3rd Quarter Market Outlook
I hope that you are staying dry and have not taken to a canoe as your major form of transportation with all of the recent rain we have had here. While the seasons have predictably begun to turn into fall in our rain soaked city of Greensboro, the markets have been much less predictable. Emotional moves in the market continue to have effects on volatility and have led to declines in many of the major indexes. While our instinct is to emotionally react and pair and downturn with past experiences, we advise clients to take the high road and stay with their long term plans. Downturns in the market, while uncomfortable, are part of investing. Each of your portfolios has been designed for your time horizon and risk tolerance. We have been scheduling many reviews to sit down with clients for updates, if you have questions please do not hesitate to call so that we can review your situation and make any changes necessary. Unfortunately, unlike the seasons, the financial markets are much more complex and unpredictable, although
On the Personal Side:
As you receive this email, I am just returning from a trip to Asheville with my wonderful bride to celebrate our ten-year anniversary. If I had only known ten years ago the fun, depth, pain and hard work we would both go through. I am appreciative to have the best business consultant, companion, parenting teammate and companion in life I could find. No, the trip to France for our ten-year anniversary that I naively promised 10 years ago did not occur but a nice glass of French wine in Asheville was awesome. I am looking forward to cheering her on for the Boston Marathon as she was just officially accepted. I guess I have become Lila is well into 1st grade and the ability to spell things in front of her is out the window. She is taking piano lessons, loving school, losing teeth, becoming brainwashed very quickly into a UNC football fan by her father and beginning to ask some of the tougher questions about life that I happily defer to her mother on. Amelia has surprised us all by waiting until now to have her first broken arm. While not a fan of her “casket,” the big girls in the neighborhood coming over to sign it seemed to smooth things over and the broken arm has not slowed her down one bit. Her as a matter of fact way of telling us about how the world works may be my lottery ticket in life if I sold the rights to a reality show. “The World According To Amelia” has a good ring I think. At the advice of a consultant who said I needed a new hobby, I have really gotten into building a tree house. Trips to Lowes with the dog after the kids are down has become a ritual at least a couple nights a week and I have burnt through quite a few head lamp batteries and a few choice words as I figure out the basics of wood work. It is not a Treehouse Masters structure, but not bad for an amateur.
On the business side:
I am excited to introduce two new members to our team. Carolyn Finick joined us September 14th. She comes to us from a larger firm and has a lot of industry experience. As our new office manager, you will definitely be hearing from her. She has a strong background in all of the software we use and her addition is a huge step for us. Kacie Bull has also joined us in an administrative capacity. Kacie comes to us through UNCG’s MBA program. She is a former teacher and is working towards her MBA and is part time with us. These changes are part of a transition we are making to provide better service in more timely manor. I know you will find working with each of them as pleasant and fun as much as I have. Moving forward, we will implement a lot more structured framework to service and regularly review. To learn more about our new improved team, please click here.
If you have not already done so, please connect via LinkedIn or Twitter at @mattloganinc or follow my page on Facebook where you will find timely articles and regular TV interviews. While I am cautious not to overwhelm you with emails I do post regularly on these outlets and it allows you to receive information from time to time that could be helpful for you and your family. We have also changed the formatting for our quarterly newsletter, so be sure to keep an eye out. A new blog added to the website has been fun to write and I will be adding our newsletters as well.
Quarterly statements from investment accounts that have not been reviewed in some time have prompted a lot of calls from people finally getting around to their personal financial situations. If you have friends, family or coworkers looking for assistance, we are always happy to help.
We have consolidated our online account access through E-money. To access your accounts, click here. If you have never accessed your accounts online, send me an email and I will make sure that full instructions are emailed to you so that you can be set up. The screenshot below will show you a sample of how the system works. While the setup has taken some time, clients using the system have had wonderful reviews. The system really helps me advise you in a more effective manor by allowing me to see your whole financial picture and craft a plan to fit your needs. I have included a sample of how the entry page looks for you to see.
My ten-month search of junk yards across the US has been my part time hobby as of late and I have finally gotten hold of the piece to fix the door. It has been to a football game with my kids and some of their friends, the Goat Lady Dairy, a winery tour, a golf trip to Primland and even the famous Chef and Farmer Restaurant in Kinston, NC. It has maintained a heck of a social schedule. The best part is that in just the past six months, it has raised over $5000 for local non-profits. If you are arranging a charity auction I would love to donate it to raise even more for community non profits so don’t hesitate to reach out.
For more information go to http://www.whythebus.com/
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Fourth Quarter Outlook:
The good news is that employment continues to improve, hosing is showing signs of life and improvement with lower debt to income ratios for the US than we have seen in 40 years, lower fuel prices and a strong dollar. Everything is rosey, right? Not so much. We still have some major challenges in our economy as is illustrated by the recent pullback in most major indexes. Chinas economic challenges as they morph into a lower export rate and have more of a consumer driven economy than they have before has shown signs of slowing down the economy of the worlds most populated country. Debt concerns for the US are still strong and as we have said before, an interest rate hike is on the horizon, although we feel like we have seen that on the horizon for some time. Emotions can also drive a lot of the market more significantly than fundamentals and we do believe the recent pull back may be more connected to a fear factor than previous economic downturns. As always, we are keeping a close eye on the markets and the managers we work with in your portfolios.
Disclosure: The views stated in this piece are not necessarily the opinion of Cetera Advisor Networks LLC and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results.
Investors cannot invest directly in indexes. The performance of any index is not indicative of the performance of any investment and does not take into account the effects of inflation and the fees and expenses associated with investing.
The S&P 500 is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ.