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The Markets Don't Pick Sides

Posted By Lineweaver Financial Group
October 19, 2020 Category: Markets Don't Pick Sides, Newsletter

While Covid-19 has largely stolen the headlines this year, we expect an increasing focus on the presidential election as we enter the end of the year. In dealing with extreme uncertainty, we find looking to history can often be the best starting point to understand what comes next.  Since 1926, the average annual return of the S & P has been about 10%, whereas in presidential election years, the market has historically performed slightly better at just over 11%. During election years where the current President has been re-elected, or a different President from the same party has been elected, the S & P 500 averaged growth of 16%. However, when the parties switch, the return averaged just 5%. One of the reasons for this is very simple – the fact that markets dislike change or the unknown. But generally, it seems more likely to us that the Presidency switched parties because the economy wasn’t particularly strong, rather than the Presidential campaign driving the market. It’s good to recall that Presidents don’t have as much power over the economy as most people think they do, but, for better or worse, that doesn’t really matter too much during an election. If voters think the president has control over the economy, they will vote accordingly. In short, what’s going on in the markets will tell you about the election, rather than the election telling you what will happen in the markets. However, we understand that th

Economic Commentary 2020Q4

Posted By Lineweaver Financial Group
October 19, 2020 Category: Economic Commentary, 2020Q4, Newsletter

Many positive signals appeared in the quarter. Millions of Americans went to work again; monthly net job growth topped 1.7 million in July and 1.3 million a month later. Unemployment, which had hit 14.7% in April, fell from 10.2% in July to 8.4% in August, and the U-6 rate counting both underemployed and unemployed Americans declined from 16.5% to 14.2%.1,2 Consumer confidence, as measured by the Conference Board’s monthly index, leaped to 101.8 in August from 86.3 in July. Households kept up their buying—retail sales were up year-over-year through August even though supplemental unemployment benefits expired at the end of July.1  Industries also grew, according to research from the Institute for Supply Management. When ISM’s Monthly Purchasing Manager Index for the manufacturing and services sector surpasses 50, those sectors are judged by ISM to be expanding. ISM’s services PMI was at 58.1 in July and 56.9 in August; its manufacturing index reached 54.2 in July (a month that saw a 6.4% rise in U.S. factory orders) and 56.0 in August.1 Home sales soared as summer began, and although that momentum tailed off, sales did not retreat. Residential resales were up 24.7% in July, and another 2.4% in August. New home buying increased 4.8% for August after a 14.7% July climb. Housing starts and building permits were both up 17.9% in the first month of the quarter, but then they both declined; permits dipped 0.9% and starts 5.1% in the eighth month of t

HealthWatch 2020Q4

Posted By Lineweaver Financial Group
October 19, 2020 Category: HealthWatch, Newsletter

In light of the coronavirus, many are taking steps to ensure everything they touch is clean and sanitized. This is even more true when it comes to our kitchen, a place where we are constantly handling foods. It’s hard to know what products or methods are effective and which ones aren’t.  1. Gas Stove It’s important to make sure you are cleaning your gas stove after every meal with either soap and water or detergent and water. A gas stove is an area in your home that can become a breeding ground for infections over time, if not regularly cleaned.  2. Kitchen Counters and Slabs Many keep their fruits, vegetables, and other ingredients on their counters or slabs before being washed. It’s recommended that you keep this area particularly clean with a mixture of salt and lemon water.  3. Fruits and Vegetables When it comes to items we are consuming, we want to be especially sure it has been cleaned properly to lower the risk of contamination. Trying to find a cleaning product for our fruits and vegetables especially one that is natural,  and that removed germs, pesticides, and waxes without the use of harsh chemicals can be difficult. Don’t give up, they are out there! 4. Utensils and Storage The utensils that we are using to eat our food can be easily contaminated.  It’s essential that these are washed after every use with a soap or detergent-based solution, and make sure they are completely dry before putting them a

Cracking the Medicare Code

Posted By Lineweaver Financial Group
October 01, 2020 Category: Medicare, Medicare Supplements, Retirement, General

Open enrollment for Medicare and Medicare Supplements is right around the corner. Medicare programs are notoriously challenging to navigate, but it’s a crucial decision that most of us will have to make at some point in our lives. The question most people start with is one of eligibility. There are two essential parts to Traditional Medicare, Parts A and B. Part A has to do with hospitalization, and you become eligible on the first of the month for your 65th birthday.  If you become eligible for Part A, it’s recommended to enroll immediately because there is no premium.  This remains true even if you are still working and have health insurance through your job. It will get you into the system, and you’ll start receiving “Medicare & You.” On the other hand, part B has to do with doctor visits and bills, including medically necessary services or preventive care. It’s recommended that you enroll with the Social Security office about 2-3 months prior to when you’ll be looking to receive the full Medicare enrollment benefits. When it comes to enrolling for Part B, this can be particularly tricky and could cost you. If you are already retired or will retire right at 65, the answer is simple: sign up for Part B at the same time you enroll in Part A. If you are still working, it’s something that you must figure out when the right time is to enroll. It’s essential to enroll at the right time. If you