1st Quarter 2021 Market Outlook

“Behind every beautiful thing there is some kind of pain.”-  Bob Dylan

Bob Dylan was not referring to 2020 when he was referring to pain in his quote.  Through all of the challenges our Nation has faced in 2020, I am hopeful that they will lead to beautiful things.  Just as the markets go up and down so does the sentiment of a Nation.  With 2021 comes a glimmer of hope in the form of vaccines, healing from the polarization of the partisan presidential election and civil rights unrest leads way to progress.  Through our collective pain I know that there is a beautiful thing that awaits.  The pain just makes the great times that much sweeter.  I think 2021 will lead to more beautiful days as we get into the second and third quarter.  As for me, I hope to someday be able to hug clients again as we welcome them into the office.

New Website Is Finally Up!!!!!

Please check out our website.  We have made a lot of updates and would love any feedback you may have.  This is also the best way to tell friends and family about us and what we do, access your online portal and learn a bit more about financial concepts on our blog.  Our New Website

On the Personal Side:

Since I could not find the perfect gift, I brought COVID home to my family for Christmas.  I say these things in jest now as we have all recovered and quarantined and we avoided passing it to some of our higher risk family members.  I am more grateful for my family and the time we got to spend while in quarantine.  I also apologize if my children have developed potty mouths from all of the movies I chose.

Now recovered from COVID, we have our house under contract and will move all the way around the corner to buy Evan’s parent’s house.  We are excited about the extra space and the playroom for the girls. 

Amelia started in person school for the first time since March of 2020.  That is hard to believe.  While she is excelling academically, it breaks my heart to see how little time she gets with friends her age.  The challenges that this past year has brought will surely develop into strength for all of the children out there.

Lila is like a college student.  She is self-sufficient, does her work, cleans up after herself, tries hard and is a lot of fun to be around.  She is my favorite 11-year-old in the world.  She will remain in online learning and has enjoyed the small pod she is part of.   

Evan is the glue that keeps it all together.  She is up at the crack of dawn, making lists, finding out the status of school, keeping up with changes and even managed to make COVID Christmas special and loving in the midst of our quarantine.  This past year has challenged us and our time in quarantine has served as a time to slow down and talk more.  My favorite part of my day has become our walks in the morning with Evan and Cash, talking through the day and finishing with a cup of coffee.

On the Business side:

We are here for you.  We are also here for you for more than just financial help.  This year has brought a great amount of despair and loss for many of our clients.  We have grieved, encouraged and cried alongside our clients as they experience tough changes.  We want to help you no matter what.

Many of you have already been introduced to Ben Abitz.  I have enjoyed working with him so much that I used quarantine to grow a beard so I can look like him.  He is part of the team and here to offer his insight.  He is also heading up a lot of the financial planning.  I am so happy to enter a New Year with Ben as part of our team.  Most importantly, he is a good person, second he comes with a wealth of knowledge.  He can be reached at [email protected]

Hollie has really stepped up this year and is focusing on our operations side.  If you need funds, have an address change, want to check on beneficiaries or need a 1099, she is a great resource.  She can be reached at [email protected]

Blakely has joined us as an intern.  We like her so much, we decided that she can be a full-time intern.  She finished her undergraduate studies at Western Carolina and is waiting to hear back from a number of law schools.  She already has one law school scholarship offer.  We are glad to have her, even for a short time.   She is doing scheduling and you may hear from her to schedule a review.  If you would like to schedule anything, please email [email protected]

With the surging COVID cases we will remain closed for in office meetings this quarter and rely on Zoom and phone calls for meetings and reviews.  We would much prefer to be in person and hope you will understand our cautious stance.  I found out just how contagious COVID can be and want to be sure to be safe for this coming quarter. 

Social Media:

We want to connect with you more via social media.  Let’s connect on LinkedIn or Twitter at @mattloganinc ,or follow my channel on Youtube or  follow my page on Facebook. We will be posting regularly on our blog as well so be sure to check it out from time to time. 

Introductions:

We have had a lot of conversations with clients and friends about the markets.  Why are they so high?  Will they crash?  Should I invest?  We take every question from a personalized approach and in terms of your overall financial situation.  We are happy to help your friends and family.  Please let us know if there is anyone you would like us to contact.

Online Access:

If you have already set up your account and would like to access your accounts, click here

The Bus:

I drove the bus this past quarter along with Amelia and 4 of her masked friends for her 9th birthday.  That was the most fun I have had on the bus in a long time.  I hope that this year brings more opportunities to congregate by the end of the year. 

Featured Blog Post:

With so much concern over health and mortality of some of our older clients and friends, we have had a lot more discussions about transferring wealth to the next generation in recent months?  This blog post is a great resource and starting point to look over.  How to Make a Wealth-Transfer Plan.  If you or someone you know need help or would like to review your plan, please reach out and we can schedule a time to talk. 

First Quarter Outlook:

With all that is going on in the world, how is the stock market performing so well?  In my opinion, there are three main reasons:

  1. The Stock Market is Forward Looking: I believe we can agree that last year was a challenge for mankind.  (HUGE understatement!)  The great news is that the stock market is forward-looking and it is indicating that better days are ahead for companies.  Our worst pandemic in over 100 years, massive civil unrest, and an extremely contentious election have challenged every household in America in some shape or form.  History has shown time and time again that from all challenges, we eventually see growth, rebirth and better days.
  2. Low Interest Rates: Our government has set interest rates at record lows to help boost our economy.  For many, these lower rates are most evident in the residential housing boom and mortgage refinance boom that has been and continues to happen.  With the cost to borrow money set so low, many corporations are taking advantage and using this money to spur growth.  On the individual investor side, with the interest rates so low, the stock market is more attractive for many as the bond market also has rates that are at record lows pushing investors to seek other sources of growth.
  3. Stimulus Money: Our country has provided an enormous amount of stimulus for businesses and individuals to keep the economy rolling.  All of this stimulus money has done just that, it has stimulated our economy.  With all of those dollars in the system, people are spending money and some of it is being invested.  Some of the money is also being spent and boosting strong profits for companies as well. 

COVID has caused major changes in the way society operates.  The stimulus has brought with it inflation and hints of more in the future.  Low interest rates have spurred a real estate boom.  Many corporations have released employees to work from home indefinitely, accelerating the process and creating an exodus for those who had chosen their residence based on proximity to their employment.  I see that first-hand in Greensboro, North Carolina where low cost of living and more space is attracting new residents in droves.  Will the byproduct from the search from a COVID cure be more valuable than the actual cure to our society as the research efforts were on such a massive scale?  Will widespread vaccinations be available by the summer and will life begin to me more community oriented?  Will travel restrictions be lifted?  Will virtual meetings remain a constant as they provide convenience not widely adopted beforehand?  There are so many changes that represent so many opportunities for investors.  As these economic factors shift, we are here to help, to discuss and to invest for the future. 

For a more in depth look at the markets 2021 outlook, click here.

We want to help you and your family.  We are and will continue to be here for you. 

Often, we are asked if clients can forward this email along.  You can absolutely forward this along, in fact, we really love when you do.  We would appreciate you forwarding this to friends and family so they can learn a little more about ways we can help. 

Sincerely,

Matt Logan

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