Spring Newsletter

Market Outlook

The first quarter of 2017 saw record market highs. However while stock prices were on fire, the economy grew a modest 0.7% in the first quarter. I continue to remain cautiously optimistic about the state of the economy. 

In general, economic indicators are positive. Looking forward, I expect stable economic growth the rest of the year, and anticipate the Federal Reserve Board to increase interest rates in June. 

April jobs numbers provided a reassuring sign. The unemployment rate of 4.4%, is the lowest rate in 10 years. Private sector wages also increased slightly, growing 2.5% in the last 12 months. 

​US retail sales were also higher than expected in March and April. Sales were 4.5% higher than a year ago. Additionally, March numbers were revised from 0.2% decline to 0.1% increase. 
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Inflation has remained low. March numbers tracked 1.8%, below the Fed target of 2%. 

Socially Conscious Investing

Most people invest with a goal in mind.  A growing group of investors are considering social good, along with financial return.

Socially Responsible Investing (SRI) is growing. Investors seek out companies and funds that share their commitment to responsible business practices. 

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There are a variety of SRI investment products available. Start by considering values and causes important to you. What social issues are important to you? What are your religious or spiritual beliefs? What kinds of industries do you want to support?

If your aim is to support a breadth of socially responsible businesses, funds like Vanguard's FTSE Social Index Fund (VFTSX) offer 

​Cost of SRI funds are similar to traditional funds. On average, these investments have expense ratios slightly higher than traditional funds. 

http://www.kiplinger.com/article/investing/T041-C009-S002-5-religion-funds-for-faith-based-investors.html

http://www.ussif.org/

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The Fiduciary Difference

I know my clients have many options when choosing a financial advisor. 

SEC Fiduciary Defintion

A fiduciary advisor, puts their client's interest first. The DOL is forcing advisors of retirement accounts into a fiduciary structure - I'd ask if you really want to work with someone who was forced into it?

Recommended Reading

1) 6 Ways President Trump's Tax Proposal Could Change Your Taxes
2) Even amateurs are writing articles about why you should not be using AUM and high fee funds
3) The three mistakes preventing you from beating the market - this is now required reading for all of my clients!
4) For my non-financial post: it's nearly summer, time to take the kids camping. One of my life goals is to teach Luca into loving the outdoors like I do. Here's how.