Top 3 Takeaways – Market Review – 2019 Q2

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1.   Domestic equities’ performance in Q1 was the best in nearly 10 years.

 

2.   Favorable interest rates plus a potential China trade resolution have driven much of this year’s equity rally.

 

3.   The Fed’s pivot to a more dovish monetary policy drove U.S. bonds higher.

If you read Barron’s Magazine this week, you will see Joseph J. Janiczek of Janiczek Wealth Management in its 2019 listing of top advisors in the nation.

This represents the sixth year in a row Janiczek has made this prestigious list, adding to a long tradition of making many top investment and wealth management lists and/or rankings going all the way back to 2001.

This latest award adds to top advisor lists published in or by:

  • The Wall Street Journal
  • Financial Times
  • AdvisoryHQ
  • Expertise.com
  • Worth Magazine
  • Mutual Funds Magazine
  • NAPFA

Janiczek Wealth Management is pleased to announce that it has once again been named to a Top and Best Financial Advisors in Denver, Colorado list–this time by Expertise.com. This adds to Janiczek’s long history of accolades including lists published in Barron’s, Wall Street Journal, Worth magazine, Mutual Funds magazine and others.*

To begin a conversation with Janiczek Wealth Management, to see if and how it makes sense to engage them for investment and wealth management services, call its Denver headquarters at 303-721-7000.

The firm specializes in serving high net worth investors (individuals with investment portfolios of $1.5- to $20-million) and ultra-high net worth investors (individuals with investment portfolios of $20-million and above).

Evaluate the Forest, not each Tree

Warren Buffett has a way of communicating financial principles in ways that hit home, and this year’s annual letter to shareholders is no exception. He’s managed Berkshire Hathaway since 1965, growing the company into a $500 billion conglomerate that owns and operates 66 different businesses generating $225 billion in sales.

Warren Buffett, CEO of Berkshire Hathaway. Photo credit-https://www.fool.com

Executive Summary

  • The question for stocks in 2019 isn’t whether earnings will slow, it’s by how much.
  • During such slowdowns, the evidence shows that not all stocks are equal.
  • Tilting towards more defensive stocks during earnings slowdowns can be beneficial to one’s portfolio.

Stock market volatility recently returned to normal levels after a few years of abnormally low volatility. It’s a good time to remind ourselves how to take advantage of this very natural dynamic of investing rather than be deceived by it.

Here are five important reminders:

1.   Volatility is your friend.

Exhibit 1: Long-term View by Asset Class

The very reason equity markets offer the possibility of higher returns than saving or investment vehicles with less perceived risk, such as U.S. Treasury Bonds or Certificates of Deposits (CDs), is the higher risk and greater volatility associated with such holdings.

This is called the risk premium, something investors as a whole build into liquid, open, transparent financial markets every business day of the year around the world.

For instance, the S&P 500, over the last 90 years returned about 10% per year.* However, there were very few individual years it actually returned that amount. The reality is that in 40 of the 90 years, the index was up more than 20% or down more than 20%.

So, remember, the premium (return over less risky assets) you are seeking to receive in risk assets is precisely for accepting the bumpy ride associated with the investment vehicle.

So long as you genuinely are a long-term investor who can ride out the bumps to the level you have accepted, history demonstrates you can be fine. Exhibit 1 illustrates the long-term historic view of what broad asset classes look like: **

 

 

1.   We find little evidence of excess in the economy that usually results in a recession, and this gives us reason to think the next recession is still some time away.

 

2.   The investment markets are re-pricing for a slowdown in economic growth, but absent a recession, the bull market is likely to resume.

 

3.   Non-U.S. stocks and value stocks offer some attractive opportunities given their respective cycles.

January High-5 from Janiczek

A  monthly recap of articles designed to inform and inspire on a variety of topics related to investing and wealth management. 

In this edition:

  • 2019 Outlook / 2018 Top Takeaways and Market Review
  • Investing in Volatile Markets
  • Wealth & Health in 2019
  • More Freedom in 2019
  • All for One, One for All

The Gift of More Freedom

What’s the use of achieving a high level of financial security and independence if you do not utilize this advantage to enjoy more freedom? Give yourself and your loved ones the gift of more freedom in 2019. Simply learn to utilize two tools we created to continually liberate yourself and enjoy higher and higher levels of freedom.

In doing so, you can exercise more control over your life. First, resolve to become Free FROM nagging situations that are holding you back. Then, resolve to participate in activities and pursue goals that are important to you and that you are now Free TO pursue with vigor.

Flourish

Two of the fundamental ways we help you (or can help you) flourish is to free you from the complexities of prudently investing and managing wealth. But, we are very aware that this state of flourish can be diminished if you are held back by other weaknesses, complexities or energy drains. That’s why we created a tool to help you engage in a continuous process of liberating (freeing) yourself from whatever else may be holding you back.

We also recognize that it’s not enough to only help you liberate yourself. We know it’s equally important for our clients to have exciting life enhancement goals they are pursuing with such freedom in order to fully flourish. In short, a “liberated from” needs to convert into a “liberated to,” in order to fully benefit by the transformation. That’s why we also created a tool to help you articulate the things you want to be free to do.

Joseph Janiczek, founding partner of Janiczek Wealth Management, recently wrote the following article about a project underway with Dr. Jeffrey Gladden, an interventional cardiologist and founder of APEX.

Within their respective disciplines, Mr. Janiczek (Wealth) and Dr. Gladden (Health) both advocate integrative, evidence-based programs tailored to the individual. Both recognize disciplined, pro-active resource management promotes performance optimization. Each pursues methods to help minimize risk, foster confidence, and support personal life goals.

However, even more remarkable than such parallels is the potential of wealth and health added together.     -Cathy Wegner


 The Wealth + Health + Longevity Breakthrough

Jeffrey Gladden, MD, a world-class longevity expert and founder of APEX, and I have discovered that it is quite beneficial to comprehensively look at wealth, health and longevity in an integrated way.

The Stages of Financial Freedom with Longevity animated illustration below shows the profound impact longevity has on wealth and the new possibility of reclaiming health and extending longevity that is now possible as a result of breakthroughs in medicine.

Exhibit 1: The Stages of Financial Freedom® with Longevity

Working together, we discovered two breakthroughs are possible, when looking at this dynamic together, that can be quite additive to proactive wealth management and optimum health management:

  1. The possibility of reclaimed health and expanded longevity brings an ideal financial mindset into play that can help you think, act and stay in peak financial form.
  2. The possibility of reclaimed wealth vibrancy brings an ideal resourcefulness mindset into play that can help you think, act to stay in peak health/fitness form.


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IMPORTANT DISCLOSURE INFORMATION
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken Janiczek Welath Management -Janiczek”), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Janiczek. Please remember that if you are a Janiczek client, it remains your responsibility to advise Janiczek, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Janiczek is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Janiczek’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request. Please Note: Janiczek does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Janiczek’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

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*Please Note: The scope of any financial planning and consulting services to be provided depends Read More Here

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* Joseph J. Janiczek, named among the top, best and most exclusive wealth advisors in the nation, see Awards & Recognition, Award Selection Criteria, and Sources of Recognition disclosures. Read More Here