Market Watch
Last summer at this time I lamented, albeit quite tongue in cheek, how frustrating it was that world leaders always managed to schedule some type of event that caused our markets to swoon, just before mid year statements were issued. Last year it was Greece’s default on loans from the International Monetary Fund. This year, the media had a field day with Brexit, the acronym they so cleverly devised to describe the June 23rd referendum on whether or not Britain would leave the European Union (EU).
Initially, Britain’s vote to withdraw caused our markets two days of pain, especially since the polls were indicating that Britain would indeed remain in the EU. Once again, it looked like events outside of the US had wreaked havoc with our portfolios, just before our 401k and IRA statements were issued. However, that was not the case this year, as Brexit pretty much became a non event, at least as far as our markets were concerned Happily, by the 2nd quarter’s end, a subsequent rally in the markets left the DJIA* 81.7 points below its June 23rd close, and the S&P 500* just 14.46 points lower than the June 23rd close. The indices can fluctuate within this range on any given day.
Ironically, the vote to withdraw from the EU does not automatically mean that Britain will exit the EU. The referendum was a vote by the populace, but the British government has to actually invoke Article 50 of the Treaty of Lisbon, which would begin the exit process. There are many lessons which can be drawn from this latest event, not the least of which are some parallels to our own upcoming national elections, but the main point I would like to make is how important it is to be able to ignore the noise reported by the media when investing for the long term. It’s not always easy, but when in doubt or concerned, please feel free to contact me.
Meanwhile, the current economic expansion has surpassed seven years and the Gross Domestic Profit (GDP) revision released on June 28 reported GDP increased at an annual rate of 1.1 percent in the first quarter of 2016, according to the "third" estimate released by the Bureau of Economic Analysis. The national unemployment rate in May was 4.5 percent, not seasonally adjusted, down from 5.3 percent a year earlier, according to the report by the Bureau of Labor Statistics released on June 29. The Federal Reserve Bank didn’t raise interest rates at the last FOMC meeting in June. Rhetoric is heating up on both sides in our Presidential elections, which have reached the Convention stage. Terrorism by those associated with the radical Islamic cult calling themselves ISIS has struck in the US as well as Turkey and Bangladesh recently. Pretty much, life as we know it here in the US continues to go on, as we take time to celebrate the wisdom of our Founding Fathers.
Happy July 4, 2016
Again, I am able to report that our current bull market, which is now 7 years & 3 months old, continued to move forward, but once again sent mixed signals as we reached the mid point of 2016. The DJIA* closed the first half of the year at 17,929.99 up 2.92% year to date. The S&P 500* finished mid year at 2,098.86 for a year to date increase of 2.69%. For the first half of 2016, the NASDAQ* ended at 4,842.67 and was down 3.20% year to date.
Despite threats of the Zika virus, pollution, and crime ahead of the summer Olympics, Brazil’s markets went from worst to first, returning 46.34% for the first half of the year. This is just one more reason why global diversification is so necessary.
Our Privacy Policy at Jersey Benefits
At Jersey Benefits Group, Inc. and Jersey Benefits Advisors, we collect and use information from you on applications and other forms as well as information about financial transactions with us and from non-affiliated third parties. This “nonpublic personal information” is obtained in connection with providing a financial product or service to you.
We do not disclose any nonpublic personal information about you without your express consent, except as permitted by law and only to provide services to you. We may disclose the nonpublic personal information we collect to persons or companies that perform services on our behalf for your benefit.
We restrict access to your nonpublic personal information and only allow disclosures to persons and companies as permitted by law to assist in providing products or services to you. We also maintain physical, electronic and procedural safeguards to protect your nonpublic personal information at all times. If you have any questions or concerns, please feel free to contact me to discuss the them.
John Hancock and Transamerica Complete Asset Acquisition
On May 16, 2016, John Hancock Financial Network, Inc.(JHFN), a distribution channel of John Hancock, announced the completion of its acquisition of certain assets of St. Petersburg, FL-based Transamerica Financial Advisors, Inc. (TFA), a Transamerica company. Terms were not disclosed.
At close, the transaction grew assets under administration in JHFN’s broker-dealer, Signator Investors, Inc., to nearly $50 billion. In addition, more than 800 TFA advisors in 40 firms joined Signator’s national network of independent firms, and more than 80 TFA employees in St. Petersburg joined Signator, moving to a nearby office to continue supporting advisors.
Brian Heapps, president of JHFN, said, “We are pleased to be closing on this transaction and welcome our new advisors and employees. Signator is now among the country’s largest independent broker-dealers, and has roughly 300 people in five locations dedicated to supporting our national network of advisors. We are committed to helping our advisors navigate the complex regulatory environment, and to providing them with the resources they need to best serve their clients’ financial needs.”
Signator has completed a multi-year transition to become a premier independent broker dealer offering financial professionals a wealth of resources and support for business and professional development. To help advisors best meet their clients’ needs, Signator provides an open product platform, including a comprehensive range of top-quality investment advisory and protection products from leading carriers.
Advisors affiliated with Signator have access to financial planning support; a robust managed account platform; an integrated technology platform; fiduciary support for qualified plans which includes the development of comprehensive training and integrated technology for the upcoming Department of Labor Fiduciary Rule; a dedicated practice management team; a marketing portal and social media platform providing turn-key programs with compliance-ready, customizable templates; an annual practice advancement conference; regulatory compliance support and an industry-leading equity and succession program.
I am pleased to report that the transition to Signator Investors, Inc. has been very smooth and by June 30, 2016, the date of this newsletter, all client assets have successfully transferred to Signator Investors, Inc. Thank you for your patience in regard to the barrage of paperwork that came your way over the last month and one half. I realize it may have been a bit of a burden, but it was necessary to ensure all client assets moved to the new broker/dealer efficiently. If you have any questions or concerns when you receive mid year statements, please don’t hesitate to contact me. I can be reached by phone, email or the contact form on the website.
Company Information:
John H. Kaighn is an Investment Advisor Representative with and offering Investment Advisory Services through Jersey Benefits Advisors.
P.O. Box 1406
Ocean City, N.J. 08226
Phone: 609 827 0194
Fax: 856 637-2479
Email: kaighn@jerseybenefits.com
Http://www.jerseybenefits.com
John H. Kaighn is a Registered Representative with and offering Securities through Signator Investors, Inc. Member FINRA SIPC
197 Clarendon Street
Boston, MA 02116
800-322-7161
Signator Investors, Inc. is not affiliated with Jersey Benefits Group, Inc. or Jersey Benefits Advisors
Third Party Administration and Insurance Services offered through: Jersey Benefits Group, Inc.
P.O. Box 1406
Ocean City, N.J. 08226
Phone: 609 827 0194
Fax: 856 637-2479
Email: kaighn@jerseybenefits.com
Http://www.jerseybenefits.com/
All opinions expressed in this newsletter are independent of Signator Investors, Inc. and solely those of John Kaighn & Jersey Benefits Advisors.
* The S&P 500, the DJIA, the NASDAQ and others referenced are unmanaged indices that are widely used as indicators of Market Trends. Past performance does not guarantee future results. The performance of these indices does not reflect fees and charges associated with investing. It is not possible to invest directly in an index.
*Dollar Cost Averaging through a systematic savings plan is an excellent way to build an account without a sizeable initial investment. Saving a portion of our pay each month is very important. Company sponsored pension plans are one method to save and should be used for retirement. Other systematic investment accounts, SUCH AS ROTH IRA’S, TRADITIONAL IRA’S, COVERDELL ACCOUNTS, 529 PLANS, BROKERAGE ACCOUNTS AND ANNUITIES can also be opened, and debited directly from your checking or savings account. For more information, just call to set up an appointment. REFERRALS ARE ALWAYS WELCOME.
John H. Kaighn
199-20160705-303882
