A Letter to Clients and Investors Everywhere
August 10, 2011 | 
Subscribe to our RSS Feed
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
Vacation Plans and Financial Plans
July 22, 2011 | Subscribe to our RSS Feed
Summer is here; it is time to pack up the bags and the kids (don’t pack the kids in the bags or maybe that is not such a bad idea), if you have any, and hit the road. My guess is that you did some planning prior to starting your trip thinking of where you were going, how you were going to get there and maybe some of the sights you might see. You did not pile everyone and everything into the car and take off or just go to the airport and buy a ticket to some random place. My guess is that before heading on your vacation you had a reasonable idea of all of the above as well as how much it might cost you.
How many of you dentists and non-dentists out there approach your financial future like you do your vacation? How many of you plan for the future: your retirement, your children’s education, your insurance needs and other financial needs? My professional experience has been that many more people plan their vacations than plan their financial future.
The are many reasons:
- The time necessary to gather the material to start the process
- The cost
- The fear of not being able to implement the plan
- Not wanting to be constrained to a budget
- Embarrassed at how much wealth one has accumulated
I am frequently asked by clients how much they should contribute to a child’s 529 Plan or what type of mutual fund purchase is best. While these may sound like simple questions there are many factors that need to be taken into account. The answer for each individual or family will be different. There are no cookie cutter answers to these questions.
We’ve all seen commercials where it says some stunt was performed by a professional and to not try this at home. Planning for your financial future works the same way. Unless you have the time and resources available you should be leaving your financial plan to professionals and not try it at home.
The financial services professionals at Glass Jacobson can help you plan for your future so you don’t get lost. You should put as much planning into your financial future as you do your vacation. We would be happy to discuss your financial needs with you and put you on the right path. Give us a call today.
Glass Jacobson Named Top RIA
July 18, 2011 | Subscribe to our RSS Feed
Glass Jacobson Investment Advisors has been named to Financial Advisor Magazine’s list of Top Registered Investment Advisors (RIAs). The 2011 survey rankings appeared in the July 2011 issue. This national survey ranks RIAs by total assets under management.
In the accompanying article, Financial Advisor Magazine points out that investors and investment advisors are finally starting to bounce back from the financial collapse of 2008. This year, RIAs grew their average total employees from 16.2 to 17.6, their total client relationships from 458 to 513, and assets per client increased by 6.13%.* Glass Jacobson Investment Advisors is proud to be named on such a notable list of nationally respected firms.
Click here to view the full list.
*source: Financial Advisor Magazine, July 2011