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.

In this month’s issue, we look at what’s next for the Strait of Hormuz, compare funds versus bonds, and commemorate the 234th birthday of the New York Stock Exchange.

Living longer is no longer just a possibility—it’s a planning reality. With many individuals now living into their 90s and beyond, how can you prepare for a retirement that could last decades?

529 plans have long been a powerful way to save for education in a tax-advantaged manner. In recent years, however, legislative changes have significantly expanded how these plans can be used—making them more flexible and relevant for a wider range of education and financial planning needs.

Marriage is more than a milestone—it’s a meaningful opportunity to align your financial lives and build a shared foundation. Use this checklist to coordinate accounts, clarify goals, and position yourselves to Plan for More together.

From smart homes to digital wallets, more of our financial lives now live online. While technology creates convenience, it also creates opportunities for cybercriminals. Staying informed about evolving threats—and taking proactive steps—can help you protect one of your most precious assets: your personal and financial information. Here are five cybercrime trends to keep on your radar.

A well-defined asset allocation is the foundation of any successful investment strategy. It shapes how your portfolio responds to market changes, balances risk and return, and ultimately helps you stay on track toward your long-term financial goals.