facebook twitter instagram linkedin google youtube vimeo tumblr yelp rss email podcast phone blog search brokercheck brokercheck Play Pause

The Northern Star Newsletter 11/7/19 - More Historic Highs


Message from Jon

Market Update: 

The FED has cut rates another 25 points, giving the investment arena an accommodative nod offering more confidence to the late Oct rally.1 While the US seems to be confident of a year-end development to a trade war resolution, China has expressed a lower level of optimism toward a trade war agreement by year's end.2 My opinion is that we will see more posturing by both sides but no real traction until after the election.

Markets are at highs, and companies continue to offer earnings beats followed by low earnings forecasts, sending mixed signals and a gloomy, questionable outlook for the near term. We have been here for several earnings forecasts now-and this should not be much of a surprise here.3 In my opinion, we have not seen signs of an impending recession surface yet, because the consumer has not yet been affected by negative circumstances. They are still employed; they still see help wanted signs everywhere; and they are not losing money on your house values. They still can afford to go to the mall, eat out, and take vacations, and until those feelings become endangered, we will continue to see this market hang around. Seeing how the consumer makes up over 60% of our GDP-manufacturing, housing, transports and the like take a back seat to jobs, pay rates, and hours worked-the latter are seemingly more important at the moment.4 

We are seeing our indications we follow holding steady with very little movement and are not really expected to make much change unless we see the trade war tariffs increase in December as they are scheduled to do, or we see more deterioration in the material economic data that continues to be reported weekly and monthly.

Till we speak again,




  1. https://finance.yahoo.com/news/balance-sheet-background-markets-focus-051405874.html
  2. https://www.bloomberg.com/news/articles/2019-11-03/ross-optimistic-on-china-trade-deal-says-huawei-licenses-coming
  3. https://www.cnbc.com/2019/11/02/dropbox-activision-blizzard-roku-among-names-that-usually-beat-the-street.html
  4. https://www.forbes.com/sites/mikepatton/2014/12/30/a-historical-look-at-the-components-of-u-s-gdp-1929-to-2011/#2ad14b1c7a6d

More Historic Highs


The Week on Wall Street
A better-than-forecast jobs report prompted a stock market rally Friday, two days after traders witnessed another interest rate cut by the Federal Reserve.

Both the S&P 500 and Nasdaq Composite ended the week at historic peaks, while the Dow Jones Industrial Average settled less than 12 points under its all-time record close. The Nasdaq rose 1.74% for the week; the S&P gained 1.47%. The Dow added 1.44%. MSCI's EAFE benchmark, which measures developed stock market performance outside the U.S. and Canada, improved 0.58%.[1][2][3]

Economy Adds 128,000 Jobs in October
This net increase far surpassed the gain of 85,000 projected by a Bloomberg poll of economists. These job gains occurred even as last month's General Motors strike impacted hiring in the manufacturing sector.

Unemployment rose slightly to 3.6% in October, an effect of more people entering the job market. Likewise, the U-6 rate, counting both unemployed and underemployed, Americans ticked up to 7.0%.[4]

The Fed's Latest Interest Rate Decision
Last week, the central bank made its third quarter-point rate cut since July, leaving the target range for the federal funds rate at 1.50-1.75%.

Something was missing from the latest Fed policy statement. Since June, a passage had noted that the Fed was ready to "act as appropriate to sustain the expansion." In the latest statement, that language disappeared. At a press conference Wednesday, Fed Chair Jerome Powell commented that Fed officials "see the current stance of monetary policy as likely to remain appropriate."[5]

Where Trade Talks with China Stand
There were further negotiations between U.S. and Chinese officials Friday, and China's commerce ministry announced that both sides had "reached consensus on principles" integral to the first phase of a new trade pact. U.S. Trade Representative Robert Lighthizer noted only that the latest round of conversation had brought "progress in a variety of areas."[6]

Tuesday: The Institute for Supply Management presents its latest Purchasing Managers Index for the U.S. service sector, gauging business activity and new orders.
Friday: The University of Michigan's preliminary November Consumer Sentiment Index appears, measuring consumer confidence levels.

Source: Econoday, November 1, 2019
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. 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.

Monday: Marriott International (MAR), Sysco (SYY), Uber (UBER)
Tuesday: Allergan (AGN), Toyota (TM)
Wednesday: CVS Health (CVS), Qualcomm (QCOM)
Thursday: Booking Holdings (BKNG), Walt Disney Co. (DIS)
Friday: Duke Energy (DUK), Enbridge (ENB), Honda (HMC)

Source: Zacks, November 1, 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.


Quote Of The Week

Fountain Pen

"When you start seeing your value, you'll find it harder to stay around people who don't"


Recipe Of The Week

Fork and Knife

Brunch Frittata

Frittatas are one of the most versatile brunch dishes because you can make them any way you want. They are surprisingly easy and will fill up even the hungriest guests. Here's our favorite frittata recipe:
[6 servings]
  • 8 large eggs
  • ⅓ cup heavy cream
  • 1 cup mozzarella, shredded
  • A sprinkle of salt and pepper
  • A pinch of red pepper flakes
  • 2 Tsp. olive oil
  • 1 green onion, minced
  • 3 cloves of garlic, minced
  • 8 oz. mushrooms, sliced
  • ½ cup ricotta
  • 3 cups baby spinach
  • Any other toppings you want, such as bacon, ham, broccoli, etc.
  1. Preheat the oven to 375° F.
  2. Whisk together the eggs, heavy cream, and cheese. Season with salt, pepper, and red pepper flakes.
  3. Cook the green onions and garlic in the olive oil until soft, then add the mushrooms, spinach, and any other toppings you're using.
  4. Pour the egg mixture into the skillet and dollop with the ricotta on top (pro tip: the crust of the frittata will get crispier if you use a cast iron skillet).
  5. Bake for 12 minutes. 
Recipe adapted from Delish[7]


Tax Tips


Be Safe Online

In today's age of online shopping, online banking, and email databases, it's more important than ever to be safe online. The IRS shares some of their top tips on how to protect your data:

  • Update Your Security Software - Most computers come with a built-in security software in their operating system, and it's important to always keep your computer up to date to make sure it's running properly. You can also purchase security software from external companies. Just make sure to research the company first to make sure they're not a scam.
  • Only Provide Data to "https://" Sites - Earlier this year, Google released an update requiring any sites that gather data, such as credit card information, to be a secure site. This means that their website will start with "https://" instead of "http://." This update helps keep your data safe.
  • Be Cautious When Using Public Wireless Networks - Working in a coffee shop with free Wi-Fi is convenient, but these wireless networks aren't always secure. Be careful about what information you share while connected to these free wireless networks, especially if they don't require a password. 

* 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[8]

Golf Tip


Forget the Score and Just Play

When you're having a bad game, it can be hard to think of anything else besides the ball you just shanked, your double bogey, or the slow, chatty group in front of you. So, here's a tip: for the rest of the game, forget the score and just play.

There are so many things to love about golf, even when you're having an off day. You're with your buddies enjoying time outside, you're getting some exercise in, and you're practicing your game. So, if you find yourself getting frustrated, tuck the score card away and just play. You might find that your posture improves, your grip loosens, and you might even start parring some holes. You could also spend this time really focusing on your technique and perfecting it where you can.

The game isn't always about the number on the scorecard. Sometimes you just need a round or two of pure enjoyment.

Tip adapted from Golf Tips Magazine[9]

Healthy Lifestyle

Medical Cross

Eat the Rainbow, Reap the Rainbow

You might have heard that your plate should have all the colors of the rainbow, but do you know why? Every food has their own health benefits and colors can help you determine which health benefits you're enjoying. Here's a quick summary of some of the benefits associated with these colored foods:

  • Red foods contain lycopene, which is a powerful antioxidant that can help reduce the risk of cancer and keep our heart healthy.
  • Orange/yellow foods have lots of carotenoids, which help maintain healthy mucous membranes, eyes, and might help prevent cataracts and blindness.
  • Green foods contain various compounds that have anti-cancer properties. They're also an excellent source of folate.
  • Blue/purple foods have antioxidants called anthocyanins, which can help protect cells from damage and may reduce the risk of cancer, stroke, and heart disease.
  • White foods are known for their antiviral and antibacterial properties, and some (like bananas) are a good source of potassium. 

Tip adapted from Nutrition Australia[10]

Green Living


Eco-Friendly Dog Toys

Many dog owners treat their pups like kids and want to give them toys that they'll love. Unfortunately, many dog toys are made with harmful plastics, chemicals, and other additives. But there are plenty of eco-friendly dog toys to choose from that will make both your dog and the planet happy.
  • Not only are these chew toys super durable, but they're also completely recyclable through the company's closed-loop recycling program. Simply ship it back to them to reduce waste (even though they're so long lasting, you might never need to).
  • These little wool balls are both pretty and fun. They're made with renewable wool, colored with all-natural dyes, and have an all-wool center, meaning that they're safe if dogs ingest them. Instead of using an artificial polyester filling, the company uses sustainable, safe materials.
When shopping for eco-friendly pet toys, look for ones that are made with natural or recycled material and can be recycled after they're used up as well.

Tip adapted from One Green Planet[11]

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 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.

[1] www.reuters.com/article/us-usa-stocks/sp-500-nasdaq-set-records-on-jobs-data-trade-headway-idUSKBN1XB3ZD

[2] www.wsj.com/market-data

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

[4] time.com/5716189/us-adds-128000-jobs-october-2019/

[5] www.cnbc.com/2019/10/30/fed-decision-interest-rates-cut.html

[6] www.foxbusiness.com/markets/us-china-trade-talks-reach-consensus-on-principles?cmpid=prn_investors

[7] www.delish.com/cooking/recipe-ideas/a24229816/frittata-recipe/

[8] www.irs.gov/newsroom/seven-tips-to-protect-your-computer-online

[9] www.golftipsmag.com/forget-the-golf-score-and-just-play/

[10] www.nutritionaustralia.org/national/resource/eat-rainbow

[11] www.onegreenplanet.org/lifestyle/10-eco-friendly-toys-for-dogs/

Send to a Friend

Visit My Site

Email Me

Summit Financial Group
Summit Financial Group of Indiana
4050 Britt Farm Dr
Suite C
Lafayette, IN 47905

Copyright © 2019. All Rights Reserved.

Securities offered through Regulus Advisors, LLC. Member FINRA/SIPC. Investment advisory services offered through Regal Investment Advisors, LLC, an SEC Registered Investment Advisor. Registration with the SEC does not imply any level of skill or training. 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.

Check the background of this firm/advisor on FINRA’s BrokerCheck.