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Northern Star Newsletter 12/12/2016

Northern Star Newsletter 12/12/2016
Message from Jon

Every year we here at Summit strive to involve our clients in a variety of ways. Football games, Basketball games, Summer Cookouts, Golf Outings, Fund Raisers, Sponsorships and our Winter Gala.

Here are a few pictures from a wonderful evening with clients, friends and associates at our Winter Gala. We had over 80 attend this year and we hope more will join us in the years to come.

Till we speak again....stay warm!


Rational Exuberance?


On Friday, December 9, all three major U.S. stock indexes ended at record highs. For the first time in five years, they each posted gains every day of the trading week.[1] The S&P 500 was up 3.08%, the Dow added 3.06%, and NASDAQ increased 3.59%.[2] International stocks in the MSCI EAFE even gained 2.9%, despite potential risks from the Italian referendum and impending end of the European Central Bank's quantitative easing.[3]

From our vantage point, we see a rally that appears to be picking up steam. Looking at this impressive growth, however, it's easy to wonder whether the markets are becoming overvalued and a correction is in order.

In keeping with this concern, last Monday, December 5, marked the 20th anniversary of Former Federal Reserve Chief Alan Greenspan's famous warning about "irrational exuberance."[4] Back in 1996, Greenspan worried that overvalued stocks and extreme investor enthusiasm could drive stocks to reach unsustainable levels. His warning didn't slow the markets' growth at the time, and several more years passed before the eventual dot-com crash.

So, are we facing the same irrational exuberance as in 1996?

Hardly. We'd argue that rather than being overvalued, the markets have yet to reach their fair price. Domestic fundamentals continue to provide positive data on the economy. With a new presidential administration coming in 2017, we may see regulations lift and banks push more money into the economy, causing growth to accelerate.[5]

The markets' recent growth seems to be based on rational exuberance. Investors see opportunities on the horizon, and they're ready to grab them.

What's ahead in this exuberant moment?

We're happy to see new potential for growth, but we will continue to make choices based on detailed analysis rather than emotional reactions. This week, we'll be paying close attention to the Federal Reserve's December meeting, where the markets currently give a 95% chance that interest rates will increase.[6]

Remember that we are here to help you capture momentum that will support your long-term goals. We won't take more risk than is appropriate for your needs and comfort. If you have questions about your priorities, portfolio, or plan, let's talk.


Tuesday: FOMC Meeting Begins, Import and Export Prices
Wednesday: GFOMC Meeting Announcement, Fed Chair Press Conference at 2:30 p.m., Retail Sales
Friday: Housing Starts

Don't Depend on Tax Refund Timing

The holiday shopping season is officially underway, and you may want to take advantage of great deals on expensive items. However, if you plan on making major purchases on credit this holiday season, don't rely on having your tax refund in hand before your credit card bills arrive. Many factors can affect the timing of your tax refund, especially if you have a complex tax situation. Though the IRS issues most refunds within 21 days of receiving a return, extra reviews or requests for more documentation can delay this process.

For more information on preparing tax returns or shortening your refund time, please contact a qualified tax professional.

Tip courtesy of IRS.gov[8]

Keep The Ball Rolling For Better Control

Instead of aiming for maximum distance and getting the ball close to the hole on your chips, try aiming for maximum roll. You have much more control over the golf ball when it's rolling versus when it's airborne. This is because you don't have to worry about things like where the ball will land, how much backspin it will have, and how the slope and lie of the green will affect its movement. To improve your control over the ball, practice hitting low chips that roll toward the hole instead of flying.

Tip courtesy of Jeff Johnson, PGA | Golf Tips Mag[9]

Lower Your Risk of Arthritis

Arthritis is a painful category of conditions that are not yet completely understood. However, recent research has shown that there are a few things we can do to prevent arthritis and reduce its symptoms:

  • Eat more cherries. Cherries have powerful antioxidants and painkilling agents called anthocyanins that have been shown to lower the risk of gout and painful arthritis flare-ups.
  • Stop drinking sodas. Sugary drinks can contribute to weight gain (and joint strain) and have been shown to increase the progression of knee osteoarthritis in men.
  • Avoid high-purine foods like red meat, oily fish, and certain vegetables. Eating these foods in excess can lead to increased gout flare-ups.
  • Strengthen your joints with exercise, stretching, and mobility work.

Tip courtesy of Active.com[12]

Take a Conservation Vacation

Looking for travel ideas? Consider combining your vacation with important outdoor work. Many different organizers, including the Sierra Club and the Earthwatch Institute, offer trips with activities ranging from trail maintenance in national parks to tagging endangered animals. Costs can vary tremendously, so check with organizers to find a trip that suits your budget and desired activity level.

Tip courtesy of AARP[10]

Use Cloth Napkins and Rags

p>Instead of reaching for the paper towels or paper napkins, consider switching to cloth alternatives. The bleached paper used in napkins and paper towels can take months or years to degrade and may come from threatened forests. Cotton napkins are easy to launder and are easier on the environment. Instead of paper towels, use microfiber cloths or recycled rags to clean up around the house.

Tip courtesy of U.S. National Park Service[11]

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 U.S. Investment Grade Corporate Bond Index contains U.S.- and foreign-issued investment-grade corporate bonds denominated in U.S. dollars.

The SPUSCIG launched on April 09, 2013. All information for an index prior to its Launch Date is back-tested, based on the methodology that was in effect on the Launch Date. Back-tested performance, which is hypothetical and not actual performance, is subject to inherent limitations because it reflects application of an Index methodology and selection of index constituents in hindsight. No theoretical approach can take into account all of the factors in the markets in general and the impact of decisions that might have been made during the actual operation of an index. Actual returns may differ from, and be lower than, back-tested returns.

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. http://www.cnbc.com/2016/12/09/us-markets.html
  2. http://finance.yahoo.com/quote/%5EGSPC/history?period1=1480654800&period2=1481259600&interval=1d&filter=history&frequency=1d
  3. https://www.msci.com/end-of-day-data-search
  4. https://www.bloomberg.com/news/articles/2016-12-05/greenspan-s-irrational-exuberance-looks-entrenched-20-years-on
  5. https://www.ftportfolios.com/Commentary/EconomicResearch/2016/11/21/give-thanks-for-the-coming-boom
  6. http://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html
  7. http://www.realsimple.com/food-recipes/browse-all-recipes/penne-puttanesca
  8. http://www.irs.gov/uac/Newsroom/IRS-Offers-Tax-Tips-for-%E2%80%9CThe-Season-of-Giving%E2%80%9D
  9. http://www.golftipsmag.com/instruction/short-game/lessons/short-game-strokesavers.html
  10. http://www.aarp.org/health/conditions-treatments/info-03-2013/7-ways-to-prevent-arthritis-photos.html#slide5
  11. http://des.nh.gov/organization/divisions/water/wmb/coastal/trash/documents/marine_debris.pdf
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