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  • Market Update: January 3, 2019

    Imagine your best buddy or girlfriend calling you up, “have you seen the spreads, wow they are blowing out!”

    No, you can’t picture that?

    I didn’t think so.

    You may have heard us talking about this rather weird term “credit spread”. Or you may hear it on the financial news shows. These are a part of momentum modeling or trend following. It is one component of rules-based method for investment decision making.

    Trend following is simply measuring the marketing movement and moving in the direction that the market wants to move; stocks, bonds, cash, etc.

    To do this, we must have a tested rules process to measure the market direction and make those decisions. This does not happen by opinion driven research or gut instinct.

    This doesn’t allow us to jump to far out in front of the markets and it is certainly not a crystal ball, much to our chagrin.

    These rules keep us on track when current events cause us all to want to be emotional.

    The following article is from our investment team discussing our use of trend following in much more detail. This describes one of the four parts of our framework for judging markets. Please feel free to read, skim, or just chunk it saying this way to nerdy for me!

    You are welcome to call your Sound Financial advisor at any time.

    We look forward to talking with you and appreciate your trust in us!



    WealthShield Update: December 28, 2018

  • Market Update: December 27, 2018

    “Always winter never, Christmas…” Mr. Tumnus once told Lucy.

    What a week! A wonderful celebration of Jesus’ birth and the markets tried to spoil it. Truthfully, nothing can spoil Jesus’ birth. Yet, this update is about the markets. Volatility has certainly arrived. As we have reported for months, the markets have been set for significant pullbacks. The S&P 500 stopped just short of Bear market territory (technically a 20% loss) on Christmas Eve. Then on the day after Christmas the Dow Jones Industrial Average had is largest point gain ever. These big swings are typical of an unstable market.

    Now, for a little good news. While regulations won’t allow me to write the blanket statement that all of your portfolios have been moved to a conservative position; we have made conservative moves in most of our models. We are watching economic and market events very closely and will continue to do so. Our Rules Based Models were built to help us make decisions in times like this.

    Our stock market outlook for 2019 is not the prettiest picture, currently. Yet, stocks are not the only choices that we have to invest in. Other asset classes tend to go up when stocks go down. We will look for long term trends in those to responsible invest your money.

    Remember that attaining your goals are your true benchmark, not beating the market and certainly not keeping score with your money. When you next talk to your Sound advisor, I encourage you to turn the conversation towards your goals. Are you on track to reach those? Are you staying on track to succeed?

    Enjoy the Holidays, these Holy Days mark the birth of our Savior. There is much to be thankful for.

    In the meantime, if you want more of an update, the following is from our investment team.

    We appreciate the trust that you give us.

    Merry Christmas and Happy New Year


    WealthShield Market Update

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