Lantern Wealth Advisors, LLC
35 Pinelawn Road
Suite 101E
Melville, NY 11747
(631) 454-2000

During these stressful times, it’s important to keep perspective. If you have concerns, please reach out to your financial professional. We wish you all good health and we will all come through this together.

Major Indexes For Week Ended 5/15/2020

Index Close Net Change % Change YTD YTD %
DJIA 23,685.42 -645.90 -2.65 -4,853.02 -17.01
NASDAQ 9,014.56 -106.76 -1.17 +41.96 0.47
S&P500 2,863.70 -66.10 -2.26 -367.08 -11.36
Russell 2000 1,256.99 -72.65 -5.46 -411.48 -24.66
International 1,594.72 -53.72 -3.26 -442.22 -21.71
10-year bond 0.64% -0.04% -1.28%
30-year T-bond 1.31% -0.07% -1.05%
International index is MSCI EAFE index. Bond data reflect net change in yield, not price. Indices are unmanaged and you cannot directly invest in an index.

The Pandemic And Stocks

(May 15, 2020, 6 p.m. EST) The Standard & Poor's stock index closed Friday 2.3% lower for the week, and is 24.6% off the epidemic low of March 23. Amid the worst economic crisis in modern history, here's what it means to retirement investors based on a historical perspective and facts about earnings, which ultimately is what drives stock prices.

Historically, shares in America's 500 largest publicly traded companies are priced at a multiple of 16 to 19 times their expected profits. That valuation range of stocks in 'normal' times is shown in the two solid red lines. In recent weeks, the S&P 500 has been priced near the high end of the normal valuation range. The actual price of the S&P 500 is the black line.

The dashed red lines apply the historical valuation range, of 16 to 19, to the latest consensus earnings forecast from Wall Street's analysts surveyed by Thomson Reuters IBES. .

The actual earnings of the S&P 500 companies per share in 2019 was $162.97. As of May 4, 2020, the 2020 and 2021 estimated S&P 500 operating earnings per share was $130.90 for 2020 and $168.04 for 2021.

The Coronavirus bear market low of the Standard & Poor's 500 index, to date, was 2237.39 on March 23, 2020. Closing Friday at 2,863.70 Friday, the S&P 500 is priced for the partial shutdown of the economy to continue through the end of 2020 and a sharp recovery in 2021. Even if prices head sideways, volatile spikes and downdrafts are likely in the days ahead.

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. It is a market-value weighted index with each stock's weight proportionate to its market value. Index returns do not include fees or expenses. Investing involves risk, including the loss of principal, and past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance quoted.

Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. It does not take into account your investment objectives, financial situation, or particular needs. Product suitability must be independently determined for each individual investor.

This material represents an assessment of the market and economic environment at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions.

As A Final Act of Love, Plan Thoughtfully

"Everybody wants to go to heaven," according to a classic blues song, "but nobody wants to die." Nor does anyone like to think about dying. And that must be why some people don't put much thought into estate planning, much the less in drawing a schematic for distributing one's earthly possessions to those you love the most.

But this is important. It's something you want to do diligently. It's something you want to get right.

Your heirs and the executor of your estate— the person you choose to oversee that your wishes are carried out— will remember you kindly for your clarity of purpose; it's good for all involved. Otherwise, you risk setting off a family feud. Resolving not to leave your property open to legal dispute, here are three key rules for further planning your estate:

Name Beneficiaries Correctly. Putting someone's name in your will may not be enough, of course. It's wise to name who gets what in documents filed with your insurer, annuity provider and retirement fund sponsor, usually for individual retirement accounts. To be clear, if you want your daughter to get your ABC Stock 500 fund, naming her in the will does no good. It must be on file with a custodian. Moreover, listing multiple beneficiaries of real estate often is an invitation to a quarrel. What if you give your home to your three children? Maybe one wants to keep it for old time's sake, and the other two want to unload it and pocket the money. Or perhaps they all want to sell but can't agree on a broker or a fair selling price. In the meantime, they would need to chip in to maintain the house, which can cause further disputes.

Keep Estate Plans Current. Years or decades may pass between when an estate plan is devised and your death. Lots can change. Like spouses. If you divorced and never updated your will afterward, your ex could end up inheriting your worldly possessions. And what about your nephew, who was so delightful as a kid but grew up to be someone you don't really want to help financially. What's more, the tax laws could have changed, and old plans may be totally out of sync with current rules. Reviewing your will annually makes sense.

Provide Vital Information. Another problem is not furnishing your executor and heirs with a thorough up-to-date list of accounts and how to get access to them. Account titles, user names, and passwords— along with security questions— must be stored. Encrypting and saving this information is best. Writing it down and storing it in a safe deposit box is next best. However, not everything should be stored digitally. Mortgage documents, the deed to your home, your last mortgage payment and paperwork on your car are best kept in a safety deposit box, which requires a key and a photo I.D. to access. So, remember to arrange access for your executor with the bank. In leaving an item of sentimental value, consider who among your heirs would most appreciate its significance. Your Facebook, Instagram and Amazon account can be managed from the grave using online services such as Mylennium. It's wise to have a master list with all user names and passwords for financial holdings. This can be in your safe deposit box or in a secure place in your home. Trouble is, keys tend to get lost. Encrypting it and storing it online or on secure media you keep in your home is better.

Nobody wants to die but if you want to go to heaven, making your final wishes easy on loved ones is a thoughtful final act to help get you there.

The above referenced information was obtained from reliable sources, however Lantern Investments, Inc. and Lantern Wealth Advisors, LLC cannot guarantee its accuracy. Opinions expressed herein are subject to change. Past performance is no guarantee of future results. Asset allocation and diversification do not assure a profit or protect against losses in declining markets. Any information given on the site is informational and illustrative but does not recommend actions as the information may not be appropriate to all situations. It is important that you consider your tolerance for risk and investment goals when making investment decisions. Investing in securities does involve risk and the potential of losing money. Links to other sites are provided for your convenience. Lantern Wealth Advisors, LLC and Lantern Investments, Inc. do not endorse, verify or attest to the accuracy of the content of the web sites that are linked and accept no responsibility for their use or content. Lantern Wealth Advisors, LLC and Lantern Investments, Inc. do not provide tax, accounting or legal advice.