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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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Anyone that knows me, knows my love for the holiday season! I think I am the first person in the office to put up all my holiday decorations, my husband and I start to watch the Hallmark Holiday movies in November, and the movie Elf plays constantly at our house ("Buddy the Elf, What's your favorite color?"). I love everything about this season and I try to spread extra joy and kindness more than I normally do (which is often a lot)! And since I have had children, it puts the holiday season in a whole new light seeing it through their eyes. I have so many fond memories from around the holiday season and I want to make sure my children have the same memories growing up!
The office has come up with a list of delightful holiday things in Akron this season!
*Holiday Lantern Tours at Hale Farm- Weekends from December 2nd-23rd
*Deck the Halls at Stan Hywet- Weekends from November 23th-December 30th
*Tours of the Bethlehem Cave and Nativity Museum at Church of the Nativity Bethlehem - Everyday until December 30th, 2:00-3:30 PM
*37th Annual Holiday Tree Festival at John S. Knight Center- November 17th-25th (Karen Johnson and Sarah Montgomery will be singing with the Cuyahoga Falls Community Choir there November 17th at 5:00 PM, if you go!!)
*Selfless Elf 5K Run at Akron- Canton Regional Foodbank- December 16th
*Lock 3 Ice Rink and Christmas windows around Akron - Starting November 24th
*Cuyahoga Falls Ice Skating Rink Opens November 24th. (Karen & Sarah are singing that day too!)
*The Polar Express at Cuyahoga Valley Scenic Railroad - November 10th-December 21st
Akron has so many wonderful family activities you can participate in this Holiday Season with your family. I have attached a picture of a few of the memories I have made with my family in the past from Stan Hywet, the Polar Express, the windows in downtown Akron, and the tree festival. We are going to go to the Lantern Tour at Hale Farm, and I am looking for another fun filled holiday memory with my family! We hope you and your family make a lot of memories this holiday season as we "move life forward."
Marie
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The Markets
How are you feeling about financial markets?
Some votes are still being counted but investors appear to be happy with the outcome of mid-term elections. Major U.S. stock indices in the United States moved higher last week, and the American Association of Individual Investors (AAII) Sentiment Survey reported:
"Optimism among individual investors about the short-term direction of stock prices is above average for just the second time in nine weeks...Bullish sentiment, expectations that stock prices will rise over the next six months, rose 3.4 percentage points to 41.3 percent. This is a five-week high. The historical average is 38.5 percent."
Before you get too excited about the rise in optimism, you should know pessimism also remains at historically high levels. According to AAII:
"Bearish sentiment, expectations that stock prices will fall over the next six months, fell 3.3 percentage points to 31.2 percent. The drop was not steep enough to prevent pessimism from remaining above its historical average of 30.5 percent for the eighth time in nine weeks."
So, from a historic perspective, investors are both more bullish and more bearish than average. If Sir John Templeton was correct, the mixed emotions of investors could be good news for stock markets. Templeton reportedly said, "Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria."
While changes in sentiment are interesting market measurements, they shouldn't be the only factor that influences investment decision-making. The most important gauge of an individual's financial success is his or her progress toward achieving personal life goals - and goals change over time.
Data as of 11/9/18
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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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2.1%
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4.0%
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7.6%
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10.2%
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9.4%
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11.7%
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Dow Jones Global ex-U.S.
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-0.3
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-11.7
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-9.4
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3.2
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0.3
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4.7
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10-year Treasury Note (Yield Only)
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3.2
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NA
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2.3
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2.3
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2.8
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3.8
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Gold (per ounce)
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-1.7
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-6.6
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-5.7
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3.6
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-1.1
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4.9
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Bloomberg Commodity Index
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-1.2
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-6.0
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-5.2
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-0.5
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-7.7
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-4.4
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DJ Equity All REIT Total Return Index
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3.5
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2.3
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1.2
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8.2
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9.6
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13.9
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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.
Is A Zeal of Zebras a Better Investment than a Blessing of Unicorns?
Collective nouns are the names we use to describe collections or significant numbers of people, animals, and other things. The Oxford English Dictionary offered a few examples:
In recent years, some investors have shown great interest in blessings of unicorns. 'Unicorns' are private, start-up companies that have grown at an accelerated pace and are valued at $1 billion.
In early 2018, estimates suggested there were approximately 135 unicorns in the United States. Will Gornall and Ilya A. Strebulaev took a closer look and found some unicorns were just gussied-up horses, though, according to research published in the Journal of Financial Economics.
The pair developed a financial model for valuing unicorn companies and reported, "After adjusting for these valuation-inflating terms, almost one-half (65 out of 135) of unicorns lose their unicorn status."
Clearly, unicorn companies must be thoroughly researched. There is another opportunity Yifat Oron suggested deserves more attention from investors: zebra companies. Oron's article in Entrepreneur explained:
"Zebra companies are characterized by doing real business, not aiming to disrupt current markets, achieving profitability and demonstrating it for a while, and helping to solve a societal problem...zebra companies...are for-profit and for a cause. We think of these businesses as having a 'double bottom line' - they're focused on alleviating social, environmental, or medical challenges while also tending to their own profitability."
Including both types of companies in a portfolio seems like a reasonable approach.
If you were to choose a collective noun to describe investors, what would it be? An exuberance? A balance? An influence?
Weekly Focus - Think About It
"In his learnings under his brother Mahmoud, he had discovered that long human words rarely changed their meanings, but short words were slippery, changing without a pattern...Short human words were like trying to lift water with a knife."
--Robert Heinlein, American science fiction writer
Jesse Hurst
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Securities and advisory services offered through Cetera Advisors LLC, member FINRA/SIPC. Cetera is under separate ownership from any other named entity.
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.
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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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