Tag Archives: EU

The Week that was…EU, Markets, JK Technology Blackout and Podcast Update

Posted on July 27, 2012 by | Comments Off

After a great week, tomorrow brings another fun summer weekend, we hope you had a fun week as well, and have been able to stay cool, somewhere. With internal and external items occurring this week, we thought it fun to take a look from a macro and somewhat humorous viewpoint.

Greece, and more importantly Spain, have recently taken center stage on the fear front of the EU situation. One week ago today, Spain’s third largest province, Valencia, (think Houston comparison in the US) called in a life line and requested government help as they ran out of funds.

As expected capital markets have cooled as earnings have been good, but given the EU situation and summer doldrums, wide, emotional swings, are expected and we were not let down. We still feel those with a negative posture have the best seat in the house currently.

JK Fin Closet

The client named  J.K. Financial, Inc – Technology Black Out was not to be. With a super high-speed confirmed connection sitting in our closet (see picture), but not connected, the official switchover is delayed until next week due to several absent members of our technology team. We do have two of our six planned HD TV’s working and wires hanging from the ceiling to prove it.  The new temporary numbered VOIP phone is working well, although it has not been stressed tested yet.  It’s all good, as without the adventure we would not have any advancements, not to mention humor in our lives.The promised podcast offering for those interested continues, unfortunately in incubation form, as we have several podcasts complete, but as of yet have not been able to achieve the quality presentation we desire. One technology conquest at a time please….

Have a Great, Safe, and Fun Weekend!

JK

214-706-4300  www.jkfinancialinc.com

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Posted in John Kvale, Market Comments, Personal

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Zigg Drops by with a Mcteer Question and a Few Grounding Thoughts

Posted on April 27, 2012 by | Comments Off

Zigg, making a pilgrimage from his very crowded small island, on his way to the store for supplies as many of his new fair weather friends are cramping his style and eating his food, stopped by last night to see the family and say hello. He had heard about the McTeer event and added a nice question of his own, which we will certainly ask Mr. McTeer.

For those not familiar with Zigg, he is our mythical friend who is a contrarian. He Ziggs when others Zagg, usually taking an uncomfortable position at any given time. His thoughts are always helpful in keeping things in perspective.

In addition to the McTeer question he shared the following thoughts:

  • This is an Election Year, see (Research Paper) for history
  • Tax cliff may come in the form of possible new taxes
  • Little Brother Country Issues i.e. EU
  • A years worth of market returns already

Zigg was not being negative as he never takes a harsh stance, however he did warn of becoming too optimistic and letting our guards down.

Thanks Zigg, we have missed you and glad you dropped in. It’s funny to see him move from the only positive person, to being a bit more conservative in his views, once again almost alone in voice.

Have a Great Day and a Super Weekend!

JK

214-706-4300

www.jkfinancialinc.com

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Posted in Economy, General Financial Planning, Investing/Financial Planning, Market Comments

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Are Those Rose Colored Glasses You Are Wearing? Zigg Makes an Appearance

Posted on February 10, 2012 by | Comments Off

You guessed it, Zigg is back, and this time with a different message. For those new to Zigg, he has a residence on small island near the shore of a large group of fair weather friends, called Zagger’s, who often represent the majority voice at any given moment.

Last fall, when everyone was Zagging in the negative direction, Zigg spoke calmly and confidently to us on Friday’s, pointing out the positive events of the week, and letting us know that things are not always as negative as they seem.

This week Zigg has a different message for us. Possibly Zigg’s message is due to his Zagging friends taking residence on his island, telling him the sky is bright, and it will never cloud again. 

Zigging while others are Zagging this week means pointing out a few items:

  • Consensus moods (Zagger’s) often lead to clumsy investing, do not let your guard down, just as we bought when markets were down, we sell when they are up in order to keep your portfolio driving speed (allocations) appropriate.
  • It is very highly likely, capital markets will not match their January return of 4% throughout the year, leaving us with a 48% return for the year.
  • Shhhh……. While we hate to say it, the EU still has a few problems.
  • It is an election year!

While always positive, and never one to stick his head in the sand, Zigg did want to pull the umbrella from a few of his Zagger friend’s drinks (and maybe send a couple home.)  Zigg also understands, be careful what you ask for!

Have a Great Weekend!

JK

214-706-4300

www.jkfinancialinc.com

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Posted in Investing/Financial Planning, Market Comments

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5 Financial Positives this Week !

Posted on September 16, 2011 by | Comments Off

Zigging and zagging our way to positives this week, we found it much easier to spot good financial events to bring to you; so here is our abbreviated list of just 5 positives from this week:

On Wednesday Moody’s cut French Banks ratings with a market yawn: While it may not seem like a big deal, recall just a few weeks ago when the US received a rating downgrade, market participants panicked, and ran for the hills. We perceive this lack of response as a good thing, as participants are becoming more accustom to the current situation.

Geithner to Poland: Tim Geithner, the US Treasury Secretary, has been very busy this week, as he makes two of our positives. Early AM today, US time, he set foot in Poland to discuss options with EU Finance ministers. Given that the US has had a bit of recent experience with financial crisis, we perceive this as a positive, especially given the cheers associated with his trip coming from abroad.

Angela to the Rescue in support of the Euro: Angela Merkel, in Honey Badger like form, continues to hold firm against her critics and trumpet support for the Euro as a currency. We perceive this as a positive as future stability of the Euro may help the multination group, however, the greater positive is Angela continues to hold her ground.

Timothy’s comments at a New York Conference (Video): Geithner, making his second appearance in our positives this week, said speaking of the EU nations  ”…this is their challenge and they have the economic and financial capacity to meet this challenge. the people who are concerned that this is beyond their grasp are mistaken. the size of the challenges they face financially andeconomically are completely within the capacity of the stronger european members to manage”  This is a strong of vote as we have seen, especially coming from Tim.

China Closer to Soft Landing: China’s continued self-imposed head winds continue to slow, but not stop, their fast growing immense economy. This is a positive to the global economic picture. We voiced concerns at the beginning of the year, thankfully in positive fashion our trading neighbor is positively managing the slow down well.

We hope you have a great day and a wonderful weekend, and welcome Donald back from his trip to Jamaica and avoidance of harsh weather.

JK

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Posted in Investing/Financial Planning

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One Size Fits All, A Greece Example

Posted on June 28, 2011 by | Comments Off

Much has been made of the Greek situation as of late, especially given the emotional protests and debtor lifestyle the country is currently enthralled. While Greece as a country and their policies are not without flaws, we thought a simple and unique comparison may be of interest.

Imagine for a moment, there was only one shirt for us all to wear.  When the European Union was established, many of the participating countries were similar to kids. Many were not mature, had limited individual problems, and excitedly entered the EU, as a one size fits all shirt was just the ticket.

A one size fits all shirt, promises ease of decision-making, a loose commonalty, and similar identity, just as it might if we were children, all wearing the same shirt.

One Size Fits All

As countries mature, they begin to have their own identity, make their own decisions (good and bad) and begin to gravitate in unique directions. The one size fits all shirt no longer has many of its advantages. Our mythical shirt, which made us all feel stronger as kids and gave us a nice feeling commonality, is actually becoming restrictive. Just like in life, countries grow at different paces and to totally different sizes.

The cost of our mythical shirt suddenly becomes too expensive for one in our group

When it becomes time to replace our mythical shirt, again for a one size fits all, one person in our group cannot afford the replacement cost. In our example this person lacks some of the levers to purchase a new shirt; devalue its currency, default, make individual austerity measures to slowly begin saving enough for the shirt. (Maybe they don’t even want to wear the shirt anymore.)

As time continues to pass and our group continues to change and move in unique directions the many advantages of a one size fits all shirt MAY lead to a rejection of the group as a whole, leaving one or many to opt for their own shirt, thereby controlling cost, growth and size on its own.

This is just our mythical example, but it does have merit and may bear a resemblance to what Greece is dealing with currently.

Have a Great Day!

JK

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Posted in Investing/Financial Planning, Market Comments

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