Weekend Reading

Weekend Reading: Larry Finks 2019 Letter

At the beginning of every year, Larry Fink, the CEO of BlackRock Investment Management, publishes a public letter to the CEOs of America’s largest corporations.  On behalf of the investing public, he stresses the importance of focusing more on long-term growth rather than short term earnings. While the latter may influence near term swings in a company’s stock price, the former encourages long term health and sustainability; the kind of finance from which iconic companies like Apple and Nike are born.

Weekend Reading: 2019 Key Number Update

Each January, we send our readers an update on key tax and retirement numbers for the new year, such as new income tax brackets and 401k/IRA contribution limits. This year, we wanted to add a few more items such as 529 plan contribution limits, Health Care Savings Account limits, long-term care premium deductions, etc.  As we added more and more items, we quickly realized that this was becoming a very robust list that would apply to virtually every reader in some way.  So, we decided to go crazy and add anything that we could think of!

Weekend Reading: Three Important Resources for 2019

I want to take a moment to remind everyone of 3 very useful client resources.  Many of you are aware of these, but for those who are not, they certainly warrant mentioning.

Weekend Reading: Part 2 of 2 - December Market Risk Update

Below is part 2 of this Weekend’s Reading: Brad McMillan’s Monthly Market Risk Update, which many clients have come to follow closely.  Please make sure you first read our general market update sent yesterday, in order to get a broader perspective of our forecasts before we dive into the finer technical details herein. Markets are in panic mode and, as discussed in yesterday’s blog post, fear has set in. But fundamentals aren’t absolutely terrible.  At least not yet.  Let’s read what Brad has to say...

Weekend Reading: Part 1 of 2 - General Market Update

This weekend, we will update you on the “big picture” view of our market outlook and current ongoing volatility.  Then tomorrow, we will send to you Brad McMillan’s Monthly Market Risk Update.

I imagine that everyone’s big question is whether or not 2019 is the year for a recession. Well, it’s hard to say. We think that the economy has enough gas left in its tank to set another market high, although if so, a new high point in 2019 may be the last one prior to a recession- a forecast that we’ve been making for quite some time.

Weekend Reading: 3rd Annual MORWM Giving with Purpose List

It’s been a few weeks since we’ve written about the economy/markets, and given recent volatility (yet again), we promise to do so next week. But this weekend, as had been scheduled previously, we give you our third annual “Giving With Purpose.”

We all struggle with gift ideas for some people during the holiday season. Therefore, we hope you enjoy this list of awesome gift ideas, all of which add a level of charity to our holiday spirit by giving back to the community.

Weekend Reading: Social Responsibility vs. Performance

First, let me thank all of you for your overwhelming response to last weekend’s B-Corp announcement, which hit the second highest read-rate of our weekend reading series, which is now in its 7th year.  We were also flooded with congratulatory emails.  What a great way to have begun Thanksgiving week!  To say the least, we are very thankful.

We did, however, receive two emails from beloved family members in which concerns were expressed regarding the potential impact that our socially responsible investment philosophy may have on portfolio performance.  These are very good and very relevant questions, so we thought we’d address these questions here for everyone’s benefit.

Weekend Reading: MORWM’s proudest moment ever

We at MOR Wealth Management have accomplished a lot on behalf of our clients and the community over the last 5 years.  However, our absolute proudest moment was when we received our official certification as a B-Corp.  There are only 52 investment management companies in the nation who have accomplished this, and only one in the city of Philadelphia.

Volatility, and Resolve

Before I hand it over to Kirsten, here is the simplest of summaries regarding our current market-related thoughts.  In January, we warned of an imminent 10% correction.  The market began dropping two weeks later and fell a total of 10.2%.  We then forecast a recovery with a new high target of 2880 on the S&P; the index topped out at 2930.  We had already started to reduce risk when the market began to tumble once again, falling close to its February lows. We believe, for reasons that will be detailed next week, that the markets will return to their most recent highs regardless of midterm election results.  We continue to see increasing signs of volatility in the market and worry among investors, so we remain steadfast in our prediction of a recession by 2020. Therefore, we plan to continue to reduce risk when the time 

Weekend Reading: Rough Week

Rough week!  The Dow was down more than 800 points on Wednesday, and the S&P 500 was down almost 100 points. The Nasdaq composite index was down more than 9% from its recent high and the S&P 500 down more than 5% from its recent high.  Wednesday in particular was quite a scare- 800 points on the Dow - WOW! But let’s put this drop in perspective, because points matter less than percentages.  If you think about it, in 1980, the Dow started the year at 838.  Thus, an equivalent drop (3%) during that era would have been 25 points.  To fear a drop of 25 points seems almost laughable these days.