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03Oct
5 Year Economic Prediction from Northern Trust
Economy

The information in this email is not to be taken as a recommendation to invest in any certain way.  Ginger Szala wrote “6 Economic Predictions for Next 5 Years: Northern Trust”, Sept. 10, 2018 as a result of interviewing Bob Browne the Chief Investment Officer of Northern Trust.)

Northern Trust has been shifting assets back in to the U.S. because “they have more confidence in the short-term U.S. story than in the international one.”  Browne thinks the U.S. equities will return about 6.5% total return in the short- term and expect equities to return closer to 6% over the next 5 years.  He predicts high-yield bonds at 6.3% total return in the short-term and 4.9% over the next five years.

In contrast, he projects 8.3% total return for emerging markets over the next 5 years.

He sees no risk of recession in the next 5 years and expects only one more interest rate increase from the Fed in 2018 and one in 2019.

While this obviously just represents the opinion of one institution, I thought you might be interested in seeing the total return predictions.

Barbara A. Culver
CFP®, ChFC®, CLU, AEP®
Resonate, Inc.
(513) 605-2500

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14Sep
Boomers, Gen X-ers, Millennials, and Money
Economy

One of the special skills of the Resonate team is working intergenerationally.  We are grateful to be working with three generations of many of our clients and – in some cases – with the fourth generation as well.

Here are some of the insights we have learned from our client families:

  1. Baby Boomers are feeling more secure about retirement than that did in 2010.  In fact, 15% more Boomers feel ready for retirement today than in 2010.  Many continue to choose to live well below their means.  This is true, in part, because “leaving a legacy to family and making a difference” are key values of this generation.
  2. Conversely, many Gen Xers are feeling enormous financial pressure.  Non-mortgage debt has increased 15% since 2014, leading to credit card balances carrying over from month to month.  Add the burden of student loans and we understand the stress of debt.
  3. Many Millennials feel financially confident and have already adopted positive savings habits.  Due, in part, to the uncertainly of Social Security, they also see saving for retirement a necessity.  The access to social media often leads to feelings of inadequacy about their own lifestyle, which leads to impulse spending.
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06Apr
Income + Tariffs + Inflation = Underperformance
Economy

I found this blog to be extremely interesting – hope you do too!

Eaton Vance Advisory Blog

Feel free to contact me if you’d like to talk.

Barbara A. Culver
CFP®, ChFC®, CLU, AEP®
Resonate, Inc.
(513) 605-2500

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05Apr
Keeping Volatility in Perspective
Economy

Based on the continuing market volatility, I thought that you might find market perspectives from various economists and portfolio managers employed by the Capital Group to be encouraging. 

(Many of you will recognize the name of the Capital Group’s subsidiary –  The American Funds.)  Founded in Los Angeles, California in 1931, the Capital Group ranks among the world’s oldest and largest investment management organizations.  It has more than $1.7 trillion in assets under management and has offices around the globe in the Americas, Asia, Australia and Europe.  (Source: Wikipedia)  Robert Lind, the company’s European economist says, “There is mounting evidence that near-term momentum is building in the global economy and the cycle appears to be self-sustaining, particularly with respect to Europe.  The synchronization of global growth has raised the possibility that the cycle can be stronger for longer.”

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21Mar
The Future of Retail
Economy

Chances are you know there is a sea change going on in the retail industry. But you may not realize how far and how fast the online tide is rising. Singularity University founder Peter Diamandis invites you to recall the powerful retail networks created by Sears, J.C. Penney and Macy’s. Since 2006, the stock value of Sears has fallen from $14.3 billion to $300 million—a 98% drop.

Over the same time period, JCPenney’s stock value fell from $18.1 billion to $1.2 billion (-94%) and Macy’s, worth $24.2 billion in 2006, is now worth $9.3 billion (a 62% drop). Less dramatic but still significant price declines can be found at Kohl’s (-54%), Nordstrom (-28%), Best Buy (25%) and Target (-20%). Diamandis notes that in 2017, over 6,700 physical stores closed their doors.

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28Feb
I Wish
Economy

How many times have you heard someone say, “I only wish I could find a reliable plumber/electrician/handy person/mechanic/painter…”

With the incredible obsession for everyone to get a four-year college degree, the United States has lost the honor which once anchored the apprentice program in our country. In other words, we need people who are great at “building and fixing things.”

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20Feb
The Market is Not the Economy
Economy

To understand this blog, you need to know what “VIX” stands for. VIX is the ticker symbol for the Chicago Board Options Exchange (CBOE) volatility index, which shows the market’s expectation of 30- day volatility.

As you know, your Resonate team consistently works hard to continue to earn your confidence and your business. Based on recent market volatility, I have been reading even more extensively than usual. I found this article by Trent Houston, product strategist at Lord Abbett to be particularly informative.
I hope that you do as well.

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14Feb
Market Volatility – 4 Important Perspectives
Economy

I found this article to be interesting – hope you do too!

Market Volatility

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06Feb
Market Volatility
Economy

At times like this, we are especially grateful for professional partnerships such as the one we offer clients through The Optimized Portfolio System (TOPS®).

In terms of recent market volatility, Click Here for the insights from Michael McClary, MBA – Chief Investment Officer and the TOPS® Portfolio Management Team at ValMark Securities, Inc.

I hope that this is helpful information to each of you.

As always, we are here to talk if you’d like.

Barbara A. Culver
CFP®, ChFC®, CLU, AEP®
Resonate, Inc.
(513) 605-2500

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30Jan
Do You Know the Real Impact of the New Tax Reform?
Economy

While many of us are enjoying significant gains in investment portfolios, partly due to tax reform law, there is more to the story. Sadly, is seems, that once again a decision was made to create a positive short-term impact with little to no regard for the long-term impact,

The Congressional Budget Office estimates the income tax cuts will boost the current federal deficit by $1.5 trillion over the next ten years. The current national debt already tops $20 trillion. It is 74% of the nation’s gross domestic product (GDP)!

The 2018 federal budget includes interest payments on the debt of $332 billion! Now add into the mix that the new federal reserve chair, Jerome Rhoads, has already stated there will probably be three interest rate increases in 2018 and the $332 billion escalated even higher.

Think about this legislation in terms of the financial future for our children/grandchildren/loved ones under the age of 50. Couple this with the uncertainty of Social Security, the ever-increasing cost in health care and higher education; it seems we are creating a future financial tsunami.

I believe that the combination of the worldwide stock performance along with new legislation which increases debt provides an opportunity for many of us to consider doing something for those we love most in the world.

Would those of us who were fortunate to be invested in equities in 2017 think about creating some financial security for others? Would we be willing to share a small piece of our abundance to create a brighter and more secure future for others?

If this is something you would like to know more about, please contact me. Let’s share a conversation in which we create new meaning and purpose for some of your money as we celebrate new-found abundance.

(The source for this information is the editorial opinion in the January 8-12, 2018 issue of Investment News.)

 

Barbara A. Culver
CFP®, ChFC®, CLU, AEP®
Resonate, Inc.
(513) 605-2500

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