Category Archives: Market Comments

Rates Rise and No One Blinked, Report Cover Letter

The once dreaded and feared interest rate raise seems to have run its course from a fear standpoint. Just a few quarters ago when Ben Bernanke was the Federal Open Market Committee (FOMC) chairperson, the whisper of a long-awaited rate hike lead to market calamity and many to believe rates would be permanently artificially low.

Near the end of this most recent quarter, current FOMC chair Janet Yellen raised rates to the 1% level, a level not seen in almost a decade and without much capital market trepidation. Longer term the short-term interest rate controlled by the FOMC may not go all the way back to the higher levels once seen historically, however a 2-3% rate would still be stimulating from our perch. It is possible the gradual move higher will extend this current economic expansion.

Speaking of rates, in our Q3 2017 Quarterly Newsletter we do a complete deep dive on interest rates, among many other items, that may have changed Residential Housing Prices movement for the foreseeable future. While so many argue of reasons for Housing volatility, the answers are less vivid than many may think.

Continued optimism from company executives seems to have given them confidence to expand their businesses dropping the unemployment rate to levels many thought not possible via hiring’s of workers. It is possible an employed consumer is a happy consumer who is also a consumer who spends more. With consumer spending making up over two thirds of Gross Domestic Production (GDP) this bodes well for domestic and world growth, as long as it continues.

Given low but rising interest rates (finally) a happy higher price valued Home Owner (again full details in the Newsletter), a happily employed consumer, it is no wonder many assets and most capital assets, especially the US markets are priced to perfection (high compared to historical values). The fantastic news is that our overseas counterpart capital markets are not priced as high and it looks like investors are finally beginning to warm to their markets. Our good friend diversification keeps us exposed to these markets as the possibly reawakening occurs. Look for more on this on our street-cents.com blog.

Summer doldrums?

Maybe, but we always keep our guards up as risk can happen fast, even if the less tenured folks are at the wheel of the capital markets.

Have a Great Summer!

John A. Kvale CFA, CFP

Q 2 2017 Cover Letter

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com

 

Capital Markets Ignore … Short Week Concludes … Friday Tennis Weekend

Capital Markets are the ultimate voting machine. Frequently they are VERY irrational, often times they act temperamental, other times they just ignore and move on.

With the recent flexing of various international military muscles and “Breaking News” headlines, Capital Markets …. and their participants, are just moving on down the road and focusing on earnings … which is really what they are supposed to do. NICE!

Short Week

With the celebration of July 4th on Tuesday, Wednesday felt like Monday, making Thursday feel like Tuesday and today …. Oh Boy … Not really sure what day it is. Friday? Yes..

Friday Tennis Weekendtennis-2042723__340

Wimbledon …. Yes it will be going on this weekend, but a more important Tennis weekend to your present party … a National Tournament in a neighboring state (Travels , all good) .. Win our go home, once again, puts the journey into next week if the former occurs…

Ahhh, that is looking into next week and this is a Friday, smack in the middle of Summer. It goes fast, enjoy, relax and spend time with those special!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com

 

 

 

 

Travels – Office Schedule – Happy Fourth of July

As mentioned last Friday, travels are on the calendar this week and with a Fourth of July Holiday on next Tuesday, the work calendar has a few holes.

We will not be in the office on Monday as capital markets are only briefly open.

Have a wonderful Fourth of July Holiday weekend!

fireworks-1759__340

John A. Kvale CFA, CFP

 

June 2017 Podcast Video, Financial Planning Tax Review and Earnings Update- By John Kvale

Here is our June 2017 Monthly review.

Hard to believe we are ALREADY at the half way point of 2017 … A little early due to the Holiday schedule.

Here we go!

June 2017 Video

 

Financial Planning Tip-

Safely Hand Off VERY Important Documents

Vault Add View W Arrows for private and Full View

With a few services still showing too much confidential information such as social, bank and date of birth, in our post here we reminded everyone of how to easily hand-off that VERY confidential document.

Also as a reminder, one of our projects over the latter part of the summer will be a set of 1 minute videos on how to use the New Total Vault and feature such as this one … Looking forward to completing them !

Capital Market Comments

Rates are Rising

Libor 1 month 6-27-17

This chart shows does a great job of showing the rate increases as they have occurred. So far, market participants are taking the rate increases in stride.

We continue to believe higher/more normal rates are a good thing!

Happy Mid-Year point!

Let the 100 degree days begin !

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com,

China added to Important Index, Welcome Aboard!

Last week it was announced a group of large capitalization Chinese company stocks were allowed to be added to a very important global index, the MSCI Emerging Market index. This is great news for China and super news for those following our David Cameron talks from earlier this year.

China added to MSCI Emerging Market IndexChina hainan-105596__340

The fourth time really is a charm, as MSCI (Morgan Stanley Capital International) – most prominent and well known International Index provider – allowed a group of over 200 stocks to EVENTUALLY be added to their MSCI Emerging Market Index. The total inclusion will take several years but is a huge positive for China’s acceptance as a valid economic capital market.

Certainly China has a different social system than the USA, however, if David Cameron is only half correct in his thoughts, embracing rather than shunning China will have positive effects for decades to come.  The addition of China stocks into the MSCI Index may be the first step of many future positive ones to come.

We began a detailed review in our latest Newsletter on International and Emerging Markets but it was shoved tot he floor by our Residential Real Estate Price Movement article.  Everything happens for a reason. This recent announcement is a great addition to the facts and research we were including, look for more abbreviated information to come soon here with the full article(s) to follow in our Next Newsletter!

Have a Great “Mutually Prosperous” Day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com

The Importance of Energy Companies to the US Economy

Not so many quarters ago with oil booming and the price of oil going to $144/barrel many including ourselves may have missed the importance of Energy Companies on the US as well as global economy.

Here  we reiterated that we thought the trickle down effect may be much greater than many had once thought.

Another Great View from Visual Capitalist

Take a moment to let this chart digest…it truly is amazing.

If you have been following us long you know we love to mix different opinions especially when they point the same direction- this from Factset..

Without Energy, the S&P 500 earnings would be much less.

Before complaining about that fill up… remember these two items.

Have a Great “Energy Growth” day!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com

 

Technology Upgrade Update – Rates Rise – Friday

On Monday of next week we hopefully successfully do a major upgrade to our internal email systems. This will mean each of our company emails will be down, but not all at the same time. As the switch occurs, while promised nothing will fall through the cracks by our IT team, if you happen to send an email and you have not heard from us, please re-send it just to be safe.

Rates

Ok, it’s a Friday so we will be brief, Janet Yellen, head of the Federal Open Market Committee (FOMC) notched another rate increase under her belt without disrupting the capital markets. Once thought impossible, so far, slow and steady (tortoise- not the hare) is winning the interest rate normalization race.

This is a good chart of the ever increasing rates… finally !

Fed Funds Rate 6-15-17 fredgraph

Ahhhh…. Today is a Friday… enjoy your day and your weekend !

Talk to you next week!

John A. Kvale CFA, CFP

Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
www.jkfinancialinc.com
www.street-cents.com