S&P 500 3rd Quarter Earnings Update

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October was a stormy down month. November, despite ending up 2%, was a rollercoaster-like month and December is shaping up to be another volatile month. Investor confidence has been shaken. Now would be a good time to look at fundamentals that underpin the market and it doesn’t get any more basic than earnings. At the end of the day, earnings and earnings projections are an integral part of what drive market returns – the price … Read More

2018 Year-End Rally Underway

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October and November have combined to give us quite a volatile time in the market. October 2018 was historically one of the roughest months. Since 1988 October 2018 was the 17th worst month out the 371 months, ranking it in the bottom 5% of all months. Also, October 2018 was the 2nd worst month out of the 31 Octobers since 1988, surpassed only by the financial crisis in 2008, placing it in the bottom 7% … Read More

Market Corrections Are Expected

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I started my career in serving individuals and entities and their investment needs in November 1982, so 36 years in, I can reflect on this October’s volatility as just another one of these kind of crazy, yet to-be-expected episodes where the equity markets, or some other market(s), create considerable stress for many investors. While US and International equity returns are very attractive over the long term, we often forget that there will be periods of … Read More

S&P 500 Earnings Update and Trade Resolution

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Recent volatility in equity markets has been attributed to rising interest rates and concerns that U.S. equities will be unable to maintain what has been historically strong earnings growth. U.S. equities have sharply outperformed their international peers year-to-date, and much of that outperformance stems directly from strong earnings numbers, which have been bolstered by a robust U.S. economy and the effects of corporate tax cuts. At the end of the day, earnings and earnings projections … Read More

US High Yield Bonds Serving An Unusual Role

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For fixed income investors, 2018 has been a bit of a rocky road. While the S&P 500 is up 10.3% year-to-date, the fixed income landscape has had its share of difficulties. U.S. high yield has managed to quietly miss much of the pain that has hit Emerging Market Bonds, as well as higher quality U.S. corporate bonds and U.S. treasuries. U.S. high yield, as represented by the iShares iBoxx High-Yield ETF (HYG), is up +2.09% … Read More

Should Long-Term Investors Own More Emerging Market Equities?

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Should long-term investors consider allocating more of their equity allocation to emerging markets now? Yes! The iShares Core MSCI Emerging Markets ETF (IEMG) currently trades just above its recent low of $51.25 made on June 27th, the lowest point in just about a year and a potentially attractive entry point. IEMG is the 2nd largest emerging markets ETF with $46 billion in AUM, providing high liquidity, and only charging a 0.14% internal expense ratio. IEMG … Read More

Earnings And Stock Market Valuations

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While US equity markets have struggled to maintain consistent upward momentum roughly halfway through 2018, the underlying earnings that ultimately drive equity valuations have received a boost thanks to decent GDP growth and a pro-business administration, highlighted by the recent corporate tax cut legislation. On a trailing twelve-month (TTM) basis, S&P 500 reported earnings are anticipated to rise 9% in Q2 to a forecasted $125. Analysts believe the TTM growth rate will then continue at … Read More

2018 Mid-Year Update

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Economic Backdrop The “goldilocks” scenario of economic growth with low inflation, necessary for the US Federal Reserve (Fed) to continue its moderate pace of quantitative tightening, evaporated temporarily in early February when inflation data surprised to the upside. Sudden spikes in nominal interest rates from rising inflation expectations signaled an expectation that the Fed’s hand would be forced to raise the benchmark Fed Funds rate more quickly than anticipated. It seemed that the Tax Cuts … Read More

Getting Back To Being In Front of Clients and Prospects – Leaving The Rest To Us

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Financial Representatives are facing higher expectations than ever before. Maintaining a successful relationship with clients requires not only developing a financial plan or tax strategy. In today’s constantly connected world, you must be accessible 24/7 to serve your clients, and somehow find the time to open, service, and manage client accounts, all while handling day-to-day office duties, and reviewing strategic business concerns. These pressures can make the Financial Representative feel encumbered with trying to be … Read More

If Your Client Were Asked?

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If your client was asked by their best friend who they should use as a financial advisor, would this be your client’s answer? “I don’t know exactly what my advisor does, when they will call me next, and they handle 37% of my wealth so you should definitely call them to help you” Well, that probably isn’t the answer you hope they give. And while you think you know what your clients say about you, … Read More