Feb 092015
 

The market factors you should watch this week include; Greece, Europe, oil prices, retail sales and much more. We have an eventful week a head of us and last week wasn’t too dull either.

Last week’s market factors

Last week was a volatile week but to the up side as the DOW rose by 650 points. Even though the S&P 500 was up 3%, if you look at it since January, it has just been running in place.

Jobs, jobs, jobs

The Jobs Report showed good numbers last week and the last few months were revised up. The market ended down when this came out and many believe that is an indication of the market not thinking the Fed is going to be accommodating. We don’t necessarily agree and we see this as a buying opportunity. There are no guarantees but we don’t see interest rates going up any time soon.

Market factors this week: China, BDI and retail sales

Trade data was down 20% for China but this might have something to do with the upcoming Chinese New Year. The country basically shuts down during this time for the celebration.

The Baltic Drive Index (BDI) is at an all time low but this doesn’t necessarily mean the economy is slowing down. The economy still hasn’t absorbed the supply off of some large tanker ships that started about 5 years ago (More in the video).

We will be watching retail sales this week. As gas prices continue to stay low, it will be interesting to see where retail sales numbers will end up. Retail sales are two thirds of our economy and these numbers can give us a good indication about where the economy is heading.

US export data concerns

The US export data is starting to drop as it is now down about 1%. The cause for this is the strength of the US dollar. While many countries around the world are lowering their interest rates, the US continues to keep their’s stable which creates a stronger dollar. While this is good for the dollar, it’s making it harder for other countries to buy our goods.

We are researching US companies that are heavily dependent on exporting and evaluating their stock in relation to our portfolios. If this starts to have a reflection on earnings we will take appropriate action. On the other hand, it could become a buying opportunity for the long term.

A special thanks to those of you who have shared our videos on Facebook, Twitter, LinkedIn and forwarded it to your friends. It it greatly appreciated.

Please let us know if you have any questions or topics your would like us to cover.
Market Factors
Greg Powell, CIMA
President/CEO
Wealth Consultant
Email Greg Powell here

Franklin Bradford, CMT
Senior Vice President
Wealth Consultant
Email Franklin Bradford here

Ashley Page, JD, MBA
Senior Vice President
Wealth Consultant
Email Ashley Page here

Bobby Norman, CFP®
Vice President
Wealth Consultant
Email Bobby Norman here

Trey Booth, CFA®
Vice President
Wealth Consultant
Email Trey Booth here

Your Name (required)

Your Email (required)


Please leave this field empty.

Subject

Your Message


fi-Plan Partners is an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. fi-Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
Stock investing involves risk including potential loss of principal.

Feb 022015
 

We are seeing interesting times in the financial markets. The markets have been running in place as they are in the same place they were 3 months ago. The financial markets could also be building a base within a certain range.

Last week’s financial markets

We saw a lot of volatility in last week’s financial markets as both the S&P 500 and the DOW were down about 3%. Several technology companies reported better earnings than projected showing how certain sectors of the financial markets are doing better that others.

The report this morning on consumer spending shows a decline which indicates people are saving the money with which they would normally be using for gas. This pushed the savings rates up from 4.3% to 4.9%. We know this means that consumer savings is building up to be spent in the future.

This week’s financial market watch

This is a big week for new economic data. The biggest one we are watching is the employment report which comes out at the end of the week. Earnings season is going well and of the companies that have reported, 75% have beaten their earnings expectations.

Technicals of the financial markets

1985 – 1990 on the S&P 500 is a spot where investors have entered the financial markets in the past. We would like to see it go back over 2065 which we hit in January which will give us an indication the markets may be going to new highs. We believe there is a lot of strength in the financial markets. If we see the market trading down, there is no reason to panic as long as it stays above 1985. This could be an excellent buying opportunity rather than going to cash.

2015 market outlook

The saying, “So goes January, so goes the year”, is only right about 75% of the time. This indicator has been wrong five times since 2000 including last year. Even though this is a component to our analysis, we are not basing all our decisions on it.

Smoke screens in the markets

The big word de jour right now is “infrastructure” as the news media is focused on this spending in President Obama’s budget. Dams, roads and any kind of large public work is what politicians love to talk about because there is a lot to look at. If it’s done right, it can really help the economy like the Panama Canal or the Marshal Plan in Europe. Most politicians though, go for the projects that have high visibility rather than the one that works.

We don’t see the political helping the economy or our clients’ portfolios. The real benefit to their portfolios is in good old fashion economics of getting consumers to spend their money on good quality products in spite of what the government is doing.

Please call or send us your comment. We love the dialogue.
Financial Markets
Greg Powell, CIMA
President/CEO
Wealth Consultant

Franklin Bradford, CMT
Senior Vice President
Wealth Consultant

Ashley Page, JD, MBA
Senior Vice President
Wealth Consultant

Bobby Norman, CFP®
Vice President
Wealth Consultant

Trey Booth, CFA®
Vice President

Comment

Your Name (required)

Your Email (required)


Please leave this field empty.

Subject

Your Message

fi-Plan Partners is an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. fi-Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
Stock investing involves risk including potential loss of principal. 

Nov 172014
 

Every Monday we give you our insights on how the markets performed last week and what you, as an investor, need to be aware of this week.

The effect of dropping oil prices

October’s sales numbers came in last week surprisingly better than expected. Dropping oil prices continue with the average price per gallon at $2.92 in the United States. This adds up to 52 billion dollars in savings to consumers which is good news as we head into the holiday season.

Another S&P 500 all time high

The S&P 500 hit another all time high on Friday. This is due to overall positive economic news, better than expected corporate earnings, and belief that the Federal Reserve will keep interest rates down.

Recession worries in Japan and Europe

Dropping oil prices brings good news for Asian countries as they import most of their oil, so its cheaper for them. Unfortunately this has not helped out the Japanese and the Europeans. Europe is experiencing extremely slow economic recovery which recently posted only a 0.02% growth. France and Italy would have been in a recession if it had not been for government spending. Germany also barely missed a recession. Japan is experiencing slow growth and will probably have another round of a stimulus package.

Economic data to watch this week

The minutes from the Fed meeting last week will come out this week. We will also see reports on existing home sales and housing starts. We will get a look at US inflation through the CPI numbers. We are watching news from the Bank of Japan meeting in the middle of the week as well as data from Germany and the UK.

If you would like to talk with us about your market or investment concerns, feel free to email us here or call Franklin, Ashley or Bobby at (205) 989-3498.
Dropping oil prices
Franklin Bradford, CMT
Senior Vice President
Wealth Consultant

Ashley Page, JD, MBA
Senior Vice President
Wealth Consultant

Bobby Norman, CFP®
Vice President
Wealth Consultant

Your Name (required)

Your Email (required)


Please leave this field empty.

Subject

Your Message


fi-Plan Partners is an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. fi-Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

Nov 102014
 

What in the world happened last week?

Last week the DOW, the DOW Industrial, the DOW Utilities, and the S&P 500 ended at all time highs. That hasn’t happened since 1998. The unemployment rate ticked down to 5.8 percent but we are still concerned about the labor and participation rate. The United States continues to lead the global recovery as the strongest market in the world. We see this trend continuing.

This week’s market focus

It’s a light week for market data. Our main market focus will be on retail sales reports at the end of the week. This will give us an indication on what consumers are doing. We are also watching the jobless claims which are reported weekly. Tomorrow on Veteran’s Day the Bond Market will be closed but the Stock Market and Futures will be open as usual.

International market focus

Our international market focus is on the Bank of England, which will be giving a quarterly report on inflation. We are interested to see if they will raise interest rates. China will also be releasing a good amount of data including the CPI, the PPI and retail sales.

The Impact of deflation

Deflation is still a negative force in our economy. The Japanese have been dealing with deflation since the late 1990s. They have recently been very aggressive with their Central Bank using stimulus packages as a way to get out of it. This is starting to slowly inflate their economy. Central banks can be very effective against deflation if they focus solely on it. The problem is the many other policy issues that can go along with it. We feel like this is a good lesson for the Europeans to learn. Europe is on the cusp of deflation and there are many comparisons to Japan.

Veteran’s impact on our economy

Without the sacrifice and service of our veterans, we would not live in a free market society and able to live as we do. We are grateful for our nation’s veterans and we hope everyone will celebrate their service tomorrow on Veteran’s Day.

If you have any questions or concerns about your investments, please call us at (205) 989-3498 or email us here.

Market Focus
Franklin Bradford, CMT
Senior Vice President
Wealth Consultant

Ashley Page, JD, MBA
Senior Vice President
Wealth Consultant

Bobby Norman, CFP®
Vice President
Wealth Consultant

fi-Plan Partners is an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. fi-Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
TheDow Jones Industrial Average measures the average price of a group of 30 high value stocks. The Dow Jones Utility Average keeps track of the performance of 15 prominent utility companies.

The S&P 500 index is a measure of performance of the broad domestic economy through 500 stocks from major industries.

Sep 262014
 

Why chase the S&P 500? The answer might surprise you. Many investors use the S&P 500 as a benchmark for their investments. Often, however, this can derail an investor from their life long financial dreams and goals.

Note: Originally posted on November 21, 2013 but still applicable for investors today.
Greg Powell, CIMA
President/CEO
Wealth Consultant

Comment

Your Name (required)

Your Email (required)


Please leave this field empty.

Subject

Your Message


Chasing the S&P 500

Sep 152014
 

Please let us know what you think about our new shortened and concise format. You can email me here or call me at (205) 989-3498.

Europe and Asia economic issues

While the US economy is strong, there are economic issues slowing down Europe and Asia. These regions will soon begin to initiate their own version of quantitative easing. This mean that in the next few weeks the United States could see international money flowing in from European and Asian countries. This will continue the current debate about whether the US market is fairly valued.

Last week, retail sales reports came out better than expected. Because the US is much more of a global economy than it has ever been, investors need to pay close attention to what is going on in Europe and Asia, as it will have an economic impact here at home.

Three economic issues this week

This week we are watching three important issues. The first is the data that is coming out of China. The second is the meeting that the Fed is having to discuss interest rate hikes.

Standard and Poor’s has a report showing that historically, six months after a rate hike, the market will go up, on average, about 2.6%. Twelve months later the market will be up, on average, about 6.2%. It could be possible that over the next few months the markets trade back, but we believe that doesn’t mean the market is overvalued.

The third issue is Scotland voting to succeed from Great Britain. Pay attention to this as Scotland will be watched by other countries and their actions could become a trend.

Tax issues affecting the economy

One of our top five market drivers we’ve been watching all year is the government. We believe debate over US policy tax code will start to come out of the White House this week and go into the Senate. This debate will be about another tax increase and making the code more complex.

The Tax Competitiveness Index (TCI) shows that the US is not very competitive compared to the rest of the world. Out of 34 large industrial countries around the world, the US is TCI ranked at 32nd. This is encouraging people to buy companies in other countries outside the US. We are behind on tax competitiveness to other countries of which many liberal thinkers consider to be socialist, like Finland and Denmark. With midterm elections coming up, this will be a difficult debate.

Is there something in the markets that concerns you that we haven’t covered? Send us your comments by emailing me here or call me at (205) 989-3498. I would be delighted to talk with you.

Comment

Your Name (required)

Your Email (required)


Please leave this field empty.

Subject

Your Message

Greg Powell, CIMA
President/CEO
Wealth Consultant

Franklin Bradford, CMT
Senior Vice President
Wealth Consultant

Ashley Page, JD, MBA
Senior Vice President
Wealth Consultant

fi-Plan Partners is an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. fi-Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

The S&P 500 index is a measure of performance of the broad domestic economy through 500 stocks from major industries. The NASDAQ Composite represents all the stocks that trade on the Nasdaq. The Dow Jones Industrial Average measures the average price of a group of 30 high value stocks.
Economic Issues