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Crypto Freefall and Your Portfolio

jim Financial advisor, Market Brief, Market Commentary, Market Outlook, Market Review, Stock Market May 24, 2021May 24, 2021financial advisor, market brief, Market Commentary, Market Outlook, Market Review, Stock Market

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?

jim Financial advisor, investment strategy, Retirement Planning, wealth planning strategies May 19, 2021May 19, 2021financial advisor, investment management, retirement planning, wealth management

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.

So what is Dogecoin?

jim Financial advisor, Market Brief, Market Commentary, Market Review, Stock Market May 10, 2021May 10, 2021financial advisor, market brief, Market Commentary, Stock Market

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

Financial Review – Why now is still a good time

jim Financial advisor, Financial Review, investment strategy, Retirement Planning, wealth management, wealth planning strategies May 3, 2021May 3, 2021financial advisor, financial review, investment strategy, retirement planning, wealth management

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:

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.
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.
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.

Proposed Capital Gains Tax Rate Increase and Your Money

jim Financial advisor, Market Brief, Market Commentary, Market Outlook, Stock Market April 26, 2021April 26, 2021financial advisor, market brief, Market Commentary, Market Outlook, Market Review, Stock Market

Stocks ended mostly flat on the week, with an abrupt tremor on Thursday after President Biden proposed a sharp increase in the capital gains tax rate. Housing market and job reports remain strong. The Nasdaq-100 sits just below all-time highs. Indexes for the week; the Dow down 0.42%, S&P down 0.11%, and Nasdaq down 0.25%.

Last Week

Government stimulus, monetary policy, and vaccinations have led indexes to reach near all time highs. President Biden’s proposal to increase capital gains tax rates to 39.6%, led to a severe drop on Thursday afternoon. The markets quickly recovered on Friday. Housing data continued to grab headlines, with the median selling price for existing U.S. homes up 17.2% year-over-year to $329,100 in March. Existing home sales actually dropped 3.7% last month due to supply being so limited, while new home sales in March increased 20.7% month-over-month and 66.8% year-over-year. The average sales price of new homes also increased 6% from the prior year. Jobless claims fell to a pandemic era low of 547,000. This is the lowest weekly level since March 2020.

Week Ahead

The Federal Reserve likely will not be changing monetary policy at Wednesday’s meeting. However, with economic data improving and inflation perhaps moving towards 4%, investors will be listening closely for clues about a shift in strategy. On Thursday, we will get our first look at Q1 GDP, with strong growth of 6.6% expected. The other main event this week is a slew of earnings reports. This includes a third of S&P500 companies and many of the important names in the Nasdaq, such as Apple, Amazon, Facebook, Microsoft, and Google.

The week will close out with U.S. pending home sales and several GDP reports from Europe and Canada. Before getting up in arms regarding the increased capital gains tax, consider this news was a reaction to the proposal. Also, this proposal only impacts individuals earning more than $1m. Year-to-date index performance; Dow up 11.23%, S&P up 11.29%, and Nasdaq up 8.76% 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.