| Our Current Perspective on Market Corrections, the Economy, and S&P’s Downgrade
As you are surely aware, following Tuesday’s debt ceiling compromise, attention rapidly shifted to whether the government has what it takes to solve its budget problems. Add to this the fact that Italy is now in the forefront of debt problems in Europe and anemic economic news has been pushing investor sentiment downward, and you have a near-perfect recipe for a stock market correction. And a correction – defined as a 10% drop from recent highs – is exactly what we experienced last week as major indexes erased their gains for the year.[1] At times like this, we are wise to view events in the proper context and avoid letting brief periods of negativity derail our long-term strategies. Market corrections are not unusual events.
There have been many U.S. equity market downturns over time, varying in length and severity. The most severe downturn marked the start of the Great Depression, where stocks lost over 80% of their value. More recently, stocks lost 50.9% of their value during the 2007-2009 bear market. The recovery period following the Great depression took over 12 years, while we are less than two and a half years into the current recovery, and we don’t know how long it will last. During recovery periods, stocks are prone to sudden declines in value. Unexpected drops in the market can be painful, but they are part of the investment process.[6] The economic data doesn’t portend another recession.
Where do we stand? When you combine strong corporate earnings with an improving jobs picture, increasing consumer spending, and consistent manufacturing, it is easy to see that, unlike 2008, we are not in the midst of a financial crisis. The entire U.S. banking system is not on the edge of default. Markets are functioning, governments are borrowing, and volatility in the markets is relatively tame compared with what we saw beginning in 2007. While things may be momentarily slowing, we are not experiencing a meltdown. In the grand scheme of things, the market moves of last week are really not out of the ordinary. Even a one-day selloff similar to what we saw on Thursday is not that unusual. In our assessment, the turmoil of recent weeks reflects the fact that fear is still dominating investor sentiment. Highlighting this, Wall Street’s “fear” gauge – the VIX – jumped almost 36% on Thursday, and eventually ended Friday with a reading of 32.05. Anything above 30 indicates a heightened sense of fear.[12] What are people afraid of? While there are several factors that could be cited, we believe debt problems domestically and abroad are in the forefront. What about the European Debt Crisis? While it is true that European countries have spent themselves into a corner, correcting this mistake could be good for long term growth. While some financial institutions may face losses in the process, the minimal level of European exposure U.S. banks have, makes them well equipped to face this challenge. Our research tells us that the odds of significant damage to the U.S. economic system resulting from European debt failures are very low. Should you be concerned about the S&P downgrade of the U.S. credit rating? While the full implications of the downgrade are not clear yet, we do have some initial observations we would like to share with you.
This move by the S&P definitely strikes a nerve. America’s credit rating has never been downgraded before and people don’t know what to expect. Even so, if it helps the U.S. get more serious about fiscal responsibility, it could turn out to be a very positive development.
Successful investing is a long term project undertaken with risk and uncertainty. Equity markets do not move in a straight line, and neither do economic recoveries. We wish we had the ability to trade every move, but that just isn’t possible. Another thing we know is that fundamentals suggest the market is undervalued and getting more so as it drops. If we decide to sell out when the market is at a low point and buy back in when we see an upturn, we could cause our clients to experience unnecessary losses. Despite being painful, corrections like this historically run their course and then come to an end. We do not think that now is the time to take drastic action. We encourage you to tune out the media fanfare and remember that we have been through much worse. Please try to see recent events in context and do not allow them to disrupt your long term financial objectives. As always, we are here to provide you with clarity, perspective, and support during challenging times like these. Thank you for the confidence you have placed in our abilities. We consider it an honor and a privilege to be good stewards of the assets you have entrusted to our care.
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Posts Tagged ‘The Calandra Group’
Special Paper: Perspective on the Market Correction
Posted in Uncategorized, tagged atlanta financial advisor, atlanta wealth manager, Calandra Financial Group, financial advisor, Investing Advice, Phil Calandra, The Calandra Group on August 10, 2011 | Leave a Comment »
Weekly Market Commentary – March 14, 2011
Posted in Uncategorized, tagged ACCUMULATION, Adviser, atlanta financial advisor, atlanta wealth manager, Calandra Financial Group, DISTRIBUTION, estate planning, find a financial advisor in atlanta, Kennesaw financial planner, Money, Phil Calandra, tax planning, The Calandra Group, Your Financial Life on March 15, 2011 | Leave a Comment »
Weekly Market Update
Week of March 14, 2011
THE MARKETS:
On Friday, an 8.9 earthquake rocked Japan and generated a 30-foot-high tsunami that devastated the northeastern coast. In consideration of the widespread destruction, human suffering is the issue of primary concern at this time. Simultaneously though, it is crucial to consider the economic impact of this natural disaster. What affects are we already experiencing?
Though Japan’s recession-burdened stock markets dropped,[1] the expected scope of the rebuilding effort sent U.S. stocks climbing on expectations for increased demand for materials.[2] Interestingly, we also saw a $3 a barrel drop in oil prices inspired by anticipation of decreased Japanese demand.[3] At the same time, some speculate that the probable increase in Japan’s spending has the potential to propel their already strong currency, the yen, higher as Japanese money invested abroad is applied to rebuilding.[4] How long and to what extent such factors will influence the world economy remains to be seen.
The earthquake also took a heavy toll on the nation’s industries, forcing Toyota, Honda and Nissan to halt operations at most of their domestic plants.[5] These shutdowns come at a time of strong recovery in global consumption (U.S. auto sales clocked their strongest pace in 18 months in February[6]). Also suspending operations are Panasonic, Sony, and Toshiba.[7] A bigger impact will likely come in the weeks ahead as the disruptions make their way through the global supply chain.
In today’s world, we exist as part of a connected, global community. And although it is fitting to discuss how international situations can have an impact domestically, we should also remember that such analysis cannot diminish Japan’s catastrophic losses. While the weeks and months ahead will gradually reveal the extent of the disaster, it will also give us a chance to demonstrate our humanity and generosity.
SPECIAL NOTE: While we do not want to discourage you from donating toward relief efforts in Japan, we urge you to exercise caution. Whenever a natural disaster strikes, there are always unscrupulous individuals who will attempt to take advantage of the generosity of those who wish to give. Many reputable sources warn donors to be cautious when making contributions to relief agencies and charities. Please visit the Better Business Bureau’s Wise Giving Alliance for more information about how to donate safely. See www.bbb.org/charity.
ECONOMIC CALENDAR: Tuesday – Empire State Mfg Survey, Import and Export Prices, Treasury International Capital, Housing Market Index, FOMC Meeting Announcement Wednesday – Housing Starts, Producer Price Index, EIA Petroleum Status Report
Thursday – Consumer Price Index, BOE Announcement, International Trade, Jobless Claims, Industrial Production, Leading Indicators, Philadelphia Fed Survey
| Data as of 03/11/2011 | 1-Week | YTD | 1-Year | 5-Year | 10-Year |
| Standard & Poor’s 500 | -1.28 | 3.71 | 13.4 | 0.36 | 0.57 |
| Dow | -1.03 | 4.03 | 13.5 | 1.75 | 1.32 |
| NASDAQ | -2.48 | 2.36 | 14.6 | 4.01 | 3.23 |
| MSCI EAFE | -3.09 | 1.68 | 7.85 | -0.88 | 2.02 |
| 10-year Treasury Note (Yield Only) | 3.49 | N/A | 3.72 | 4.76 | 4.93 |
Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. NA means not available.
HEADLINES:
Professional-football players disbanded their union and filed a lawsuit against the NFL and team owners on Friday. The collapse of the talks makes it likely that NFL owners will bar their players from turning up to work and withholding their paychecks. The players filed suit for the right to be allowed to work.[8]
U.S. consumer sentiment fell to its lowest level since October 2010 as gasoline prices rose. The preliminary March reading on the overall index on consumer sentiment came in at 68.2, down from 77.5 in February. The numbers were in contrast to the retail sales report earlier Friday, which showed sales posted their largest gain in four months in February.[9]
House Republicans are preparing another stopgap-spending bill that would cut $6 billion from current levels and keep the government running for three more weeks. The stopgap-spending bill would buy lawmakers more time after existing funding authority expires on March 18 to agree on final spending levels for the 2011 fiscal year, which ends September 30. The Senate would have to approve it as well before it could be sent to President Obama to sign into law.[10]
Forbes 2011 Billionaires List breaks two records: total number of listees (1,210) and combined wealth ($4.5 trillion). Mexico’s Carlos Slim Helu, added $20.5 billion to his fortune, and is now worth $74 billion. Bill Gates (#2) and Warren Buffett (#3) both added a more modest $3 billion to their piles and are now worth $56 billion and $50 billion, respectively.[11]
QUOTE OF THE WEEK:
“In separateness lies the world’s great misery, in compassion lies the world’s true strength.” – Buddha
RECIPE OF THE WEEK:
Maple Ricotta Flan
From: Better Homes and Gardens
This 5-ingredient dessert can be pulled together in just 15 minutes.
Servings: Makes 6 servings.
Prep: 15 mins
Total: 45 mins
Ingredients:
1/4 cup plus 1 tsp. pure maple syrup
4 beaten eggs
1 15-oz. container ricotta cheese
1/4 cup sugar
1 tsp. vanilla
Ground nutmeg or cinnamon (optional)
Directions:
1. Preheat oven to 325 degrees F. Divide the 1/4 cup maple syrup among six 6-ounce custard cups; tilt custard cups to coat bottoms evenly.
2. In a bowl combine eggs, cheese, sugar, vanilla, and remaining teaspoon maple syrup. Mix until well combined but not foamy. Place the custard cups in a 3-quart rectangular baking dish. Divide egg mixture among custard cups. Sprinkle with nutmeg. Place the baking dish on an oven rack. Pour boiling water into the baking dish around custard cups to a depth of 1 inch. Bake for 40 to 45 minutes or until a knife inserted near the centers comes out clean.|
3. Remove cups from water. Cool completely in custard cups. Cover and chill until serving time. To unmold flans, loosen edges with a knife, slipping point of knife down sides to let air in. Invert a dessert plate over each flan; turn custard cup and plate over together.
GOLF TIP OF THE WEEK:
Putting Yips?
Once fear gets a hold on your nervous system, it can seem like it will never end. Goodbye confidence. What can you do? Solve the problem by taking two actions:
1) Spot the fear early. When spotted, step back, take a breath, and restart your routine. Once your body/mind learns you won’t give in to your nerves, it actually gets the message.
2) Put your mind on the present, not the future. Don’t think about everything that can go wrong with your shot. Just focus on your movement.
Following this routines brings you into the “now.” Use this to combat fear.
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Insert your broker/dealer disclosures here. i.e. Securities offered through “Your B/D Name Here,” Member FINRA/SIPC.
Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.
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.
Google 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.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.
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[2]http://online.wsj.com/article/SB10001424052748703597804576194130989423722.html?mod=WSJ_hp_LEFTWhatsNewsCollection
[3] http://online.wsj.com/article/SB10001424052748703597804576194452970557580.html?mod=googlenews_wsj
[5] http://online.wsj.com/article/SB10001424052748704296604576196140410967916.html?mod=WSJ_hp_MIDDLTopStories
[6] http://online.wsj.com/article/SB10001424052748703597804576194101663283550.html?mod=WSJ_hp_MIDDLTopStories
Atlanta, GA Investing – Phil Calandra
Posted in Videos, tagged 30144, advice, Adviser, advisor, analyst, Atlanta, Calandra, Financial, GA, Group, investing, Phil, Planner, planning, preparation, tax, The Calandra Group on September 10, 2010 | Leave a Comment »
Kennesaw, GA Retirement Advisor, Phil Calandra, Helps Locals Overcome Financial Problems
Posted in Press Releases, tagged 30144, advice, Adviser, advisor, analyst, Atlanta, Calandra, Financial, GA, Group, investing, Phil, Planner, planning, preparation, tax, The Calandra Group on September 10, 2010 | Leave a Comment »
PRESS RELEASE: Kennesaw, GA, 29-JULY-2010 – Phil Calandra and The Calandra Group have gained renown for helping locals in Kennesaw to overcome their financial problems. When an individual is caught in a downward spiral of debt, they often are not sure what steps to take to take control of their financial life. Having Phil Calandra, a Kennesaw Financial Advisor can be invaluable in achieving your goal for financial security.
When Mr. Calandra assists an individual with financial problems, he uses a holistic approach that include immediate needs and long-term financial security. The unique approach that includes applying an integrated approach that includes wealth planning and management. After reviewing debts, assets, and other types of income, Mr. Calandra creates a list of immediate financial concerns and future needs and desires.
After analyzing the data collected, the Kennesaw financial advisor provides options for emerging from debt and establishing a plan for investments, tax, retirement, and estate planning. He includes in his presentation of the options the important facts that are needed to understand how each investment strategy and product will affect your financial future and the length of time that is involved to create the financial freedom that is desired.
The plan that is developed is individualized and tailored to meet the specific needs of of the individual who wants to meet their goals for the future. Mr. Calandra has the experience and expertise to provide quality service and give individuals seeking advice an objective assessment of the most effective steps they need to take to meet their goals.
You can find valuable information about the steps that Phil Calandra, Kennesaw Financial Advisor, takes to assure that individuals who want to take control of their finances and financial future by visiting http://www.thecalandragroup.com today. The following contact information is available to members of the press who would like additional information with regards to this specific release.
Contact Person: Phil Calandra, Kennesaw Financial Advisor
Company Name: The Calandra Group
Address: 1301 Shiloh Road, Suite 1240, Kennesaw, GA. 30144
Contact Number: 678.302.6621
Toll Free Number: 1.877.529.6501
Email: info@thecalandragroup.com
Website: http://www.thecalandragroup.com
Phil Calandra, Kennesaw Financial Advisor, and The Calandra Group, have been helping locals find solutions for their financial problems that work. When an individual is seeking assistance and advice on the best course of action to take control of their financial future, they will find that Mr. Calandra can provide the knowledge and experience that will give them the answers they need.
Investment Manager In Kennesaw, GA Has Customer Service As Top Priority
Posted in Articles, tagged 30144, advice, Adviser, advisor, analyst, Atlanta, Calandra, Financial, GA, Group, investing, Phil, Planner, planning, preparation, tax, The Calandra Group on September 10, 2010 | Leave a Comment »
A Kennesaw Financial Advisor is someone that is well qualified to give you advice about how to invest your money for the best possible returns. He will study your financial situation and goals and come up with a tailor made system for your particular needs. Let us briefly look at the aspects he will attend to.
The first question he is going to ask you is why you want to invest. Is it to save for a specific goal, such as the university of your children? Or is it to make provision for a pension fund? Or maybe just to get enough funds for that world tour?
You will also have to decide how long you can afford to invest your money and how much of it you want available on call. Keep in mind those unexpected car breakdowns and medical emergencies and don’t tie up all your funds for the long term. Your investment adviser will be able to advise you about this.
Something else that you will have to discuss with the consultant is the role of inflation in your financial planning. If you are thirty years old now, inflation is going to wreak havoc with your retirement funds by the time you get to seventy. The amount that you save per month should therefore make provision for the projected rate of inflation. This can of course never be 100% accurate, but it’s better than not to take into account inflation at all.
Your advisor will also bear in mind whether you are investing for capital growth or a monthly pension. Investments with high capital growth will often carry with them a greater risk than those aiming at providing a regular income. When you are investing for your pension, you can’t afford to invest in high risk investments.
Regardless of your goal with investing, it is never a good idea to invest everything you have in one investment. There is always an element of risk involved with any investment, even a savings account with a bank. It is therefore wise to diversify your portfolio. A well-balanced portfolio will include investments in real estate, stocks, bonds and possibly hedge funds.
Your Kennesaw financial advisor will discuss all the above choices with you. An off-the shelve plan might sometimes simply not be good enough if you have specialized needs. He might therefore in the end decide to recommend a tailor-made investment plan that has been designed specifically with your needs in mind.
A Kennesaw financial advisor provides retirement planning and investment advice for clients. Learn more about the available financial tools when you visit http://www.thecalandragroup.com .
Financial Advisor Empowers People In Kennesaw To Take Control Of Their Finances
Posted in Articles, tagged 30144, advice, Adviser, advisor, analyst, Atlanta, Calandra, Financial, GA, Group, investing, Phil, Planner, planning, preparation, tax, The Calandra Group on September 10, 2010 | Leave a Comment »
When you need help with financial decisions, a Kennesaw Financial Advisor may be able to assist you. Whether you are concerned about your present financial state, or your future finances, you need answers in order to make the right decisions about money.
You may want to retire at a certain age. If you want to be assure that you are retiring comfortably, an advisor should be able to show you how to put money away. He will consider your goals to suggest a percentage of your salary be put into a savings or money market account.
He will also have different options for your money. You may want to put it into an IRA or a 401K plan. You may want to invest in the stock market or real estate. His options will help you make sound decisions for your future.
If you are concerned about your present financial status, or perhaps your credit score, he can help you with this, as well. Your credit reports are an important part of your life. If your score needs to be improved, your consultant’s suggestions may help.
The advisor will suggest that you pay credit card payments on time, or before the due date, every single month. It will not matter to the credit card company or bank if you pay more than the minimum. The minimum is all that is required of you. Stay with this plan for at least twenty-four months, your credit score should improve.
Having more than two credit cards is not a good idea. Your Kennesaw financial advisor will probably tell you to consolidate them or pay the others off. It could actually lower your credit score when you have too much credit available to you. For all of your questions about finances, consult with your local advisor today.
The services of a Kennesaw financial advisor can be applied to retirement planning or for any other major financial goal. The techniques and tools can be checked out at http://www.thecalandragroup.com .
Atlanta, GA Financial Planning – Phil Calandra
Posted in Videos, tagged 30144, advice, Adviser, advisor, analyst, Atlanta, Financial Planner, GA, Group, Investing Advice, Phil Calandra, planning, tax preparation, The Calandra Group on July 10, 2010 | Leave a Comment »
Top Financial Planner, Atlanta GA – Phil Calandra
Posted in Videos, tagged 30144, advice, Adviser, advisor, analyst, Atlanta, Financial Planner, GA, Group, Investing Advice, Phil Calandra, planning, tax preparation, The Calandra Group on July 10, 2010 | Leave a Comment »
Kennesaw Financial Planner Helps Locals Have A Prosperous Future
Posted in Articles, tagged 30144, advice, Adviser, advisor, analyst, Atlanta, Financial Planner, GA, Group, Investing Advice, Phil Calandra, planning, tax preparation, The Calandra Group on July 10, 2010 | Leave a Comment »
Most of us have seen our parents work hard to give us the best life. Moreover, to get a secured future and retirement plan, our parents spend their entire life working hard, but some unpredictable family issues or needs can change the entire financial planning. Thus, it leads to a completely unorganized and messed up situation where our present as well as our future planning gets hampered. Previously, there were no proper solutions for these kinds of problems, so our parents had to plan their financial aspect again from the initial stage. This was not only time consuming but at the same wasted a lot of money too. But, now we don’t have to waste our time and money as a financial planner can do the job for us with better results. If you are a resident of Kennesaw then you might want to take the help of a Kennesaw financial planner to solve your financial problems.
Financial planners are well trained in this field. They look after your entire money management and its saving and investment procedure.
Moreover, all your money income and outflow will be completely handled by your planner. If there are any changes that you need to make with your money management then these financial planners will help and guide you to make such changes.
The Kennesaw financial planner will look after your bank details and tax returns and after a review will guide you on how to grow your money. The financial planners will tell you where to invest your money and which is the best investment policy for you.
Moreover, they will advice you regarding the type of savings account that you should opt for and will also let you know the ways through which you can lower your interest rates if there are any debts in the market.
Both, individuals as well as big corporations and business houses should enlist the services of financial planners. They will give the right advice about where a person can invest their money for maximum profits.
Estate and trust planning, as well as retirement planning are the specialties of a Kennesaw financial planner. Additional information and resources can be found at http://www.thecalandragroup.com .
How Your Kennesaw Financial Advisor Provides Financial Tips For Retirement
Posted in Articles, tagged 30144, advice, Adviser, advisor, analyst, Atlanta, Financial Planner, GA, Group, Investing Advice, Phil Calandra, planning, tax preparation, The Calandra Group on July 10, 2010 | Leave a Comment »
When you’re looking for a financial advisor, you are looking for someone with a high degree of knowledge about financial markets to help you plan your family’s future financial affairs. You are also looking for someone who has very high ethical standards. Below are a couple of questions you should ask a Kennesaw Financial Planner to ensure he is the right person for the job.
Ask him to tell you more about what he sees as the perfect client. His answer will give you a clear indication of his level of expertise with your particular age/financial group. If you are for example within ten years of retirement and he tells you that his main field of experience is working with young families, he might not be the right person for you. You want someone that is fully aware of the needs of someone in your age group and with your financial situation.
Ask how long he has been working as a financial planner. It’s not advisable to entrust your life’s savings into the hands of someone with only a year or two’s experience. Even if he has years of experience in the accounting industry, for example, that does not mean he is necessarily an able financial planner.
Enquire about his particular fields of expertise. Someone that is very enthusiastic about day trading might not necessarily be knowledgeable about retirement planning. Once again you should choose someone whose expertise matches your own needs at this particular stage of your life.
You should also ask him to explain in detail to you what assumptions he uses when making projections for your retirement. All financial planners make certain assumptions about what the return on your money will be on a yearly basis, what the rate of inflation is going to be and about how your spending patterns are going to change over time. You need to ensure that these are realistic.
Finally ask your Kennesaw Financial Planner how his fees will be paid. If his fees will be paid directly by you, he is more likely to give you sound advice than if he works on a commission only basis. In the latter case it’s more likely that he will tend to push products on which he gets the most commission.
Sometimes planning for retirement is just a matter of setting goals with the help of your Kennesaw financial planner. For tips on how to have a healthy financial future, visit the website at http://www.thecalandragroup.com .
