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Q3 2018: Economic Commentary

Posted By Lineweaver Financial Group
July 06, 2018 Category: Q3, 2018, Economic Commentary, Market Review

Global financial markets posted mixed results during the second quarter of 2018 as investors balanced strong earnings, an improving labor market and better economic growth here in the U.S. with political turmoil in Europe and deteriorating trade relations worldwide. We present a few highlights from the 2Q18 below: Despite heightened geopolitical rhetoric, the S & P 500, the Dow Jones Industrial Average, and the technology-heavy Nasdaq Composite continued to trade near record highs amid positive economic data and strong corporate earnings. On the economic front, the Federal Reserve raised interest rates by 25 basis points in June to a range of 1.75% to 2%, and upgraded their assessment of U.S. economic growth. Consequently, the FOMC now anticipates raising interest rates four times in 2018.   Developed international equity markets produced mixed results during the second quarter on political turmoil in Spain and Italy, and rising trade tensions with the U.S. Gains came out of Europe, while the Pacific region lagged. On the political front, the prospect of new elections in Italy and a vote of no confidence against Spanish Prime Minister Mariano Rajoy renewed fears of a Eurozone breakup. In the emerging markets, returns were held back by weak performances from Latin America heavyweights Brazil and Mexico.   Within fixed income, results were mixed as the Fed raised interest rates and the U.S. dollar rose sharply against most major currencies. The 10-year U.S. Trea

HealthWatch: What Are Screens Doing to Our Eyes and Our Ability to See?

Posted By Lineweaver Financial Group
July 06, 2018 Category: Healthwatch, Screens, Eye Strain, Newsletter

In today’s society, if you’re not sleeping, chances are you’re looking at some type of screen. Whether it’s a computer monitor, a television, a handheld tablet, a GPS or our smartphones, we spend 10-14 hours a day staring at a screen. Many of us are familiar with the problems this can cause, such as headaches, dry eyes, eye muscle strain, and even blurred vision—but few of us know what can be done to correct it. The easiest thing to do would be to avoid screens as much as possible. However, for those of us who use our cellphones and computers every day for work, it’s impossible to avoid screen-time. So what are our options? One option is to adjust the brightness on your screen. Dr. Joshua Dunaief, a professor of ophthalmology at the University of Pennsylvania’s Perelman School of Medicine also recommends shifting your screen’s color scheme away from blue and toward the yellow end of the spectrum.  While some research has linked too much blue light exposure at night to insomnia, even daytime exposure could be a problem. Another way to reduce computer vision syndrome (CVS), also referred to as digital eye-strain, is to maintain proper space between your eyes and the screen. Doctors recommend positioning all screens, smartphones included, no closer than 16 inches from your face. Some may find this hard to do—which brings us to the third option. The best solution is to utilize the “20-20-20” rule. Every 2

Letter From the President: Should You Take a Summer Vacation from Your Investments?

Posted By Lineweaver Financial Group
July 06, 2018 Category: Letter From The President, Vacation From Investments

There’s an old saying you’ve probably heard that gets repeated every year in the spring and early summer that goes “sell in May and go away.” But is that good advice? What’s the best thing for you and your investments over the historically slower summer months? The phrase “sell in May and go away” is thought to originate from an old English saying, “sell in May and go away, and come on back on St. Leger’s Day.” This phrase refers to a custom of upper class aristocrats, traders and financiers who would leave London to spend the summer months in the country. Specifically, it refers to the St. Leger’s Stakes, a thoroughbred horse race held in mid-September. It turns out that the saying is based in solid analysis - From 1950 to around 2013, the Dow Jones Industrial Average has had an average return of only 0.3% during the May to October period, compared with an average gain of 7.5 percent during the November to April period, according to Forbes. But, since 2013 there’s good reason to believe that’s no longer the case. For example, the S&P 500 rose nearly 7% from the beginning of last May through the end of October, according to YCharts. The blue-chip index was up 5% during May through October of 2016 as well. The market did fall in the May-October period of 2015 because of concerns about China. But the S&P 500 enjoyed a 7% pop from May-October of 2014, a 10% gain in May-October of 2013 and eve

Do You Want Your In-laws to Inherit Your Money?

Posted By Lineweaver Financial Group
July 06, 2018 Category: Q3 Newsletter, In Laws, Inheritance, Trusts, Bloodline Trust, Marital Trust

By Michael L. Solomon of Solomon, Steiner and Peck Most people think their will or trust provides that on their demise, that their assets pass to their children and if their children pass away the assets pass to their grandchildren. However, that only happens if your child dies before you. Hopefully, your children outlive you. If that happens, the typical will and trust have the money pass directly to your children immediately, or by the time they are a certain age. Either way, once the child inherits the money, it is governed by your child’s will or trust, not yours. That means that upon your child’s death, the assets will most likely pay to your son-in-law or daughter-in-law and may pass on their death to someone else, such as a new spouse. For some people that is fine, but for others it may not be what you want. Many people want the money to stay in the family. To do that you need what we call a Bloodline Trust.  For example, let us say and husband and wife have an estate of $500,000 and one child who is married with two children. A typical estate plan will provide that the inheritance pays outright to the child. Once the child inherits the money, his estate plan will say that all of his estate, including what the child inherits from you, pays to his spouse. With the Bloodline Trust the $500,000 will be held in a trust for the benefit of the child. The child can be their own trustee and they can control the investments and decide how the money is distrib