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T
his Week from Jesse Hurst
Jesse W. Hurst, II
CFP® CERTIFIED FINANCIAL PLANNER™
AIF
® ACCREDITED INVESTMENT FIDUCIARY
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When Rachel and I started dating nearly five years ago, we immediately told each other that it was a package deal, each of us came with young adult children. At the time, my younger son Zach had already been dating his now wife, Kayli, for several years. And Rachel's daughter Sedona had been dating Mark for an equally long period of time. This package deal not only included our children, but our children's significant others whom we already considered family. As Zach and Kayli got married in August, of 2016 our "official" family count rose.
That official count is set to rise again in September of 2018 after Mark asked Sedona to marry him on her birthday late this summer. Mark had called us two weeks before her birthday and asked permission to make this birthday extra special and showed us the ring (via FaceTime) that he would like to give. He then asked for something extra special, which was for us to be there as he proposed to her on a rooftop surrounded by their friends under the guise of a surprise birthday party for her. On short notice, and thanks to very understanding and flexible clients, Rachel and I were able to fly to Atlanta and watch the whole event. It was an extraordinarily meaningful moment for us.
Wedding planning is in full swing. We have a date of September 21st, 2018 along with a venue, a caterer, and a photographer already picked out. Dress shopping will ensue in January and we are happy to report that Mark and Sedona have asked Zach and Kayli to be part of their wedding party, just as they had done the previous year.
Family continues to grow, and we are excited to be able to share this meaningful moment with you as many of you share your significant life and family moments with us. Thanks for letting Rachel and I share, and we will keep you posted as we progress. As "Life Moves Forward" for all of us, we trust that you will do the same with your family events and celebrations.
Jesse
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Weekly Market Commentary
December 4, 2017
The Markets
What will it take to shake investors' confidence?
From the perspective of unsettling events, last week was jam-packed. North Korea claimed to have the capability to strike the United States with a nuclear missile, tax reform continued to travel a controversial path through the House and Senate, and former national security adviser Michael Flynn pled guilty to lying to the FBI about conversations with Russia's ambassador.
U.S. stock markets weren't immune to these events and some lost value. However, the Dow Jones Industrial Average and the Standard & Poor's 500 Index didn't stay down for long. Both indices finished the week higher.
Barron's
reported black-box trading may have been the reason "...the Dow shed 400 points from peak to trough in a matter of minutes. The drop happened so quickly that some opined that humans couldn't have been responsible for the tumble. 'No way real traders were moving that fast,' says Andrew Brenner, head of international fixed income securities at NatAlliance Securities. 'Clearly, it was algorithms taking over.'"
Investor sentiment remained largely undented. The AAII Sentiment Survey showed slightly more investors were bullish near week's end than had been the previous week. Bearishness was also up, gaining 2.6 percent. Fewer investors were neutral about markets. Despite an increase in bullish sentiment, the level was below the historic average for bullishness for the 39th time in 2017. (The AAII survey runs from Thursday to Thursday, so it did not reflect any changes in sentiment that may have occurred after reports of Michael Flynn's indictment and cooperation with special investigators.)
The CNN/Money Fear & Greed Index is an investor sentiment gauge that relies on seven market indicators - stock price momentum, strength, and breadth, put and call options, junk bond demand, market volatility, and safe haven demand - to measure whether fear or greed is driving the market. Last week, the needle was in the Greed range, as it has been for some time.
Data as of 12/1/17
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1-Week
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Y-T-D
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1-Year
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3-Year
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5-Year
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10-Year
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Standard & Poor's 500 (Domestic Stocks)
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1.5%
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18.0%
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20.6%
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8.8%
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13.4%
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6.0%
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Dow Jones Global ex-U.S.
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-1.6
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21.1
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23.8
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3.8
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4.9
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-0.7
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10-year Treasury Note (Yield Only)
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2.4
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NA
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2.4
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2.2
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1.6
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3.9
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Gold (per ounce)
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-1.2
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10.0
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9.8
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2.2
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-5.8
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5.0
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Bloomberg Commodity Index
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-0.6
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-1.2
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-0.5
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-9.0
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-9.6
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-6.9
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DJ Equity All REIT Total Return Index
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-0.5
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9.2
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15.8
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7.5
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10.7
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7.3
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S&P 500, Dow Jones Global ex-US, Gold, Bloomberg Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; the DJ Equity All REIT Total Return Index does include reinvested dividends and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods.
Sources: Yahoo! Finance, Barron's, djindexes.com, London Bullion Market Association.
Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not applicable.
Retirement requirements.
For a number of years, policymakers have been focused on finding ways to help Americans become better financially prepared for retirement. Studies have found having access to payroll-deduction retirement savings plans at work makes it 15 times more likely Americans will save for the future. Consequently, policymakers have focused their attention on smaller companies. About 36 percent of Americans work for companies with fewer than 100 employees, and many of these businesses do not offer retirement plans.
Last July, Oregon launched OregonSaves, the state's auto-IRA program. Companies that don't have workplace retirement plans are required to facilitate the program by:
- Providing information to set up Roth IRA accounts for employees
- Making payroll deductions to the Roth accounts
- Delivering updated employee information
California, Connecticut, Illinois, Maryland, and Massachusetts are working on similar programs.
Some business owners have embraced the auto-IRA opportunity, while others object to having the government involved. A Pew Charitable Trusts survey of 1,600 small and mid-sized business owners found 51 percent would prefer to sponsor their own retirement plans rather than participate in a state-run plan.
Many employers who participated in focus groups were not aware low-cost retirement plan options are available in the marketplace. Pew researchers noted:
"Most [small and medium-sized employers] did not have a full understanding of how 401(k) plans work, and few were familiar with plans or incentives designed for small businesses, such as the Simplified Employee Pension (SEP) Plan, the Savings Incentive Match Plan for Employees (SIMPLE), or the small employer tax credit for retirement plan startup costs."
If you're interested in learning more about retirement plan options for small businesses, sole proprietorships, or freelancers, contact your financial professional.
Weekly Focus - Think About It
"Humanity is a lot like me. It's an aging movie star, grappling with all the newness around it, wondering whether it got it right in the first place and still trying to find a way to keep on shining regardless."
--Shah Rukh Khan, Indian film actor
Best regards,
Jesse Hurst
Impel Wealth Management
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Securities offered through Impel Wealth Management, Member FINRA/SIPC.
* These views are those of Carson Group Coaching, and not the presenting Representative or the Representative's Broker/Dealer, and should not be construed as investment advice.
* This newsletter was prepared by Carson Group Coaching. Carson Group Coaching is not affiliated with the named broker/dealer.
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value. However, the value of fund shares is not guaranteed and will fluctuate.
* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.
* The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.
* All indexes referenced are unmanaged. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment.
* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.
* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
* Past performance does not guarantee future results. Investing involves risk, including loss of principal.
* You cannot invest directly in an index.
* Stock investing involves risk including loss of principal.
* Consult your financial professional before making any investment decision.
*To unsubscribe from the Impel Wealth Management please reply to this e-mail with "Unsubscribe" in the subject line, or write us at 2006 4th Street, Cuyahoga Falls, OH 44221.
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Is there something we can help you with? Please call me at 330.800.0182 or email me directly at [email protected].
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Impel Wealth Management
2006 4th Street, Cuyahoga Falls, OH 44221
P: 330.800.0182 TF: 844.422.5550 F: 234.312.0460
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