Transfer Your Values Alongside Your Wealth

wealth and values

There’s this lingering myth of “old money families” where wealth is easily passed from generation to generation. But studies have shown wealth attrition to be more common, as bad investment decisions, mismanagement and dilution of assets between heirs eats into the family fortune.

Overcoming the challenges that plague wealth stewardship comes down to two core elements – strong communication with your next generation and putting a proper wealth transfer plan in place. We’re here to guide you.

The Family Roundtable

One of the most common barriers in wealth transfer is a lack of transparency between generations. In higher net worth families, often the older generations will shield the scope of wealth from other generations to prevent them from abusing their inheritance. But early communication with your adult children about family wealth is key.

Having us as an independent voice to shepherd the conversation can help you and your heirs talk about transfer of wealth on equal footing. It gives you a chance to discuss your financial strategies, your plan for specific family assets including the family business, and any philanthropic goals or values you would like the next generation to steward.

It also provides a forum for the next generation to discuss their own aspirations, to share any fears, and, most importantly, to feel like they play a role not just as an inheritor of the family wealth but also as an active player in the preservation of that wealth.

We can act as an independent voice for the family roundtable, someone who can guide the conversation and ensure all questions are asked and answered. We can also pinpoint challenges and help both you and your heirs come up with strategies to navigate those challenges.

Formalizing the plan

In addition to guiding the conversation, we can also play a critical role in structuring your wealth transfer plan.

We can walk you through the different vessels for protecting wealth in the transfer, advise you on the different structures for trusts, identify assets to include in your will, outline the pros and cons of transferring wealth during your lifetime versus after death, and help you balance personal preferences with tax efficient strategies.

Estate plans are far from static; the wealth transfer process is an evolving discussion, one that we can help you navigate as life events like marriages and remarriages, births of children and grandchildren, significant health issues and death, change your family and your needs.

Amidst the change, it’s good to have a constant – who better to play that role than your financial advisor?

Contact me to learn more about transferring wealth.

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.

Market Brief March 30 2020

Tiger King Market Update

Yes, Tiger King fans, this post is for you. Since the Tiger King rage went viral last week, the market has also hit record setting performance days! Is it safe to say Joe Exotic should be the next Fed Chairman? It’s not a bear market, not a bull market, but a Tiger market! I’m all in … to the show, not stocks…

OK, time to get serious. Market dip to market rip! The Dow soared by 21% over a 3-day span, closing up 12.77% for the week. The largest 3-day gain since October 8, 1931, during the Great Depression. The Dow’s weekly finish was the best weekly gain since 1938, despite losing 4% on Friday. The S&P and Nasdaq indexes also finished up for the week, 10.26% and 9.05%, respectively. The indexes ignored the record weekly unemployment claims of 3.28 million! A record setting number in it’s own right. The U.S. also passed China last week with the number of virus infection cases. The saving grace for markets last week was the announced $2.2 trillion relief plan.

Despite the market bounce that began last Tuesday and continued today, large and fast rallies are frequent characteristics of longer-term bearish periods in the market. The eventual recovery from this public health crisis will be gradual, similar to the financial crisis recovery. The recovery is still unknown, and according to Dr. Anthony Fauci, “the virus makes the timeline,” and that will probably determine the markets recovery as well.

The Bailout

Stimulus, bailout, virus relief, The CARES act, whatever you want to call, came to the rescue at the end of last week. The fiscal policy pumps trillions into the economy, aimed at providing liquidity to households and businesses. These include IRS checks, a major expansion in unemployment benefits, as well as a broad combination of grants, loans, and loan guarantees for businesses (large and small), hospitals, schools, and state and local governments. This stimulus is designed to buffer the economy in the short-term, as the virus hit the hard and fast across the country. Long-term the effects may linger for some time. The upcoming quarterly earnings season will provide investors better guidance on how hard companies have been hit.

The Week Ahead

Policymakers’ huge support has helped stabilize risk, but long-term market stability and declining volatility hinges on the apex of coronavirus infections being in the rear-view mirror. Economic reports for the week include a slew of data including manufacturing and employment. This week’s focus will be on the jobless claims number, showing a more clear picture of the economic state.

Year-to-date index performance; Dow down 24.2%, S&P down 20.96%, and Nasdaq down 16.4%. Volatility remains high and historically market rallies come back after volatility drops to normal range.

Have a safe week and remember to go for a walk outside (after finishing the Tiger King season on Netflix)!

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.

Positive Investing News

Positive Investing News

Finding good news right now can be tough. The Q&A below highlights some of the positive investing news that can result from a crisis.

What is the one positive that you see coming out of this crisis
that is least expected?

Buying opportunity! Valuations have soared during the bull market run following the 2008-2009 recession, individuals interested in long-term investment growth should consider this as one of the best discount sales in recent years. Many people I speak to wish they could go back to the 2008-2009 time period and buy stocks. Today, some quality companies are down 30-80% year-to-date.

What new businesses will break into the marketplace, as a result of this crisis, that no one expected to grow so fast?

Technology has proven to be the winner. The S&P 500 Info Tech sector index has greatly outperformed the market. Included in this index are businesses supporting those working from home, such as, video conferencing and e-document companies. 

What existing industries do you feel will rebound the fastest
as things begin to return to normal?

The travel industry is taking an enormous hit. This will not last. Consider how many people will need a vacation after being stuck in their homes for a month (or longer). Or even had their trips postponed. Hotels, airlines, cruises, they are beaten down right now but will bounce back as the virus is contained. The stimulus will also aid, to some extent, discretionary spending for some. Travel is a huge component of discretionary spending.

Click here if you would like to learn more about our thoughts on Positive Investing News. Also, to discuss 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 Brief March 16 2020

Market Brief March 16 2020

Not sure where to start today? Every post seems to be outdated the minute it is published! Whether a virus update, Fed decision, a political speech, geo-political affairs, or another stock industry takes a dive downward. Volatility remains high, driving the big daily swings in the stock market.

Last week, President Trump initiated a travel ban and events across the country ceased immediately. Last night, the Fed stepped in with another rate cut. The reaction from the market was one of fear, driving indexes lower, and initiating the third trading halt in the last month to start the week. Despite the historic big rally on Friday, all indexes finished the week down. The Dow dropped 10.46%, the S&P 500 fell 8.86%, and the Nasdaq dropped 8.18%.

The Week Ahead

The week ahead includes Retail Sales, Industrial Production, and Housing Start data. There reports will provide a gauge of the consumer and business sentiment during this time of uncertainty. The mortgage rate drops may act as a tailwind for home buyers and those refinancing, in the near term, but the prevailing headwind of the coronavirus economic disruption remains front and center. Coronavirus focus will be on the growth of new cases, as well as, policies designed to identify and subdue the outbreak.

Big Picture

Year-to-date index performance; Dow down 18.7%, S&P down 16.0%, and Nasdaq down 12.2%. The media is publishing a lot of information regarding corrections, bear markets, and recessions. Let’s break those down. A correction is typically considered when the stock indexes drop 10% from the recent highs. A bear market typically is defined by a drop of 20% from recent highs. And a recession is 2 or more consecutive quarters of declining GDP growth. Our current economic state may be a recession, however, we will not know until the quarterly numbers are published after Q2 2020 is over. Yes, the markets corrected more than 20% from the highs on February 19, therefore, indexes are in bear market territory. Turnaround signs remain high correlated to virus improvement. The slowing of new cases, the decline of deaths, and the increasing number of recoveries. Until then, volatility remains here to stay. Corporate guidance up to this point is hard to judge. The next round of corporate earnings will be very important regarding the impact of the virus disruption and growth prospects going forward. Market volatility is inevitable when investing in the stock market.

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.

Market Brief January 21 2020

Market Brief January 21 2020

The Dow, S&P, and Nasdaq indexes all finished up last week Dow up 1.8%, S&P 2.0%, and Nasdaq 2.3%. The indices continued to rise from solid economic reports coming from the housing, retail, and pricing reports, as well as, easing tensions between the U.S. and China. With the trade news somewhat behind us, focus turns towards corporate profits as Q4 earnings season is underway.

This week includes 58 more earnings reports by S&P 500 companies, along with home sales data and jobs numbers keeping investors attention. U.S. existing home sales have missed three consecutive months, so Wednesday’s report will be important. Inflation remains a major headwind for investors.

Caution ahead. The yield curve inversion in 2019 still lingers. As market history proves, the inverted yield curve foresees recession up to 2 years following the initial inversion. Wage growth and corporate earnings. As wages continue to rise and unemployment remains historically low, this puts companies in a tough position. As the expenses rise, the dilemma is whether to pass the cost to the customer, or eat it. Either way, this can lead to a negative outlook for stocks, as companies either will have shrinking margins, or contribute to inflation by way of rising prices. This is worth keeping an eye on going forward.

Have a great 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.

Market Brief January 13 2020

Market Brief January 13 2020

Happy Monday to you all! The markets quickly pushed aside the idea of increasing tension between the United States and Iran, as cooler heads prevailed. Global news is now instantly spread and processed by the markets, and being an election year, further geopolitical volatility should be expected. During an address last Wednesday, President Trump gave no signal of further escalation. The Dow, S&P, and Nasdaq indexes all finished up last week Dow up 0.6%, S&P 0.9%, and Nasdaq 1.7%.

The markets shook off the Middle East tensions and lower payroll figure released on Friday, the U.S. economy added 145,000 jobs in December. Despite being weaker than expected, the jobs report extended the streak of gains to 111 months in a row. The decade wrapped up with 10 straight years of job growth as well. Wage inflation reported a 2.9% increase year-over-year, outpacing current inflation levels. Europe economic reports were positive last week. The Eurozone’s December services PMI’s were revised higher and industrial production rose higher.

U.S. inflation, retail, and housing reports fill up the week of economic news. 2019 holiday sales were a record, so the attention is focused on the Retail Sales report released on Thursday.

From the Stock Trader’s Almanac – the first five trading days of the new year were positive, indicating an increased likelihood of an up year for the market. The Santa Claus rally was also positive. Whenever both the Santa Claus rally and first week of trading are positive, the Dow has gained an average 11.5% for the year and rose 80% of the time.

Year-to-date index performance will begin tracking once we have a month under our belt in 2020. The Oklahoma/Ohio State National title was suppose to be tonight! Since we don’t have a dog in the fight, we will take the Tigers to win the championship! And for the sports nuts reading this, I am referring to the Orange and White tigers!

Have a great 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.

Market Brief January 6 2020

Market Brief January 6 2020

Happy First Monday of 2020! 2019 was a great year for returns in the market, and I am certainly looking forward to what this next year brings. Following the down year in 2018, all the indexes finished above 20%. The Dow up 22%, S&P up 29%, and the Nasdaq up 35%. The year never felt that way. Many headlines focused on negative sentiment to the trade war, manufacturing struggles, and the inverted yield curve. Despite these concerns, a strong consumer, low unemployment, and a Fed willing to reduce interest rates pushed markets higher.

As we enter 2020, we are reminded that not only trade war, but real wars can also cause market corrections and possible recessions. This unfolded last week with tension between the U.S. and the Middle East quickly escalating. Other points of caution ahead include the political environment in the U.S., as well as, the U.K. and China, and the impact rising wages for workers will have on corporate earnings. Lastly, the repo market remains a question mark as to how the economy and markets respond to the Feds actions. A similar buying spree pushed markets on a tear in 1999, followed by the dot com bust.

The markets never act as expected. So where danger lies, is typically determined after the fact. I don’t make market predictions, the market will go up or down, and volatility along the way is to be expected. Planning around the timing of market fluctuations is not sound for reaching goals. A comprehensive strategy that offers options, organization, and structure can provide the best chance for accomplishing financial goals. Whatever your goals may be for 2020 and beyond, the most sound advice is to work with someone to help you get there!

Have a great 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.

Market Brief Dec 23 2019

Market Brief Dec 23 2019

Finish strong! The market continues strength into the holiday season and finishing the year with new record highs! The Dow, S&P, and Nasdaq indexes all finished up last week Dow up 1.1%, S&P 1.7%, and Nasdaq 2.2%. The indices reach for record all-time highs as trade sentiment remains positive and economic reports remain strong from both the U.S. and China. Caution of weakness remain with Europe’s slowing economy and domestic manufacturing.

What a year it has been! Coming off a terrible Q4 of 2018, the question was how far or how much more could the market be beaten down. The market took a few more punches the first week of January, then the snap back rally began. Pullbacks came and went in May, August, and September, stirred up by the trade war uncertainty with China, and perceived economic weakness globally. All pullbacks were short lived, following the Fed’s stance of easing rates, which occurred three times in 2019, and the strength of the U.S. consumer. The theme for the year really is the U.S. Not just companies who primarily have revenues in the U.S, but the consumer and U.S. economy as well. Companies with more than 50% of revenues in the U.S. achieved much better earnings reports than companies selling globally. And the U.S. consumer is strong; unemployment is low, wages are rising, and debt delinquencies are low.

So how about them markets?! Year-to-date index performance; Dow up 22.0%, S&P up 28.5%, and Nasdaq up 34.5%. These numbers are great across the board, given recession fears were news headlines the entire year, impeachments news dominated the latter part of the year, and a trade war with China was never meant to end! Excellent match-up on the last MNF game of the season tonight, for entertainment purposes to keep the pick ’em streak alive its the Pack over the Vikings!

Thanks for reading this market brief, have a fun and safe holiday season, see you in 2020!

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.

Market Brief December 16 2019

Market Brief December 16 2019

The Dow, S&P, and Nasdaq indexes all finished up last week Dow up 0.49%, S&P 0.77%, and Nasdaq 0.93%. The markets continued to march higher following the final Fed meeting of the year and trade optimism heading into the weekend. The Fed closed the final meeting of the year leaving interest rates unchanged due to favorable economic conditions, strong jobs reports, and low inflation. The U.S. and China reached a phase one trade deal on Friday, easing concerns on the tariff war.

The S&P 500 index has now closed higher in 9 of the last 10 weeks. The Fed meeting last Wednesday went pretty much as expected, no surprises. Fed Chairman Jerome Powell made clear that policies would remain accommodating, positive language for stock market bulls. Powell also reiterated that it would take a significant and sustained rise in inflation for the U.S. Central Bank to raise interests rates in the near term.

Economic reports coming out this week include Tuesday’s Housing Starts for November to give a pulse on the housing market. Wednesday will see the mortgage application report, also provide insight to the housing market, as will Thursday’s existing home sales report. And Friday, Q3 GDP numbers and University of Michigan Consumer Sentiment reports are released. Further details on domestic growth and consumer strength.

Year-to-date index performance; Dow up 20.6%, S&P up 26.4%, and Nasdaq up 31.6%. Stay positive, there are good things going on! Jobs and wages are moving up, companies and consumers continue to benefit from tax cuts, consumer balance sheets look healthy, and serious (90+ day) debt delinquencies are down substantially from post-recession highs. We have a good match-up on MNF tonight, for entertainment purposes to keep the pick ’em streak alive its the Saints over the Colts!

Have a great week! Good luck with your last minute holiday shopping 😉

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.

Market Brief Dec 9 2019

Market Brief Dec 9 2019

It’s that time of year, yes, the Elf on the shelf is watching! Hopefully, he can add some magic fuel to the stock market before year-end! The Dow and Nasdaq indexes fell slightly, 0.13% and 0.10%, while the S&P index finished the week with a small gain of 0.16%. The week started with a slide, and the markets almost fully recovered by the end of the week. Driving the markets higher on Friday was the jobs report that came out, way above estimates for November.

The jobs data dispelled worries about potential trade-war-induced recession. Aiding the jobs report was the return of General Motors strikers, accounting for 46,000 of the 266,000 gain. Furthermore, upward revisions totaled 41,000 for the two previous months. The unemployment rate came in at 3.5%. Before 2019, the last time the unemployment rate was this low was 1969. The ISM Manufacturing index report signaled a reading of 48.1, indicating a 4th month in the contraction phase as trade uncertainty lingers. The ISM non-manufacturing index remained in expansion territory for the 118th consecutive month. Employment wages also grew at 3.1% over the prior year. Black Friday retailers cashed in on the strong employment situation, as online sales jumped 19.6% year-over-year.

Since October 11, when President Trump acknowledged there were some details needed to finalize Phase One of the trade deal to be concluded. The Fed also announced its program to increase liquidity that same day. Since then, the S&P has risen 7%. The response to Sunday’s tariff deadline could pose a volatile week ahead, as markets have been very sensitive to the latest trade news.

Year-to-date index performance; Dow up 20.1%, S&P up 25.5%, and Nasdaq up 30.5%. What else? This year’s Atlantic hurricane season was the 8th most on record since 1851, I should have been in the catastrophic business! The number of banks on the FDIC list of “problem banks” stood at 55 in Q3 2019. For perspective, the post-crisis high was 888 in Q1 2011. The U.S. Agriculture Department has indicated a 33% decline in Christmas tree production, from 30 million in 1977, to 20 million earlier this decade. Fun fact, it takes nearly a decade to grow a 5-to-6 foot tree! That is some tall inventory to keep around. Awful match-up on MNF tonight, for entertainment purposes to keep the pick ’em streak alive its the Eagles over the G-men! The Oklahoma/Ohio State National title collision course that I predicted in October is still possible but I would say unlikely, as LSU is playing the best football out of the final 4.

Have a great 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.

Market Brief Nov 18 2019

Market Brief Nov 18 2019

Not a lot of market and economic changes over the last week. Much of the same continued geo-political and impeachment unrest. The Dow, S&P, and Nasdaq indexes all finished up last week Dow up 1.2%, S&P 0.9%, and Nasdaq 0.8%. The indices reach for record all-time highs. Recent recession concerns have calmed down as trade talks have simmered. Slowdowns from industrial production is drawing the latest concern. However, employment remains strong and the consumer continues to spend. The Friday retail sales data was the latest reading of consumer spending available and showed an October bounce-back after September saw a decline; the first in seven months. 

Industrial production continued to slow in October, as the GM strike dragged on. Manufacturing, excluding autos, had a smaller decline of 0.2% in October. It’s also important to remember that we had a similar slowdown in 2015-16 during the oil price crash, and no recession materialized. Looking ahead to next week, economic data is expected in housing, leading indicators, consumer sentiment and jobs. These are all direct measures of consumer health, which has been the cornerstone of recent market returns. At 3.97%, mortgage delinquencies fell to the lowest level in nearly 25 years, and those in serious delinquency fell to 1.81%, the lowest since Q4 1985! University of Michigan Consumer Sentiment Index showed a small gain over the prior month. It was the third consecutive month of improvement and further indication that the U.S. consumer is on solid footing.

Year-to-date index performance; Dow up 20.1%, S&P up 24.5%, and Nasdaq up 28.7%. What else? Redfin reported that U.S. homeowners are residing in their homes for roughly 13 years, five years longer than the average in 2010, according to The Wall Street Journal. The lack of turnover is contributing to the low inventory levels of homes for sale, now near its lowest point in 37 years, according to CoreLogic Inc. Economists point out that many baby boomers are staying healthier later in life and not downsizing. For entertainment purposes only, we will take the Chiefs over the Chargers in Mexico.

Thanks for reading, have a great 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.

Market Brief November 4 2019

Financial Advisor Market Brief November 4 2019

We enter the second to last month of 2019 on a positive note. More treats than tricks last week, as all three indices finished positive: the Dow up 1.4%, S&P 1.5%, and Nasdaq 1.7%. The indices reach for record all-time highs, while much of the commentary is pointing to global economic downturn. There are three areas driving the markets higher at this time. First, corporate earnings is underway and majority of the results are much better than expected. Second, economic data continues to be positive. Third, improving trade talks, although this seems to with each passing day. And for a bonus reason, the Fed cut rates last week, as expected.

So why is recession talk a daily headline? The negative headlines focus on trade war uncertainty, global manufacturing slowdown (Germany), and contraction in U.S. manufacturing as areas of concern. And while that may be true, these headlines fail to shine light on the strength of the consumer and low unemployment (September 3.6% reading was a 50-year low). Never has there been a recession with the unemployment rating where it is at today. Icing on the cake is the Fed interest rates at such a low level. In fact, at the end of the last 5 bull markets, the lowest Fed rate was 4.75%, compared with today’s rate range of 1.5-1.75%. Lastly, the jobs report from Friday indicate further job creation in the marketplace, reaffirming the strength of the U.S. labor market.

For now, the Fed stated they will keep rates steady unless prompted by new economic data to take action. Inflation is still top of mind, and the latest quarterly GDP report indicated growth rate of 1.6%. This reading is slightly below the Fed’s annualized growth target of 2.0%.

And with all that said, the Citigroup Market Sentiment indicates a reading closer to market panic (vs euphoria). The week ahead has light economic reports being released. Main focus will be on corporate earnings, global manufacturing data, and Friday’s University of Michigan consumer sentiment report.

Year-to-date index performance; Dow up 17.2%, S&P up 22.3%, and Nasdaq up 26.4%. What else? If you are in the market for a new home, the Hamptons have the largest inventory for sale since 2011, can you say Buyers market! Or if you prefer a parking spot, the most expensive spot just sold in Hong Kong for $969,000 – that’s a lot of dough for 135 sq ft of concrete – maybe it has a beautiful view!?!? Heading to college, be sure to check the price tag! To the surprise of nobody, growth of indirect college costs (tuition less grants and scholarships) from early 1980s to early 2000s has grown 137%, per a St Louis Fed Analyst. Fair to say it has grown another 137% from the early 2000s to now? Not a bad idea to start socking away college tuition dollars if you have rugrats in the house. According to the Bureau of Labor Statistics, less than ⅕ of American full-time workers have access to any paid family leave, although that is up from just 10% as recently as 2010. So, trending in the right direction… but hope you have a nice boss! We do have a great rivalry match-up tonight on MNF, for entertainment purposes to keep the pick ’em streak alive its America’s Team over the G-men! How bout dem Cowboys!

Have a great 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.

Market Brief October 28 2019

Market Brief Oct 28 2019

Happy Halloween! And the markets either have a trick up the sleeve, or a treat for those invested! The Dow, S&P, and Nasdaq indexes all finished up last week Dow up 0.7%, S&P 1.2%, and Nasdaq 1.9%. The indices reach for record all-time highs, while much of the commentary is pointing to global economic downturn. The lesson here is that stocks are acting better in the face of weak economic data, such as the September ISM reading and weak German production. Stock markets are a leading indicator, and economic data reports are looking backwards. So higher prices are factoring in strong earnings, favorable monetary policy, and (current) positive sentiment from the U.S./China trade war.

As of Friday, the federal-funds futures market priced in a 93.5% probability of a quarter-point rate cut. The Fed aims to keep the economy growing, even with a 50-year low unemployment rate of 3.5%. So what’s with the further rate cut? Well, the central bank’s inflation target is 2%, and current growth is below that target. And it is not just the U.S. participating, globally, there have been 40 rate cuts in the past 3 months. Global rates, however, may have reached a floor, as Sweden’s central bank (also the oldest central bank) hinted to a rate increase in December. Time will tell.

And with all that said, the Citigroup Market Sentiment indicates a reading closer to market panic (vs euphoria). Looking at this week (besides Fed meeting on Wednesday), it is a heavy economic reporting week with Consumer data Tuesday, employment on Wednesday, and manufacturing data on Friday.

Year-to-date index performance; Dow up 15.6%, S&P up 20.6%, and the Nasdaq up 24.2%. What else? Colorado was hit with the second snowfall on the Front Range. So, if you were dreaming of a white Halloween, you might get it this year! We don’t have a great match-up on MNF tonight, but for entertainment purposes to keep the pick ’em streak alive, it’s the Steelers over the Fins! World Series prediction was off with America’s pastime, Astros in 5, and the Oklahoma/Ohio State National title collision course doesn’t seem likely after the Sooners lost this weekend.

Have a fun and safe Halloween week! And turn back the clock Saturday night!!

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.