In honor of President’s day, next Monday the 19th is a government, Capital Market, bank and Post office Holiday … Our office will be closed as well…
After a huge Mid-Week Capital Market Post, we are going to keep this one short and sweet.
Olympics
Hopefully you have been watching the Winter Olympics as much as we have. Congrats to all the men and women who have worked so hard to put themselves in such an honorable position.
Only a sporting event could unite two countries that have been at odds for so long.
Here is to wishing they remain friend for all of our well being after the event.
Sentimental Friday
Maybe it was the Valentines Day with the kids and seeing just how fast they grow. Maybe it is the winding down of Cathy as our office manager after 10 years. (She is retiring shortly.) Maybe it is the long weekend without tennis and good family time. Maybe it is the shadow of anther spring about to bloom.
No matter what, maybe its a good time to take a moment to give thanks for all the great things we have and get to experience.
Have a Great Weekend … Back to business 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
First Quarter 2018 Cover Letter Review
In true Groundhog like fashion, Capital Markets, after getting way ahead of themselves early in the quarter, saw their shadow only to turn, run and hide.
Included in the newsletter, which we sent early to give everyone a chance to view and remind of the tax strategies, is an article about the VIX and its reverse brother the XIV. These funny products along with the more recently noted tariff talk has been the recent excuse for capital markets to act like a bashful Groundhog.
The reality is capital markets got way ahead of themselves and needed time to rest. From our perch we would much rather them rest go sideways or even down a little bit, rather than getting WAY ahead of themselves like they did early in the quarter, only to quickly revert and likely overshoot to the downside.
Interest Rate Increase
In this most recent quarter we did just digest another small interest rate increase. Our new Federal Reserve Chairman Powell, looks to continue the gradual increase rates, slowly normalizing short term interest rates, and continuing on the path left by his predecessor Janet Yellen.
Capital Markets have a very unique way of signaling Interest rates have been raised too far called an inverted yield curve. Look for rhetoric about an inverted yield curve soon, as the historic importance and accuracy of this effect are in our crosshairs at this time.
Consumer and Earnings
With an economy that is two thirds driven by the consumer, a happy and spending consumer along with company earnings, which are beginning to digest the new tax reform, lead to a good backdrop.
As we mentioned in our Newsletters and repeatedly at street-cents, this is likely a year we will need patience, we see no change in that view at this time.
Have a great spring, talk to you in the summer!
Sincerely,
John A. Kvale CFA, CFP
Share this:
Like this:
Leave a comment
Posted in Interest Rates, Investing/Financial Planning, Market Comments, Performance Report Cover Letter, Political, Tax Related
Tagged Consumer, Cover Letter, Earnings, Interest Rates, Inverted Yield Curve, Janet Yellen, Performance Report, Powell