Weekend Reading

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.

Short Weekend Reading – The MS Ride

Last weekend, the National Multiple Sclerosis Society’s “City to Shore” Bikeathon was a raging success.  The bikeathon has already raised nearly $5 million, and the fundraising won’t be completely tallied for several more weeks as corporate sponsorships and matches often have significant lag time.

Weekend Reading: September Market Risk Update

This week, we share with you our Monthly Market Risk Update. Before we begin, some of you may have noticed that we have officially begun to unwind our “dip trade.”  For most of you, we bought into the market correction in January and the double dip that occurred in April.  Your specific risk tolerance determined the extent to which we implemented this strategy in your portfolio, but we are now removing that short-term position from all of the portfolios we manage.

Weekend Reading: IRS Denies S.A.L.T. tax relief

As part of the Trump tax legislation of 2018, a $10,000 limit has been placed on the deductibility of state and local taxes (SALT).  This effectively makes local taxes more expensive for many taxpayers and negates a great deal of the tax savings this legislation was intended to provide. Therefore, several states have been working on a strategy to circumvent the deduction limit by accepting charitable contributions, which are not subject to the same cap, in lieu of taxes collected.  The IRS has released proposed regulations that would shut down some of these suggested workarounds.

Weekend Reading: Party vs. Market

Here we begin what may be a painful, but hopefully informative, discussion about the coming midterm elections.  Read this, it my surprise, you, A LOT!

We have three topics to discuss:

  1. Will the midterm elections result in a congressional swing towards the Democrats?

  2. Could such a political swing shock the markets due to the popular opinion that Republicans are better for the investment markets than Democrats?

  3. Is this popular opinion that Republicans are better for the investment markets true?

Weekend Reading: August Market Risk Update

This week, it is time for our monthly market risk update.  However, before we get into it, I want to mention two things.  First, the dip we bought into in February has recovered 92% of its losses as of the end of last week. (using the S&P 500 as a barometer).  Once 100% recovered, we will unwind this “dip-trade” and call it a success.