D3 Business Update:
During the month of August we have been conducting financial plan update reviews and portfolio performance reviews with all clients that want to have them. If you want to review this information please call Patty and set up an appointment.
D3 Dates For You to Remember:
September 26th, 7:30am-7:30pm, D3 Financial Counselors Chicago Office Open House. Purpose: Invite clients and friends to see our new Chicago location. Beverages and food will be served all day. RSVPs would be nice but not necessary, please just stop in if you have a chance.
October 26th, 12-3pm, Family and Friends get together at Pinstripes, adjacent to Oakbrook Mall. Purpose: Bring family and/or friends to enjoy lunch and networking with D3 staff and clients. Please RSVP to Patty by October 14th.
November 15th, Shredder service pick up day. Purpose: We have identified a local non-profit organization, Shred Docs which is staffed by Transitions 99 school children (handicap enabled). As a service to you and to help some less fortunate young adults, feel free to drop off documents you would like shredded at our Downers Grove office. You can do this any time before November 15th.
December 7th, 6-9pm, D3 Financial Counselors annual client appreciation dinner at the University Club in Chicago. Purpose: To thank you for your confidence in D3. More details coming in October.
August has been a consolidation month for the markets. From the August 2nd peak, the S&P 500 is down 4%. The bond market has moved sideways and is practically unchanged. International developed markets are down 2% and International emerging markets are down 5%.
Government reported economic numbers have been mixed. While U.S. Gross Domestic Product for the second quarter of 2013 was revised up to 2.5%, consumer income and spending have been sluggish and home sales have been lower than economists had been forecasting. Earnings for the S&P were generally in line with estimates, but revenue growth was nothing to write home about. Of note is the fact that if you removed the financial sectors stellar quarterly profit, the rest of the S&P 500 would have had negative quarterly profit growth. S&P 500 corporate profit margins are close to all-time highs and the P/E ratio, currently at 16, does not indicate an undervalued U.S. market from historic perspectives.
While on the topic of economic numbers, one of our clients, Paul Kasriel, retired senior economist of Northern Trust Company provides insightful analysis of the economy. You can view his perspective by going to his blog at //the-econtrarian.blogspot.com.
We have a few things that may lead to more market volatility in the coming months.
- Response to Syria
- German elections in September
- S. Debt ceiling limit in October
The market’s focal point over the past 3 months has been when the Federal Reserve (Fed) will start to “taper” back the quantitative easing it has been conducting through its government bond purchase program. We anticipate that whatever the Fed does, it will be gradual, and except for some knee-jerk reactions, it will be manageable. Remember, the reason for the Fed to reduce quantitative easing is because the economy is showing strength. When the economy is strong, equity prices do well.
Other than the fund replacements we made earlier this month, we do not currently see any reason to change our asset allocation models at this point in time. We have finished reviewing estimated taxes for our family office clients and Ryan will be calling you next week with our analysis. We are now focused on minimizing the tax consequences of capital gains on your portfolios. We will be executing these trades where appropriate in September and October.
You will be receiving our annual client satisfaction survey by the middle of September. Please let us know how we are doing by filling it out and sending it back to Patty. If you have any questions, comments or concerns, please let us know.
As always, we thank you for your confidence in D3 Financial Counselors and we ask that you to keep us in mind when your friends or relatives have financial questions or face some financial uncertainty. As a reminder, unlike our competitors, we have no minimum asset requirement to use our financial planning services. We are happy to work with people that need financial planning help on an hourly basis.
Happy Labor Day!
Don Duncan MBA CPA CFA™ CFP® Michael Meyers MBA CFP®
Adam Glassberg CFP® CIMA® Patty Shipinski, Office Manager
Ryan Pace CFP®
We serve our clients by providing Integrity, Trust, Wisdom and Confidence