A Letter to Clients and Investors Everywhere
August 10, 2011 | 
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August 10, 2011
Dear Clients and Friends,
We have experienced a significant decline in the financial market during the last few days. Since the end of the second quarter the major indices have lost approximately 10%-15 % in value. Even with the downgrade in US debt rating to AA+, the current state of the economy is not all doom and gloom.
Let’s take a look at the current market conditions:
- The debt ceiling crisis is over
- 75% of companies beat earning estimates
- Household debt obligations (rent, bills, car payments divided by income) are at a 1992 low
- Manufacturing and service sectors are still expanding
- GDP growth is still expanding
- Oil price settled around $80 / barrel
- Car sales are up 5.8%
Historically, a downgrade does not set up any specific trends for market behavior. When Canada lost its AAA rating in 1993, the country’s stocks gained more than 15% in the subsequent year. Later in 1998, the same trend was observed in Japan. The stock market gained 25% during the following 12 months after a Moody’s downgrade.
We understand that it is extremely difficult to continue investing and remain calm in this unstable market. Once again, it is important to follow your long-term goals and discipline. We want to stress Warren Buffett’s opinion regarding the S&P downgrade: “there’s no question that the United States’ debt is still AAA” and he’s not changing his mind about Treasuries based on Standard & Poor’s downgrade. The legendary investor continues: “If anything, it may change my opinion on S&P.”
As always, please call with questions.
Regards,
Glass Jacobson
Questions?
jon.dinkins@glassjacobsonIA.com
Increased market volatility may NOT mean modifying your actions
August 9, 2011 | Subscribe to our RSS Feed
The markets have known for a while of the data which caused the lowering of the US credit rating by S&P on Friday. As such, this does not mean any fundamental increase in volatility, and clients should not modify their actions based only on the downgrade. That being said, given the combination of persistent economic weakness and regulatory ambiguity, this may serve as an indicator to some clients to re-examine their risk tolerance.
Glass Jacobson’s Vanessa Duchman explains what’s been going on.
Seven Headlines to Beat the Gloom
August 2, 2011 | Subscribe to our RSS Feed
Recently, it seems every time you turn around, there’s more bad news on the financial front. Headlines and 24 hour news cycles don’t do much to inspire confidence in your portfolio. But, smart investors know to look a little deeper. There is good news out there, you might just have to look past the front page. Here are seven headlines you might have missed that contain some good news!
Questions?
paula.friedman@glassjacobsonia.com
vanessa.duchman@glassjacobsonia.com
Announcing the “Protect Yourself” Series!
July 25, 2011 | Subscribe to our RSS Feed
Series Focuses on Unique Challenges Women Face
Owings Mills, Md. – July 25, 2011 – Following on the success of February’s “Protect Yourself” seminar, CPA Wealth Management firm Glass Jacobson and law firm Hodes, Pessin & Katz are pleased to announce that the seminars will become a regular series, with the first to take place Tuesday, September 20. Subsequent seminars will take place in November, January and May.
Financial and legal professionals from both firms will present at the series, called “Women: Protect Yourself: Financial and Legal Strategies for Navigating Life’s Stages.” Devoted to help women navigate the unique challenges they face, each of the free seminars will focus on a distinct topic, such as:
- Women in Business- Business 101 and 201
- Women with Young Families
- Women taking care of Aging Parents
- Women facing an “Empty Nest”
“Glass Jacobson and Hodes, Pessin & Katz have a long-standing commitment to serving the women of our community,” said Tammy Schneider, director of Glass Jacobson’s Women In Business Practice. “The ‘Protect Yourself’ series is an extension of that commitment and will give women the valuable information they need to further themselves, their businesses and their families.”
“Protect Yourself” also provides a fully rounded experience, giving women valuable life information. In addition to providing women with crucial financial and legal advice, the seminars will also feature leading nutritionists and self-defense experts to teach women how to live fuller and healthier lives.
“In the Baltimore metro region, women are too often without the resources they need to achieve the highest possible level of success,” said Nicole Ames, director of marketing and business development at Hodes, Pessin & Katz. “With these seminars, we seek to provide those needed resources and give women a new sense of empowerment.”
About Glass Jacobson
Founded in Baltimore in 1962 as a traditional CPA firm, Glass Jacobson has evolved into a wealth management firm to better serve its clients’ diverse, ever-growing financial needs. Today, the firm’s unique Wealth Management Model brings together the essential services of Investment Management, Advanced Planning and Relationship Management, and delivers them with unparalleled expertise and professionalism.
Serving as a personal CFO, Glass Jacobson looks beyond the numbers to get to the core of every client’s financial situation. The firm delivers a full team of in-house CPAs, investment advisors, financial planners and insurance specialists to every client. To learn more about Glass Jacobson, please see www.glassjacobson.com.
About Hodes, Pessin & Katz
Hodes, Pessin & Katz, P.A. (HPK) is one of Maryland’s leading law firms. With offices in Towson, Columbia, Bel Air and Cambridge, HPK is comprised of over 60 lawyers, paralegals and law clerks, whose practices span the legal field.
Practice areas include bankruptcy, corporate and business law, criminal law, education law, estate planning, litigation, insurance law, intellectual property matters, labor and employment law, medical malpractice defense and same sex/LGBT law. HPK’s size, diversity and team approach provide clients with confidence. They know they can rely on HPK to help them navigate a myriad of legal issues—throughout their lives.