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Northern Star Newsletter 10/23/2017

Northern Star Newsletter 10/23/2017

Message from Jon

Market Update:

 At this rate, the sky is the limit, and the moon seems to be in reach!  This market continues to defy gravity with every day stretching its legs forward.  The key is not to get complacent or greedy which, frankly is really, REALLY hard to do.


Does 2007 before 2008 ring a bell?


I am not ringing the alarms here, just remaining cautiously optimistic and following our indicators. Our play in international was and is very good.  Our decision to remain invested and keep the pedal down was also good even though every bone in my body has been aching from the internal tension. This simply reaffirms that I am also human, prone to my personal feelings about the markets.  Using the technical data and having the info we have counter-balances these emotions and keeps us on track, which I am very grateful for.


At the current state, the indicators are still all remaining intact and in favor of the bullish condition in the markets.  Keeping in mind that the hotter the market, the more risk to principal and therefore we will need to keep one eye on the horizon and one eye on the ground beneath our feet.


Till we speak again, enjoy the trees turning colors!




Another Banner Week for Markets


Last week, all 3 major U.S. markets hit record highs once again.[1] The Dow added 2.00% to notch both intraday and closing records, the S&P 500 rose 0.86%, and the NASDAQ gained 0.35%.[2] International stocks in the MSCI EAFE dipped by 0.32% for the week.[3]
On Thursday evening, the senate passed the blueprint for a $4 trillion budget.[4] The vote sets the stage for a tax overhaul that could lower taxes for many families and businesses.[5] In addition, some investors believe the promise of tax cuts could push market valuations even higher.[6]

Other investors, however, have expressed concern about the continuing market highs. Although the economy is growing and corporate earnings are up, they fear a potential market correction.[7]

Against this backdrop, last week marked a key milestone in financial history: the 30th anniversary of Black Monday, the largest single-day market percentage drop in history. Remembering the over 22% loss the Dow experienced that day, some investors may worry about whether the same type of precipitous drop is possible today.[8]

Why Today Is Different

In the wake of the 1987 crash, regulators implemented a series of "circuit breakers" to avoid anxiety-induced sell-offs.[9] These rules required a pause in trading if the Dow dropped by 10, 20, or 30%. Since implementing the circuit breakers, only one market-wide pause has occurred in 1997.[10]

Over the years, regulators have updated the circuit breakers and connected them to S&P 500 performance rather than the Dow. But their function remains the same: to allow time to help understand and react coolly to dramatic market declines. These rules help prevent unnecessary fear and instability from taking over the markets.[11]

Putting Performance in Perspective

While the recent market performance is impressive, it is not unprecedented. Hitting record highs doesn't have to mean that a correction is ahead. In fact, a year after reaching a new peak, the S&P 500 has had positive growth 72% of the time. Rather than allowing fear or euphoria to drive choices, focusing on data and strategy remains important in every market.[12]

Looking ahead, this week will give us a clearer picture of our economic growth as the first readings of third quarter GDP come out on Friday.[13] Many economists are predicting that the data will show another quarter of strong growth.[14]

We encourage you to contact us if you have any questions about how market highs may affect your portfolio or long-term strategy. We are here to focus on your financial goals and investments, so you can focus on what truly matters to you.

Tuesday: PMI Composite Flash
Wednesday: Durable Goods Orders, FHFA House Price Index, New Home Sales
Thursday: Jobless Claims, Pending Home Sales Index
Friday: GDP, Consumer Sentiment

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.

Manage Your Charitable Gifts*

Throughout the year, many taxpayers choose to make charitable donations, which they can deduct on their tax returns. If you gave to a charity, you have some steps to take to ensure you have the correct proof for your tax records. Follow these tips to get started:

1. Written Acknowledgements
The IRS only requires you to have a written acknowledgment from the charity when your gift or gifts exceed $250.

2. Multiple Gifts in One Year
You can either receive a written acknowledgement for each gift or a single acknowledgement listing all gifts over $250.

3. Additional Proof

The charity's written acknowledgement is one set of proof. You also need either a bank record that shows the deducted gift or the charity's communication (such as a card or email) verifying your gift.

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[16]

Swing Past Parallel to Gain Distance and Speed

Tired of watching your ball travel more slowly and shorter than you planned? Your backswing may be holding you back. Adding drag on your swing can make a real difference; every extra mile-per-hour in your driver swing can get you three extra yards off the tee. By swinging past parallel, you add 10 mph.

To swing past parallel successfully, soften the top of your backswing. Rather than extending your arms back higher or forcing an unnatural shoulder turn, let your wrists and elbows do the work. By hinging your wrists while bending your elbows slightly more than normal, you should feel your clubhead dip just a few inches at the top. That dip gives your driver additional distance and time to gain speed.

Your ultimate goal? Meet the clubhead at the ball with the maximum velocity possible. From there, you should see your ball go farther and faster.

Tip adapted from Mark Durland | Golf Magazine[17]

Medical Ailments to Look Out for Past 50 Years Old

Aging is a natural part of the human experience. Once you reach 50 years old, specific ailments can arise that can affect your wellbeing. Fortunately, by being proactive, you can take preventative steps to stay as healthy as possible at any age.

Here are some common health ailments that affect people 50 years and older:

  • High Blood Pressure: Our blood vessels lose flexibility the older we get, creating stress on the body. This change contributes to high blood pressure in 2 out 3 adults aged 60 and over.
  • Osteoarthritis: Degrading joints is common in older adults. Wear and tear, genetics, and your lifestyle can affect whether or not you develop this disease.
  • Chronic Obstructive Pulmonary Disease (COPD): COPD is a slowly developing disease that causes inflammation in your lungs and blocks airways. Not only is breathing difficult, but it also causes symptoms like wheezing and excess mucous.

Be sure to consult your doctor if you think you may be developing any one of these medical problems.

Tip adapted from WebMD[18]

Wash Laundry More Efficiently

Doing the laundry can hog a lot of energy. Our washing machines and even our trips to the dry cleaner can harm the environment. But the problems don't stop there - our washing techniques can have unintended health concerns, too. Fortunately, simple changes in your laundry care can result in a greener lifestyle. Follow these tips to get started:

  • Upgrade your washing machine: If you're still using the same laundry machine from decades ago, upgrade to a newer model. Average machines use 41 gallons of water per load, whereas modern, high-efficiency models use only 28 gallons.
  • Wash with cold water: Hot water washing contributes to 80% of the energy you use when cleaning laundry. You can minimize this waste by switching to cold water and further reduce your greenhouse gas contributions by at least 500 pounds of carbon dioxide each year.
  • Use the "low" setting: You don't need a full basin of water to clean your clothes. Choose the low-load settings over the high loads to use less water without sacrificing cleanliness.

Tip adapted from World Wildlife Fund[19]

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] www.cnbc.com/2017/10/20/us-stocks-tax-reform-senate-budget.html


[2] http://performance.morningstar.com/Performance/index-c/performance-return.action?t=%21DJI®ion=usa&culture=en-US







[3] www.msci.com/end-of-day-data-search


[4] www.cnbc.com/2017/10/19/senate-passes-a-budget-moving-the-gop-closer-to-tax-reform.html

[5] www.cnbc.com/2017/09/27/read-the-full-gop-tax-proposal-here.html

[6] www.forbes.com/sites/adamsarhan/2017/09/28/will-the-tax-cut-send-stocks-higher/#53857bd249bb

[7] finance.yahoo.com/news/could-1987-stock-market-crash-050919703.html

[8] www.npr.org/2017/10/19/558625600/the-30th-anniversary-of-black-monday-a-day-that-made-wall-street-quake

[9] www.npr.org/2017/10/19/558625600/the-30th-anniversary-of-black-monday-a-day-that-made-wall-street-quake

[10] finance.yahoo.com/news/could-1987-stock-market-crash-050919703.html

[11] finance.yahoo.com/news/could-1987-stock-market-crash-050919703.html

[12] www.bloomberg.com/news/articles/2017-10-20/a-record-in-records-for-u-s-stocks-rallying-sixth-straight-week

[13] wsj-us.econoday.com/byshoweventfull.asp?fid=477656&cust=wsj-us&year=2017&lid=0&prev=/byweek.asp#top


[14] finance.yahoo.com/news/amazon-alphabet-gdp-need-know-week-ahead-162749555.html

[15] www.midwestliving.com/recipe/sandwiches/mini-italian-beef-sandwiches-with-pepperoncini-slaw

[16] www.irs.gov/newsroom/gifts-to-charity-six-facts-about-written-acknowledgements


[17] www.golf.com/instruction/2017/09/22/swinging-past-parallel-could-be-just-what-your-game-needs

[18] www.webmd.com/healthy-aging/ss/slideshow-health-problems-after-50


[19] www.worldwildlife.org/pages/green-tips

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