Words to Live By #1 – Perseverance

by | Oct 8, 2018 | Learning

A major part of my job – perhaps the most important part – is helping people reach their financial goals in life. Over the course of my career, I’ve discovered that while things like planning, saving, and investing are crucial, it’s equally important to look beyond the numbers. Achievement is about more than just spreadsheets or quarterly statements. It’s about perseverance. Hard work. Willingness to change. Gratitude. Teamwork.
Sometimes, whenever the road to our goals seems long or daunting, it’s good to follow the example of those who came before. So, over the next few months, I would like to share a few quotes that have inspired me in my own personal journey. I call it Words to Live By, and I hope they’ll move you as much as they’ve moved me.

Let’s start with:

Perseverance

What is perseverance?
“Perseverance is failing nineteen times and succeeding the twentieth.” – Julie Andrews “Perseverance is the secret of all triumphs.” – Victor Hugo

I can’t tell you how many times I’ve seen a client work so hard at something, only to come up short. A degree. A promotion. A new job. An award. Retirement. You name it, I’ve seen it. What I can tell you is that the clients who then pick themselves up, dust themselves off, and try again – and who do it every time – are the same ones enjoying their achievements right now. What good does perseverance do?

“Patience and perseverance have a magical effect before which difficulties disappear and obstacles vanish.” – John Quincy Adams

In our lives, we will face almost constant obstacles. Financial hardship, poor health, unfortunate circumstances, even other people will stand in the way of who we want to be, where we want to go, and what we want to do.

“A lot of people are going to try to do the same thing you want to do. You just have to decide if you’re one of the people who quits.” – Shea Serrano

The road to our goals will often seem treacherous. The obstacles will seem insurmountable, and the going unbearably slow. But if the destination is what we truly want, it will be worth the mileage. That’s why my favorite quite about perseverance comes from none other than Abraham Lincoln, who said:  “I may walk slowly, but I never walk backward.”

As you progress towards your goals in life, always remember that the ability to keep walking, no matter how slowly, is what will get you there. It matters more than talent. It matters more than wealth. Those things can certainly make the road easier. But perseverance is what makes the distance shorter.

Market Commentary – October 1, 2018

by | Oct 1, 2018 | Weekly Stock Market Commentary

It wasn’t headline news…
But, if newsprint was still popular, last week’s key economic news would have appeared below the fold.  The Federal Reserve raised rates for the third time in 2018, as expected. In addition, the Federal Open Market Committee projects economic growth will continue for three more years, although its median numbers show growth slowing from 3.1 percent in 2018 to 1.8 percent in 2021. (Remember, forecasts, no matter how venerable the source, are best guesses and not bedrock.)

Investors weren’t enthusiastic about the Fed’s actions or its expectations, and the onset of United States-China tariffs didn’t lift their spirits. Ben Levisohn of Barron’s explained:  “The Dow Jones Industrial Average dropped 285.19 points, or 1.1 percent, to 26,458.31 on the week, while the S&P 500 fell 0.5 percent to 2913.98. Neither could be considered life threatening, and the S&P 500 still rose for a sixth consecutive month. So, while we need something to blame, we needn’t get too worried. Last Monday kicked off with the implementation of tariffs by the United States and China and continued with a Federal Reserve rate hike. Neither was a surprise, though the Fed might have caught a few napping when it removed the word ‘accommodative’ from its statement.”

What does it mean when the Federal Reserve removes the word ‘accommodative?’  The Fed pursues ‘accommodative’ or ‘easy’ monetary policy when it is encouraging economic growth. Accommodative policy may include lowering interest rates or, in unusual circumstances, quantitative easing.

By removing the word, the Fed may be signaling that policy will be ‘tightening’ in an effort to prevent the economy from overheating, reported Sam Fleming of Financial Times. There is debate about whether rates are at a neutral level; one that won’t cause the economy to run too hot or too cold.

Let’s hope for a Goldilocks economy.

S&P 500, Dow Jones Global ex-US, Gold, Bloomberg Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; the DJ Equity All REIT Total Return Index does include reinvested dividends and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods.
Sources: Yahoo! Finance, Barron’s, djindexes.com, London Bullion Market Association.
Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not applicable.

When do you behave the most like yourself? Don’t worry. This isn’t about soul-searching and trying to find answers to existential questions like, ‘Who am I?’ or ‘What is my purpose?’ or ‘How should I live my life?’
Nope. This is about a science experiment!  Ian Krajbich of Ohio State University and Fadong Chen of Zhejiang University in China wanted to better understand how people made social decisions, according to a paper they published in Nature Communications. They began with the premise that “Social decisions typically involve conflicts between selfishness and pro-sociality.”

Then, they asked 200 students in the United States and Germany to play “mini-dictator games in which subjects make binary decisions about how to allocate money between themselves and another participant.”  Science Daily explained, “In some cases, participants had to decide within two seconds how they would share their money as opposed to other cases, when they were forced to wait at least 10 seconds before deciding. And, in additional scenarios, they were free to choose at their own pace, which was usually more than two seconds but less than 10.”
The upshot was people who were pro-social became more pro-social, and people with more selfish instincts became more selfish, under severe time constraints. Given more time, “pro-social subjects became marginally less pro-social under time delay…while selfish subjects became less selfish under time delay…though these effects are less pronounced.”
Maybe you behave most like you when you’re pressed for time.

Weekly Focus – Think About It
“Selfishness is not living as one wishes to live, it is asking others to live as one wishes to live.”
–Oscar Wilde, Irish poet and playwright

Best regards,
John F. Reutemann, Jr., CLU, CFP®

P.S.  Please feel free to forward this commentary to family, friends, or colleagues. If you would like us to add them to the list, please reply to this email with their email address and we will ask for their permission to be added.

Investment advice offered through Research Financial Strategies, a registered investment advisor.

 

* This newsletter and commentary expressed should not be construed as investment advice.
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.  However, the value of fund shares is not guaranteed and will fluctuate.
* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.
* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.
* All indexes referenced are unmanaged. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment.
* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.
* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
* Past performance does not guarantee future results. Investing involves risk, including loss of principal.
* You cannot invest directly in an index.
* Stock investing involves risk including loss of principal.
* Consult your financial professional before making any investment decision.
* To unsubscribe from the Weekly Market Commentary please reply to this e-mail with “Unsubscribe” in the subject.

Sources:
https://www.ft.com/content/635daa64-c1ac-11e8-95b1-d36dfef1b89a
https://www.federalreserve.gov/monetarypolicy/fomcprojtabl20180926.htm (Table: Change in real GDP)
https://www.barrons.com/articles/dow-drops-1-1-on-week-as-tariffs-fed-take-their-toll-1538182108
https://www.investopedia.com/terms/a/accomodativemonetarypolicy.asp
https://www.nature.com/articles/s41467-018-05994-9
https://www.sciencedaily.com/releases/2018/09/180904140530.htm
https://www.brainyquote.com/quotes/oscar_wilde_106085?src=t_selfishness

Market Commentary – September 24, 2018

by | Sep 24, 2018 | Weekly Stock Market Commentary

Did you hear the news?
A tech company introduced a microwave you can turn on using Wi-Fi – as long as you have one of the company’s voice assistants at home, reported Kaitlyn Tiffany of Vox. Soon, the voice assistants will be built with neural networks that will formulate hunches about whether their owners might like to be reminded to lock the door or turn off a device. Some people love the idea. Others don’t.

Internet-enabled appliances weren’t the only show in town last week. The strong performance of the U.S. economy earned a standing ovation from investors who pushed the Dow Jones Industrial Index and the Standard & Poor’s 500 Index to new highs. Many global stock markets moved higher, too. Ben Levisohn of Barron’s reported: “One need only look overseas for a sign that investors are feeling better about the state of the world – or at least better enough to do some bargain-hunting. China’s Shanghai Composite rose 4.3 percent this past week, though it is still down 21 percent from its January high…”

The news in a FactSet Insight written by John Butters may dampen some investors’ enthusiasm.

With the third quarter earnings season ahead, Butters reported 98 of the companies in the Standard & Poor’s 500 Index have issued guidance. The majority (76 percent) issued negative guidance, meaning they anticipate earnings will be lower than analysts’ mean earnings per share estimates. It’s important to remember that, historically, the U.S. economy has moved in cycles. We may be in the latter stages of this expansion. The next stage is contraction and no one can predict exactly when it may occur.

S&P 500, Dow Jones Global ex-US, Gold, Bloomberg Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; the DJ Equity All REIT Total Return Index does include reinvested dividends and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods.
Sources: Yahoo! Finance, Barron’s, djindexes.com, London Bullion Market Association.
Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not applicable.

Millennials don’t exist! Gen Xers and the Silent Generation get a lot less press than Millennials, but all three generations have one thing in common. According to comedian Adam Conover, “Generations in general don’t exist. They’re not real things that exist in nature. We made them up…Here’s what really exists: People who are alive at the same time.”  He may have a point.

The only generation that has been recognized officially by the U.S. government is the Baby Boom generation. At least, that’s what a U.S. Census Bureau spokesperson told Philip Bump of The Atlantic. The Baby Boom generation was recognized because its members were part of a demographic event. Encyclopedia Britannica explained the baby boom as:  “…the U.S. increase in the birth rate between 1946 and 1964; also, the generation born in the U.S. during that period. The hardships and uncertainties of the Great Depression and World War II led many unmarried couples to delay marriage and many married couples to delay having children. The war’s end, followed by a sustained period of economic prosperity (the 1950s and early 1960s), was accompanied by a surge in population. The sheer size of the baby-boom generation (some 75 million) magnified its impact on society…”

So, where did other generations originate?
Sarah Laskow of The Atlantic reported, until the 19th century, generations were thought of as biological relationships within families. For example, grandparents would be one generation, their children the next, and their grandchildren the next, and so on.

The idea of societal generations – people who live at the same time and experience the same things – came from European intellectuals in the 1800s and early 1900s who advised, “people do not react to their particular historical conundrums as a monolithic group.”
Every person is unique and individual.

Weekly Focus – Think About It
“The power of youth is the common wealth for the entire world. The faces of young people are the faces of our past, our present, and our future. No segment in the society can match with the power, idealism, enthusiasm, and courage of the young people.”
–Kailash Satyarthi, Nobel Prize winner and activist

Best regards,
John F. Reutemann, Jr., CLU, CFP®

P.S.  Please feel free to forward this commentary to family, friends, or colleagues. If you would like us to add them to the list, please reply to this email with their email address and we will ask for their permission to be added.

Investment advice offered through Research Financial Strategies, a registered investment advisor.
* This newsletter and commentary expressed should not be construed as investment advice.
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.  However, the value of fund shares is not guaranteed and will fluctuate.
* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.
* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.
* All indexes referenced are unmanaged. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment.
* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.
* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors.
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
* Past performance does not guarantee future results. Investing involves risk, including loss of principal.
* You cannot invest directly in an index.
* Stock investing involves risk including loss of principal.
* Consult your financial professional before making any investment decision.
* To unsubscribe from the Weekly Market Commentary please reply to this e-mail with “Unsubscribe” in the subject.

Sources:
https://www.vox.com/the-goods/2018/9/21/17886682/amazon-new-smart-home-microwave-speakers-internet-of-things
https://www.barrons.com/articles/dow-hits-record-amid-global-stock-rally-1537577592
https://www.barrons.com/articles/the-dow-hits-a-record-high-as-tech-sits-it-out-1537580378
https://insight.factset.com/highest-percentage-of-negative-eps-preannouncements-for-sp-500-since-q1-2016
https://www.youtube.com/watch?v=-HFwok9SlQQ (4:28 minute-mark)
https://www.theatlantic.com/national/archive/2014/03/here-is-when-each-generation-begins-and-ends-according-to-facts/359589/
https://www.britannica.com/science/baby-boom
https://www.theatlantic.com/technology/archive/2014/09/the-generation-of-generations/379989/
https://www.brainyquote.com/quotes/kailash_satyarthi_751646?src=t_youth

The Longest Bull Market In History

by | Sep 18, 2018 | Stock Market News

Human beings are obsessed with setting records.
The fastest. The strongest. The first. The longest. It’s exciting whenever a new record gets set. It makes us feel like we’re witnesses to something important, something historic. Something we can tell our grandchildren about. And now, we can add a new record to the list:

The Longest Bull Market in History

You’ve probably have recently seen the news. On Wednesday, August 22, many media outlets reported the U.S. stock market had set a new bull market record of 3,453 days.1 This incredible stretch, which by most estimates began on March 9, 2009, surpassed the previous record set in the 1990s. But here’s the thing about records. Sometimes they matter. Sometimes they don’t. And the stories they tell can be very subjective. So, in this letter, let’s break down what this bull market really means – and what it doesn’t.

Is it really the longest bull market ever?

It depends on who you ask. For every article sounding the trumpets, you can find another pumping the brakes. Fact is, the definition of a “bull market” is rather nebulous – and whether or not this one is truly a record depends on which data you’re using. The Wall Street Journal provided a good example in a recent article. “The widely accepted definition of a bear market is a drop of 20% from the last peak in this cycle, while bull markets are usually measured from the lowest point reached until the peak before the next bear market.”2
But if this is the definition you’re using, our current bull market may only have started in October of 2011. That was the month the S&P 500 fell 21.6% from its previous high. Any growth from that point would be part of a new bull market, not the old one. To which other pundits might respond, “Not so fast! That number is only accurate if you’re using intraday prices instead of closing prices. If you use closing prices, the S&P 500 only fell 19.4%2 , which is less than the 20% needed for it to be a true bear market.”
Confused yet? Don’t worry – most people would be. And anyway, if you really wanted to get technical about the definition of a bull market, you’d have to debate about whether to only use price returns (the price of a stock) or total returns (to which dividends are added). And then there’s the question of which market indices to use. The S&P 500? The Wilshire 500? The Dow? Do we use intraday prices or closing prices?
I could go on, but I won’t – I don’t want this letter to give you a headache. The point is, the deeper you dig into the numbers, the less certain a record like this becomes. Which means the real question we should ask ourselves isn’t, “Is this the longest bull market ever?”

The real question is whether it even matters in the first place

To which the answer is, “No!”
Here’s what we know: The stock market has been going up for a long time now. Sometimes slightly, sometimes sharply, but always up. Let’s say all the experts got together and decided we aren’t in the longest bull market in history. Would that change the fact that stocks have been going up for years? Would it change the performance of your own portfolio?
No, it wouldn’t.
So what matters is not whether this is the longest bull market ever. What matters is how we react to a long bull market like this one.

What goes up must come down

On March 9, 2009, the S&P 500 hit a low of 666.1 (Yes, 666.) Since then, the S&P has soared. That’s over nine years of growth. Nine years of an improving economy. Nine years of soaring corporate profits. Nine years of mostly happy times for investors.
It will end eventually.
Read that last line aloud: IT WILL END EVENTUALLY.
When that will happen, I can’t say. Indeed, many economists foresee the current bull market continuing for some time, albeit at a slower rate. Taxes are low, unemployment is low, and the economy is humming along nicely.
I can’t tell you this bull market will end next month or next year. All I can tell you is that it will end. The reason I emphasize this so much is because now is the time to prepare for that inevitable day. Now is the time to accept that however well your portfolio has done, nothing can escape gravity’s pull. At some point, you will see stock tickers showing a big, fat minus sign next to each of the major indices.
When a bull makes way for a bear, it’s not uncommon for investors to be taken by surprise. Suddenly, it’s raining – and they’ve been caught outside without an umbrella. When that happens, it’s easy to panic. To think the sky is falling. Too many investors did that when the dot com bubble popped in the early 2000s. Too many investors did that during the worst of the Great Recession. And the reason they did is because they hadn’t prepared themselves when times were good. Maybe they thought the good times would last forever.

On the other hand…

Just as it’s easy for investors to get complacent, it’s also easy for investors to get skittish. That’s why an equally bad mistake would be to think, “Oh, this bull market has gone on for too long. It’s probably going to crash any week now – time to get out!”
Nope. The markets don’t work that way. Here’s what will happen. The longer the bull lives, the more you’ll see the media speculate about what will kill it. One week it might be the threat of rising interest rates. The next, it might be corporate profits, or whatever’s happening in far-off lands across the sea. And sure, any of those things could well impact the markets. But even if the markets were to drop, that doesn’t mean a crash is imminent.
No one should abandon ship the moment they get a little wet.

The point is to not overreact

Some records matter. Some don’t. And the stories they tell can be very subjective. That’s why we don’t overreact to them. Here’s what we do instead:
1. We prepare ourselves, mentally and emotionally, for when the other shoe drops. That way, when it does drop, it will be much easier to handle.
2. We don’t allow ourselves to flinch at every market wobble.
3. We remember that we have an investment strategy, and it’s not based off headlines, storylines, records, or milestones. In the meantime, if you’re worried about what will happen when this bull market ends, that’s okay. Just focus on what you can control. Focus on paying off your house, setting up an emergency fund, or helping your children or grandchildren pay for college. Take care of the things that matter now.
Or maybe your goals have changed, and you want to take advantage of this bull market while it lasts. That’s a discussion we can have, too. Just remember that our first responsibility should always be to prioritize the long term over the short.

Human beings tend to be obsessed with setting records. But here at Research Financial Strategies, our job is to help you set goals – and then work toward achieving them. Whether we’re in the longest bull market or not, that’s what we intend to do. As always, if you have any questions about the markets, or about your portfolio, please let us know! We love to hear from you. Have a wonderful rest of the summer!

1 Michael Wursthorn & Akane Otani, “U.S. Stocks Poised to Enter Longest-Ever Bull Market,” Wall Street Journal, August 21, 2018. https://www.wsj.com/articles/u-s-stocks-poised-to-enter-longest-ever-bull-market-1534843800?mod=article_inline
2 James Mackintosh, “Calling Bull on the Longest Bull Market,” Wall Street Journal, August 22, 2018. https://www.wsj.com/articles/calling-bull-on-the-longest-bull-market-1534940689

Weekly Market Commentary – September 17, 2018

by | Sep 17, 2018 | Weekly Stock Market Commentary

All investors are consumers, but not all consumers are investors.
The September installment of University of Michigan’s Consumer Sentiment Survey reported Americans are feeling pretty optimistic. Consumer sentiment rose to the second highest level since 2004, and consumer expectations reached the highest level since 2004. Surveys of Consumers chief economist, Richard Curtin, wrote: “Consumers anticipated continued growth in the economy that would produce more jobs and an even lower unemployment rate during the year ahead…The largest problem cited on the economic horizon involved the anticipated negative impact from tariffs. Concerns about the negative impact of tariffs on the domestic economy were spontaneously mentioned by nearly one-third of all consumers in the past three months, up from one-in-five in the prior four months.”

Investors weren’t as optimistic, according to the American Association of Individual Investors (AAII). Last week, the AAII Investor Sentiment Survey reported bullish sentiment dropped more than 10 percentage points. The results were:

  • Bullish             32.1 percent of respondents (historic average: 38.5 percent)
  • Neutral                        35.1 percent of respondents (historic average: 31.0 percent)
  • Bearish            32.8 percent of respondents (historic average: 30.5 percent)

Despite the apparent shift in investor attitudes, stock markets moved higher last week. Vito J. Racanelli of Barron’s wrote:  “The stock market radiated confidence this past week, finishing about 1 percent higher despite choppy action. There was a plethora of good economic news – from lower-than-expected inflation to sky-high business and consumer confidence numbers – that drove shares up. Not even a ratcheting up of tough tariff talk Friday on the part of the U.S. could dampen investor enthusiasm for long.”

Some believe the AAII Sentiment Survey is a contrarian indicator. Last week, that may have been the case.

S&P 500, Dow Jones Global ex-US, Gold, Bloomberg Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; the DJ Equity All REIT Total Return Index does include reinvested dividends and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods.
Sources: Yahoo! Finance, Barron’s, djindexes.com, London Bullion Market Association.
Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not applicable.

Wordies unite! The Merriam Webster Dictionary added some new words during 2018. A favorite among fans of dictionaries is ‘wordie,’ which means ‘word lover’ and should not be confused with ‘wordy,’ which describes something with too many words. Dictionary newcomer ‘TL;DR’ (the new word that means ‘too long; didn’t read’) could be used to describe a reader’s response to something that’s wordy.

A few of the new additions are descriptions of dog breeds, including:

  • Chiweenie: a cross between a Chihuahua and a dachshund
  • Schnoodle: a cross between a schnauzer and a poodle
  • Yorkie-poo: a cross between a Yorkshire terrier and a poodle

A number of ‘wanderworts’ – words that have wandered from one language into another – also made the list. These include:

  • Harissa: spicy North African chili paste
  • Kabocha: a type of Japanese pumpkin
  • Kombucha: a fermented, bubbly tea drink

Many of the new entries are abbreviated versions of longer words that have been part of our vocabulary for a long time. This may be the inevitable outcome in a society that adapts to the communication shorthand demanded by text, photo, and social media apps. See if you can guess the longer version of these new words:

  • Adorbs
  • Avo
  • Bougie
  • Fave
  • Guac
  • Marg
  • Ribbie
  • Zuke

If you get stumped, give us a call.

Weekly Focus – Think About It
“Language is the road map of a culture. It tells you where its people come from and where they are going.”
–Rita Mae Brown, American author

Best regards,
John F. Reutemann, Jr., CLU, CFP®

P.S.  Please feel free to forward this commentary to family, friends, or colleagues. If you would like us to add them to the list, please reply to this email with their email address and we will ask for their permission to be added.

Investment advice offered through Research Financial Strategies, a registered investment advisor.
* This newsletter and commentary expressed should not be construed as investment advice.
* Government bonds and Treasury Bills are guaranteed by the U.S. government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.  However, the value of fund shares is not guaranteed and will fluctuate.
* Corporate bonds are considered higher risk than government bonds but normally offer a higher yield and are subject to market, interest rate and credit risk as well as additional risks based on the quality of issuer coupon rate, price, yield, maturity, and redemption features.
* The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. You cannot invest directly in this index.
* All indexes referenced are unmanaged. Unmanaged index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment.
* The Dow Jones Global ex-U.S. Index covers approximately 95% of the market capitalization of the 45 developed and emerging countries included in the Index.
* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
* Gold represents the afternoon gold price as reported by the London Bullion Market Association. The gold price is set twice daily by the London Gold Fixing Company at 10:30 and 15:00 and is expressed in U.S. dollars per fine troy ounce.
* The Bloomberg Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.
* The DJ Equity All REIT Total Return Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.
* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
* Economic forecasts set forth may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
* Past performance does not guarantee future results. Investing involves risk, including loss of principal.
* You cannot invest directly in an index.
* Stock investing involves risk including loss of principal.
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Sources:
http://www.sca.isr.umich.edu
https://www.aaii.com/sentimentsurvey
https://www.barrons.com/articles/the-dow-gains-238-points-tariffs-be-damned-1536973652?mod=hp_highlight_6
https://www.aaii.com/journal/article3/is-the-aaii-sentiment-survey-a-contrarian-indicator
https://www.merriam-webster.com/words-at-play/new-words-in-the-dictionary-march-2018
https://www.merriam-webster.com/dictionary/wordy
https://www.merriam-webster.com/dictionary/TL%3BDR
https://www.merriam-webster.com/dictionary/chiweenie
https://www.merriam-webster.com/dictionary/schnoodle
https://www.merriam-webster.com/dictionary/Yorkie-poo
https://www.redlinels.com/text-message-language/
https://www.merriam-webster.com/words-at-play/new-words-in-the-dictionary-september-2018
https://www.ef.edu/blog/language/17-language-quotes-to-turbocharge-your-learning/

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