Financial Insights

Records, Risks, and Returns

January 30, 2018 | posted in: Financial Insights, LPL Weekly Market Commentary | by

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.

Joltin’ Joe DiMaggio, What Do You Know…How About the Dow Reaching 50,000?

December 23, 2017 | posted in: Blog, Financial Insights | by

Stock Performance from 1926 to Now
Many of you have sat in my conference room and viewed what we in the financial industry call the “Mountain Chart” of market performance.  The chart, courtesy of Morningstar, reveals that since its inception on 12/31/1925, the S&P Composite Index has averaged annual returns of over 10% per year.  I think my Dad, born in 1925, a year before the Mountain Chart begins, would agree with me that 91 years of performance history is a long and significant period for making observations.  Dad still talks about getting ice delivered to his apartment in the Bronx, about accompanying his dad during the Depression as he visited neighbors to collect life insurance policy premiums paid in weekly cash installments, (and getting robbed along the route more than a time or two!) and about how impressed he was watching Joe DiMaggio play center field at Yankee Stadium during his rookie season in 1936. The point is, 91 years is a long time.   Read More  »

When Overbought is Bullish…

December 20, 2017 | posted in: Financial Insights, LPL Weekly Market Commentary | by

  As we start to look ahead to 2018, check out LPL Research’s look back at 2017, one of the least volatile years in history. Key takeaways include: The S&P 500 is historically overbought after a very persistent bid the past year. Fortunately, history suggests longer-term gains are quite strong after being overbought. Market sentiment is flashing some near-term concerns. Read more from LPL Financial’s John Lynch, Chief Investment Strategist, and Ryan Detrick, CMT Senior Market Strategist, here.