March 20 Meeting Reminder and 2018 So Far
Mid-March already! Here’s how I know time flies – I make my second parental trip to the DMV with one of my sons next week. Now I will have two male teenage drivers in my house – I appreciate your prayers!!!
The markets in 2018 have had the consistency of a teenager. January fantastic; February terrible; and March to be determined. Much of this behavior is simply a part of being an investor – markets are inherently volatile and the only way to achieve investment results over time is to be consistent. Today marks the anniversary of the market low from the housing bubble. On March 9, 2009, the Dow closed at 6,547 – a far cry from where it sits today. Now, take a moment and think of all the headlines that were major distractions along the way – terrorism, hurricanes, government shutdowns, and a European debt crisis to name just a few.
The economic backdrop continues to remain quite strong. The earnings season that just ended produced an average corporate earnings increase of 15% from a year ago. Across the globe, 144 of the 148 individual country economies are projected to grow this year. There are always reasons to be concerned – chief among them today are tariffs, trade wars and a Federal Reserve that raises interest rates too quickly – but in balance we remain optimistic about the road ahead.
Our next client dinner meeting is approaching on Tuesday, March 20. Bill Cass of Putnam Investments will be providing a 2018 Outlook. The event starts at 5:30 at the Country Club of Orlando, 1601 Country Club Drive, Orlando, FL. Please be aware that the Country Club is now enforcing its dress code – not permitted are short shorts, tank tops, sweatshirts, baseball caps, cutoffs and collarless T-shirts. Sorry, these aren’t my rules . . .
It is tax time at the office so we are preparing 2017 returns and projecting taxes for 2018. The general trend for 2017 is higher taxes due to better market results. Fortunately in 2018 tax rates do go down but most that itemize their deductions will find themselves taking the new (and higher) standard deduction amount in the future. Please contact us if you need any assistance in preparing your tax return this year.
Look forward to seeing you on March 20.