Northern Star Newsletter 09/18/2017

Message from Jon

These past couple of weeks have impressed us all with record highs in the markets and record noise in the headlines.  Most recently, the headlines are divided between terrorist attacks abroad and geopolitical pressures with North Korea.  It’s enough to make one believe that investing in the markets anywhere would be a risky proposition at best.

With all these headlines and negative news cycles, the markets keep on pushing forward.  We have seen our foreign investments continue to grow giving affirmations that our data and information nearly 13 weeks ago was correct.  The most recent data has us staying the course from an investment standpoint even though the heat is still on the rise and so is the danger long-term to principal.

All of our sources were demonstrating a potential correction heading into what historically has been the weakest two months of the year (September & October). But as of yet, there are no signs that we should change course or attempt to get out of the way.  As a matter of fact, last week our most recent data indicated that a near term correction was not due to manifest at all!

I will leave you with the facts so far of just a few of our indicators:

Market Data:

Shiller's S&P 500 P/E Level: 30.68

• Historic Mean P/E Level: 16.78
  • *From current to historic: 45.31% decline

Van Harp Market Condition: Bull Quiet

• *From March's Strong Bull Condition declined to Bull Quiet (just above neutral)

Lowryondemand: Selling Pressure index vs Buying Power index

• Selling pressure dropped from Oct of 2016 at 262 to 164 currently
• Buying Pressure has marginally increased from 112ish in Oct to 149 currently
  • *Sellers have declined significantly but the buying has not continued in an overwhelmingly significant manner.

Dorsey/Wright Relative Strength:

• 9/19/2016:
  • Dom Eq: 238
  • Commod: 224
  • Fixed Income: 218
  • Cash: 152
  • Int'l Eq: 144
  • Currency: 104

All of these data points and more simply dictate that we remain invested and focused on growing portfolios.  The evidence of a market correction we were expecting in Sept based upon historic and then current data has evaporated...for now.

Our positions overseas have all done really well thus far along with our Hurricane Harvey Portfolio.  Time will tell if they continue but for now, all is well and moving in the right direction.

Till we speak again, enjoy your football season!

Jon

sources: lowryondemand, multpl.com, vantharp, dorsey/wright, yahoofinance

Notes: All index returns (except S&P 500) exclude reinvested dividends, and the 5- year and 10-year returns are annualized. The total returns for the S&P 500 assume reinvestment of dividends on the last day of the month. This may account for differences between the index returns published on Morningstar.com and the index returns published elsewhere. International performance is represented by the MSCI EAFE Index. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly.

Deductions for Job Searches Searching for a job can be a long, arduous process. Fortunately, one benefit job seekers may be able to enjoy is the ability to deduct some job-search expenses on their federal tax returns. When looking for a position in the same line of work, you may be able to write off certain related expenses, regardless of whether you found a job. Here are some details to keep in mind: Deductible Costs Not every cost is deductible when searching for employment. Here are some common deductions: Resumes: You can deduct costs from printing your resumes and mailing them to employers. Travel costs: If you need to travel for your job search, you can deduct related expenses, such as transportation and lodging. Placement agency: Fees you pay for help from an employment or job placement agency are deductible. Non-Deductible Costs You cannot deduct some expenses when searching for a job, such as those related to: Changing the industry you work in Taking a long break between ending one job and searching for another Looking for your first job Other details may apply, and you can find more information on the IRS website. * This information is not intended to be a substitute for specific individualized tax advice. We suggest you discuss your specific tax issues with a qualified tax advisor. Tip courtesy of IRS.gov[12] Splash in the Sand to Improve Your Bunker Play   Cleanly getting out of a sand trap can be tricky, and many golfers consistently struggle to hit solid shots from a bunker. However, with some slight tweaks, you can improve your bunker shot and move beyond the sand. The key is having the right perspectives and choosing the right club for the job. Avoid the Standard Approach Golfers will frequently hit two inches behind the ball and then slam the sand so it explodes. While this technique may be common, that doesn't make it the best option. Doing so can cause you to tense your hands and cause you to bury your club in the sand - making you either blade your ball over the green or leave it in the bunker. Correct Your Approach Disregard the sand for a moment and envision your normal, full swing and stance. Choose your club by the length of your bunker shot, which could be anything from a 60-degree wedge to a 9-iron. Two factors will affect this choice: your distance from the pin and how much green you have ahead. Focus on trying to "splash" your club into the sand, rather than explode or hit it. Control your hand's sense of feel and maintain constant pressure, and aim to create a splash divot of 6 to 8 inches and roughly ½-inch deep. Note: Using the same swing technique, you'll want to use less lofted clubs for longer bunker shots, and swing softer for harder sand. Tip courtesy of Randy Chang | GolfTips Magazine[13] Eat These Foods to Keep Skin Healthy Skin is the body's largest organ, and the food choices we make can either help or hurt its health. Here are some common foods and minerals you can eat to help keep your skin nourished and hydrated.  Selenium The mineral selenium may help you protect your skin from free radicals that create wrinkles, dry skin, and tissue damage. Consuming selenium may even assist in preventing skin cancer. Here are some foods with high amounts of selenium: Brazil nuts Button mushrooms Lamb Oysters Shrimp Whole-wheat pasta Vitamin A Consuming vitamin A can help you avoid flaky, dry skin. Vitamin A can also help improve wrinkles and brown spots, especially if you use a skin product that includes the vitamin. Here are some foods that provide vitamin A in your diet: Cantaloupe  Carrots Eggs Leafy greens Low-fat dairy foods Oranges   Tip courtesy of WebMD[14] Buying Forest Stewardship Council (FSC)-Certified Products   Do you know the source of the wood products you use? If not, the printer paper, newly built deck, or other wood-based products you use could be destructing forest ecosystems and threatening wildlife. You can help protect these forests by opting to buy wood products with the FSC certification.   How do wood products hurt ecosystems? When wood comes from illegal, uncontrolled forestry operations, its harvest can destroy important forests, threatening indigenous tribes and local communities that rely on these lands for their livelihood. Removing forests also wipes away the homes of animals that depend on them, such as orangutans and elephants. The United States is among the world's major consumer countries that together import roughly $6 billion of illegally harvested wood each year.   What is FSC-Certified wood? The Forest Stewardship Council is the only global certification system in forest management that uses an independent third-party to rank practices for social, environmental, and economic standards. Products with an FSC certification are verified to be responsibly sourced, with no forest ecosystems harmed during the harvesting process.    You can learn more about the FSC certification on The Nature Conservancy's website.   Tip courtesy of The Nature Conservancy[15]

Share the Wealth of Knowledge!   Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!     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 S&P/Case-Shiller Home Price Indices are the leading measures of U.S. residential real estate prices, tracking changes in the value of residential real estate. The index is made up of measures of real estate prices in 20 cities and weighted to produce 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.   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 Marketing 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 they 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.  [1] https://www.cnbc.com/2017/09/15/us-stocks-weekly-gains-fed-retail.html [2] http://performance.morningstar.com/Performance/index-c/performance-return.action?t=SPX®ion=usa&culture=en-US http://performance.morningstar.com/Performance/index-c/performance-return.action?t=!DJI®ion=usa&culture=en-US http://performance.morningstar.com/Performance/index-c/performance-return.action?t=@CCO [3] https://www.msci.com/end-of-day-data-search [4] https://www.bloomberg.com/news/articles/2017-09-14/yen-jumps-after-report-of-north-korea-missile-markets-wrap  [5] https://www.cnbc.com/2017/09/15/us-stocks-weekly-gains-fed-retail.html [6] https://www.bloomberg.com/news/articles/2017-09-14/yen-jumps-after-report-of-north-korea-missile-markets-wrap   http://www.reuters.com/article/us-usa-stocks/wall-street-hits-record-highs-sp-500-pierces-2500-idUSKCN1BQ1HK [7] http://www.ftportfolios.com/Commentary/EconomicResearch/2017/9/15/industrial-production-declined-0.9percent-in-august   http://www.ftportfolios.com/Commentary/EconomicResearch/2017/9/15/retail-sales-declined-0.2percent-in-august  [8] https://www.bloomberg.com/news/articles/2017-09-14/u-s-inflation-picks-up-ending-five-month-streak-of-misses   [9] http://www.ftportfolios.com/Commentary/EconomicResearch/2017/9/15/retail-sales-declined-0.2percent-in-august   http://www.ftportfolios.com/Commentary/EconomicResearch/2017/9/14/the-consumer-price-index-rose-0.4percent-in-august [10] http://www.chicagotribune.com/business/ct-equifax-data-breach-0917-biz-20170915-story.html [11] http://www.myrecipes.com/recipe/beefy-corn-black-bean-chili   [12] https://www.irs.gov/newsroom/job-search-expenses-can-be-tax-deductible-2017 [13] https://www.golftipsmag.com/instruction/short-game/better-bunker-play-splash [14] http://www.webmd.com/beauty/ss/slideshow-skin-foods   [15] https://www.nature.org/greenliving/gogreen/everydayenvironmentalist/buy-fsc-its-good-wood.xml