Apr 072014
 

Friday’s market drop

Last Friday we saw a market drop as the NASDAX sank about 2.6 % and the S&P dipped about 1%. In the investing world, often a market drop is not something you should take at face value.

When is a market drop good?

Our research is showing us that this market drop could be a response to a rotation of investors moving out of growth stocks into value stocks. This type of market drop usually happens as people begin looking at the earnings of growth stock companies in anticipation of earnings season. This is an underlying positive factor that shows people are more confident in the over all direction of the economy.

Permanent temporary jobs are affecting short term interest rates

As we have been saying since the beginning of the year, the Fed is going to have a hard time predicting when to make a change in short term interest rates. Part of the reason for this difficulty is because what is going on in the job market. Most of the new jobs are temporary jobs that are becoming permanent temporary jobs. This adds more to the layers in the job numbers that is making it difficult for the Fed. We’ve seen this happen before in 2000 and 2001, but it didn’t sustain itself very long.

Many economists are predicting that this permanent temporary job environment could go on for a long period of time. This is because of underlying systemic weakness in the labor market.
Market Drop video image

What we are watching this week

One thing we have been watching is corporate share buy backs which were up 29% by the end of the first quarter. Corporate share buy backs normally parallel a bull market. This process is a value enhancement move by corporations intended to increase the value of their stock. Interestingly, the amount of per share impact that it is having is considerably less than normal. This means that the corporations are not getting as much bang for their buck.

Ashley Page ImageIn addition, we will continue to watch this rotation out of growth stocks into valued stocks and look for trends and impact on the markets. It is important for investors to remember that often when you see a drop in the market, as we did last Friday, it is not always as it seems. It could be a reflection that certain companies are not doing well but it could also just be an investor rotation.

Please comment below, email me here or call me should you have any questions.

Ashley Page, JD, MBA
Senior Vice President
Wealth Consultant

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Ashley Page is a Senior Vice President and Wealth Consultant at fi-Plan Partners, 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.

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Mar 282014
 

Our special economic outlook guest

We are very big on market research and giving our clients our economic outlook and insight. We work with many market analysts to brainstorm and look at different trends. Today we were glad to have Paul Healthwood visit our office. Paul is a Certified Market Analyst with Robeco Boston Partners. Following this vlog Paul spoke to a group of our clients here at our office giving them a special economic outlook presentation.

In this video, we will not be discussing any investment products or services. We are focusing on the overall market in this special economic outlook.
special economic outlook video thumb

Share the knowledge

Paul was kind enough to talk with me on camera so we could share his economic insight with our viewers. You will see the wealth of knowledge he brings to the table and why we work with many money managers and analysts like Paul. This allows us to give you better information as well as fine tune our strategies that are designed to protect and grow your wealth.

Please comment below with any opinions and questions about this economic outlook presentation.

Greg Powell pictureGreg Powell, CIMA
President/CEO
Wealth Consultant

Greg Powell is President and CEO of fi-Plan Partners, 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.

Securities offered by LPL Financial LLC. Member FINRA/SIPC.

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Mar 242014
 

America’s most hated bull market

In our portfolio strategies market update we are discussing America’s most hated bull market. Every time we start to have a dip in the markets, people are saying, “I told you so.” Comments by Janet Yellen last week seemingly said to those who are talking about the future of the markets, “Good luck with that.”

Greg Powell, CIMA
President/CEO
Wealth Consultant

What the market data is telling us

Last week stocks were up between 1 and 1 1/2 percent. Most of that came early in the week driven by better economic data and the Ukraine tension coming down.

Triple Witching, which happens four times a year has brought volatility to the markets. These are scheduled times when futures and options on futures expire at the same time. This is very important for investors to know.

Five economic factors we are watching from last week

  1. Industrial production
  2. Housing starts
  3. Consumer price index and inflation gauge
  4. Existing home sales
  5. Comments made by Janet Yellen that triggered programed trading

Janet Yellen Comment video

Our focus this week

This week our focus is on housing and manufacturing. We will see reports on new home sales, pending home sales and the Case-Shiller report to see how much your house is worth. We are also looking at Gross Domestic Product (GDP)

Franklin Bradford, CMT
Senior Vice President, Wealth Consultant

Comments by Janet Yellen moved the markets

We’ve been saying since the beginning of the year that there are five factors that we are watching to determine whether we could have breakout in 2014. Number three was the Federal Reserve. When comments by Janet Yellen put a time stamp on the ending of short term interest rates, the market reacted sharply. While we see this as a rookie mistake, we still have confidence in her ability to be the Fed Chair.

The Fed wants to keep the short term interest rate around 2% but their economic forecasting will make it hard for them to manage inflation and deflation. This can lead to an economy that looks good on the surface, but when you get beneath it, you’ll see it’s not so. There is an historical precedent from the 1940s with the only difference being that we are not in a world war.

Ashley Page, JD, MBA
Senior Vice President
Wealth Consultant

Who loved the comments by Janet Yellen?

The sectors of the market that loved the comments by Janet Yellen were the banking and financial sectors. If there is anticipation that the rates go up, the banks make more money. These are totally different discussions than we where having in 2008 and 2009.

Greg Powell, CIMA
President/CEO
Wealth Consultant

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Feb 102014
 

Economic data overview

There was a lot of interesting economic data from last week that helps us with our market update today. This week also brings new data that can have an impact on investors portfolios. Today we discuss how this economic data impacts you and why it is important to our portfolio strategies.

- Ashley Page, JD, MBA, Senior Vice President, Wealth Consultant

00:40: What we learned from last week’s economic data

We are watching the data from last week’s small cap companies because they tend to move before the bigger companies do. The economic data from the manufacturing and jobs report was disappointing, but the unemployment numbers came down. This is a positive for the economy.

The economic data we are watching this week is retail sales and industrial production. We want to see how the consumer and production is doing in spite of the cold weather. 70% of the S&P 500 has reported their earnings with about fifty companies reporting this week. Of the companies already giving their earnings reports, 65% exceeded analyst expectations and 66% exceeded expectations on revenue growth. This is the economic data we are closely watching because they will determine our portfolio strategies for our clients.

- Franklin Bradford, CMT, Senior Vice President, Wealth Consultant

3:18: The quit rate’s impact on the economy

The “Quit Rate” is an important piece of economic data. The term describes when a worker has enough confidence he or she will find a better job before they have a better job lined up. When this kind of economic data grows, it shows there is confidence in the economy. The quit rate can give investors a better perspective on the unemployment rate and the overall economy. When people have this kind of consumer confidence in the market, people spend more which improves the economy. This is very good news for young people entering the workforce. As middle management moves up, it opens entry level jobs and the economy expands.

- Ashley Page, JD, MBA, Senior Vice President, Wealth Consultant.economic data video

We are tracking all this economic data and more every day for our clients. We are committed to creating proactive investment strategies with this economic data for our clients’ portfolios. Please comment below as we value your questions and feedback.

Would you rather watch these videos on Facebook?  Like our Page for our Weekly Economic outlook and other investing videos.

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fi-Plan Partners is an independent investment firm in Birmingham, AL serving its clients across the nation through financial planning, wealth management, economic data research, and business consulting.

Securities Offered Through LPL Financial. Member FINRA/SIPC.

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Jan 272014
 

Economic OutlookHere is our economic outlook research for the week:

Economic outlook

In the beginning of the year we proposed 5 key questions for economic breakout in 2014. The point we will focus on today is “How the rest of the global economy will behave other than the Unites States.” - Ashley Page, JD, MBA, Senior Vice President, Wealth Consultant

International economic Outlook

There was a lack of economic market data last week but this week it will mostly come from the Federal Reserve. Because we are in the throws of the earnings season the markets and our economic outlook research are focused on international issues. This is due to a potential economic slowdown in China and fear over emerging markets. Historically, we can compare this to the economic conditions in 1997 and 1998. The real issue, however, is the level of confidence in the markets and the emotion that produces it. - Franklin Bradford, CMT, Senior Vice President, Wealth Consultant

An economic shift in China and the Bernanke legacy

There is a shift occurring in China towards a consumer based economy. This shift is caused by the emerging middle class which can involve volatility pains.

As Ben Bernanke leaves the Federal Reserve Chair, his legacy will be that of restoring confidence back in the financial markets. This leaves investors with two questions. First, can the Federal Reserve keep inflation from rising and bring it in for a “soft economic landing”? If not, this can distort the markets over time. Second, can they provide economic stimulus? - Ashley Page, JD, MBA, Senior Vice President, Wealth Consultant

Would you rather watch these videos on Facebook?  Like our Page for our weekly economic outlook and other investing videos.

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fi-Plan Partners is an independent investment firm in Birmingham, AL serving its clients across the nation through financial planning, wealth management, economic outlook research, and business consulting.

Securities Offered Through LPL Financial. Member FINRA/SIPC.

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Jan 212014
 

economy commentary videoThe Current Economy, How It Affects Your Finances

The media is not giving you this kind of realistic look at the current economy. Investors need to know these factors that are affecting their investments and the our economy.

Intro: Greg Powell, CIMA, President/CEO, Wealth Consultant

  • A new Fed Chair – Janet Yellen
  • Inflation theme
  • The role of technology

01:00: Franklin Bradford, CMT, Senior Vice President, Wealth Consultant

  • Inflation facts
  • How Janet Yellen could help your home equity line of credit
  • The REAL state of the economy. What the media isn’t telling you.

2:57: Ashley Page, JD, MBA, Senior Vice President, Wealth Consultant

  • Economic activity is picking up
  • How the Fed is trying to control the economy
  • An attempt at a soft landing for the economy

5:55: Greg Powell, CIMA, President/CEO, Wealth Consultant

  • Your portfolio is like an airplane
  • What does the voice of the pilot of your portfolio sound like?

The Portfolio Strategies Team at fi-Plan Partners

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fi-Plan Partners is an independent investment firm serving it’s clients across the nation through financial planning, wealth management, strategies for the economy, and business consulting.

Securities Offered Through LPL Financial. Member FINRA/SIPC.

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