in 22% of men and 28% of women at the age of 65 and over.

If you’re unsure of how to even begin to plan for retirement, then following some of the principles from Professor Dychtwald’s five phases of retirement could help you map out your journey.

Imagination (15 before retirement)

Being at least fifteen years away from finishing work for good, retirement might not seem like a priority. At this point, you’re more likely to be making sure that career aspirations are met, bills are paid, and your children are able to get through university.

But it’s important to think about your pension at this stage as it can help to ensure you have the financial stability to live life on our terms, post-retirement. This is where you can start to dream big and imagine the retirement you really want to have.

Anticipation (3 years from retirement)

Now you’re planning to turn retirement it into reality… this is where preparing emotionally is just as vital as preparing financially.

A great way to do this is by trying to develop a network of retirees whom you can trust for advice so they can share their experience of how they coped with the process.

Make a note of the goals you want to accomplish and what measures need to be put in place in order to achieve them.

Preparing (1 year before retirement)

The new beginning is near! Now’s the time to start developing concrete steps. Ask yourself what you’re going to do during the first week of retirement and what you plan on doing on a day-to-day basis.

Make a plan of what you want to achieve in the first six months and talk it through with your partner or loved ones. Visualizing the practicalities of this new phase will make it seem less daunting when it eventually arrives.

The liberation phase (first year of retirement)

Your working life is finally over! This is the stage when you’re likely to feel the most excited, relieved, and liberated. You can finally begin to explore new opportunities, travels, and hobbies.

Unfortunately, this honeymoon period will eventually fade, but remember, this is natural.

Dychtwald states the importance of staying physically active and maintaining strong social ties with people at this stage.

Reorientation (3 years into retirement)

This is the part where creating a legacy for the next generation can be top of mind. Whether that’s by sharing your knowledge and wisdom with others, or by thinking more carefully about the financial gifts you’re leaving children and grandchildren, this is an opportunity for you to decide what impact you want to leave on the world.

Hopefully, this is helpful in terms of thinking about retirement and a brand new beginning. Retirement isn’t the end of the road; dream big and don’t be afraid to chase after your deepest desires.

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers.

Summer is here – will stocks melt up or cool off?

stocks

Last week, stocks finished higher after mostly solid economic data, including labor numbers that showed steady progress. Since the 10-year Treasury yield rally began in August 2020, there have been two main consolidation periods. What might be the next catalyst for a move in interest rates? The S&P 500 Index closed within 3 points of its all-time closing high of 4,232.60. Last week all indexes finished up slightly; Dow up 0.69%, S&P 0.64%, and Nasdaq 0.49%.

Last Week

The S&P 500 Index gained 0.64% last week, closing within 3 points of its all-time closing high of 4,232.60. The index has steadily climbed back after hitting its mid-May lows as inflation fears weighed on the index with consumer discretionary and information technology taking the biggest hits. Investors have continued to digest inflation concerns against their expectations for the equities markets. Stocks levitated higher by less than 1% for the week after mostly solid economic data, including labor numbers that showed steady, if not overwhelming, progress. Treasury yields fell after the May non-farm payrolls report came in at a solid gain of 559,000. This was much higher than the 266K the previous month, but lower than the expected 675K.

This led to Friday’s rally with data conveying an improving employment picture in the U.S. recovery. The recovery may be slower than expected. Leading markets to assume the Federal Reserve will continue in its accommodative monetary policies. Nearly half the states have cut overly generous jobless benefits, the unemployment rate dropped to 5.8% in May versus 6.1% in April, and average hourly earnings are up 2.0% versus a year ago. Initial jobless claims fell for the 5th week in a row to 385,000.

The expectation of a quicker recovery in global demand for crude oil helped it advance 4.98% last week, closing at $69.62 per barrel on Friday. This propelled the energy sector be the top performer of the week. OPEC agreed to continue gradually easing production cuts.

The Week Ahead

Since the 10-year Treasury yield rally began in August 2020, there have been two main consolidation periods. The first came just below 1%, beginning in November 2020 to January 2021. The second began in April 2021 and continues today, with the yield currently near 1.56%. The next catalyst? Last week the Federal Reserve said that it plans to start selling its portfolio of corporate bonds and exchange-traded funds that it bought during the pandemic. This is not expected to influence the market much. Recent economic data has been encouraging. But not so strong that the Fed would consider tapering its bond buying just yet.

The next Fed meeting is scheduled for June 15-16. This week offers an update on U.S. inflation along with 10-year and 30-year bond auctions, all of which could produce interest rate volatility. The U.S. trade balance came out today, and consumer sentiment on Friday. The week closes with day 1 of the G7 meetings in London, where Treasury Secretary Yellen looks for support to rewrite international tax rules. Year-to-date index performance; Dow up 13.56%, S&P up 12.62% 6.8%, and Nasdaq up 7.19% through the close on Friday.

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers.

Summer Road Trips and Stock Market Near Highs

road trip

Summer is the time to hit the open road and explore this big country. But with long road trips can come high expenses – make sure you don’t let unexpected costs creep in while planning the perfect trip. Managing finances is a lot like taking a road trip: You’re setting your sights on a goal and planning the best route to get there. Keep in mind it’s optimal to get an early start (saving), stay on the right roads (budget), and arrive safely at your destination (retirement).

Last week, stocks posted slight gains of 1-2%+ to close out the month of May. Overall, the rapidly expanding U.S. economy continued to forge ahead, with jobless claims hitting another pandemic-era low of 406,000. Inflation is still running hot. Oil prices jumped 4% after an inventory draw of 1.7 million barrels. Bitcoin finished with a small gain but remained volatile, and several Fed governors commented on the benefits of a digital dollar backed by the central bank.

This short week kicks off with inflation updates from the Europe. Last Friday, President Biden laid out a $6 trillion fiscal 2022 budget proposal. Likely to stir up debates lasting through the summer and possibly longer. The end of the week is busy with labor reports. Might we see jobless claims fall under 400,000 for the first time in 14 months? After last month’s surprise drop in non-farm payrolls, analysts anticipate 670,000 jobs to have been created in May. The U.S. unemployment rate is expected to tick down under 6%, steady progress but still a long way away from where the Fed would consider any major monetary policy changes. Year-to-date index performance; Dow up 12.8%, S&P up 11.9%, and Nasdaq up 6.6% through the close on Friday.

If you have any questions on your road trip journey, please reach out – I’m here to help guide you. And don’t forget, I’m happy to assist as your automatic blind spot detection for things you may not see that could put you at risk. Just ask! So rest easy, enjoy the ride, and let’s make this one of the best summers ever. Take care, be safe, and post a picture or two of your road trip.

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers.

Crypto Freefall and Your Portfolio

crypto

Markets ended flat after an up and down week and crypto fell across the board. The growth-oriented Nasdaq outperformed the Dow, S&P 500, and Russell 2000. The economic calendar is light until Thursday, when we get a second look at U.S. Q1 GDP. Monthly durable goods report should offer a glimpse into how supply chains are holding up. The Ethereum Liquid Index (ELX) came crashing back to earth last week. The Dow down 0.43%, S&P 0.39%, and Nasdaq 0.33%.

Last Week

Markets survived another bout of volatility in a roller coaster week. Turbulence in risk assets was partially sparked by a huge selloff in Bitcoin and other crypto currencies. China banned financial institutions from providing services related to the digital transactions. Crypto Bitcoin plunged from $45,000 to near $30,000 before recovering to $36,000.

Treasury yields briefly spiked after the April Fed meeting minutes released. The minutes mentioned that a strong pickup in economic activity would warrant discussions about tightening monetary policy. Chairman Powell reiterated that the recovery remains “uneven and far from complete” and hasn’t shown enough progress for policy change. Housing data cooled a bit. New construction dropped 9.5% in April and existing sales off 2.7%. Builder confidence remains strong due to lack of inventory, low interest rates, and plenty of home buyers. U.S. manufacturing stayed robust even as the Empire State and Philly Fed Manufacturing Indexes came in slightly below expectations.

Week Ahead

The economic calendar is light until Thursday, when we’ll get a second look at U.S. Q1 GDP, no change expected from the +6.4% estimate. The monthly durable goods report should offer a glimpse into how supply chains dealing with material shortages and consumer demand. Housing reports in focus with new home sales and mortgage applications are released. Pending home sales may follow last week’s cooling trend. Unemployment claims expected to fall again. On Friday, the Fed’s preferred measure of inflation, the PCE Price Index, will provide another check on spending behavior. Chicago PMI rounds out the month ahead of Memorial Day weekend.

The Ethereum Liquid Index (ELX), a crypto currency index, came crashing back to earth last week. It had been on a steady climb for the previous 12 months. Posting more than a 2,000% gain at the highs. From those highs, it took 6 days to cut the price in half. A 50% cut isn’t nearly as unusual in crypto as in equity markets, the increased volatility may stick around longer.

Year-to-date index performance; Dow up 11.77%, S&P up 10.65%, and Nasdaq up 4.52% through the close on Friday. Have a fun and safe upcoming holiday weekend!

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers.

Could there be a link between investing and wellbeing?

wellbeing

Over the past few years, we’ve seen a huge shift in society’s attitude towards health and wellbeing. We’re now generally more aware of the importance of good mental health. Thankfully, there is now a greater number of options available for people looking for help.

From meditation apps to supportive techniques and advice on ‘self-care’. There are many different ways we can keep on top of our mental fitness. Almost in the same way as we can our physical fitness.

But there is another aspect of mental health that isn’t as widely discussed. That’s the link between wealth and happiness.

Money is of course top of the list when it comes to issues most people worry about.

Whether it’s regarding short-term finances or our long-term future, financial insecurity can cause serious anxiety and low self-esteem.

But even though it often seems tempting to ignore money worries, recent research suggests that tackling the issues head-on can actually make people feel better than not doing it at all.

And by this they mean something as simple as opening an investment account.

In Blackrock’s Global Investor Pulse, which each year asks what people think and feel about their financial health, they report that once people start investing, 43% feel happier about their financial future, 36% of people have a higher feeling of wellbeing and 19% feel less stressed.

The results say this is true regardless of wealth, age, gender or life stage. Even more encouraging is that new investors say the improvement in their mood is immediate.

For those of you who already have a financial plan, this may simply be interesting to note. I’d love to know if you feel you are happier as a result of knowing that you have a plan in place. And even more interesting would be whether – as the research suggests – this feeling was immediate.

But it may be more meaningful to people you know who aren’t currently investing their money. Currently 63% of British adults hold no market-based investments at all. The reasons range from finding it too difficult to understand and feeling as if ‘investing is just for experts’.

However, now might be as good as any to enter the market for the first time. And tiny steps can have a huge impact. Even investing small amounts of money can lead to a greater return. Versus just having it in a savings account where interest rates are at an all-time low.

If you think it would be helpful for me to talk to anyone in need of a financial second option, then please pass on my details – I’d be happy to give them a call. Afterall, the results also say that 76% of investors who use a financial adviser report having a positive sense of wellbeing, and who am I to argue with that?!

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers.

So what is Dogecoin?

dogecoin

In a week packed with important economic announcements, a late rally left major indices mixed. The S&P 500 and Dow Industrials scored new all-time highs, while the Nasdaq dipped. The famous question from the SNL skit, “so what is Dogecoin” is gaining plenty of attention, but remains unanswered? The Dow up 2.72%, S&P up 1.26%, and Nasdaq down 1.48% for the week.

Last Week

In a week packed with important economic announcements, a late rally left major indices mixed. The non-farm payrolls disappointed, with only 266,000 jobs created in April versus expectations of nearly 1 million. Increased government unemployment benefits continue. This contrasted with Wednesday’s ADP report which showed private sector payrolls advancing by 742,000 in April. The unemployment rate in April ticked up to 6.1%. In general, the labor market continues to improve, with last week’s new claims falling to a pandemic-era low of 498,000.

ISM Manufacturing and Non-Manufacturing Indexes, which are based on industry survey data, both came in lighter than expected for April. However, both indexes still signaled economic expansion. With economic activity picking up, but the jobs number sending mixed signals to the market,
policymakers are reluctant to change their conservative views of the recovery. Treasury Secretary Janet Yellen said the jobs report “underscores the long-haul climb back to recovery.” She retains her expectation of full employment returning in 2022.

Crypto currency dogecoin fell 25% intra-day Sunday following the Musk hosted SNL. But what is it? According to CNBC, in 2013, software engineers Billy Markus and Jackson Palmer launched the satirical cryptocurrency as a way to make fun of bitcoin and the many other cryptocurrencies boasting grand plans to take over the world.  “The joke is on Wall Street this time,” said Mati Greenspan, portfolio manager and founder of Quantum Economics. “What you have is a situation where teens on TikTok are outperforming even the smartest suits by thousands of percentage points.” Dogecoin hit an all-time high Friday afternoon. Dogecoin now has a market capitalization of about $92 billion following a six-month climb of more than 26,000 percent. Not much of a joke at the moment.

Week Ahead

Treasury Secretary Janet Yellen’s hawkish rate hike commentary briefly sent worry through risk markets before she walked them back. Fed members continued to deflect inflation concerns. There are several FOMC member speeches today and tomorrow. So we will see if they maintain a united front. U.S. retail sales are expected to come in strong again. This continues the strong results from last month, a nearly 10% jump. Crypto currency dogecoin has rebounded 5% intra-day on Monday.

Year-to-date index performance; Dow up 13.62%, S&P up 12.68%, and Nasdaq up 6.70% through the close on Friday.

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

Erie CO Financial Advisor with a focus on investments, wealth management, and retirement planning in Boulder, Louisville, Niwot, Lafayette, Windsor, Berthoud, CO

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers.

Financial Review – Why now is still a good time

financial review

Isn’t it funny how quickly we adapt? Who would have thought that video conferencing would have become such an important part of life. And in fact a lifeline for many? It’s helped friends and families to keep in touch and enabled businesses to keep running during tough times. It’s certainly provided me with a helpful way of staying connected and providing financial review to clients.

Now, at the click of a button, I can invite you to a meeting from your home. I can make it interactive by sharing our screens to show you documents and charts. Of course, these meetings also save time because we’re not having to travel to see each other. Not to mention servicing clients in different states.

But the ‘Zoom revolution’ has also brought with it a new phenomenon. The phrase ‘Zoom fatigue’ describes the feeling of drain after too many virtual meetings. Psychologists explain that the added pressure of being seen on screen is what adds to this feeling of exhaustion. The strain of having to actively show through a small screen that we’re interested and alert can be tiring.

It’s certainly true that face-to-face meetings are much more relaxed. It’s an altogether more natural experience. There’s an emotional connection that happens without thinking about it. It’s easier to sense when someone needs to pause and reflect, and there are more comfortable silences. There’s also less chance of us talking over one another.

That’s why I’ll always advocate face-to-face interaction – and why I’m looking forward to seeing you again one day soon hopefully! But in the meantime, I want you to feel confident that your review meetings and catch ups – whether on the phone or via video – will still be just as effective as in person.

I understand what an uncertain and worrying time it will be for many and that now more than ever you’ll want to talk to someone in a relaxed a way as possible.

As part of your financial review, I’ll listen to your concerns and provide you with feedback and solutions based on your individual needs and priorities. I’ll also make every effort to make things clear and simple.

Last week wrapped up Financial Literacy Month. I hope you were able to learn a few new things and apply them to your strategy. One of my goals in sharing information is to engage you with useful content so you are in the best position to grow your wealth – and maybe even have a little fun. Ask yourself these three questions to reveal how financially literate you are:

  1. Are you in control of your spending? Examining your money habits and creating a budget puts you in the driver’s seat toward smart money management.
  2. Are you saving for your future? Do you live within your means and are you investing in yourself first and foremost? If you need more info about how to best do this, ask me.
  3. Are you confident in reaching your current financial goals? Listen to your gut, and act accordingly.

If you answered yes to all three of these questions, you’re in good shape. But if you said no, don’t worry. Many people have had to reevaluate their priorities over the past year. I can help get you on the right track. I’ll also invite you to participate comfortably in the conversation and ask me any number of questions – I really mean it when I say there’s no such thing as a silly question!

I hope this provides reassurance that now is still a good time for a financial review. By re-setting your financial strategy at this point, I can put recent market performance and your longer-term financial goals into context. It will also give you the chance to pause, reflect and resettle your mind.

I look forward to speaking to you.

Click here if you would like to learn more about your options and if we can assist you with your wealth management, investment, and retirement planning.

This website is for informational purposes only and is not intended to be specific advice or recommendations. For specific advice or recommendations you would need to meet directly with one of our advisers.