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The Northern Star Newsletter 4/18/19 - The Q1 Earnings Season Begins

Message from Jon


Market Update:

As suspected, the Trade War rhetoric and tensions have receded, and thoughts of escalation are slipping behind us.1 We are also seeing that Brexit is dragging out longer than expected, but the markets have not really taken a sour outlook toward the news at this point.2

We are now going into earnings season from Q1, and the general consensus is that as long as the forecasts are not full of doom and gloom, we should see this rise in the market sentiment continue.3

Dorsey and Stormguard are both still bullish on the markets, and as such, we have realigned portfolios accordingly.

Till we speak again, it's time for Easter, Flowers, and Golf-in that order-according to my wife!

Jon


Sources: 

  1. https://seekingalpha.com/article/4246325-u-s-china-trade-tensions-eased-will-growth-revive
  2. https://www.washingtonpost.com/world/2019/03/29/brexits-latest-twist-britain-may-end-up-european-election-if-it-doesnt-leave-soon/?noredirect=on&utm_term=.6dc36f56f7bf
  3. https://www.reuters.com/video/2019/04/09/what-to-look-for-this-earnings-season?videoId=536053698

The Q1 Earnings Season Begins

WEEKLY UPDATE - APRIL 15, 2019

The Week on Wall Street
Stocks broke out of a narrow range on Friday following news that two major banks grew their bottom line in the first quarter. For the week, the S&P 500 rose 0.79%; the Nasdaq Composite, 0.91%. The Dow Jones Industrial Average improved 0.50%. Turning to overseas stocks, the MSCI EAFE index declined 0.09%.[1][2][3][4]

The market spent much of the week in a lull as investors waited for earnings season to begin. Wall Street is paying close attention to both guidance and profit margins.

Big Banks Post Solid Results 
Friday, Wells Fargo and JPMorgan Chase both reported Q1 profit growth, and JPMorgan Chase announced record revenue.[5]

This was welcome news. Analysts have tempered some of their expectations entering this earnings season, recognizing that slowing global growth, tariffs, and dollar strength may be affecting corporate profits. The dollar rallied 6.2% in Q1.[6]

Inflation Picks Up
The Consumer Price Index rose 0.4% in March, the most in 14 months. This matched the consensus forecast of economists polled by MarketWatch, who believed rising gas prices would affect the number. 

Even with this March jump, annual inflation remained relatively tame at 1.9%.[7]

What's Ahead
Note that U.S. stock and bond markets will be closed on Good Friday (April 19).

THE WEEK AHEAD: KEY ECONOMIC DATA
Thursday: March retail sales.
Friday: March housing starts and building permits.

Source: Econoday / MarketWatch Calendar, April 12, 2019
The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision. The release of data may be delayed without notice for a variety of reasons, including the shutdown of the government agency or change at the private institution that handles the material.

THE WEEK AHEAD: COMPANIES REPORTING EARNINGS
Monday: Citigroup (C), Goldman Sachs (GS)
Tuesday: Bank of America (BAC), BlackRock (BLK), Comerica (CMA), IBM (IBM), Johnson & Johnson (JNJ), Netflix (NFLX), UnitedHealth Group (UNH)
Wednesday: Abbott Labs (ABT), Alcoa (AA), Bank of New York Mellon (BNY), Morgan Stanley (MS), PepsiCo (PEP), U.S. Bancorp (USB), United Rentals (URI)
Thursday: American Express (AMEX), Honeywell (HON), Manpower (MAN), Philip Morris (PM), Schlumberger (SLB), Travelers Companies (TRV), Union Pacific (UNP)

Source: Morningstar.com, April 12, 2019
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Any investment should be consistent with your objectives, time frame and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.



Gray

Quote Of The Week

Fountain Pen


"In this world nothing can be said to be certain, except death and taxes."
 -  Benjamin Franklin

Recipe Of The Week

Fork and Knife

Cauliflower Rice Pilaf


Serves 6


Ingredients:

  • 1 medium head of cauliflower
  • 2 to 3 tsp. olive oil (you can use avocado oil as a replacement)
  • 2 cloves garlic, minced
  • ½ cup scallions, chopped
  • ½ lime, zest and juice
  • Sea salt and freshly ground black pepper
  • ¼ cup toasted almonds (you can use pine nuts or walnuts)
  • ¼ cup fresh chopped parsley (you can use cilantro or basil)

Directions:

  1. Wash and dry cauliflower. Cut the head into manageable pieces.
     
  2. Pulse or grate fresh cauliflower head until it is minced into rice-sized grains.
     
  3. Heat up a large skillet over medium-high heat.
     
  4. Quickly cook the garlic for about 30 seconds.
     
  5. Add the riced cauliflower, season with salt and pepper, and cook for about 5 minutes until soft.
     
  6. Add the scallions, lime juice and zest, almonds, and parsley.
     
  7. Garnish the top with almonds and parsley, and serve immediately. 

 

Recipe adapted from Love and Lemons[8]
 

  

Gray


Tax Tips

Document

Making a Tax Payment

It's that time again. If you need to pay this year, the IRS makes it easy for you to make payments. In some cases, you may be able to make installments if you're not able to pay the full amount on time. Here are some ways to pay that bill:

Direct Pay: You can pay your tax bill online from a bank account with IRS Direct Pay. You'll have the ability to schedule payments up to 30 days in advance, and there is an option for you to change or cancel your payment. 

Credit or Debit Cards: Using your debit or credit card, you can pay your tax bill online, by phone, or with your smartphone. There may be fees that apply. 

Installment Agreement: The IRS may arrange monthly payments if you can't pay your tax bill in full. In order to use this service, you'll need to have filed all required tax returns. Visit https://www.irs.gov/payments/online-payment-agreement-application to learn more. 

IRS App: If you're on the go, then the IRS2Go app may be for you. You can make payments and more. Download the IRS app from your favorite app store. 

* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.


Tip adapted from IRS.gov[9]

Golf Tip

Golfer

Grip It, Rip It, and Put Your Body Into It

Many people focus on the smaller mechanics of using their irons to greatest effect. But sometimes, it's about the bigger picture. 

In order to get the most distance out of your irons, try to put your entire body behind the ball during your swing. Make sure you have a slight tilt to your shoulders, so your spine is angled away from the ball. Finally, make sure to angle out your left foot, slightly. This helps your body powerfully rotate through the shot. 

But don't forget: before you start rotating your hips on the downswing, shift them toward the target a few inches - this should actually start happening before you finish swinging the club back.


Tip courtesy of Sean Foley, PGA | Golf Digest[10]


Healthy Lifestyle

Medical Cross

Kick Up Your Coffee!

As if your morning cup of joe wasn't enough, now trending are add-ins to your morning brew. You just may get more out of your cup! Check out these trends:

Butter: Skip the toast and go right for the coffee. The folks at bulletproof.com tout the benefits of adding grass-fed butter or ghee to coffee for a slower release of caffeine, reduced food cravings, and improved gut health.[11]

MCT Oil: Medium-chain triglycerides (MCT) oil is a processed oil that combines palm and coconut oil. It boasts many health benefits, such as sustained energy and giving you a feeling of fullness. Try it in your morning coffee. 

Cinnamon, black pepper, other spices: Not only will these spices make your coffee taste good, they offer many health benefits and are loaded with antioxidants.


Tip adapted from MyRecipes.com and The Alternative Daily[12]


Green Living

Leaf

Eat Your Vegetables!

Did you know that adding a few vegetarian meals to your diet each week can help save energy and fuel and can even improve your health? Raising livestock increases greenhouse gases, uses a lot of water (cows can drink 50 gallons of water a day), and makes use of farmland that could be better used to plant crops.

Here are four ways to "veg-out" with meat alternatives:
  1. Plant power: Plant-based proteins, like chia seeds, hemp seeds, broccoli, kale, and mushrooms, all pack a protein punch with 2 to 4 grams of protein per serving (find your protein requirements at https://fnic.nal.usda.gov/fnic/dri-calculator/).
     
  2. Meat-like fare: Veggies like mushrooms, eggplant, and jackfruit (a fruit), have a meat-like texture and are very versatile in recipes. Tofu, tempeh, and seitan have a meaty texture as well, and they take on the flavor of the dish and seasonings in your recipe.
     
  3. Beans and legumes: Beans, lentils, peas, and peanuts, oh my! From peanut butter to hummus, you're adding to your daily protein intake by including these delicious alternatives.
     
  4. Beat it: Eggs whether hard-boiled, poached, over-easy, or folded into an omelet, are an easy, nutrient-rich whole food. 
Tip adapted from Medical News Today[13]

Share the Wealth of Knowledge!
 
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Gray 

 Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

Diversification does not guarantee profit nor is it guaranteed to protect assets.

International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors.

The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. The DJIA was invented by Charles Dow back in 1896.

The Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of stocks of technology companies and growth companies. 

The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indices from Europe, Australia, and Southeast Asia. 

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.

Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

Past performance does not guarantee future results.

You cannot invest directly in an index.

Consult your financial professional before making any investment decision.

Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.

These are the views of Platinum Advisor Strategies, LLC, and not necessarily those of the named representative, 
Broker dealer or Investment Advisor and should not be construed as investment advice. Neither the named representative nor the named Broker dealer or Investment Advisor gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.

By clicking on these links, you will leave our server, as the links are located on another server. We have not independently verified the information available through this link. The link is provided to you as a matter of interest. Please click on the links below to leave and proceed to the selected site.  

 

Alphadroid/Stormguard 

Notice: Your use of this site is considered evidence that you accept our Terms of Use and Privacy Policy, and is considered equivalent to your signature. AlphaDroid, True Sector Rotation, 
StormGuard, Polymorphic Momentum and Temporal Portfolio Theory are registered trademarks of SumGrowth Strategies, LLC. All materials copyrighted 2016 SumGrowth Strategies, LLC.
SumGrowth Strategies' automated investment analysis tool provides no financial investment advice specific to anyone's life situation. SumGrowth Strategies is not a registered investment advisor.

 

Dorsey/Wright 

Dorsey, Wright & Associates, LLC is a subsidiary of Nasdaq, Inc. Nasdaq, Inc. is a publicly-traded corporation (NDAQ). Its subsidiaries include The Nasdaq Stock Market LLC, Nasdaq PHLX LLC and Nasdaq BX, Inc., all of which are SEC-registered national securities exchanges, Nasdaq Execution Services, LLC, a registered broker-dealer that routes orders in equities and options to the appropriate market center for execution, Chi-X Canada ATS Ltd., a Canadian alternative trading system for the trading of TSX and TSXV-listed securities, and Nasdaq Futures, Inc., a CFTC Designated Contract Market for the trading of energy futures in oil, gas, and U.S. power. Nasdaq, Inc. also has subsidiaries that are foreign securities exchanges that receive listing and trading fees.Dorsey Wright will not publish research or make recommendations concerning NDAQ, nor trade the security for its Investment Management clients. Dorsey Wright may, however, publish research on, recommend or trade other securities listed on the Nasdaq exchanges, which receive fees from the listed companies and futures. Dorsey Wright will not take into account where a security is listed or traded in exercising its independent judgment for clients. In addition, Dorsey Wright does not manage or control where clients' broker/dealers route orders for execution. Accordingly, client orders may be routed to the subsidiaries of Nasdaq, Inc. for execution. These markets receive trading fees.Nasdaq, Inc. and its subsidiaries receive index licensing fees from investment product sponsors, as well as index calculation fees from index providers. These fees may be asset based. With respect to ETFs and other investment products for which Nasdaq, Inc. or its subsidiaries may receive licensing or asset-based fees, Dorsey Wright may, from time to time, (i) recommend such an ETF or other investment product in research for which Dorsey Wright receives fees; (ii) include such an ETF or other investment product in models or indexes for which Dorsey Wright receives an asset based fee; and/or (iii) recommend or include such an ETF or other investment product in the investment management accounts. While Dorsey Wright does not receive any portion of Nasdaq's fees directly, the firm may indirectly benefit as a subsidiary that is part of a Nasdaq business unit. To manage this potential conflict of interest, in the case of Dorsey Wright research or index and model licensing, Dorsey Wright would only include the Nasdaq investment product if the product helps to meet the stated objectives of the strategy and it otherwise meets the rules-based methodology associated with the strategy. In the case of the investment management accounts, Dorsey Wright will only recommend or include the Nasdaq investment product when the recommendation is suitable and meets the client's stated investment objectives. Dorsey Wright will not take into account the fees received by Nasdaq, Inc. and its affiliates in exercising Dorsey Wright's independent judgment for clients.Some performance information presented on this website is the result of back-tested performance. Back-tested performance is hypothetical and is provided for informational purposes to illustrate the effects of the strategy during a specific period. The hypothetical returns have been developed and tested by DWA, but have not been verified by any third party and are unaudited. Back-testing performance differs from actual performance because it is achieved through retroactive application of a model investment methodology designed with the benefit of hindsight. Model performance data (both back-tested and live) does not represent the impact of material economic and market factors might have on an investment advisor's decision making process if the advisor were actually managing client money. Past performance is not a guide to future performance. Future returns are not guaranteed, and a loss of original capital may occur.There are risks inherent in international investments, which may make such investments unsuitable for certain clients. These include, for example, economic, political, currency exchange, rate fluctuations, and limited availability of information on international securities. DWA, and its affiliates make no representation that the companies which issue securities which are the subject of their research reports are subject to, or in compliance with certain informational reporting requirements imposed by the Securities Exchange Act of 1934. Sales of securities covered on this site or in this report may be made in only those jurisdictions where such securities are qualified for sale. Investors in securities with values influenced by foreign currencies, effectively assume currency risk, because foreign-currency-denominated securities are subject to fluctuations in exchange rates that could have an adverse effect on the value or price of, or income derived from, such securities.Options trading involves risk and is not suitable for all investors. When participating in a covered call strategy, the investor is at risk of having to sell the stock if the stock's price rises above the strike price. Remember, in exchange for receiving the premium of having sold the calls, the investor is obligated to sell the stock if the option is exercised. The relative strength strategy is NOT a guarantee. There may be times where all investments and strategies are unfavorable and depreciate in value. There may be instances when fundamental, technical, and quantitative opinions may not be in concert. 

[1] quotes.wsj.com/index/SPX

[2] quotes.wsj.com/index/DJIA

[3] quotes.wsj.com/index/COMP

[4] quotes.wsj.com/index/XX/990300/historical-prices

[5] www.cnn.com/2019/04/12/investing/wells-fargo-bank-earnings/index.html

[6] finance.yahoo.com/news/5-best-stocks-buy-ahead-122412306.html

[7] www.marketwatch.com/story/higher-gas-prices-boost-cost-of-living-in-march-but-inflation-still-soft-cpi-shows-2019-04-10

[8] www.loveandlemons.com/how-to-make-cauliflower-rice/

[9] www.irs.gov/newsroom/easy-ways-to-pay-taxes

[10] www.golfdigest.com/story/sean-foley-smash-your-irons

[11] blog.bulletproof.com/butter-coffee-benefits/

[12] www.myrecipes.com/extracrispy/what-is-mct-oil

www.thealternativedaily.com/add-these-ingredients-to-coffee-to-fight-inflammation/

[13] www.medicalnewstoday.com/articles/321474.php

Summit Financial Group 
Summit Financial Group of Indiana
4050 Britt Farm Dr
Suite C
Lafayette, IN 47905
866-582-5721
jon@summit-fp.com
http://www.summitfinancialgroupofindiana.com


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Securities offered through Regulus Advisors, LLC. Member FINRA/SIPC. Investment advisory services offered through Regal Investment Advisors, LLC, an SEC Registered Investment Advisor. Regulus Advisors and Regal Investment Advisors are affiliated entities. Summit Retirement Advisors, LLC and Summit Financial Group of Indiana are affiliated entities. Summit Retirement Advisors, LLC and Summit Financial Group of Indiana are independent of Regulus Advisors and Regal Investment Advisors.


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