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, cybersecurity 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 hands 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.

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