Blog

Market Outlook 2020

Posted By Lineweaver Financial Group
January 07, 2020 Category: General

What a difference a year makes!  A year ago, at this time the market was coming off a 20% correction in the fourth quarter reflecting prevailing headwinds of rising interest rate, escalating global trade tensions between the US and China, uncertainty on Brexit, and growing concerns of slowing global growth. Today conditions have calmed. Central banks around the world are dovish, including in the US, where the Fed moved to make mid-cycle adjustments in the midst of uncertainty and raised chances of extending the cycle.  Likewise, around the world central banks seem accommodative with negative interest rates prevailing in several key countries around the globe. The US and China have apparently reached a Phase I trade deal and while the situation is tenuous and large structural hurdles remain in the areas of intellectual property, leaders of both countries seem to be more motivated to move toward more substantial agreements into 2020. With this backdrop, conditions appear favorable for economic growth in 2020. This was also a solid year for investors.   The S&P 500 was up 28%, its strongest year since 2013 and well above the 10% historical average. The US Bond market also recorded a very solid performance with the US Bond Index (Bloomberg Barclays US Aggregate Bond Index) up 8.67%, its strongest showing since 2002.   The 60%stock/40%bond portfolio generated its highest returns in almost 20 years.   The US market was a leader in 2019 but equity mark

Economic Commentary: Q1

Posted By Lineweaver Financial Group
January 07, 2020 Category: General, Economic Commentary

  Our reference to the classic Toots and the Maytals song comes as we see a de-escalation in trade tensions with China, diminishing risks of a no-deal Brexit and few signs that the record U.S. economic expansion is ending or reversing. Still, persistent trade uncertainty is denting business confidence and spending, particularly the longer-term risk of an unravelling of the global supply chain. Our take on the major investor themes for the weeks ahead:   U.S. Equites: Sector Steering Defensive sectors have outperformed cyclicals this year against a backdrop of slowing growth and falling interest rates. However, we expect central bank easing could provide a floor for growth in the coming months. Among cyclicals, we remain constructive on technology, while we prefer less rate-sensitive sectors.   Developed Markets: Winter of our discontent? Trade uncertainties and slowing growth have taken a toll on developed world stocks outside the United States. But not all DMs are created equal, and there are signs that the global growth slowdown has hit bottom, while central bank easing could help.   Emerging Markets: China's mixed outlook A temporary trade truce with the United States provided some optimism around China over the last month. However, China's growth slowdown has become more pronounced.   Fixed Income: Seeking defense in credit U.S. government bond yields have responded to geopolitical risks over the past few months both ways, wh

Looking Forward and Giving Back

Posted By Lineweaver Financial Group
January 06, 2020 Category: General

  As most of you know, we have partnered with Harvest for Hunger since 2012, collecting food for the Cleveland Foodbank. Since partnering with Harvest for Hunger and the Cleveland Food bank in 2012, the food collected at our WealthWATCHSM programs, client appreciation, and other events has provided more than 43,000 meals. Thanks to all of our clients and friends who have helped us reach this amazing milestone. This year, we also had the unique opportunity to partner with Ben Curtis, the 2003 British Open Champion, and the Ben Curtis Foundation. Ben’s Foundation provides similar services to the food bank, but works exclusively with children in need in Kent, Ravenna, and Barberton. One in five children struggle with hunger, and Ben and his foundation are able to help more than 2,440 children in our own backyard. We also had the opportunity to partner with former Browns Coach Sam Rutigliano, and his Inner Circle Foundation. Coach Sam’s Foundation, a member of the International Literacy Association, shared research with us that shows that 1 in 6 kids who don’t read at age level by the 3rd grade will not graduate from high school. Their programs focus on children in the Cleveland in Cleveland Schools who are struggling, and aim to help them bridge the gap from “learning to read,” to “reading to learn.” Finally, we had the opportunity to partner with and support Mark Tripodi and his Cornerstone of Hope Foundation. After a difficul

The New SECURE Act: 2020

Posted By Lineweaver Financial Group
January 06, 2020 Category: General

We know that many people enjoy the HealthWatch segments, and don’t worry, they’ll be back next quarter. This quarter, however, we had a unique opportunity to update you about the SECURE Act, which stands for Setting Every Community Up for Retirement Enhancement,’ and was signed into law by President Trump on December 20th. There are 29 provisions to the new law, but here are the top five, which we think are most likely to affect people. 1. The Act changes the age for Required Minimum Distributions from 70½ to 72, which will allow additional time for IRAs to grow.   2. Allows contributions to traditional IRAs after age 70½, which will help people who want to work longer to continue to contribute to their IRA. Coupled with number one, these can both help you grow your money for longer.   3. The Act also allows for expanded benefits for part-time employees, and means that long-term part time employees may now be eligible for employer qualified plans like 401(k) plans.   4. It also allows 529 plans to be used to pay off student debt – up to $10,000 per beneficiary.   5. In most instances, it eliminates so called ‘stretch’ IRAs with non-spouse beneficiaries like kids and grandkids. In the past, it was possible to stretch an IRA out over the lifetime of the recipient. Now, in most cases, it can only be stretched out over 10 years, but there are some exceptions. These are just 5 of the provisions in the ne