1st Quarter 2018 Review and Outlook - F.I.G. Financial
Founded in 1983 in Oklahoma City, F.I.G. Financial Advisory Services, Inc., is an independent registered investment advisor serving offering wealth management services to a discerning clientele.
financial advisor, oklahoma, oklahoma city, investment management, wealth management, Rick Jurrens, CFP, Chris Jurrens, Sam Jurrens, CFA, Certified Financial Planner, Chartered Financial Analyst, Investing, Stocks, Bonds, Mutual Funds, ETFs, portfolio optimization, 401(k), 401k, advice, planning, estate planning, insurance, disability, life insurance
16055
post-template-default,single,single-post,postid-16055,single-format-standard,ajax_fade,page_not_loaded,,qode-theme-ver-7.5,wpb-js-composer js-comp-ver-4.11.2.1,vc_responsive
 

1st Quarter 2018 Review and Outlook

03 Apr 1st Quarter 2018 Review and Outlook

Personal Reviews:

Be sure to call today to schedule your personal review of the first quarter as well as update your long-term planning. We can schedule your review either in person or online via our Go-To-Meeting, whichever is more convenient for you. This quarter we will want to focus on your tax planning for 2018 and how the new tax law may affect you this year moving forward.  Call us today at 405-844-9826!  Be sure to have your 2017 income tax return accessible for review as well.

Important Dates in April:

April 17th:  Individual Income Tax Returns Due

Last Day to Fund 2017 IRA

                   Last Day to Fund HSA Account for 2017

April is:       Financial Literacy Month

Make America Beautiful Month

If you want to fund your IRA before the April 17th deadline, be sure to make your check payable to: Trust Company of America and send to our office for deposit into your account.  The envelope must be postmarked by April 17th or before.  If you have any questions, please don’t hesitate to call.

The Markets:

The major U.S. stock indices dropped for the quarter, with the Dow Jones Industrial Average off approximately 2.5%.  Stock indices have recently been testing their 2018 lows in the last few weeks.  As of today, the broader based Standard & Poor’s 500 stock index closed at its February 8th level, still within the 10% “correction” off the recent high reached on January 26th. (Google Finance). It is fairly common for stock indices to test their lows in a correction before moving higher once again.  This seems to be the case so far this year as of today’s market closing levels. Volatility has continued almost on a daily basis, and as we said earlier this year, we expected market volatility to return after being almost totally absent last year.

Interest rates rose in the first quarter with the yield for the 10-year U.S. Treasury ending in the 2.74% range. This compares with 2.41% at the beginning of 2018.  When rates rise, bond prices decline. (MarketWatch) The average rate for a 30-year fixed mortgage is now at 4.27% and 3.69% for a 15-year fixed mortgage. (Bankrate.com)

Our Outlook:

Volatility has finally returned to a much more normal level after being compressed for nearly two years. Portfolios have experienced wider price fluctuations, with a strong January and then sharp movements up and down the last two months of the quarter, ending at the lower end of the year’s trading range. For our more conservative clients, the slight rise in interest rates has dampened the returns of most bond funds in the portfolios. As for the larger economic picture and investment environment as a whole, we remain optimistic with only minor near-term concerns.

We have begun to see a few general warnings in price performance and various trends that will prompt a move to more fixed income/bond holdings in client portfolios over the next several months. We would anticipate these signals to reverse by the end of the year, however, only time will tell. By mid-April most portfolios will only see equity exposure in the stock models with most allocation funds that are held moved into fixed income assets. This reallocation is not being done for any economic concerns, but rather it is being done to help control some of the potential volatility that could still lie ahead. We believe fixed income could perform well over the coming months, which should offset any foregone gains in the equity markets if we do see any substantial price increases for stocks. For our more conservative portfolios, this move has already occurred. Our moderate portfolios had very little additional equity exposure, however both growth and aggressive accounts had relied on additional equity exposure that will not be present in the second quarter of 2018.

We hope you and your families had a great Easter weekend.  As always, don’t hesitate to call or email us if you have any questions or concerns, or if we can be of further service at any time.

God Bless,

Your TEAM at F.I.G. Financial Advisory Services, Inc.

 

It is important that you do not use this e-mail to request or authorize the purchase or sale of any security

or commodity, or to request any other transactions. Any such request, orders or instructions will not be

accepted and will not be processed.

All items discussed in this report are for informational purposes only, are not advice of any kind, and are

not intended as a solicitation to buy, hold, or sell any securities. Nothing contained herein constitutes tax,

legal, insurance, or investment advice.

Stocks and bonds and commodities are not FDIC insured and can fall in value, and any investment

information, securities and commodities mentioned in this report may not be suitable for everyone.

U.S. Treasury bonds and Treasury bills are guaranteed by the U.S. government and, if held to maturity,

offer a fixed rate of return and guaranteed principal value. U.S. government bonds are issued and

guaranteed as to the timely payment of principal and interest by the federal government. Treasury bills are

certificates reflecting short-term (less than one year) obligations of the U.S. government.

Past performance is not a guarantee of future performance. Different investments involve different

degrees of risk, and there can be no assurance that the future performance of any investment, security,

commodity or investment strategy that is referenced will be profitable or be suitable for your portfolio.

The information has been obtained from sources considered to be reliable, but we do not guarantee that

the foregoing material is accurate or complete. The information contained in this report does not purport to

be a complete description of the securities, markets, or developments referred to in this material. Any

information is not a complete summary or statement of all available data necessary for making an

investment decision and does not constitute a recommendation.

Before making any investments or making any type of investment decision, please consult with your

financial advisor and determine how a security may fit into your investment portfolio, how a decision may

affect your financial position and how it may impact your financial goals.

All opinions are subject to change without notice in response to changing market and/or economic

conditions.

1 The Dow Jones Industrials Average is an unmanaged index of 30 major companies which cannot be

invested into directly. Past performance does not guarantee future results.

3 The S&P 500 Index is an unmanaged index of 500 larger companies which cannot be invested into

directly. Past performance does not guarantee future results.