Research & Insights

Market Update - Smith Wealth Advisory Group

2020 Year-end Reflections

At the time of my last correspondence the number of Coronavirus cases and related deaths were accelerating, financial markets were reeling, and the outlook on both fronts appeared grim. The S & P 500 had declined 35% from its February 19th peak, and credit markets were facing similar stress given the implications of widespread business and economic shutdowns. We were very much in the “heart of the storm.” My message to you then was simple: “Believe in America.”

We encourage you to view the attached video from Brian Wesbury, a widely respected economist whose viewpoints are particularly relevant and insightful at this critical time. Given so much disinformation and fear-mongering, facts and context matter. If you want to be hopeful when it seems all hope is lost, please listen. We believe the 11 minutes will be well worth your time.

Although the effects of the Coronavirus on financial markets are well known, important facts about the virus itself and precautionary measures that can be taken are less so. Proper education eliminates uncertainty and reduces fear. Below is a link to the Center for Disease Control and Prevention (CDC) website which can be used to answer basic questions and provide helpful steps for higher-risk individuals and populations.

One of my favorite quotes, by Henry David Thoreau, is: “Wealth is the ability to fully experience life.” Although it’s natural to be concerned about the near-term financial impact from current events, Thoreau’s quote assumes more significance and relevance at this time. It has long been my belief that it’s not ultimately monetary riches, but the richness of life itself that is most meaningful.

Dear Friends: As you may know, I’ve always been a big fan of Warren Buffett and have quoted his sage advice and wisdom frequently throughout the years. Buffett’s success as an investor is well known, and investors are generally wise to heed his advice and follow his example.

I hope this note finds you and your family well and in good health. As you may know, fear of the potential economic impact of the spread of the coronavirus from mainland China to other regions of the world has precipitated a broad and significant market correction. Although a little more than a week ago the major stock market averages were at all-time highs, over the past week they have experienced a precipitous double digit decline. It’s natural that you may have a number of questions and concerns, and it is my hope to potentially address some of them in this correspondence.

With each passing day events are happening and conditions changing at what seems like warp speed. Just a few short weeks ago our lives were normal, financial markets were thriving, and all seemed to be well with the world - literally, and figuratively. Now, practically overnight, our worlds have been turned upside down.

The day-to-day demands of running a business can be all-consuming. This article takes a look at a few important considerations for the protection of you and your business.

Soaring inflation and global conflict have led to ongoing stock market volatility. Retirement savers may be wondering, “Is now a good time to convert to a Roth IRA?”

If you participate in a 401(k), or other qualified retirement plan that lets you invest in your employer’s stock, consider the tax deferral opportunities of net unrealized appreciation.

Investors have improved access to alternative investments today, and studies show that they can enhance portfolio performance. This piece reviews the growing asset class and provides guidance for portfolio construction.

Navigating the world of personal finance and investing can feel overwhelming to most people—and gender may further affect your financial experiences and situation. Here’s some of the unique considerations women often face, and how you can take control by planning for your financial future.

In this issue, we compare the Mag 7 with the Nifty Fifty, discuss how much federal debt is too much, and how March may bring a chance to increase equity exposure.