July 2017 – Market Commentary

July 2017 – Market Commentary

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. 


Solid first Half of the Year, but is there a Tech Bubble?

Overall, the first half of the year was very solid for our portfolios, especially in the 2nd quarter. Up until last week, the Nasdaq was nearly doubling the performance year to date of the Dow Jones Industrial Average and the S&P 500 (Source: Ycharts.com). However, the Nasdaq lost about 2% last week while the other indexes held their own a bit better. Some investors are worried that the sky-high valuations of large technology firms are a tech bubble that is getting ready to burst at any moment.

We have a good amount of technology within our portfolios at TD Ameritrade because it has been a high flyer this year. Our research says that the economy is speeding up overall from a GDP standpoint, and companies that have their earnings accelerating are normally the stocks that perform the best. At this point, the recent underperformance in technology stocks seems like a bump in the road that should continue to head in the right direction.

Bonds and the Nasdaq took some lumps last month while the Dow and S&P 500 held their own. Overall, it was a good quarter, but a mixed month. That’s how most of our portfolios looked as well in June, but up solidly for the quarter. We’re not making any large adjustments quite yet, but if technology doesn’t hold up well, we’ll be moving to a more defensive posture overall.

Our short-term indicator is still red on the market as a whole, meaning there is a chance for a short-term drop, but our intermediate and longer-term indicators are still green, pointing to an overall uptrend.

We’ll continue to review your holdings daily. If you are a client and disagree with any of the moves inside your portfolio, if you would like to update us on your risk tolerance preferences, or if you have had a dramatic change to your income or financial situation, please contact us to discuss it

Please feel free to forward this commentary to a friend, family member, or co-worker. If they would like to be added to our free commentary, please send us an e-mail at info@summitfc.net at your earliest convenience.

Interesting Points

In America, deaths from painkillers, opioids, and heroin have soared 50% in just one year. In Ohio, the coroners’ offices are running out of room to store bodies so they are bringing in refrigerated trucks. – The Week, June 16, 2017

“The Fourth of July is a constant reminder of how useless my dog would be in the event of a war.” – Anonymous

For the first time, the number of Netflix subscribers in the United States (50.85 million) now exceeds the number of cable subscribers (48.6 million). – CNBC, June 16, 2017

Tuition costs rose at the slowest rate on record, going up 1.7% in May from a year earlier. College tuition and fees have never, ever gone down in the nearly four decades that the measure has been tracked as part of the Consumer Price Index – Vicenews.com, June 16, 2017

The only days of the year in which there are no professional sports games- MLB, NBA, NHL, or NFL- are the day before and the days after the Baseball All Star Game. – The Bleacher Report

Roughly 60% of NBA players and 78% of the NFL file for bankruptcy within 5 years of retiring. – Forbes.com, February 9, 2015

“Americans learn only from catastrophe, and not from experience.” – Theodore Roosevelt

In the past 35 years, China has reduced the percentage of its population living in extreme poverty from 88% to less than 2%. – The Week, June 16, 2017

Only 12% of American homeowners have flood insurance, even though property owners are 26 times more likely to suffer flood damage than fire damage over the course of a 30-year mortgage. – CBSNews.com, June 14, 2017

Last year, about half of U.S. workers who get vacation days did not use all of them, leaving 662 million vacation days on the table. According to Nathan Lump, editor of Travel and Leisure Magazine, when people take time off, they tend to spend money. “If people took even one more day off a year than they do, that would add $33 billion to the economy” he said. – Marketplace.org, June 20, 2017

 

Summit Financial Consulting LLC

43409 Schoenherr Road, Sterling Heights, MI 48313
Phone: 586-226-2100 Fax: 586-226-3584 E-mail: info@summitfc.net
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.

SUSCCMICOC_2814_SHRCCI proud to be

June 2017 – Market Commentary

June 2017 – Market Commentary

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. 


UK Election, Impeachment, and Terrorism

It seems like the current political, economic, and military situation is very unique, and concerning. The UK has a leadership problem after the election last week and this is only a couple weeks before formal BREXIT talks are set to begin. President Trump has had his hands full with a number of situations that have prevented him from advancing his healthcare and tax cut agenda. And lastly, the terrorism that has occurred the past few months is truly startling, and could be a concern that this is a new normal. To provide context, we went back and looked through our previous market commentaries to see what issues were concerning in the past few years, and how they compared to today. After our review, there is one common conclusion: This too shall pass.

As we have mentioned previously, we are constantly updating our research lineup to attempt to create the best outcome for our client portfolios as possible. The upgrades we made last December to our research platforms have continued to bear fruit. Most of our TD portfolios have made money every single month since then, despite some rather large fluctuations in the stock and bond markets. Our short-term indicator for the stock market has changed to red. This means that in the next few weeks to months, there is a higher probability that the stock market heads south for a while. Similarly, after a nice run since the election, the bond market is starting to show signs of stress again. Because of this, within our TD Ameritrade portfolios, we have made some adjustments to reduce exposure to certain areas of the markets that are concerning to us. In summary, we’re trying to sell high and buy low whenever possible. read more…

May 2017 – Market Update / Commentary

May 2017 – Market Update / Commentary

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. 

Market and SFC Portfolio Update

If you’ve been reading the attention-grabbing headlines and trending news topics lately you may think the world is about to end. Whether you’re reading about what’s happening in Washington DC and across the globe politically, cyber security breaches, or yesterday’s big market correction (S&P 500 down 1.82% and Russell 2000 and Nasdaq both down over 2.6%), you may be curious how your investment portfolio is doing.

We’re writing this update today so you can breathe a sigh of relief. We recently reduced our exposure to the equity markets at near-term highs as we believed them to be overbought, and added an S&P 500 inverse position into the majority of our portfolios. We also added defensive sectors to our Sector Rotation portfolio including utilities, consumer staples, and real estate. These positions are actually up today and making money. We also increased our bond exposure in the majority of our portfolios to help fight the recent volatility we’ve been experiencing. Interest rates are currently falling through the floor which typically benefits bonds immensely.

This is why we watch our portfolios daily, so you can relax and know we have our hand on the wheel and eyes on the road. In our current geopolitical state, we feel investors need the flexibility to move to cash or change course if something big happens in the market. We realize some clients like to take advantage of market corrections so if you would like to change your portfolio in any way or have any questions we encourage you to give our office a call. There are some lines in the sand that, if triggered, we believe could send the market down further so we are watching all developments extremely closely. If we believe the market is stabilizing, we’ll consider increasing risk by selling some of the more defensive positions.

If you own a longer-term investment, such as a variable annuity or 529 plan, our longer-term indicators are still saying that this is a shorter-term fluctuation in the market and that there is not necessarily a need for a reaction today. If that changes, you’ll most likely be hearing from us soon.

If you are a client and disagree with any of the moves inside your portfolio, if you would like to update us on your risk tolerance preferences, or if you have had a dramatic change to your income or financial situation, please contact us to discuss it

Please feel free to forward this commentary to a friend, family member, or co-worker. If they would like to be added to our free commentary, please send us an e-mail at info@summitfc.net at your earliest convenience.

Interesting Points

Investors are hoping the old Wall Street cliché “sell in May and go away” won’t apply this year. In fact, the DOW, S&P 500, and NASDAQ have not fallen in the month of May since 2012. – Marketwatch, April 26, 2017

In April, non-farm private employment rose for the 86th straight month, the longest such streak on record. – WSJ.com, May 11, 2017

Apple has more than $250 billion in cash, an amount greater than the foreign currency reserves of the United Kingdom and Canada combined. – The Wall Street Journal, April 30, 2017

On average, we check our phones 47 times a day- 82 times if you are between 18 and 24 years old. – The New York Times, May 2, 2017

Fifteen years after the introduction of the euro banknote, more than $16 billion worth of outdated cash and coins have not been exchanged. About a third of this total is now worthless. – Bloomberg.com, April 5, 2017

The U.S. continues to spend more on health care as a percentage of its Gross Domestic Product than any other country in the world. – The Motley Fool, April 13, 2017

Every minute, roughly 400 hours of video are uploaded onto YouTube. – New York Times, April 17, 2017

Today, Google has 88% of the search advertising market, Facebook controls 77% of mobile social traffic, and Amazon lays claim to 74% of the e-book market. Such figures suggest we have been transported back to the early 20th century and have entered a new age of monopolies. – Economictimes.com, April 25, 2017

 

Summit Financial Consulting LLC

43409 Schoenherr Road, Sterling Heights, MI 48313
Phone: 586-226-2100 Fax: 586-226-3584 E-mail: info@summitfc.net
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.

SUSCCMICOC_2814_SHRCCI proud to be

April 2017 – Market Commentary

April 2017 – Market Commentary

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. 

 

So Far, So Good in 2017

In our previous market commentaries, we mentioned that we felt bonds had good potential to grow after the setback that occurred because of the election.  We’re delighted to say that bonds have rallied so far this year.  In March, the S&P 500 and Dow Jones were both negative as fears associated with BREXIT and the health care bill failing weighed on the market.

We’re happy to see gains in March at TD Ameritrade in most holdings despite the poor performance of the Dow Jones and S&P in March.
read more…

SUSCCMICOC_2814_SHRCCI proud to be

Contact Us

Phone: 586-226-2100
Fax: 586-226-3584
info@summitfc.net

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43409 Schoenherr Road
Sterling Heights, MI 48313
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Securities services offered through Gradient Securities, LLC (Arden Hills, MN 866-991-1539).   Member FINRA/SIPC.  Investment advisory services are offered through Summit Financial Consulting, LLC, a MI registered investment advisor.  Gradient Securities, LLC and its representatives do not render tax, legal, or accounting advice.  Insurance products and services are offered through Summit Financial Consulting, LLC.  Summit Financial Consulting, LLC is not affiliated with Gradient Securities, LLC.

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