Midyear Outlook 2016: A Vote of Confidence

July 22, 2016 | posted in: Blog, Financial Insights | by

As we embark on the second half of 2016, the headlines and much of our attention will be focused on the 2016 presidential election, which can distract us with the barrage of promises and heightened political drama. Against that backdrop, however, we continue to encourage investors to remain focused on their long-term investment plans. LPL Research proposes a vote of confidence in the economy, the market, and most importantly, in our ability as investors to remain focused on our long-term goals. This is not always easy; but a vote of confidence means having the belief that someone or something has the ability to succeed. It is more than being positive or negative, a bull or a bear. It is about trusting our assessments of the opportunities—and risks—that may lie ahead, formulating a solid investment plan, and sticking with it through the ups and downs we may face in the coming months and beyond. Looking ahead to the rest of 2016, LPL Research maintains confidence in its existing forecasts, with some minor adjustments. Periods of volatility are also anticipated throughout the rest of this year, but the expectation remains that we will not enter a bear market or economic recession. Here are some of the key influential factors to be watching for: • Federal Reserve (Fed) rate hikes. The forecast for Fed rate hikes in 2016 has been reduced from two to one, with additional rate increases next year. • International growth uncertainty. Looking for clarity around future global growth, due to Brexit, the impact of the U.S. dollar, China’s debt problem, and earnings growth in Europe and Japan. 7 • Corporate America investments. A pickup in economic growth and an energy sector turnaround may boost companies’ investments in their future growth, an element that has been lacking recently. • Second half turnarounds: oil, dollar, earnings. These three turnaround stories are key for the rest of 2016. Should the drags from oil prices and the U.S. dollar continue to ease, an earnings rebound may occur in the second half of the year. The LPL Research Midyear Outlook 2016 provides the “vote of confidence” that the current economic recovery and bull market may continue through 2016 and beyond,with the investment insights and market guidance for what may lie ahead for the rest of this year. http://lpl-research.com/outlook/Midyear_Outlook_2016_spread.pdf The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. Indexes are unmanaged and cannot be invested into directly. Economic forecasts set forth may not develop as predicted. Investing in stock includes numerous specific risks including: the fluctuation of dividend, loss of principal and potential illiquidity of the investment in a falling market. Bonds are subject to market and interest rate risk if sold prior to maturity. Bond and bond mutual fund values and yields will decline as interest rates rise and bonds are subject to availability and change in price. The S&P 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. This research material has been prepared by LPL Financial LLC. Securities offered through LPL Financial LLC. Member FINRA/SIPC.

Austin Frye Quoted in Piece on Tips for Buying a Kentucky Derby-Winning Racehorse

May 12, 2016 | posted in: Blog, Financial Insights, In The News | by

            “5 Things to Know Before You Buy a (Future) Kentucky Derby-Winning Racehorse” By: Brad Tuttle Excerpt from article… Owning a racehorse can be a heckuva lot of fun. As an Investment News story put it, casual investors should think of racehorses as “an expensive hobby, not a business venture.” “Don’t expect that you are going to make money, but you may get a great temporary ride,” Austin Frye, principal of Frye Financial Center, said to Investment News. After all, gambling can be thrilling, and when you’re involved in the game on a deeper, more personal level, as with thoroughbred ownership, the stakes are high and the payoff can be especially rewarding. Read full article here.

Austin Frye Interviewed by Bloomberg Business on Breaking Up with Your Financial Advisor

April 8, 2016 | posted in: Blog, Financial Insights, In The News | by

“Breaking up is Hell. Especially With Your Financial Advisor”
By: Suzanne Woolley Excerpt from article: …Advisors can be leery of clients, too. Austin Frye, an adviser in Miami, was introduced to a man at a Christmas party who was very unhappy with his adviser because his portfolio was down for the year. The guy had had a few drinks, and Frye remembers the “veins bulging out on his neck.” “I’m thinking,” said Frye, “I don’t want you as a client.” Early in his career, Frye took on a client who admitted he was ditching his financial adviser because the guy had gained a lot of weight and the client feared it showed a lack of control. Two years later, Frye got a note from the client saying he was going back to his old adviser, and called to ask why. “He lost weight,” the man said. Read the full article.

Austin Frye Interviewed by The Wall Street Journal on the Rise of Postnuptial Agreements

March 28, 2016 | posted in: Blog, Financial Insights, In The News | by

“Why Postnuptial Agreements Are on the Rise”
By: Veronica Dagher     Excerpt from article: …As more couples sign prenups, more are likely to sign postnups later on, attorneys say. When a client of Austin Frye got married, his fiancee decided she liked a thinner version of him. Their prenup provided that the wife was entitled to an extra $150,000 property settlement if the husband weighed over 220 pounds at the time of her divorce petition, the Miami attorney and CERTIFIED FINANCIAL PLANNER ™ says. “Ten years later the clause didn’t seem so cute anymore to the husband,” Mr. Frye says. The wife agreed to drop it. Read the full article.

Market Volatility

February 11, 2016 | posted in: Blog, Financial Insights | by

Many of you are understandably concerned about the current volatility we are experiencing in equity markets. As my staff and I continue to reach out to review your particular situations with you, I want to convey a general message regarding how I feel about current conditions.

Chart Shows Why Portfolios Must Be Well Diversified…

February 4, 2016 | posted in: Blog, Financial Insights | by

Whatever you call it, Quilt Chart, Jelly Bean Chart, Periodic Table Chart, etc., our favorite chart (now updated through 2015) clearly highlights why you can’t chase the top performing investments or sectors. It shows how the strongest investment performers change from year to year, underlining the importance of sticking with a well diversified portfolio allocation.