Thompson Davis & Co., has been anchored in downtown Richmond since its founding. For the past decade, the firm has called home the historic William Barret House, a Greek Revival mansion built in the mid- 1800s a few blocks north of the James River. But TD&Co. is crossing that river to begin the next decade—the firm will launch 2020 in new office space in the Stony Point office park in south Richmond.
A reverse mortgage is a type of loan available to homeowners aged 62 and older, which allows them to convert their home equity into cash income with no monthly mortgage payments. Generally, reverse mortgage loans do not have to be repaid until six months after the last surviving homeowner moves out of the property or passes away. Seems like a great concept, right? But a deeper dive reveals why it or may not make sense for everyone.
The latest batch of economic data shows the U.S., China and the EU dropping into contraction territory with manufacturing Purchasing Managers Indexes (PMIs) all falling below 50. No doubt the trade war is having a meaningful impact on global economic activity, and some of the more punitive tariffs have yet to be implemented.
As we closed out the volatile third quarter of 2019, many questions linger about the future of the economy and the markets remain in flux. At the top of the list is the lengthy trade war with China, for which there seems to be no end in sight. This situation has caused the global growth outlook to be cut twice so far this year, and many companies here and abroad have slowed spending as visibility continues to dim. Brexit is weighing on global markets as well, with a messy Brexit looking ever more likely.
Please enjoy the list of some thought-provoking content this month - September 2019
The most bothersome portion of this study released so far is that an estimated 13% of the US population over age 65 (~6.3 million) will live in poverty at some point in their retired life. This number potentially could be cut in half if Social Security elections were made at a more financially optimal time and the person was engaging in a degree of financial planning.
AS WE REACHED midyear 2019, there seems to be one important question on investors’ minds. Will we finally break out of almost 19 months of a sideways, volatile, no-return environment we have faced—or will the mounting evidence of slowing global growth start to weigh and send markets lower?
AS WE REACHED midyear 2019, there seems to be one important question on investors’ minds. Will we finally break out of almost 19 months of a sideways, volatile, no-return environment we have faced—or will the mounting evidence of slowing global growth start to weigh and send markets lower? Several factors have led to this 19-month period that some would call a consolidation, or even a bear market.
Rates were on the rise, but now they have stalled—what if history repeats and rates remain very low for an extended period of time? A savings account doesn’t come to mind as a valid option, but times are changing and people are earning legitimate interest on the money they have sitting in their bank accounts.
THE MARKETS MADE a nice recovery of much (but not all) of the losses from a horrific Q4’18, a period where the stock market saw its worst quarter since the Great Depression. The narrow breadth seen in the markets for nearly the past two years—where indexes were dominated by a handful of stocks—gave way to a cascade of selling in Q4. As we entered Q1’19, with economic indicators weakening and the inversion of the yield curve, the Federal Reserve pivoted to a neutral stance on rates, indicating no more hikes in 2019. This is likely due to significant weakness in the housing and auto sectors—both of which are very rate sensitive and have been struggling over the past year. Read More
One of the most ironic aspects of investing is that often the greatest gains lie ahead at times when things are bad (but not quite as bad as everyone suspects), and slowly, almost imperceptibly, getting better. This is the time when assets are selling at discounted values and opportunities are lying at our feet, there for the taking.
Louis Frates joined Thompson Davis & Co. in early 2019 as an Investment Advisor Representative. His responsibilities at the firm include working with and educating clients regarding financial planning and investment management solutions. Louis brings to Thompson Davis & Co. over eight years of industry experience, more than six of those as a client facing advisor.
Supply vs. demand, demand, and more demand. A college tuition is nearly a prerequisite for many jobs in the current labor force. This is allowing colleges and universities to establish whatever tuition and fees they deem fit, as there is no shortage of eager students ready to apply.
CHEERS TO A TEN-YEAR BULL MARKET…NOT REALLY
A decade ago this month, the major U.S. stock markets reached their lowest point during the financial crisis of 2009. S&P 500 low was marked at 666 as the economy was a complete disaster and investors scurried for the exits. As with all market cycles, fear ultimately subsided, and the birth of a new bull market began…or did it? Read More
—Brant Jones, CFP®
Health Savings Accounts: The Triple Tax Treat
What is a Health Savings Account?
A Health Savings Account (HSA) can best be described as a personal savings account where the money can be used only for qualified medical expenses. This investment account, created by the Medicare Act in 2003, provides people with a convenient way to save for any unexpected future medical costs they might encounter. Notice that I said investment account. That means contributions do not need to be kept in cash; they can be invested into the stock market and thus have potential organic appreciation. Read More
—Brant Jones, CFP®
AS THE MARKETS closed out 2018, volatility returned with a vengeance. From their highs in late September, all averages fell more than 20%. The cause was a combination of a hawkish and aggressive Federal Reserve, trade war tensions, and political unrest here in the US. Below, courtesy of Bloomberg, is a rundown of how the major averages fared in 2018:
On average, these indexes were down approximately 12% for 2018. The performance of global markets was even worse for 2018—with major markets including the DAX in Germany, down 21.94%; Euro Stoxx 50, down 18.20%; and China, down a whopping 30%. Even safe havens such as gold and other commodities like oil were down sharply. For example, oil lost 44% in the final 2½ months of the year. There was no place to hide this steep decline, which culminated in the Dow’s 653-point drop on Christmas Eve. Read More
This is the third article in a three-part series highlighting successful investors but focusing on their failures and how they influenced their careers. Readers may already know much about these three men and their successes. However, the lessons learned through failure carry a weight that no textbook can convey, and they often provide the most insight into ourselves and the behavioral aspect of investing.
As the markets closed out 2018, volatility returned with a vengeance. From their highs in late September, all averages fell more than 20%. The cause was a combination of a hawkish and aggressive Federal Reserve, trade war tensions, and political unrest here in the US. Below, courtesy of Bloomberg, is a rundown of how the major averages fared in 2018:
Devon Cury is a trusted advisor to Thompson Davis, helping us to expand our service portfolio into the insurance arena. With Devon, we are able to provide our clients with an in-depth insurance review and offer solutions to meet their requirements.
Markets have now given back all of their gains for the year with the S&P 500 down a bit less than 1% year to date, the Dow Jones Industrials average down 0.3%, the Russell 2000 down 7%, and as of this writing the Nasdaq falling into negative territory as well. The declines may seem modest, but It was just over two months ago that the S&P 500 hit all all-time high with economic growth having accelerated over the summer. Reflecting a more defensive posture taken by investors in recent weeks, Utilities and Healthcare are the two top-performing sectors through the middle of December up 10.8% and 9.1%, respectively. Not surprisingly, more cyclical sectors such as Materials and Financials are bringing up the rear. Read More