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Weekly Insights 3/21/22 – 3/25/22

Luck of the Irish?

This past week marked St. Patrick’s Day which began as a celebration of one of Ireland’s patron saints, was later carried to the U.S. by Irish immigrants and is now considered to be a celebration of Irish culture.  Shamrocks, leprechauns, and pots of gold are all associated with the celebration and considered to be lucky. Somewhat surprisingly, the saying “Luck of the Irish” originated in the U.S. during the silver and gold rush of the19th century when a number of the most successful miners were of Irish heritage.  Did the luck of the Irish have something to do with the stock market performance last week?

While we do not want to discount the possibility of having some luck, it is more likely other factors had a greater influence on the markets.  As expected, the Federal Reserve raised the Fed Funds rate by a quarter of a percent; the first interest rate increase since 2018. The markets breathed a sigh of relief since it was not a larger move and enjoyed the best week of the year thus far with the S&P 500 gaining a little more than 6%.  With this move and the accompanying statement, the Fed provided further clarity about their plans to fight inflation.  The markets consider a quarter point rate hike to be rather insignificant and not enough to hinder the market in the short-term.  The Fed signaled plans to continue rate hikes at each of the remaining six meetings of the year.  Conventional wisdom is short-term rates need to be at least 2% for there to be a major impact on the economy.  This threshold could be reached in 2023 if the Fed continues to raise rates; current expectations are they will.  If short-term interest rates were to reach that level, we might experience a slowdown in economic activity but for the time being we expect moderate growth to continue.  In their statement, the Fed cut their estimate of GDP growth from 4% to 2.8% for the year, noting implications from the Ukraine war.  They also raised their outlook for inflation, publicly acknowledging inflation remains elevated and persistent. 

The situation in Ukraine continues to place a certain cloud of uncertainty over the markets and there were news reports of progress being made on the diplomatic front as well as stalled progress by the Russians.  There is even some speculation the Russians will not be able to sustain their invasion much longer and may possibly retreat but that seems like a very optimistic assessment; one we can all hope for should further diplomatic progress fail to yield results.  Despite some progress seemingly being made, the situation remains largely the same so we can assume the market rebound of the past week was mostly driven by the Fed’s action with the Ukraine situation having only a limited impact.

Pots of Gold (and other commodities)

Inflation continues to be a key theme for investors and consumers alike.  The sanctions placed upon Russia continue to impact global supply of certain commodities and raw materials.  Higher raw materials costs will undoubtedly continue to drive prices higher for many of the essential items we need, such as food and energy.  (My wife would argue precious metals, along with diamonds, are also essential.)  Oil was slightly higher on the week, gold and silver were lower, with copper and other industrial metals making moves to the upside.  Agricultural commodities, such as wheat and corn, were mostly flat with some daily volatility following historic increases the previous couple of weeks. Even though the prices of many commodities seemed to have leveled off, they remain at or near historically high levels and therefore are likely to cause continued inflationary pressures.    

Looking Ahead

It seems the anticipation of the first interest rate hike did more harm than the actual rate hike itself, but it generally takes a few months before the full effects are felt in the economy.  With the Fed meeting now behind us, the stock market should again focus on fundamentals such as earnings and growth.  The situation in Ukraine will continue to garner headlines and could lead to some short-term volatility. Increasing numbers of Covid cases in China and Europe have the possibility of causing some alarm but we view that as having limited, if any impact, on the markets since at this point it seems we have moved past the pandemic and its impact is less and less.  Inflation will continue to be at the top of investors’ and consumers’ minds over the next several months, if not years. 

The changing of the seasons brings Spring, which is now upon us and with that, new beginnings.  The biggest question now is whether or not the market bounce we experienced last week will continue and are we seeing a transition? Will there be some Luck of the Irish?  Our assessment is we will see better markets over the next few months, barring an escalation of geopolitical events.  Be sure to give us a call if you would like to review your portfolio.  The recent market volatility has proven to be a bit of a wake-up call for many, so it is important for your income plan to withstand the ups and downs of the stock market. To learn more, please join me for our Market Huddle today, Monday, March 20, at 12pm. Click here to register.

Have a great week!

Nathan Zeller, CFA, CFP®

Chief Investment Strategist

Secured Retirement

nzeller@securedretirements.com

Please contact us if you would like to review your individual financial plan or learn how the TaxSmart™ Retirement Program can help you.   

info@securedretirements.com
Office phone # 952-460-3260

Weekly Insights 3/14/22 – 3/18/22

The Old Stuff

In the not-so distant past, Garth Brooks would begin his concerts with a song titled “Old Stuff” with lyrics that included, “…Back when the old stuff was new.”  This was an ode to his early days on the road as a performer before he became well-known.  For many of the families we work with who happen to be at or near retirement, they began their careers a few decades ago.  Do you remember the early days of your career and what has changed?  Obviously, you are older and wiser, plus technology has changed significantly as have many of the comforts of life.  Unfortunately, we seem to be entering a period of time where we are returning to some of the same circumstances of those early years of your adult life – high energy prices, higher inflation, and east vs. west geopolitical strife, not exactly the “good ol’ days” anyone hoped to be reminiscing about.      

Most of the stock market movement over the past week was a result of news related to the situation in Ukraine.  When news came that there was progress on the diplomatic front and it was reported the U.S. was banning all energy imports from Russia, the markets moved higher. Conversely when there was news of no diplomatic progress or continued aggression the markets moved backward.  Overall, the markets were lower for the week with the S&P 500 and Nasdaq both posting their second consecutive losing weeks and the Dow Jones Industrial Average being lower for the fifth straight week, the longest streak since May 2019.  The Nasdaq is now about 18% off its all-time high, set at the beginning of this year, and getting close to bear market territory.  The Dow and S&P are lower on the year by about 9% and 12%, respectively.  The markets experienced their lowest closes of the year last Tuesday before staging a decent rally on Wednesday.  It is worth mentioning the closing lows were not as low as the intra-day lows reached on February 24th.  The tech-heavy Nasdaq continues to slowly drop and is still much lower than the other major indices.  This provides some indication that attention is turning to interest rates and the upcoming Federal Reserve meeting since higher interest rates have an impact on the present value of future earnings and growth rates, thus affecting the stock prices of growth companies, especially those in the technology sector.

Regarding interest rates, the yield of the U.S. 10-year Treasury bond moved back up above 2.0% last week and shorter-term rates also continued their march higher in anticipation of expected action by the Federal Reserve to raise interest rates at their meeting this upcoming week.  At this time, it is highly expected we will see anywhere from five to seven interest rate hikes from the Fed before the end of this year.  Their action primarily affects short-term rates, but there is also attention on longer term interest rates whose moves are not greatly affected by monetary policy from the Federal Reserve but rather depend more upon market forces, especially demand for U.S. government bonds, as well as expectations for future growth and inflation. 

Higher Prices

Not surprisingly, the Consumer Price Index (CPI) report released last week showed that prices increased by the largest amount in 40 years, with inflation now hovering around 8% over the past 12 months.  This data is already stale and not representative of current conditions since it does not include the recent spikes in food and energy prices, so we expect future readings to be even higher.  Inflationary pressures have been building since supply chain and labor issues erupted during the pandemic, but it was thought these pressures would abate as economic activity returned to pre-pandemic levels.  The conflict in Ukraine is causing further supply issues with various raw materials and commodities, some as a direct result of the conflict itself and others due to the sanctions placed upon Russia to stymie the invasion, which is likely to lead to even greater inflation.  As a side note, there have been news articles about how some companies have been reluctant to pass on price increases to consumers so instead they are offering less product at the same price. An example being Doritos, where there are now fewer chips in a bag. This is being referred to as “shrinkflation.”

 Looking Ahead

The major event of the coming week will be the Federal Reserve meeting where it is highly anticipated they will raise interest rates by one-quarter of a percent. With increasing inflation some economists think they should take more dramatic action but with the geopolitical events occurring they will be reluctant to makes moves which might cause a shock to the economy.  But if we continue to experience high levels of inflation that does not subside, there is a strong possibility the Fed could take more drastic action, in the forms of larger interest rate hikes, to quell inflation before it becomes out of control.  Hopefully they do not have to resort to such measures as it could be somewhat damaging to the economy on a short-term basis, even though it might be necessary. Please join me online next Monday, March 21 at 12pm, as I host our Market Huddle to recap the Federal Reserve Report. Click here to register.

Day-to-day market movement will continue to be impacted by events in Ukraine, but it seems at this point the path of least resistance would be to the upside.  Should there be a retreat by Russian forces or some sort of lasting ceasefire it is a good bet stock markets will react very positively.  Absent a truly horrific event, the worst news is most likely priced into the U.S. markets.  There is fear that there could be some contagion in the markets should European banks face difficulty, which they might since many have exposure to Russia.  The real estate situation in China which reared its ugly head last fall has taken a back seat to events in Eastern Europe but still exists.  There is limited exposure to these risks here in the U.S. so for the time being all seems manageable despite much of the rest of the world seemingly crumbling around us.  Let us all hope brighter days are ahead for everyone.  

Give us a call if you would like to review your portfolio. With rising interest rates and inflation, we have not seen the likes of since the “good ol’ days” of 40 years ago. This is a very different market than it has been for the past couple of decades so it is imperative you are positioned accordingly to maintain peace of mind in your well-deserved retirement years. 

Have a great week!

Nathan Zeller, CFA, CFP®

Chief Investment Strategist

Secured Retirement

nzeller@securedretirements.com

Please contact us if you would like to review your individual financial plan or learn how the TaxSmart™ Retirement Program can help you.   

info@securedretirements.com
Office phone # 952-460-3260

Weekly Insights 3/7/22 – 3/11/22

It’s A Whole New World

Russia’s invasion of Ukraine last week marks the largest land invasion and European conflict since World War II so there is no wonder it was viewed with angst worldwide.  Our thoughts are certainly with the people of Ukraine as they fight to maintain their sovereignty and independence in what is undoubtedly a very difficult time.  This troubling news is leading headlines around the world, and it is important to monitor this situation since the outcome and any further action may have considerable implications for world order and peace.  But for now, here in the U.S. the impact is limited and there are other issues more likely to drive markets which investors should focus on, such as corporate earnings, inflation, and higher interest rates. 

Global stock markets dropped dramatically last Thursday morning upon news of the invasion.  Commodities prices, especially oil, moved much higher and there was a flight to safety with money going into “safe-haven” investments such as U.S. Treasury bonds and gold.  However, the dramatic pullback was relatively short-lived, at least domestically, as the major indices clawed their way back and all ended higher on the day.  On Friday the markets had their single best day since late 2020 on optimism for diplomatic talks.  But despite the gains late in the week, the markets still ended the week slightly lower.  The quick reversal and strong follow-through may seem somewhat puzzling given the severity of this crisis.  There are a few theories as to why there was such a dramatic rebound, with the most common being the markets were already oversold with both the S&P 500 and Nasdaq closing in correction territory on Wednesday.  Also, the odds of a half-point rate hike by the Federal Reserve at their upcoming meeting fell dramatically after news of the invasion broke and it is now highly expected the Fed will only raise rates by one-quarter point.  This is viewed very favorably by the markets since higher interest rates are thought to be a hindrance on future growth. 

Should we be worried?

Historically speaking, volatile geopolitical events have only caused short-lived volatility in the stock market.  Going back to the Israeli Arab War and Oil Embargo in 1973, the average market selloff from a geopolitical event is 12 days with an average drop of 6.5%.  Depending upon what occurs in coming days, in terms of global stock markets the worst may already be behind us.  What is perhaps of largest worry is what happens with energy prices.  Russia is the world’s No. 3 exporter of oil and the No. 2 exporter of natural gas and supplies about 50% of the energy consumed in Europe.  Since Western countries are imposing sanctions, one of Russia’s countermoves might be to retaliate by cutting fuel sales. Also worth noting is that Ukraine is often considered to be the “breadbasket of Europe” since it supplies wheat, corn, and sunflower oil to much of Europe, the Middle East and Northern Africa.  Agricultural production may not be affected but the ports used to ship these goods are currently closed.  The greatest threat from the invasion may not be a prolonged market downturn but rather elevated inflationary pressures from higher energy and food prices. 

Looking Ahead

At this time the U.S. is not directly involved in this conflict but there is some concern we would be pulled into it should Russia continue their aggression and attack a NATO country, which could lead to another World War.  Hopefully cooler heads will prevail and there will be peace.  The Ukrainian people have shown great resilience with many taking up arms to defend their homeland against the unprovoked hostility.  It seems most of the world is on their side in hoping they succeed.  In the meantime, life continues for the rest of us and from a market perspective the focus remains on those issues which have the prospect of causing greater impact for investors and savers. 

The heightened volatility and market pullbacks experienced thus far in 2022 demonstrate the importance of having a solid income plan supported by “safe money” and not being beholden to stock market movement.  This is also a reminder of why money invested in the market is intended for long-term capital appreciation with a time horizon measured in years, if not decades, rather than a few weeks or months.  This might be a good time to consider non-traditional investment strategies which can provide growth while reducing downside risk.  We believe better days are ahead but if you have concerns about market volatility and world events, we welcome the opportunity to have a conversation with you to review your portfolio and income plan to ensure you feel secure in your retirement. 

Have a good week!

Nathan Zeller, CFA, CFP®

Chief Investment Strategist

Secured Retirement

nzeller@securedretirements.com

Please contact us if you would like to review your individual financial plan or learn how the TaxSmart™ Retirement Program can help you.   

Weekly Insights 2/28/2022 – 3/4/2022

Stay Calm and Carry On

Russia’s invasion of Ukraine last week marks the largest land invasion and European conflict since World War II so there is no wonder it was viewed with angst worldwide.  Our thoughts are certainly with the people of Ukraine as they fight to maintain their sovereignty and independence in what is undoubtedly a very difficult time.  This troubling news is leading headlines around the world, and it is important to monitor this situation since the outcome and any further action may have considerable implications for world order and peace.  But for now, here in the U.S. the impact is limited and there are other issues more likely to drive markets which investors should focus on, such as corporate earnings, inflation, and higher interest rates. 

Global stock markets dropped dramatically last Thursday morning upon news of the invasion.  Commodities prices, especially oil, moved much higher and there was a flight to safety with money going into “safe-haven” investments such as U.S. Treasury bonds and gold.  However, the dramatic pullback was relatively short-lived, at least domestically, as the major indices clawed their way back and all ended higher on the day.  On Friday the markets had their single best day since late 2020 on optimism for diplomatic talks.  But despite the gains late in the week, the markets still ended the week slightly lower.  The quick reversal and strong follow-through may seem somewhat puzzling given the severity of this crisis.  There are a few theories as to why there was such a dramatic rebound, with the most common being the markets were already oversold with both the S&P 500 and Nasdaq closing in correction territory on Wednesday.  Also, the odds of a half-point rate hike by the Federal Reserve at their upcoming meeting fell dramatically after news of the invasion broke and it is now highly expected the Fed will only raise rates by one-quarter point.  This is viewed very favorably by the markets since higher interest rates are thought to be a hindrance on future growth. 

Should we be worried?

Historically speaking, volatile geopolitical events have only caused short-lived volatility in the stock market.  Going back to the Israeli Arab War and Oil Embargo in 1973, the average market selloff from a geopolitical event is 12 days with an average drop of 6.5%.  Depending upon what occurs in coming days, in terms of global stock markets the worst may already be behind us.  What is perhaps of largest worry is what happens with energy prices.  Russia is the world’s No. 3 exporter of oil and the No. 2 exporter of natural gas and supplies about 50% of the energy consumed in Europe.  Since Western countries are imposing sanctions, one of Russia’s countermoves might be to retaliate by cutting fuel sales. Also worth noting is that Ukraine is often considered to be the “breadbasket of Europe” since it supplies wheat, corn, and sunflower oil to much of Europe, the Middle East and Northern Africa.  Agricultural production may not be affected but the ports used to ship these goods are currently closed.  The greatest threat from the invasion may not be a prolonged market downturn but rather elevated inflationary pressures from higher energy and food prices. 

Looking Ahead

At this time the U.S. is not directly involved in this conflict but there is some concern we would be pulled into it should Russia continue their aggression and attack a NATO country, which could lead to another World War.  Hopefully cooler heads will prevail and there will be peace.  The Ukrainian people have shown great resilience with many taking up arms to defend their homeland against the unprovoked hostility.  It seems most of the world is on their side in hoping they succeed.  In the meantime, life continues for the rest of us and from a market perspective the focus remains on those issues which have the prospect of causing greater impact for investors and savers. 

The heightened volatility and market pullbacks experienced thus far in 2022 demonstrate the importance of having a solid income plan supported by “safe money” and not being beholden to stock market movement.  This is also a reminder of why money invested in the market is intended for long-term capital appreciation with a time horizon measured in years, if not decades, rather than a few weeks or months.  This might be a good time to consider non-traditional investment strategies which can provide growth while reducing downside risk.  We believe better days are ahead but if you have concerns about market volatility and world events, we welcome the opportunity to have a conversation with you to review your portfolio and income plan to ensure you feel secure in your retirement. 

Have a good week!

Nathan Zeller, CFA, CFP®

Chief Investment Strategist

Secured Retirement

nzeller@securedretirements.com

Please contact us if you would like to review your individual financial plan or learn how the TaxSmart™ Retirement Program can help you.   

Weekly Insights 2/21/2022 – 2/25/2022

Hail to the Chief

The third Monday of February marks Presidents Day, a federal holiday commemorating the nations’ Commanders in Chief. The observance usually falls on or near George Washington’s February 22 birth date. Today, being Presidents Day, our Secured Retirement office, as well as most financial institutions will be closed. The New York Stock Exchange and NASDAQ will also be closed.

At Secured Retirement, we’re passionate about all topics that impact families in maximizing their income in retirement, especially when it is affected by government action. Although our office will be closed today, and there will be no Market Huddle, we invite you to join us at these upcoming events.

 

Monday, February 28 Lunch and Learn: Our holistic approach recognizes the critical role taxes play in retirement. Whether you use a preferred CPA, do-it-yourself, or use our in-house service, most will file taxes. Joe Lucey, CFP® will host a workshop to share what our Retirement Planners look for on a tax return to conduct a look-forward 2022 financial plan. Please join us either in-person at our Saint Louis Park office or watch by livestream.

Monday, March 7 Market Huddle: Your social media can serve as a login to important financial accounts and to act as a digital wallet. Learn how to safeguard your social media with two-factor authentication and to what risk your account and identity may be exposed when not properly secured. Join us at 12pm for this online event.

Monday, March 14 Market Huddle: Your tax-deferred IRA accounts are shared with the IRS. Join Joe Lucey, CFP® and special guest Andy Ives, CFP® AIF®, an IRA expert from the Ed Slott Company, to learn of Two Critical Financial Milestones at age 72 for Required Minimum Distributions (RMDs). Join us at 12pm for this online event.

Monday, March 21 Market Huddle: The Federal Open Market Committee (FOMC) is expected to raise interest rates when it meets on March 15 and 16. We’ll recap the Federal Reserve report, provide an outlook for interest rates and what it may mean for inflation. Join us at 12pm for this online event.

Thursday, April 28 Secured Retirement presents “America’s Fiscal Future and What It Means to You” with David Walker, Author, and Former U.S. Comptroller General
David Walker is a nationally recognized expert on fiscal responsibility and government accountability. Secured Retirement is pleased to bring David to the Twin Cities to speak on the dramatic increase in federal government autopilot spending and the impact of fiscal metrics. Registration is required for this free event. Please contact info@securedretirments.com to register today. 

State of the Markets

From an economic perspective, the growth story remains primarily intact with better-than-expected retail sales and employment being reported, both of which play a major role in our economy.  Despite ongoing inflationary pressures from supply chain issues and higher input costs, corporate profits remain strong and continue to increase, as evidenced by the recent earnings reports.  Even though all seems well on the economic and corporate fronts, volatility continues in the markets.  This has been caused by the threat of higher interest rates, inflated stock price valuations and perhaps of largest significance over the past couple of weeks is the potential of an attack on Ukraine by Russia which could lead to a larger conflict.  At this time markets are ignoring the underlying data and are instead focused on geopolitical events. Until this subsides or is fully resolved, it is quite likely the volatility will continue. 

Looking Ahead

The markets will most likely be whipsawed as the news from Ukraine remains at the forefront.  In addition to this situation weighing on the markets, the next Fed meeting is approaching quickly and it remains widely anticipated they will begin to raise interest rates.  Now the question is by how much with some speculation it could be a half-point increase, instead of the more traditional quarter point.  Geopolitical events continue to drive energy prices higher which will have a larger effect on the broader economy since higher prices will most likely lead to more inflation.  

On this President’s Day we recognize that long-term government policy and spending, from both the legislative and executive branches of government, has a much larger influence on the economy than the actions of a single president. We are vehement in our analysis of how government action affects individual citizens! That said, it is our greatest passion to educate our clients on the impact of your own personal economy to best prepare you for the retirement of your dreams.

We wish you well on this Presidents Day.

Nathan Zeller, CFA, CFP®

Chief Investment Strategist

Secured Retirement

nzeller@securedretirements.com

Please contact us if you would like to review your individual financial plan or learn how the TaxSmart™ Retirement Program can help you.   

Weekly Insights 2/14/2022 – 2/18/2011

The Big Game

The culmination of the NFL season was marked by the Super Bowl on Sunday. This major event is not just an athletic competition but also has an economic impact projected to be in the hundreds of millions of dollars. This year, the day after the Super Bowl happens to fall on February 14th, which is widely known as Valentine’s Day.  But this date also has a historical implication in the NFL.  On this date in 1996 the Cleveland Browns, who were in the process of moving to Baltimore, fired their head coach.  The Baltimore team, re-named the Ravens after the move, went on to win the Super Bowl in 2001 and have enjoyed decent success since, reaching the playoffs multiple times and again winning the Super Bowl in 2013.  With that success it would seem the Baltimore team arguably made some wise decisions. 

On the other hand, Cleveland was awarded another football franchise in 1999 which has been mediocre, and at times downright lousy, since its revival.  As for the fired coach, he moved around the league as an assistant coach before again being given the opportunity to be a head coach in 2000.  The first season was a losing one with his new team achieving a record of 5-11; paltry by NFL standards.  There were low expectations for the following season, especially after the team’s star quarterback was injured during the second game of the year.  The coach was then forced to turn to the backup quarterback, who happened to be a 4th string rookie on the prior year’s roster and it would seem as if all was lost with the coach’s job in potential jeopardy.  But a funny thing happened; despite low expectations, the team started winning games and eventually went on to win the Super Bowl that season.  

This chain of events provides some valuable lessons about maintaining a positive outlook and having confidence, despite how bad the odds may look.  It is also a reminder to be sensible and make wise decisions based upon diligent analysis.  When the personnel moves were made by these teams, they were most likely based upon thorough evaluations using the best information available at the time.  Making investment decisions such as picking stocks or managing portfolios involves a similar process. Sometimes the best laid plans do not work out, but comprehensive analysis of available information tends to increase the chances for success.  This is especially true when entering retirement.  It is vital to analyze different scenarios and have a well thought out plan for replacing your income, regardless of how the market performs. 

Market Recap

The S&P 500 was unable to put together a third consecutive week of gains after suffering moderate sell-offs during the last two days of the week.  A higher-than-expected inflation reading on Thursday sent the market reeling with the Consumer Price Index (CPI) showing an annual increase in prices of consumer goods at being 7.5%, the largest annual increase in 40 years.  This renewed speculation the Federal Reserve may raise interest rates by 50 basis points, or one-half of one percent, at their upcoming meeting in March.  There is also a chance they could intervene prior to the meeting and begin to raise interest rates sooner, but we find that rather unlikely since they are still buying bonds and have not fully wound down that program.  Our prediction is the Fed will wait until the March meeting to raise interest rates, but only by one-quarter of one percent. Certain parts of the economy remain fragile so the Fed will be concerned about the shock a larger rate increase may cause.  It is also worth noting that interest rate increases take some time to have an impact so the Fed will not want to act too quickly in fear of causing greater harm than needed.

The market was affected on Friday by fears of an imminent attack on Ukraine by Russia, which has been widely reported for many weeks.  It seems unlikely such an attack would directly involve any other countries and escalate into a larger conflict, however because much of the energy produced in Asia travels through that region this could cut off supply and cause energy prices to move higher.  What also occurred on Friday was a “flight to safety” where money moved into U.S. Treasury Bonds, which are considered a safe haven. Yields moved up considerably after the hot inflation report on Thursday but fell on Friday with money pouring into bonds. As a reminder, prices and yields have an inverse relationship, so money buying bonds pushes prices higher and yields lower. We found this to be interesting since during the heightened stock market volatility in January we did not see a flight to safety and bond yields moved steadily higher. This is most likely a predictor of what we will see with bonds throughout the year, yields will generally move higher unless an extraneous event causes a flight to safety. 

Looking Ahead

The overseas situation will be closely monitored and if it is diffused, as we all hope, we most likely will see a quick rebound in the stock market. This also means money will move out of bonds, causing prices to move lower and yields to move higher.  The coming week brings another inflation reading, the Producer Price Index (PPI), which measures the price changes in wholesale prices and generally is a precursor to consumer price increases.  Earnings season continues in earnest and while we saw some positive earnings surprises during the past week, it was not enough to overcome the other events mentioned.      

The recent market volatility is a good reminder of the importance of having an income plan in place for retirement, including income from multiple sources so you are not forced to take money out of the market at inopportune times.  As for the fired head coach mentioned earlier, he was able to persevere and has coached his team to 5 more Super Bowl victories. Bill Belichick still serves as the head coach of the New England Patriots today. The 4th string quarterback who took over for the injured star is Tom Brady.  My guess is most of you know how well his career turned out also.  Don’t overlook opportunities when they present themselves; even when circumstances look bleak.  You never know how well they might turn out.    

Have a wonderful week! 

Nathan Zeller, CFA, CFP®

Chief Investment Strategist

Secured Retirement

nzeller@securedretirements.com

Please contact us if you would like to review your individual financial plan or learn how the TaxSmart™ Retirement Program can help you.   

info@securedretirements.com
Office phone # (952) 460-3260

Danielle Christensen

Paraplanner

Danielle is dedicated to serving clients to achieve their retirement goals. As a Paraplanner, Danielle helps the advisors with the administrative side of preparing and documenting meetings. She is a graduate of the College of St. Benedict, with a degree in Business Administration and began working with Secured Retirement in May of 2023.

Danielle is a lifelong Minnesotan and currently resides in Farmington with her boyfriend and their senior rescue pittie/American Bulldog mix, Tukka.  In her free time, Danielle enjoys attending concerts and traveling. She is also an avid fan of the Minnesota Wild and loves to be at as many games as possible during the season!