You may have heard media reports about a new fiduciary rule for retirement accounts that the Trump administration is trying to rescind. Understandably, you have questions about how this might impact to your accounts. The rule was designed to ensure recommendations made by financial advisors to their clients regarding their retirement accounts are always made in the best interests of the client without any conflicts of interest. This rule was set to go into effect in April, but that is being delayed by 180 days and may be killed entirely.
For years, Tom Lee has been known as Wall Street's eternal bull. His S&P targets were virtually always the most bullish on the street. When I reviewed what other strategists were predicting this year and Tom Lee hadn't released his numbers, I just assumed he would be the most bullish on the street, again. Perhaps we should check to see if Tom Lee has been abducted by aliens and replaced by a clone because Tom Lee is the most bearish strategist on the street with a S&P target of just 2275.
Last night before going to bed my wife asked me, "Can you turn on the humidifer?" "Sure," I said burying my head back into my laptop to finish some work.
This morning the first thing I heard was, "How come you didn't turn the humidifier on?" Oops. After completing what I had been working on, I put the laptop down and quickly fell asleep.
And so, today, I write about ACTION always beats INTENTION.
As we near a close to 2016, it is time to look forward to 2017. We have done this in 2014, 2015, and 2016 so it is becoming a tradition to see which strategists did well and which missed the mark. What do the experts think will happen in 2017 and should we even care?
Perhaps you are familiar with Philip Telock's landmark UC Berkeley study that looked at 82,000 predictions over 25 years by 300 leading economists. It turned out that their so called expert views were no better than random guesses, and worse, the more famous, the less accurate the prediction.
Last year, the strategists predicted a bull market for 2016 and they almost hit the number right on the mark. Their average forecast was for a 7.2% gain in the S&P 500 to 2215. They should get a round of applause as the S&P finished at 2239. Well done. Deutsche Bank's David Bianco gets the highest grade with a forecast of 2250, only missing by 11 points. Barclays' Jonathan Glionna should also be given a trophy as he was within 2% for the past couple of years. Let's look at the numbers.
As 2016 comes to a close, it's a great time to reflect upon what was accomplished this year and plan your goals for the next 12 months. We at Runnymede are extremely grateful for the clients that we serve and strive to always be learning and doing better. It is in this light that I share the below 4-minute video.
In it, internationally renowned author, reporter, and, columnist—the recipient of three Pulitzer Prizes—Thomas L. Friedman is asked, "What skills would you recommend Millennials to thrive in today's world?" I encourage you to share it among any millennials that you know. But I also think that all of us, even those of us more dinosaur than millennial, can benefit too.
This is the time of year when you are bombarded with articles about New Year's resolutions and how to actually keep them.
Feeling a bit like Ebenezer Scrooge? It is still early yet this December so there's time for prepping, shopping, and holiday parties. And if you should find redemption after meeting the three Ghosts of Christmas, you may find yourself wanting to gift some of your appreciated stock to a qualified charity. If so, here's a quick article on valuing your charitable stock donation.
The Runnymede team is full of gratitude and sends its thanks to all clients, friends, and colleagues this Thanksgiving day. Whether you are home or traveling far, please know that you are dear to our hearts.
It's been 8 days since the Presidential Election and financial markets have had quite a wild ride. On election night, S&P futures traded down limit of -5%. It appeared that markets would react strongly to the downside much like after the Brexit vote. However, the markets quickly digested the surprising Trump decision and markets have traded sharply higher on hopes that Trump's policies will be inflationary and stimulate the economy. While it is too early to tell what he will be able to accomplish, financial markets have wagered some early bets on who the winners and losers will be. The early winner is financial stocks. Trump is widely expected to roll back the regulations of Dodd-Frank which were enacted after the financial crisis of 2008. Financials are also benefiting from the rise in long term interest rates which benefits their net interest margin and equals larger profits. The sharp move in interest rates caused headaches for high dividend stocks which were the hardest hit with REITs, consumer staples and utilities all in the red.
Last week's Presidential election brought volatility to financial markets and the most damage was inflicted on the Mexican Peso. With threats of renegotiating NAFTA and taxing Mexicans citizens to pay for a border wall, the Mexican Peso dropped over 10% in one day and became the worst performing emerging market currency in 2016. While this is terrible if you live south of the border, it can mean great things if you are planning a vacation. Since last year, the Peso has fallen over 23% which means huge potential savings for American travelers! It's time to pack your bags and brush up on your Spanish because 2017 should provide money saving opportunities for the savviest travelers. Here are 3 tips on planning your future getaway.
IMPORTANT DISCLOSURE INFORMATION
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Runnymede Capital Management, Inc.), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Runnymede Capital Management, Inc. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Runnymede Capital Management, Inc. is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of Runnymede Capital Management, Inc.’s current written disclosure statement discussing our advisory services and fees is available for review upon request.