CPC Investment Quarterly
Achieving your short-term and long-term goals requires far more than just managing investments.
Working With Us
Quarter 4 2016 Investment Quarterly
A post-election case study on how the markets price securities.
If you strip away the politics and emotions from the recent election of Donald Trump as the 45th president of the United States of America, you are left with an intriguing case study of how markets price securities. For months, financial news experts and the markets themselves were touting a disaster scenario if Trump were to win the presidency. On election night, the Dow Jones futures market dropped 750 points and the S&P circuit breakers tripped to halt trading after falling more than 3%. Yet, the next morning markets pushed higher and have continued to do so. What led to this reversal and why were markets fearful of a Trump presidency in the first place?
The answer is that market participants are seeking to price in what will likely result from a Trump Presidency. Market participants are discounting isolationist policies, such as "ripping up NAFTA", as unlikely. This type of policy may be negative for markets as reductions in trade would harm most businesses earnings. However, markets are taking tax reform for individuals and corporations as a big positive for company earnings. Markets are expecting Trump's tax agenda to likely pass with a Republican majority in the legislature and thus, should be priced into securities.
This month, CPC Investment Committee member Adele Gipson explored the implications of Trump's fiscal agenda. We invite you to click here to view her video.
As with any new Administration, our team at CPC will stay on top of legislative changes that could impact the economy, markets, and our clients' tax situation and adapt accordingly.
As always, if you have any questions we can be reached at 404-892-1995.
The CPC Investment Committee
Any opinions are those of Adele Gipson and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Diversification does not ensure a profit or guarantee against a loss. Keep in mind that there is no assurance that any strategy will ultimately be successful or profitable nor protect against a loss. Past performance may not be indicative of future results.
Winner’s Circle, a Barron’s research organization, produced the rankings based on data provided by over 4,000 individual advisors and their firms. Advisor data is confirmed via regulatory databases, cross-checks with securities firms and conversations with individual advisors. Among the factors considered for the rankings are assets under management, revenue that the advisors generate for their firms and the quality of their practices. Data points that relate to quality of practice include length of service, designations held, services beyond investments offered including estates and trusts, and an evaluation of each advisor’s regulatory record etc. Investment performance is not an explicit component because not all advisors have audited results and because performance figures often are influenced more by clients’ risk tolerance than by an advisor’s investment picking abilities. The ranking may not be representative of any one client’s experience, is not an endorsement, and is not indicative of future performance. Neither Raymond James nor any of its Financial Advisors pay a fee in exchange for this award/rating. Barron’s is not affiliated with Raymond James. The FT 400 was developed in collaboration with Ignites Research, a subsidiary of the FT that provides specialized content on asset management. To qualify for the list, advisers had to have 10 years of experience and at least $300 million in assets under management (AUM). The FT then invited a list of just under 1,000 advisors to complete a survey used to obtain more information on the advisors practices. 400 qualified advisers were then scored on six attributes: AUM, AUM growth rate, compliance record, experience, industry certifications and online accessibility. AUM is the top factor, accounting for roughly 60-70 percent of the applicant’s score. Additionally, to provide a diversity of advisors, the FT placed a cap on the number of advisors from any one state that’s roughly correlated to the distribution of millionaires across the U.S. The ranking may not be representative of any one client’s experience, is not an endorsement, and is not indicative of future performance. Neither Raymond James nor any of its Financial Advisors pay a fee in exchange for this award/rating. The FT is not affiliated with Raymond James. Forbes' Top 200 Wealth Advisors' ranking based on a minimum of seven years experience and a quantitative and qualitative algorithm designed by SHOOK Research weighing factors such as revenue trends, assets under management, compliance records, industry experience and best practices. This award is bestowed by an independent third party organization not affiliated with Raymond James.
Consolidated Planning Corporation is independent of Raymond James. Raymond James financial advisors may only conduct business with residents of the states and/or jurisdictions for which they are properly registered. Therefore, a response to a request for information may be delayed. Please note that not all of the investments and services mentioned are available in every state. Investors outside of the United States are subject to securities and tax regulations within their applicable jurisdictions that are not addressed on this site. Contact your local Raymond James office for information and availability.