Here is our October 2017 Monthly review. If you are too busy to read, feel free to listen as we describe our post and thoughts in friendly podcast format.
Enjoy!
October 2017 Video
Break In – D Magazine Honors – Best Wealth Managers
We are super happy to be honored in D Magazines Best Financial Planner and Wealth Managers Award !!
Thanks so much and congratulations to our fellow recipients.
11th Consecutive Honor – John Kvale Best Individual Financial Planner
The 11th consecutive D Magazine best Financial Planner award was also in this edition and we are super happy to announce, John received his 11th consecutive nomination!
Wow and again thanks to our fellow recipients!
Financial Planning Tip(s)-
Social Security Increase
Don’t smirk at 2%, every penny counts! With a CPI (Consumer Price Index) increase of 2% year over year, the Social Security Administration passed the good news on earlier this month. Take that 2% increase and run!
Capital Market Comments
Rates are Slowly Ticking Up
After much silence on interest rates, we have taken notice of recent movement as the global economy begins to pick up steam … Overseas seems to really be getting their act together.
Consumer Sentiment Also Higher
The University of Michigan Consumer Sentiment hit a post “Great Recession” high this month.
With two thirds of our US Economy being based on consumer consumption, this bodes well for the Economy.
See you at the end of November, which also features our very special Blooper Thanksgiving Video from a few years ago!
Happy Fall Season!
John A. Kvale CFA, CFP
Ahhh… Today is a Friday, and travels are on the horizon next week, but that is next week… Enjoy your Friday, your weekend, and time with those special!
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
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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