#266 New Market Playbook?

Fed Chair

One thing that is changing the playbook is the new Fed chairperson. Historically, in the first six months of when a new Fed chairperson is in place, there is an average 15.6% pullback in the market. It will be interesting to watch how they will react to a market anomaly by either raising rates or going another route. Also, a lot of Fed governors will be speaking this week which will be something to keep an eye on as they voice their opinions.

Tax Plan

The impact of the new tax plan has been mostly positive so far when relating to forward guidance of earnings. We are also seeing confusion on how companies are reporting. It really comes down to how companies are valuing their deferred tax assets and liabilities. Some companies in the same sectors are reporting differently. We are seeing companies report earnings that result in a raise of their value but then ultimately trade back after analysts dig down in to the numbers. These items are contributing to the recent volatility.

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

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.

Securities and advisory services offered through LPL Financial, Member FINRA/SIPC and a registered investment advisor.

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