#240 Dark Clouds, Silver Linings

As we start our vlog we would like to say that our thoughts and prayers are with those who are struggling and dealing with Hurricane Irma. We are also thinking of those in Texas that are still recovering from Hurricane Harvey. Also, on the 16th anniversary of 9/11 our thoughts and prayers are with those that have died, families that have suffered and those who have served and died while serving our country, protecting this nation and the freedoms we believe in.

Volatility

We wanted to address some client concerns regarding the storms and the effects that it will have on our economy. Harvey has had a large impact in Houston, which is a big center of commerce, as well as Irma going through the spine of Florida. We expect short term volatility due to job loss and lower productivity. Looking at long term, replacement and re-building should boost economic growth. When we had Hurricane Andrew the market was up 10% a year later and with Hurricane Katrina the market was up 6% a year later.

Tax Reform

Last week, President Trump and the democrats came to a good agreement about pushing debt ceiling and country funding out to the end of the year. This clears the deck on some issues we were concerned about. This makes for two big possible scenarios. The first scenario is that we have until the end of the year to get tax reforms. If Congress and/or republicans realize this they may speed that up which would be great for the market and the economy by providing us relief. In the second scenario, they don’t realize that, and starting now until the end of the year they have to redo the debt ceiling and funding the government which could push tax reform off to the 2nd quarter of next year which could shake up the economy.

Expiring Term

Janet Yellen’s term will be coming to an end in February of 2018. We have mentioned in previous vlogs we have been watching this closely because she has been a high regulation chairwoman. We are also watching Stanley Fischer, who was a major ally of hers, because he is now retiring in October. Another significant item is that a large consensus believe Gary Cohn could possibly replace her. We think this could be greatly affected by how critical he was regarding President Trump and what had recently occurred in Charlottesville. It will be interesting to see how everything plays out.

Greg Powell, CIMA®
President and CEO
Wealth Consultant
Email Greg Powell here

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

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

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

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.
Economic forecasts set forth in this presentation may not develop as predicted.
No strategy can ensure success or protect against a loss.
Stock investing involves risk including potential loss of principal.
Economic forecasts set forth in this presentation may not develop as predicted.

No strategy can ensure success or protect against a loss.
Stock investing involves risk including potential loss of principal.

#241 Fork in the Road: The Fed and the Markets #239 A Lot to Do, Not Much Time