Disclaimer: These are the views of Summit Financial Consulting and should not be construed as investment advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.
The first quarter of 2019 saw the stock market rebound from the nearly 20% decline that ended 2018. Our TD Ameritrade in-house managed portfolios have provided a consistent uptrend over the past few years and 2019 has continued that trend so far.
The S&P 500 is now approaching the levels it reached last September before the market dropped. It’s worth noting that this is the spot where we sold the majority of our stocks last fall. We receive an indicator every day from one of our independent research firms that tells us whether the market is overvalued or undervalued. It ranges from 0 all the way up to 36. 0 is the best buying opportunity and 36 is the best selling opportunity. The indicator moved all the way to 36, and has since turned red, telling us that there is a higher probability of a drop in the market soon.
Because of this, we have once again taken some defensive measures inside our managed portfolios and have moved inverse in a number of our portfolios. If this indicator changes to green, or if our other research tools tell us that the market is more likely to jump to all-time-highs and higher, then we will reverse course and step on the gas. For now, we’re reducing risk to potentially increase protection on the downside.
When you take into consideration that the China trade dispute, North Korean nuclear situation, withdrawals from the wars in Afghanistan and Syria, not to mention plenty of government political disagreements are all up in the air, it’s certainly a period of time where reviewing the portfolio daily is a good idea.
We will let you know if there is a situation which calls for immediate attention. If you have any questions about taxes, your investment portfolio, our 401(k) recommendation service, or anything else in general, please give our office a call at (586) 226-2100. Please feel free to forward this commentary to a friend, family member, or co-worker. If they would like to be added to our complimentary commentary, please send us an e-mail at firstname.lastname@example.org at your earliest convenience. If you have had any changes to your income, your job, your family, your health insurance, your risk tolerance, or your overall financial situation, please give us a call so we can discuss it.
Thank you for your confidence and referrals!
Bob, Ken, and Jim
Summit Financial Consulting
Billionaire Warren Buffett, a major Apple investor, uses a $20 flip phone, one that he has had for a while, joking that Alexander Graham Bell loaned it to him and he forget to return it. Source: -CNBC, March 28, 2019
In 2018, movie ticket prices averaged $9.11. Adjusted for inflation, it is now cheaper to go to the movies than it was in the 1970’s. Source: Marketplace, March 14, 2019
On average, the flu kills between 12,000 and 56,000 people in the U.S. each season, according to the CDC. Source: -The Wall Street Journal, March 22, 2019
A recent poll by the New York Times show that 74% of parents have made an appointment, like a doctor’s visit, for their 18-to-28-year-old children, 16% helped write their job or internship application, and 11% called their child’s employer when an issue arose. Source: –FXStreet, March 22, 2019
Over the 2017 holiday season, a company investigated the germiest airport spots, performing 18 tests across six different surfaces from three major U.S. airports looking to identify the average number of bacteria per square inch. It might surprise you to learn that self-check-in kiosks had the highest number with Atlanta Hartsfield coming in at 1 million CFU. To put that into perspective, an average airport toilet seat contains 172 CFU. Source: -Curiosity, June 21, 2018
In the past five cycles, the time between the Fed’s final interest rate hike and its first interest rate cut has averaged just 6.6 months. Source: ––CNBC, March 26, 2019uary 2, 2019
The government collected an estimated $4.7 billion in taxes from legal cannabis companies last year on nearly $13 billion in revenue. Source: -Daily-Qz.com, November 14, 2018
Student debt now exceeds $1.5 trillion and nearly 40% of borrowers are expected to default by 2023. Source: -CNBC, August 13, 2018
Disclosures regarding our performance reporting: Because some clients are in the 10% tax bracket and others are in the 37% Federal tax bracket, we have decided to report performance before taxes. If you have a non-qualified account, please feel free to contact us to determine your individualized rate of return after tax. All of Summit’s performance is after our 1.25% advisory fee that is deducted monthly. Your fees may be higher or lower depending upon the amount of assets invested with our firm. Feel free to contact us to receive online access so you can see your personalized rate of return. The Aggregate bond index we use is ticker: AGG. All dividends and distributions are reinvested and included in the performance. The S&P 500 index quoted above does not include dividends within the performance. If a holding within our portfolio does pay a dividend or other income, it is reinvested, so our performance does include dividends. This report has been prepared from data believed reliable, but no representation is made as to accuracy or completeness. Total return and principal value will vary depending upon the deduction of advisory fees, brokerage commissions, reinvestment of dividends and other earnings or fund charges. This information is provided to you in combined form, solely for your convenience and ease of review and is not an offer or solicitation to buy or sell any securities. In order to verify that all account values and transactions are accurate, we encourage you to compare the information provided in our statement with the statement you receive directly from your custodian. All written content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Past performance does not guarantee future results.
Summit Financial Consulting LLC
43409 Schoenherr Road, Sterling Heights, MI 48313
Phone: 586-226-2100 Fax: 586-226-3584 E-mail: email@example.com
Securities offered through Gradient Securities, LLC (Arden Hills, MN (866)991-1539) Member FINRA/SIPC
Summit Financial Consulting LLC is independent and is not an affiliate of Gradient Securities, LLC. Investment advisory
services offered through Summit Financial Consulting LLC, a Registered Investment Advisor in the State of Michigan.