2006 4th Street,
Unfortunately, a number of health, travel, and IT issues prevented the Investylitics Committee of the Horizon Advisor Network from meeting as scheduled in mid-April. We are scheduled for our next committee meeting on Thursday, May 4th. We are looking forward to having the entire team together and having the opportunity to share economic and investment research. We will be reporting on that meeting shortly thereafter.
Since early March, we have seen the continuing push towards higher interest rates by the Federal Reserve Bank produce both liquidity and solvency issues in the banking system. Remember that as interest rates rise, government and mortgage bond prices go down. Many banks hold significant amounts of these types of bonds on their balance sheets. These have dropped significantly in value over the last 13 months as the Fed has raised interest rates nine times…so far.
It is important to remember that we have been through multiple financial crises and bank failures over the last 40 years. As you can see in the chart below, while these often produce short-term bouts of volatility, they have not derailed the upward march of the stock market over time.
Surprisingly, the stock market has continued its upward ascent this year. We started the year with a very strong January, which historically bodes well for the upcoming year. After a pullback from early February to mid-March, we have seen the markets on the rise once again. This is despite the troubling news from the banking system and fears of a pending recession.
The CFPs of Impel Wealth Management decided to use this uptick to refill cash buckets for our clients who are taking monthly systematic withdraws or annual required minimum distributions (RMDs). We were last able to do this in August 2022, when markets had bounced from their mid-June lows.
Remember, our goal is to raise cash/sell high when markets are at near-term highs so that our clients have the liquidity they need to weather the inevitable volatility and downturns that come with the economy and the equity markets. As you can see in our second chart, the markets have moved up significantly from their mid-October lows and are nearing some potential levels of resistance. We felt it wise to take a few chips off the table while valuations were better.
We will look forward to sharing our next committee report in early May when the entire team meets together. In the meantime, we wanted to give you this interim report, so that you knew that we were continuing to work diligently to manage your hard-earned investment assets and to provide you with the liquidity you need to live and enjoy life. Should you have any questions regarding these notes, please do not hesitate to reach out to your advisor. Have a great day!!
© 2023 Jesse Hurst
The views stated are not necessarily the opinion of Cetera and should not be construed directly or indirectly as an offer to buy or sell any securities mentioned herein. Due to volatility within the markets mentioned, opinions are subject to change without notice. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. Past performance does not guarantee future results.
Investors cannot invest directly in indexes. The performance of any index is not indicative of the performance of any investment and does not take into account the effects of inflation and the fees and expenses associated with investing.
Jesse Hurst - Chair, Impel Wealth Management
Nathan Ollish - Impel Wealth Management
Clint Gautreau, Horizon Financial Group
Kevin Myers, ATL GlobalJoy Schlie, FHT Financial Advisors
Dusty Green, Spencer Financial Inc.
Sincerely,Jesse W. Hurst, CFP®, AIF®CERTIFIED FINANCIAL PLANNERTMFinancial Advisor
*Award Recipient Jesse Hurst
*The 2021 ranking of the Forbes’ Best–in–State Wealth Advisors1 list was developed by SHOOK Research and is based on in–person and telephone due–diligence meetings to evaluate each advisor qualitatively and on a ranking algorithm that includes client retention, industry experience, review of compliance records, firm nominations, and quantitative criteria (including assets under management and revenue generated for their firms). Overall, approximately 32,725 advisors were considered, and 5,000 (approximately 15.3 percent of candidates) were recognized. The full methodology2 that Forbes developed in partnership with SHOOK Research is available at www.forbes.com.
1 This recognition and the due–diligence process conducted are not indicative of the advisor's future performance. Your experience may vary. Winners are organized and ranked by state. Some states may have more advisors than others. You are encouraged to conduct your own research to determine if the advisor is right for you.
2 Portfolio performance is not a criterion due to varying client objectives and lack of audited data. SHOOK does not receive a fee in exchange for rankings.