Broker Check

3rd Quarter Market Update

| July 24, 2017
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As I type, I am sitting at the Greensboro Aquatic Center at the Greensboro Coliseum watching my kids compete in the City Swim Meet.  While both of my girls and everyone competing is wearing a swimsuit, I am quickly reminded of a quote from a guy nobody has heard of named Warren Buffett.  “Only when the tide goes out do you discover who has been swimming naked.”  This is a great quote for how the markets have been performing and what I am hearing from clients and others I speak to.  While many of you have experienced growth over the past quarter in your accounts, we are having more conversations comparing portfolios to the leading index from the certain time periods.  While it would have been great performance wise for all of you to have your investments in a stock or index that did really well last quarter, we take a more holistic approach to your portfolio.  It is proven over time that most people would prefer not to swim in the nude as the risk is just too high, so we focus on the proper allocation for your risk.

Personal:

SCHOOL’S OUT FOR SUMMER!  Evan and I may be more excited than the girls this year as they will both be attending the same school next year as Amelia enters Kindergarten and Lila begins Third Grade.  Thus far the summer has been dominated by swim team activities.  Evan has had the monumental task of shuttling our candy filled children to swim practices, a week of vacation bible school and gymnastics since school has let out.  Luckily, swim team activities have come to a halt as we just completed the city meet.  I am one proud parent who got to watch both girls swim at the Greensboro Aquatic Center.  I am nearly certain that I would not be all that comfortable at 5 years old or 8 years old to swim across a pool in front of 2500 people.  In fact, there was a bit of parental remorse watching Amelia compete.  While she did great, her swimming is still a gray area between swimming and a near drowning experience and cheering for that felt slightly sadistic.  I guess we can just add that to the other things my children will eventually need counseling for.  Either way, both girls did great and we are eagerly awaiting a family vacation at the beach in July and a family reunion for the Logan side of the family in Charleston at the end of July.  I have been busy planning my 20-year high school reunion and look forward to reconnecting with other alumni from the American School in Japan as we descend on Las Vegas over Labor Day weekend.

On the Business Side:

We have a bright new smile at the front named Brooke.  Brooke is working closely with Ashlie and is a great new addition to our team.  She is getting married this coming October and I know that you will find her as easy to work with and pleasant as we all do.

Ashlie and Brooke have both been reaching out to schedule reviews, update our database and check in with clients.  Please keep an eye out for emails or calls as we continue to try to serve you in the best way possible. 

Based on feedback we are also working on a different way to review with some of you who may be too busy for spending time in the office.  We are improving the format in which we conduct reviews with Emoney and hoping to continue to provide the service that you are looking for.  As always, we will be asking for further feedback moving forward and would love to hear your thoughts.

Introductions:

As the overall markets have been creeping up with no major pull backs lately, many people lose focus on their investments.  Not us.  If you have a friend, family member of coworker who you think would benefit from a conversation with us, don’t hesitate to let us know.

Online Access:

If you have not already done so, please take the time to review our online access for your accounts.  The site is very helpful in gaining a better perspective of your overall financial picture and I am confident you will find it helpful.  If you are a client who has not yet used the software or if you are not a client and would like to try it out, email Ashlie at [email protected].

The Bus:

The bus is finally completed and we couldn’t be happier with the results.  It has been very active going to concerts, celebrating birthday parties and various nights out among friends.  I even got to drive car pool on the last day of Second Grade for Lila, which was a highlight for me.  Here is  a link to a video of the new bus.  Don’t hesitate to reach out if you are working on a non profit auction or if you would just like to rent it for a special occasion.

Featured Blog Post:

Many times people come in for the first time or we meet for a review and they ask me if they are “normal.”  Well, the truth is that normal is a myth.  Everybody is different and has their own quirks, even when it comes to their finances.  I did do a recent interview on News 2 entitled 10 Interesting Financial Statistics That Defines the Average American that may shed light on national averages.  I caution you not to read too much into this, you may still be weird even if your financial numbers are similar to that of an average American.

3rd Quarter 2017 Outlook:

This past quarter we saw Emerging Markets take the lead with 6.27% growth1.  The S&P did not fare to poorly either with a return of 3.09%1.  Much of the gains in emerging markets have been caused by a weak dollar which was a surprise for most analysts this past quarter.  As inflation stays low and we continue to see earnings growth stocks have continued to perform in many sectors and we remain cautiously optimistic moving forward.  We do see geopolitical risks as a high risk and we are closely watching developments in Washington on the healthcare front and the tax front for opportunities moving forward.  I have heard economists and talking heads on TV predict both hyper growth in the overall markets and major pull backs.  It makes most of us take a step back and question who we should be listening to.  In reality, much of the TV programming is more on the side of entertainment in my opinion. Just like the Buffett quote I alluded to earlier, we are maintaining the proper risk in your portfolio and making minor adjustments as the market conditions evolve. 

1For further analysis and market information click here.

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