July 2019
Each month, Wellspring's wealth strategist and advisors will share news and articles to shed light on the current economy, financial markets, and common tasks for maintaining a well-rounded and resilient personal financial plan.

Click on the links below to learn more.
Trade discussions between U.S. and China are ongoing, and at the time of this newsletter release more news would have followed after the G20 meeting in Osaka, Japan. Escalating tensions between the U.S. and Iran is also making news with potential ramifications to both U.S. and China negotiations as well as U.S. and EU relations.

Alongside geopolitical developments around the world, the Fed is also making headlines given the continued back and forth between President Trump and Fed Chairman Powell on how interest rates should be managed. Observers expect the Fed to cut interest rates starting this month, but recent public address from Fed Chairman Powell may have cooled public sentiments.

In the U.S. and abroad uncertainty still abounds. Contrasting signs of when the next recession will occur make it all the more impossible to predict the future; the stock and bond markets are painting two different pictures.

Investors should consider taking time midyear to reassess their personal investments relative to set goals and objectives, identifying whether their savings are allocated appropriately to meet short to intermediate as well as long-term plans rather than making direct comparisons to the broad market that may not tell the whole story.
Economic Outlook

First , a short overview, " Midyear Outlook: Updates on Trade, the Curve, and the Fed " (Lord Abbett, 2019).

And following the 2019 G20 Summit meeting in Osaka, Japan, " The Group of Twenty ", a review of the annual gathering of world leaders written by McBride and Chatzky for the Council of Foreign Relations (2019).

More so , from The Atlantic, written by Tom Mctague, " What the Iran Crisis Reveals About European Power " (2019).

Next , a compare and contrast to the economy a decade ago and today, " Recession? What Recession? ", written by Martha C. White for NBC News (2019).

Alternatively, Neil Irwin for The New York Times, " The Job Market Isn’t as Strong as It Seemed ", highlighted concerns about the validity of current labor data (2019).

Lastly , this comic illustrated by the New York Fed helps educate further the role of the central bank, " The Story of Monetary Policy " (2019).
Financial Markets

On one hand , the broad market set new record highs in June, a potential indicator of continued expansion albeit limited growth against the backdrop of global economic uncertainty. From Yahoo! Finance, " Why the Dow Jones Industrial Average 30,000 may Come Very Soon ", the author discussed at least in the short term the chances of a continued run of the bull cycle (Sozzi, 2019).

In contrast , the bond market is depicting a very different scenario. Along with the inverted yield curve that historically served as a warning sign for recession, other warning signs are discussed in The New York Times, " The Bond Market Is Giving Ominous Warnings About the Global Economy " (Irwin, 2019).

These opposing views also bring to attention why it is necessary for investors to diversify.

Personal Financial Planning

To continue the series of discussions on tax planning for 2019, midyear is a good time to conduct a tax audit using 2018 tax return as a valuable guide to the tax efficiency of retirement and investment accounts. To add, investors can review whether a company sponsored retirement plan is being optimized or under utilized. Other tax-sheltered options include an IRA and HSA.

To add , during midyear going through the exercise of tracking and reviewing personal financial progress may be a more rewarding experience and provide a greater degree of assurance than trying to time the market.

In a visual chart put together by MFS, the information illustrates how moving out of the market can be detrimental to long-term growth, " Buy Low, Sell Why? " (2019).

Investment changes should instead be made together with the personal financial plan in mind accompanied by an investment policy statement or IPS. Avoid making rash decisions, and as this CNBC article ended with, learn to tune out the noise, " How the Average American Millionaire is Managing Their Money in This Market " (Rosenbaum, 2019).

Wellspring In Action
We hope everyone is enjoying the summer!

Soak up the sun, happy travels, and be well.
Stay tuned for future
announcements and updates!
Community Calendar

Wellspring Consulting encourages involvement in the Asian business community. Below are some upcoming events!

Click each event flier for more details.
HCCNC 3rd Annual Friends & Family Picnic

Foster City Boothbay Park Recreation Area

Sunday, July 21, 2019

11:00 AM to 3:00 PM
HKANC Scholarship Foundation 18th Annual Fundraising Golf Tournament

The Peninsula Golf & Country Club, San Mateo, CA

Monday, July 22, 2019 

10:30 AM to 8:00 PM
Texas Rangers vs. Oakland A's

7000 Coliseum Way, Oakland, CA 94621

Friday, July 26, 2019

5:30 PM
Phone: (408) 435-1668

For additional inquiries, please email us HERE .

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