Melt-up or Melt-Down?

Did stocks just melt-up, setting up a possible melt-down?
Friday’s sharp decline, the biggest since the Brexit vote in June 2016, might have led us to forget that just a few days ago many claimed the stock market was melting up. The strong finish to 2017 followed by big gains in January certainly made this a reasonable characterization. (Though we continue to believe stock valuations are well supported by fundamentals here.) Key takeaways include: Friday’s sharp stock market decline might have led us to forget that just a few days ago many claimed the stock market was melting up. Now concerns have turned to whether last week’s sell-off is the start of something much bigger. We discuss whether stocks have melted up or if they are about to melt-down, and share some thoughts on the sharp move higher in interest rates. Click here to read more from John Lynch Chief Investment Strategist, and Jeffrey Buchbinder, CFA Equity Strategist, of LPL Financial.

Records, Risks, and Returns

From LPL Research: “The equity market action over the past year is truly historic on many levels. It is important to recognize how unique this time frame has been and that a more volatile 2018 may be likely, and quite frankly normal. This week we will highlight some of the amazing streaks that have taken place, list a few of the reasons why we should anticipate a pickup in volatility, and explain how any possible weakness can provide suitable investors with an opportunity in diversified portfolios.” Key takeaways include: The recent lack of volatility in the U.S. stock market has been historic on many levels. The long absence of market volatility greatly increases theodds that 2018 may see multiple pullbacks. We believe strong global fundamentals may offer an opportunity to use potential pullbacks as a chance to add to portfolio positions. Click here to read more from John Lynch Chief Investment Strategist, and Ryan Detrick, CMT Senior Market Strategist, of LPL Financial.

Austin Frye Interviewed by Investment News About Clients’ Reactions to Current Market

January 30, 2018 | posted in: Blog, Financial Insights, In The News | by

As stocks have soared this year, some clients need their fears calmed, while others ask about investing more.
John Waggoner of Investment News interviewed Austin for an article discussing clients’ reactions to the current market conditions.  As he explains, “Despite the sell-off Monday and Tuesday, the stock market’s strength this year (and over the previous 12 months) has been breathtaking. Advisers are being hit with two questions: Should I cash in my chips? Or should I add more to the pot?  It’s a big decision, prompted by big moves in the stock market. As of the close of trading Monday, the Standard & Poor’s 500 index had soared 6.8% so far this year, including reinvested dividends, according to Morningstar Inc. That’s more than half the 10.2% average annual return from large-company stocks since 1926. Nearly 60 U.S. domestic mutual funds have already beaten the long-term average this year.”   Read More  »

Austin Frye Interviewed by Reuters regarding Estate Planning

January 18, 2018 | posted in: Blog, Financial Insights, In The News | by

Your estate plan needs an update, even if it is new.
As Beth Pinsker of Reuters said, “Got a dusty old binder with your will and estate plan? Even if you had your paperwork set up a few years ago, all of your documents are now out of date, thanks to new tax laws that went into effect at the turn of the year.”   She spoke with Austin to get his thoughts on the estate planning implications of the new tax bill. “Austin Frye, a financial planner based in Aventura, Florida, said his practice does more trusts now than ever, and he expects that to continue.   Read More  »

How Will the New Tax Bill Affect Investing?

Love it or hate it, here’s a quick review of how the new tax law could affect investments, from LPL Research.  For a more detailed look at what John Lynch, LPL Chief Investment Strategist, and his team anticipate, click here.

A Toast for the New Year

December 31, 2017 | posted in: Blog, Frye Happenings | by

From all of us to all of you, wishing you all good things for the year ahead.