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Securi�es offered through Cetera Financial Specialists LLC (doing insurance business in CA as CFGFS Insurance Agency), member FINRA/SIPC. Advisory
services offered through Cetera Investment Advisers LLC Financial Planning services offered through Holis�c Wealth Advisors, LLC is a State of New York
and State of Maryland Registered Investment Advisory Firm. Cetera en��es are under separate ownership from any other named en�ty.
HOLISTIC NEWS
“Investing should be
more like watching
paint dry or watch-
ing grass grow. If you
want excitement,
take $800 and go to
Las Vegas. ”
- Paul Samuelson
In This Issue
• AssetMark
• A Big Thanks
• HWA & Social Media
• Economic Update
• Important Info
An Outlook for 2014
Stock market volatility was uncharacteristically low during 2013, with only one correction
of at least 5% based on daily S&P 500 returns.* This provided a strong environment for
traditional equity allocations, but fewer opportunities for other asset classes and more
flexible asset allocation approaches. Conversely, broader and more active fixed income
strategies helped diversify traditional fixed income allocations, as bond yields rose.
Looking ahead, it may seem tempting to remove exposure to certain market segments,
including bonds and inflation-oriented assets such as real estate and commodities, particu-
larly given the recent weak performance. However, in a broadly diversified portfolio, it is
expected that some assets will underperform others at any given time. Interestingly, valu-
ations for US stocks have reached more elevated levels, with the S&P 500 Shiller Cyclical-
ly Adjusted P/E ratio at 25.4, considerably higher than its long-term average of 19.1, while
bond yields rose off of historic lows.** At the same time, with inflation expectations
moderated, a sudden surge in prices could contribute to gains in inflation-sensitive hold-
ings.
With respect to inflation, Ned Davis Research recently highlighted an upward trend in
income levels, with wages up 2.2% and nonfarm unit labor costs 2.5% higher over the past
year.* Given the historically high correlation between wages and price inflation, we could
see increased volatility as the Fed transitions policy and leadership, with Janet Yellen tak-
ing over as Fed Chair in 2014. In particular, asset inflation in stocks and housing could
draw heightened attention.
As we enter 2014, potential market risks highlight the benefits of maintaining a diversified
portfolio with exposures across a wide range of assets and multiple asset allocation ap-
proaches.
Please contact us if there have been any changes to your financial situation, your investment ob-
jectives, or any questions concerning your account.
* Source: Ned Davis Research
** Source: Standard & Poor’s, Factset, Robert Shiller Data
*** Article supplied by AssetMark
What’s New at Holistic Wealth Advisors January 2014
Thank You! Thank you for your generous support of the Russian Or-
phanage! As you know, this is the orphanage that Stacy
and Sam adopted their three children from, so this is a
cause that is very dear to their hearts. In addition to
goods (such as blankets, hats, and clothing) that will be
sent over to the orphanage, the monetary donations col-
lected will go towards purchasing items that are needed by
the orphanage, like toiletries, diapers, and other baby care
items. We are so appreciative of your generosity!
Genworth Financial Wealth Management (GFWM) is now AssetMark
As we let you know last year, GFWM was sold by Genworth Financial last year, and is now an
independent company, AssetMark. The name was changed in November of 2013, but you will
begin to see that name being used on your statements and performance reports. Genworth
Financial Asset Management will now go by the name Savos Investments.
These changes will have no effect on your investments or accounts
Children in the Russian orphanage
Holistic & Social Media Holistic Wealth Advisors’ Facebook page is a great resource for us
to provide our clients with timely and pertinent financial infor-
mation. Once you find our Facebook page press the “Like” button
and you will be linked to our news feed. Our posts include interest-
ing investment articles, market commentaries, economic updates,
or other relevant info that may pertain to your wealth manage-
ment.
You can also visit our website, www.HolisticWealthAdvisors.com
to learn more about our firm, leverage our planning tools, or read
in depth articles related to wealth management, financial planning,
and investing.
Please ensure that our main office has your current and preferred
email address. If you are unsure then send a quick email to
[email protected] with your updated information.
We Gladly Accept
Referrals
Do you have a friend,
neighbor, colleague, or
family member that is:
- Retiring?
- Moving?
- Tired of D.I.Y.?
- Ready to invest?
- In need of professional
wealth & retirement
planning?
- In need of Long Term
Care Insurance?
- Selling a business?
If so, please forward our
office number and email
or call our office with
your referral infor-
mation. We will gladly
set up an appointment
and review their person-
al situation.
Please remember your
personal data will always
remain private.
Go Figure
85%
The percentage of
annuity owners
who responded to
a Genworth survey
that said they con-
sider a predictable
income stream to
be "critical" to
their ability to have
the retirement they
envision.
1999
The last time the
Nasdaq Composite
Index traded above
the 4,000 level,
which it finally
reached again in
December.
73
The age to which a
new study says
most of today's
college graduates
will have to wait to
retire due to high
student debt loads.
With a life expec-
tancy of 84, that
leaves only 11
years to enjoy re-
tirement.
“Go Figure” provided by
Transamerica Investments
Economic Review
Markets
The fourth quarter of 2013 saw a continuation of trends that developed over the first nine months of the
year. Global equity markets outperformed fixed income and cash, while US stocks outdistanced their inter-
national counterparts and, particularly, emerging markets. The US stock market S&P 500 Index returned
10.51% * for the quarter, with investors encouraged by political progress and an end to October’s govern-
ment shutdown. Large caps led small caps, although stock gains were broad-based as the Russell 2000 Index
rose 8.72% during the quarter. Notably, US stocks advanced 32.39% in 2013—their best year since 1997.
The MSCI EAFE Index of international developed equities lagged the US, returning 5.75% for the quarter.
The European region led on signs of economic improvement and continued support from the European
Central Bank. Japan lagged in US dollar terms over the quarter, despite aggressive central bank policy,
which helped lift the Nikkei Stock Average to historic gains. For the full year, international developed mar-
kets significantly trailed US stocks with a 23.29% return, while emerging markets saw a modest 1.86% gain
for the quarter and a -2.27% return for the year. Despite a slowdown in economic growth, China appeared
to avoid a hard landing in 2013.
Real estate and commodities were among the weaker performing asset classes, with the Fed’s announced
pullback of bond purchases and tame inflation readings in the US. The NAREIT Equity REIT Index returned
-0.71% for the quarter and 2.47% for 2013. The Dow UBS Commodity Index returned -1.05% for the quar-
ter, impacted by higher supplies and lower demand. Gold was a large drag to commodities, plummeting
nearly 30% over the year—its first decline since 2000 and worst year since 1981.**
The Barclays US Aggregate Bond Index returned -0.14% for the quarter and -2.02% for the year—its worst
annual showing since 1994. The rise in bond yields weighed more heavily on government-related sectors.
The Barclays US Treasury Long Index was negative for the quarter and returned -13.88% for the year. Con-
versely, the more credit-sensitive bond sectors, particularly high yield, benefited from an improving eco-
nomic environment. The Barclays Global Treasury ex US Bond index returned -1.39% for the quarter with
weakness in international currencies, while emerging market bonds saw outflows on concerns related to
the impact of a reduction in Fed stimulus.
Economic Review
The US economy continued to gain momentum, growing at a 4.1% annual rate during the third quarter of
2013, based on the government’s most recent estimate.*** This was the second highest growth figure of the
current economic expansion and well above the 3.3% historical average growth rate. At the same time,
unemployment declined to 7.0% in November, down from its 10.0% peak in October 2009. Inflation re-
mained benign and below the Federal Reserve's longer-term target of 2%, with the Consumer Price Index
1.2% higher over the 12 months ending November 2013. The Federal Reserve expects ongoing improve-
ment in the economy and projects 2014 GDP growth of 2.8% to 3.2%. Unemployment is projected to be
between 6.3% and 6.6% by the end of 2014, with inflation in the range of 1.4% to 1.6%.
In view of economic progress, in December the Fed officially announced that it would scale back its $85
billion in monthly government-related bond purchases beginning in January 2014. With this anticipated
change in policy, the yield on the 10-year Treasury bond increased from 1.78% at the start of the year to
3.04% by the end of December. This impacted the broad universe of income-oriented assets, particularly
during May and June with early hints of a potential Fed “taper.” Importantly, the Fed maintained its commit-
ment to keep short-term rates low for an extended period and the stock market responded favorably to
the news.
** Index returns from Morningstar Direct ** Source: Ned Davis Research
*** Source: Bureau of Economic Analysis **** Source: Bureau of Labor Statistics ***** Article supplied by AssetMark
Newsletter Courtesy
of Your Holistic Team
Stacy Clifford
Lakshmi Nagarajan
Sarah Blass
Sam Clifford
Raymond Kidalowski
Sue Donovan
Terence Ruso
H. Paul Thomas
Lillian Helmedach
Rita Young
Sue Miniter
It’s That Time of Year Again
– Important Information on 1099s
As you are getting your information together for your taxes, please keep the
following dates in mind:
For most custodians, you can expect 1099 R-s by the end of January, 1099s by
the end of February, and any 1099 Revisions by Mid-March.
Regulatory Mailings to Clients:
The SEC “Books and Records” regulatory requirements mandate that invest-
ment objectives and suitability on all open accounts are reviewed within a 36-
month period. We meet with you on a regular basis to make sure our records
are up-to-date, but our broker-dealer (Cetera Financial Specialists, LLC) is
required to confirm this information every 36 months.
We wanted to make you aware that you may receive a letter from Cetera
Financial Specialists, LLC that has your suitability information. If you receive
one, and it is correct, no action is needed. If you receive a letter and it is inac-
curate, please contact us right away so we can update your records with the
correct information.
Contact Us Please contact our main office for more information about our services
Holistic Wealth Advisors
19 Clifton Country Road
Suite 3B
Clifton Park, NY 12065
(518) 357-3858