Atlas Market Report
Market Commentary (Key items you need to know):
- Market Outlook by Ronald E. Lang
- Market Commentary by Allen B. Lang
- Fun Links (always popular)
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Key items you need to know –
September went very fast, but the Political and Geo-Political news cycle seems to never end and is certainly picking up steam. How much could this affect you? Don’t feel that it won’t at some point, but we are not there yet. Economic numbers are flat to down, but the true indication of the economic strength will be Q4 and the consumer spending for the holidays. By the way, did anyone notice all the Halloween stuff at the supermarket right after Labor Day? Oy!
My Top 6 Halloween Costumes For Sale – Enjoy:
#5 – Headless Man Costume
#1 – Frisco Tarantula Spider Dog & Cat Costume (This is Funny – but if you buy this for your dog, you need to wear one for yourself….BTW – look at the dog in the picture, he doesn’t seem very thrilled!)
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The market attempted to make new highs in the last two weeks of September, but got near previous highs and pulled back as enthusiasm waned and this past week bounced off the 50 Day Moving Average. For the Market Technicians you shouldn’t be surprised by this as headline news has truly moved the markets and the technicals, not fundamentals. That is why we are looking for new highs in the market by Q1 2020 before the Presidential Election season takes over and WILL dominate the news to ad nauseam. At that point, the market will have a significant pullback in Q2 and Q3 leading up to the November election. This shouldn’t be news to avid readers of this newsletter, just reinforcement of what we see in the technicals and fundamentals of the market.
So what do you do now with your portfolio? You should be allocated by your “Life Stage” based upon Risk Tolerance and your horizon line for when you want to be “Retirement Ready”. At least 15%-25% of our overall portfolio should be in an Asset Protection product such as a Fixed-Indexed Annuity. The amount of years you should consider is based upon your horizon line. If it is more than 10 years, consider a “laddering” approach. Divide up the amount of money you want to “protect” and put some in a 5-year, and either a 8 or 10 year Fixed-Indexed Annuity contract. We wouldn’t recommend a contract longer than 10 years.
So what do you do with your Company Retirement Account? Each plan has its own asset investment menu. We are not proponents of “Target-Date Funds” as the majority rarely if ever live up to their strategies. Check out their performance, list of assets (which are funds of funds, etc.) and the amount of years to their Target-Date for allocation and see for yourself. If you don’t understand how they work, reach out to us and we will explain it better. You should have a diversity of choices available to you from aggressive to conservative. You should be inching your account towards a more conservative portfolio each quarter through mid-2020 at the minimum. The bulk of our allocation should be done by mid Q3 2020.
In Summary
Its the final quarter of 2019, so get your “Gatsby” on while you still have some time. On a personal note, please find time for yourself and plan now around the holidays for some down time and if possible, be around your best and favorite friends and family. Nothing more important than those you love and trust and has nothing to do with your portfolio that should matter to your friends and extended family. Don’t lose sleep with the daily news cycle, it is not worth it. Until next month, stay healthy, smile everyday and call someone you care about that you haven’t spoken to in a while.
Authored by
Ronald E. Lang, Principal
Atlas Wealth Management, LLC
Investment Advisors & Estate Planners
401(k) Retirement Specialists
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Market Commentary by Allen B. Lang
As I mentioned in the July letter, the month of August through the middle of September, is historically the vacation period. There will be volatility and at the end there was no movement up or down.
It is just a trading period for those so inclined. Not for me.
Now we get back to the business of (hopefully) sound investing with little risk. Not that I’m saying there may not be some opportunities that might present themselves as a legitimate “speculation”, but at the very least, should one arise, rest assured we have checked out the company, the
product, the management and the industry competitors. When these situations arise, ONLY a very small investment will be suggested, as preservation of capital is paramount in our approach to wealth management.
There are some very good income opportunities out there, with moderate growth and over the next year and a half, until after the 2020 elections we will be recommending more of these for, as I mentioned above, preservation of capital.
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