Looking at how the coronavirus outbreak is affecting the financial markets

Looking at how the coronavirus outbreak is affecting the financial markets

By now, you’ve probably heard about the coronavirus outbreak in the Chinese city of Wuhan. As of this writing, there have been about 2,900 confirmed cases, with over 80 deaths.1 Most cases have been within China itself, but the virus has spread to a small number of individuals in over fifteen countries.

As you can imagine, the outbreak has put global markets on edge. On Monday, the Dow dropped over 450 points due to concerns about the virus’s spread.2 While there’s no reason to be alarmed, this is a good opportunity to remind ourselves why taking a longer view is so important. We’ll explain what we mean with a brief Q&A:

Q: I’ve been ignoring the news. Can you tell me what’s going on?
Quick recap. Coronavirus is actually a group of viruses that cause respiratory infections. For most people, these infections rarely amount to anything worse than a common cold. But sometimes, certain strains can be either more virulent, more transmissible, or both. Remember the SARS outbreak of 2003? That was also a type of coronavirus.

A new strain of coronavirus is behind the current outbreak. First identified in Wuhan at the beginning of the year, the virus is transmittable from person to person and can cause severe pneumonia, especially in the elderly and people with weak immune systems. The outbreak seems to have worsened in recent weeks, with travelers from China carrying the virus to multiple countries. In response, Wuhan has gone into lockdown, and many countries have evacuated their citizens.

 Q: Okay, so why are the markets worried about this?
The immediate concern is what the outbreak will do to China’s economy. As the second largest in the world, whenever China sneezes, other economies feel the wind. With a virus outbreak, analysts are worried about both slowing consumption and production, as well as dramatically reduced travel to and from China. All these things could impact the bottom-line of those countries and corporations that do business with China. (Which, of course, is most of them.)

The other concern is what will happen if this outbreak turns into a worldwide pandemic. We are not  scientists, but that seems more like a scenario for Hollywood screenwriters than investors. On the other hand, China’s decision to put a city of 11 million people on lockdown is a good indicator that they are taking the problem seriously and don’t want it to get worse.

As always, the real culprit here is uncertainty.  No one knows for certain how long the outbreak will last, how bad it will get, how far it will spread, or how it will impact economic growth. The natural instinct, then, is to shut the doors, draw the blinds, stick the money under the mattress, and wait for the storm to blow over. That’s exactly what we’re seeing some investors do right now.

 Q: Is that what we should do?
No! While natural instincts are great if you’re trying to avoid getting eaten by tigers, they’re not so helpful with making investment decisions.

Make no mistake, viral outbreaks can have an impact on the global economy. Certain sectors of the markets, like travel, energy, and retail, could be in for a few weeks – or months – of headaches. For example, let’s go back to the SARS outbreak of 2003. In that case, SARS is estimated to have cost the world economy $40 billion.3 The S&P 500 dropped 8.3% during that time, and many other stock markets suffered large losses, too.4

But there are two things to remember here.

First, the current outbreak is nowhere near what SARS was. Back then, nearly 800 people died in 17 different countries, and over 8,000 people were infected.3 As of now, this virus is neither as widespread nor as deadly. Furthermore, humanity’s ability to respond to it is much greater than it was 17 years ago. The situation can change, of course, but until it does, it’s important we keep a sense of perspective.

The second thing to remember is that the effect SARS had on the market was temporary. After hitting its low in February of 2003, the S&P then went on a tear, finishing up 26% for the year.5 This is in keeping with how global events usually affect the markets: A short, sometimes steep slide as investors try to figure out what’s going on, followed by a longer climb. Generally speaking, it takes long-term trends, or major changes to the economy’s fundamentals, to make long-term changes in the direction of the markets.

 Q: So, what should we do about all this?
For the people directly affected by the outbreak, and for the heroic men and women combatting it, coronavirus is a serious issue. For us, this is an opportunity to remember why we shouldn’t overreact to headlines. While headlines can be unsettling, they very rarely require us to make changes to our investment strategy. For that reason, the best thing we can do is to mentally prepare ourselves for more volatility should this outbreak worsen. Of course, mental preparation and emotional discipline are two of the best things we can practice as investors, in rain or shine, in sickness and in health. But in the meantime, for us here at Research Financial Strategies, it’s business as usual. We hope it is for you, too.

As always, please let us know if you have any questions or concerns.  We are always happy to be of service.
Have a great February!

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Investment advice offered through Research Financial Strategies, a registered investment advisor.

1 “Tracking coronavirus,” BNO News, https://bnonews.com/index.php/2020/01/the-latest-coronavirus-cases/
2 “Dow Drops Over 450 Points on Coronavirus Fears,” The Wall Street Journal, https://www.wsj.com/articles/global-stocks-slide-on-coronavirus-fears-11580119666?mod=hp_lead_pos2
3 “SARS wiped $40 billion off world markets,” NBC News, https://www.nbcnews.com/business/markets/sars-wiped-40-billion-world-markets-what-will-coronavirus-do-n1122151
4 “A History of Coronavirus Outbreaks and the Stock Market,” Yahoo Finance, https://finance.yahoo.com/news/history-coronavirus-outbreaks-stock-market-204520997.html
5 “S&P 500 Historical Annual Returns,” Macro Trends, https://www.macrotrends.net/2526/sp-500-historical-annual-returns

Market Commentary – January 27, 2020

Market Commentary – January 27, 2020

Weekly Financial Market Commentary

January 27, 2020

Our Mission Is To Create And Preserve Client Wealth

Markets hunkered down last week.
News of the Coronavirus outbreak in Wuhan, China unsettled investors around the world. The respiratory infection is related to severe acute respiratory syndrome (SARS) and Middle East respiratory syndrome (MERS), reported WebMD.

Previous virus outbreaks have affected global economic growth. Research into pandemic preparedness suggests extreme events can reduce global annual income by 0.6 percent per year (including mortality and income loss). Lower income often is equated with slower economic growth.

Viruses can also affect companies and share values. However, not every investment will move in the same direction at the same time, and not every country or industry will be affected in the same way. Barron’s reported:

“SARS infected more than 8,000 people in 2003, killing more than 770. The outbreak occurred between November 2002 and July 2003. Stocks of U.S. airlines – a proxy for travel-related shares – dropped more than 30 percent from pre-SARS highs during that outbreak, about twice the decline of the broader S&P 500 index. All stocks, it appears, were impacted by the outbreak. It took about three months for shares to bottom and another three months to achieve previous highs.”

China responded to the outbreak by imposing a transportation lockdown, and that could affect China’s economic growth. S&P Global explained:

“The coronavirus is hitting China during Lunar New Year, a period when households tend to spend more on travel, entertainment, and gifts. Even if the virus is contained fairly quickly, the initial stages of high uncertainty are likely to affect spending.”

In addition, the city of Wuhan, where the outbreak began, is a major transportation hub and a center for auto production. It is China’s sixth largest city, home to 11 million people, and responsible for 1.6 percent of the country’s economic growth.

Major stock indices in the United States moved lower last week.

A decade of words.
Time Magazine puts a ‘Person of the Year’ on its cover. ESPN awards ESPYs to athletes annually. Nobel and Ig Nobel committees recognize the worthy and the unsuspecting. Merriam Webster selects a ‘Word of the Year.’ It is the word dictionary users searched for more than they had in previous years. Here are the words of the year from the last decade:

2010: Austerity, noun, “The quality or state of being austere, a stern and serious quality, a plain and simple quality.”      

2011: Pragmatic, adjective, “Relating to matters of fact or practical affairs often to the exclusion of intellectual or artistic matters: practical as opposed to idealistic.”

2012: Socialism, noun, “Any of various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods,” tied with Capitalism.

Capitalism, noun, “An economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market.”

2013: Science, noun, “The state of knowing: knowledge as distinguished from ignorance or misunderstanding.”

2014: Culture, noun, “The customary beliefs, social forms, and material traits of a racial, religious, or social group, also the characteristic features of everyday existence (such as diversions or a way of life) shared by people in a place or time.”

2015: -ism, noun suffix, “Manner of action or behavior characteristic of a (specified) person or thing, or prejudice or discrimination on the basis of a (specified) attribute.” (The most looked up words were socialism, fascism, racism, feminism, communism, capitalism, and terrorism.)

2016: Surreal, adjective, “Marked by the intense irrational reality of a dream.”

2017: Feminism, noun, “The theory of the political, economic, and social equality of the sexes; organized activity on behalf of women’s rights and interests.”

2018: Justice, noun, “The maintenance or administration of what is just especially by the impartial adjustment of conflicting claims or the assignment of merited rewards or punishments.”

2019: They, pronoun, “Those ones: those people, animals, or things.” The definition was expanded to, “Used to refer to a single person whose gender identity is nonbinary.”

The short-list of words for 2019 included: quid pro quo, impeach, crawdad, egregious, clemency, the, snitty, tergiversation (“evasion of straightforward action or clear-cut statement”), camp, and exculpate.

Weekly Focus – Think About It
“We think of English as a fortress to be defended, but a better analogy is to think of English as a child. We love and nurture it into being, and once it gains gross motor skills, it starts going exactly where we don’t want it to go: it heads right for the…electrical sockets. We dress it in fancy clothes and tell it to behave, and it comes home with its underwear on its head and wearing someone else’s socks. As English grows, it lives its own life, and this is right and healthy. Sometimes English does exactly what we think it should; sometimes it goes places we don’t like and thrives there in spite of all our worrying. We can tell it to clean itself up and act more like Latin; we can throw tantrums and start learning French instead. But we will never really be the boss of it. And that’s why it flourishes.”
Kory Stamper, Lexicographer and author

Best regards,

John F. Reutemann, Jr., CLU, CFP®


P.S.  Please feel free to forward this commentary to family, friends, or colleagues. If you would like us to add them to the list, please reply to this email with their email address and we will ask for their permission to be added.

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https://www.barrons.com/articles/stocks-catch-a-cold-after-fed-stops-expanding-its-balance-sheet-51579916069?mod=hp_DAY_1 (or go to https://peakcontent.s3-us-west-2.amazonaws.com/+Peak+Commentary/01-27-20_Barrons-Stocks_Catch_a_Cold_After_Fed_Stops_Expanding_its_Balance_Sheet-Footnote_1.pdf)
https://www.barrons.com/articles/travel-stocks-coronavirus-china-airlines-health-care-51579714639 (or go to https://peakcontent.s3-us-west-2.amazonaws.com/+Peak+Commentary/01-27-20_Barrons-Coronavirus_has_Hit_the_Stock_Market-Heres_What_History_Says_Comes_Next-Footnote_5.pdf)

Keeping focused on our New Year’s resolutions

Keeping focused on our New Year’s resolutions

Keeping focused on our New Year’s resolutions

featuring the Aesop fable, “The Dog and His Reflection.”

WE'RE HERE TO HELPReceive A Free, No-Obligation Portfolio Review

As you know, this is a time of year when many people make New Year’s resolutions. Lose weight, stop smoking, save more, learn a new skill, get more sleep, visit a new place, get finances in order, etc. You name it, chances are, someone has resolved to do it.

As financial advisors, people often come to us for help with any financial resolutions they have – or resolutions that require some change in their financial situation to achieve. But often, people come only after they have tried and failed to keep those same resolutions on their own.

This got us thinking: Why are New Year’s resolutions so hard to keep? In most cases, our resolutions are good for us. We want to do them. So why aren’t they easier?

There are many reasons for this, but one of the most important can be best explained by Aesop’s classic fable about…

The Dog and His Reflection

It happened that a Dog, after much hunger and long labor, had finally procured for himself a chunk of meat, and was carrying it home in his mouth to eat in peace. On his way home, the Dog had to cross a fallen tree trunk lying across a running brook. As he crossed, he looked down and saw his own reflection in the water beneath. Thinking it was another dog with an equally large piece of meat, he made up his mind to have that also. So, he snapped at the reflection in the water. But as he opened his mouth, his own meat slipped out, fell into the brook, and was never seen by the Dog again.

While some have interpreted this fable to be a warning against greed, we look at it a little differently. Despite being halfway to his goal – enjoying a nice meal – the Dog became distracted by a different goal, and in pursuing that, lost sight of his own.

In our experience, this happens to most of us every year. We set a goal we want to achieve, something we truly care about. But it takes time to accomplish our resolutions, and it’s very easy to get distracted by the newest, shiniest things. For example, imagine someone resolves to save $200 per week, so that they can finally take that trip to the Caribbean they’ve always dreamed of.

But after doing this for three months, they see another person enjoying the latest iPhone that came out, so they decide to go for that instead. After all, the Caribbean will always be there. So, they spend all the money they’ve saved – and suddenly, they’ve sabotaged their own resolution.

This happens on a larger scale, too. we’ve seen people who dream of a retirement spent in the sun…only to go chasing shadows instead. We’ve seen people with grand plans to start their own business one day…only to spend their time watching television.

Of course, there’s nothing wrong with buying a new iPhone or relaxing in front of the TV. But to truly change our lives for the better, we must learn discipline. We must hold ourselves accountable.
We must keep our eye on what’s truly important, and not be distracted by reflections.

There are several ways we can do that. Here are a few we’ve found to be especially helpful:

  1. Be specific with your resolutions. People who set specific goals are more likely to achieve them. For example, instead of resolving to save money, resolve to save $200 per week.
  2. Put it in writing. Write down your resolutions and post them in a place where you will see them every day. This will help remind you of what you’re working towards, so you won’t end up like the Dog in the fable.
  3. Set realistic goals. Set goals that are within your reach, and don’t try to take on too much at once. Be mindful of your finances and schedule. Account for the fact that sometimes, you need to kick back and relax or spend money on a whim. In addition, take your time. There’s no prize for finishing first, and anyway, to quote another one of Aesop’s fables, slow and steady wins the race.
  4. Develop a plan. This is so important. Create a timeline with steps toward your goal. Set deadlines for each and cross them off as you go. This will help you generate both the momentum and the motivation you need to continue.
  5. Ask for help. Whether it’s with a financial professional or a life coach, if you find yourself struggling to reach your goals, don’t think you need to do it alone! Find someone who can help keep you focused and accountable.
  6. Reward yourself. Acknowledge even the smallest of achievements. Keeping resolutions is hard work, and you should be proud of everything you accomplish!


Regardless of what you do, always remember The Dog and His Reflection. It can make all the difference.

Good luck, and have a wonderful year!

Are you looking for a financial advisor?  Do you feel confident about your retirement account decisions? Business owner looking for a company 401K plan administrator? Or an athlete or high net worth individual needing long term financial planning advice? Research Financial Strategies can help. We are here to help you design a financial strategy that is molded specifically for you. One that changes as your life changes. Financial investments to help you live worry-free now and in the future.

In our experience, we’ve found that the most successful solutions begin by asking the right questions.
We gain a broader perspective of your goals and the future you wish to create

Today is a Good Day to Start Your Financial Plan

1. We Listen

Our focus is on your life and priorities. Not just your portfolio. That’s why we start by listening and learning about you. Each individual client has different needs and concerns that need to be addressed. We carefully listen to those concerns. We will gain important information that will help us to best serve our clients and help protect their financial futures.

2. Plan

Together we will work to implement the plan that was developed for you. We will keep you constantly updated on what is happening and evolve our plan as your life happens.
Above all, our advisors want to help you meet your goals, even if that means helping you find out what your goals are.

3. We Take Care Of The Rest

We are here for you whenever you need us. Call your Research Financial Strategies Financial Advisor at any time, for any reason. You will always have access to the guidance you need whether it is high tech, high touch or a combination of the two. Your personal Financial Advisor will help you figure out how to pay for life’s great adventures!


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Nine Vince Lombardi quotes and how they apply to your life

Nine Vince Lombardi quotes and how they apply to your life

Nine Vince Lombardi Quotes

and how they apply to your life!

Happy New Year!

We hope 2020 is a great year for you, and the start of an even greater decade!

Fifty years ago, Vince Lombardi coached his last football game. Lombardi is universally recognized as one of the greatest coaches in football history, as well as a pioneering figure who helped break the sport’s color barrier. These days, however, Lombardi is equally remembered for his famous aphorisms about winning, teamwork, and perseverance.

For most of us, a New Year means new goals and resolutions. That’s why we thought it would be interesting to look at some of Lombardi’s most famous maxims.1 As financial advisors, we find them both inspiring and educational, because many can be applied not just to football success, but financial success. As you work towards the resolutions you set this year, keep these quotes in mind. Applying them may just make the difference between a resolution kept and a resolution abandoned.

So, without further ado, here are:

Nine Vince Lombardi Quotes

for goals, finances, life, and everything in between

  1. “The only place success comes before work is in the dictionary.”

When we think of all the people we’ve known who set ambitious goals and reached them, we are amazed by their work ethic. In many cases, the people who are most likely to reach their goals are the ones for whom the journey is the greatest reward.

  1. “Inches make champions.”

This is so true. When we commit ourselves to do just a little bit extra, when we never settle for eleven inches when twelve is what we want, those inches compound on themselves, and we can accomplish so much more. 

  1. “Once you learn to quit, it becomes a habit.”
  2. “Winning is a habit. Watch your thoughts, they become your beliefs. Watch your beliefs, they become your words. Watch your words, they become your actions. Watch your actions, they become your habits. Watch your habits, they become your character.”

The historian Will Durant once wrote, “We are what we repeatedly do. Excellence is not an act, but a habit.” As we pursue our goals in 2020 and beyond, it’s often best to focus on progressing just a little each day rather than trying to do too much, too quickly. The former is sustainable. The latter isn’t. 

  1. “The measure of who we are is what we do with what we have.”
  2. “The quality of a person’s life is in direct proportion to their commitment to excellence, regardless of their chosen field of endeavor.”

Just as none of us have the same goals in life, none of us have the same path to those goals. Some people begin the journey with more or less than others. Some people have more or less support than others. Some people set ambitious goals; others set more modest ones. But what truly matters, in the end, is not how much money we’ve earned or how many accolades we’ve gained. What matters is how well we spent the time given to us.

Life is an investment. If you put in all you have, you’ll take out even more. 

  1. “People who work together will win, whether it be against complex football defenses, or the problems of modern society.”

Another truth. Just as no one is an island, no one, not even the most self-reliant, achieves their goals entirely on their own. We all need a team to support and be supported by. Sometimes that team is our own family. Sometimes it’s the professionals we choose to partner with. Whoever it is, when we surround ourselves with honest, caring, and hard-working people, it becomes so much easier to be all those things, too. 

  1. “It’s not whether you get knocked down. It’s whether you get back up.”

Probably Lombardi’s most famous quotation, and for good reason. Whether it’s a New Year’s Resolution or a life-long goal, every single one of us will face setbacks. Every single one of us will fail – often more than once. But life is like football in a sense. We always have the opportunity to take the field again. Those who do will triumph in the end.

  1. “If you’ll not settle for anything less than your best, you will be amazed at what you can accomplish in your life.”

Our favorite quote of all. As you set new goals and resolutions, always lift your eyes to your highest dream. Believe me, it’s within your reach.

It’s always been within your reach.

We hope you have a Happy New Year – and an even happier new decade!

Please let us know if there is ever anything more we can do to help you work towards your goals and resolutions.  

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1 “Famous Quotes by Vince Lombardi,” http://www.vincelombardi.com/quotes.html

Market Commentary – January 27, 2020

Market Commentary – January 21, 2020

Weekly Financial Market Commentary

January 21, 2020

Our Mission Is To Create And Preserve Client Wealth

The new trade deals are here!   
The United States and China signed a preliminary trade deal last week. The next day, the United States-Mexico-Canada Agreement was approved by the Senate.

The phase-one deal between the United States and China has been analyzed, applauded, disparaged, and questioned. Here is a sampling of what’s being said:

“The eight-part deal includes protections for trade secrets and intellectual property, mechanisms for enforceability, and commitments by Beijing to increase purchases of U.S. goods and services by $200 billion over the next two years. It also broadens U.S. companies’ access to China’s markets…”
— Barron’s

“While the deal isn’t insignificant – China has promised $200 billion in purchases…The sweeping U.S. goals to change the way China’s economy functions, from shrinking state-funded industries to strengthening intellectual property laws, are either absent from the deal or described in vague terms.”
— Foreign Policy

“A truly grand pact between the two countries is some way off – and indeed, may never arrive. But this modest trade agreement shows how much the status quo has changed. Tariffs on hundreds of billions of dollars…of imports into both countries remain in place, with an ever-present threat of more. This is not trade peace, but rather a trade truce – and a tense one at that.”
— The Economist

“Moreover, some countries are worried that $200bn of Chinese purchases of US goods that are part of the agreement will enshrine ‘managed trade’ between the world’s two largest economies, possibly flouting market forces, discriminating against their companies and violating WTO commitments.”
— Financial Times

“One aspect that most have not addressed is that this is only a two-year agreement. What happens at the end of the two years is not defined…China has pledged to purchase $36.5 billion in ag products in 2020 and $43.5 billion in 2021. But the issues are no one believes either side will keep up their end of the bargain.”
— AgWeek

Despite a diversity of opinion about the deal, investors were happy. The Dow Jones Industrial Average surpassed 29,000 for the first time and was up 2.8 percent for the year through last Friday, reported Barron’s.

Culinary trends of the 2010s…The way we eat changed during the past 10 years. The Auguste Escoffier School of the Culinary Arts pointed out sales of American cheese have fallen because younger generations prefer artisanal cheeses.  Unprocessed cheese isn’t the only food trending last decade. 

  • Shoot it while it’s hot! Social media has delayed a few meals. More than one-in-four people told Influence.com they had been asked to delay a meal so someone could take a perfect shot to whet followers’ appetites.
  • Look at all the rainbows and unicorns. People indulged in rainbow bagels smeared with birthday cake frosting and rainbow grilled cheese sandwiches. If cupcakes, toast, or coffee was sparkly, bright, or shaped – it may have had ‘unicorn’ before its name. Why, you ask? Scientific studies suggest people perceive bright and/or sparkly food to be tastier and less boring than naturally colored food.
  • Avocado toast persisted. From simple avocado mashed on crunchy bread to 20-plus ingredient gourmet extravaganzas, avocado toast became a social media sensation.  There are even competing origin stories. Was the first avocado (a.k.a. alligator pear) toast created and consumed in Australia? California? Mexico?
  • Meatless meat. Vegetables are delicious. They’re versatile, and now they’re masquerading as meat. America has become passionate about plant-based meat products. There is a catch. Vox reported, “…nutritionists who have conducted analyses have largely found that the meatless meat burgers are, well, fine – not any better for you than a beef burger but not worse, with the specific details depending on which health priorities you have.” 

What is your favorite food trend from the last decade? Putting an egg on top? Meal kits? Kale? Macarons? Fermentation?

Weekly Focus – Think About It
“There’s a rebel lying deep in my soul. Anytime anybody tells me the trend is such and such, I go the opposite direction. I hate the idea of trends. I hate imitation; I have a reverence for individuality.”
― Clint Eastwood, Actor

Best regards,
John F. Reutemann, Jr., CLU, CFP

P.S.  Please feel free to forward this commentary to family, friends, or colleagues. If you would like us to add them to the list, please reply to this email with their email address and we will ask for their permission to be added.

Investment advice offered through Research Financial Strategies, a registered investment advisor.

Dow Jones Global ex-US, Gold, Bloomberg Commodity Index returns exclude reinvested dividends (gold does not pay a dividend)
and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of
the historical time periods.  Sources: Yahoo! Finance, MarketWatch, djindexes.com, London Bullion Market Association. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not applicable.

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* This newsletter and commentary expressed should not be construed as investment advice.
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.  However, the value of fund shares is not guaranteed and will fluctuate.
* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.
* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.
* All indexes referenced are unmanaged. The volatility of indexes could be materially different from that of a client’s portfolio. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. You cannot invest directly in an index.
* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.
* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* The Dow Jones Industrial Average (DJIA), commonly known as “The Dow,” is an index representing 30 stock of companies maintained and reviewed by the editors of The Wall Street Journal.
* The NASDAQ Composite is an unmanaged index of securities traded on the NASDAQ system.
* International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors. These risks are often heightened for investments in emerging markets.
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
* Past performance does not guarantee future results. Investing involves risk, including loss of principal.
* The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee it is accurate or complete.
* There is no guarantee a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
* Asset allocation does not ensure a profit or protect against a loss.
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https://www.barrons.com/articles/china-trade-deal-looks-like-a-modest-positive-but-uncertainties-remain-51579303201 (or go to https://peakcontent.s3-us-west-2.amazonaws.com/+Peak+Commentary/01-21-20_Barrons_China_Trade_Deal_Looks_Like_A_Modest_Positive_But_Uncertainties_Remain2.pdf )
https://www.economist.com/finance-and-economics/2020/01/16/the-new-us-china-trade-deal-marks-an-uneasy-truce (or go to https://peakcontent.s3-us-west-2.amazonaws.com/+Peak+Commentary/01-21-20_Economist-The_New_US_China_Trade_Deal_Hypothetical_Trump_Lie_He3.pdf )
https://www.ft.com/content/6a6b5548-3877-11ea-a6d3-9a26f8c3cba4 (or go to https://peakcontent.s3-us-west-2.amazonaws.com/+Peak+Commentary/01-21-20_FinancialTimes-Content_5.pdf )
https://www.barrons.com/articles/the-dow-jones-industrial-average-is-headed-for-30-000-51579311984?mod=hp_HERO (or go to https://peakcontent.s3-us-west-2.amazonaws.com/+Peak+Commentary/01-21-20_Barrons_The_Dow_Jones_Industrial_Average_Is_Headed_For_30_000_7.pdf )