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The Northern Star Newsletter 7/16/20 - Stocks Gain After Volatile Week

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Message from Jon

Upcoming Webinar

When: July 22nd

Time: 12:00 to 12:45pm

Topic: Where We Are and What We Know Now

Jon McCardle, AIF  &  Tyler Hardt, CFA, MBA


Market Update

We are heading into earnings season and according to our call this morning with our CFA, banks will be the defining portion of earnings this week. If they demonstrate an increase in loan losses due to Covid-19 or if they report more of a flat number, this will further confirm the progressing of or faltering of the US economic recovery efforts.

Our indicators are bullish on Stormguard and still favoring cash as the number one asset class on our point and figure system.

We are concerned about the market conditions still, with the end of the month producing a few topics of interest. 

PPP loans will be tested to see if they will be granted loan or grant status, determining whether the companies who borrowed the money have to repay it or if it will be forgiven or not.1 This may become a catalyst for added payroll numbers by week's end in our opinion.

The Government has until August 7th to determine if more stimulus is on the way or not and this goes straight to the question of liquidity and the number one reason for the rally in the markets at present in our opinion.2

We have the presidential campaign with some interesting and possibly problematic tax issues at stake that could make Wall Street even more uneasy as we progress into the fall.3,4

We have the spiking of Covid reemerging that is causing a lot of states to rethink their opening strategies and even some to reverse them. This may create some tensions with the planning and modeling many investors have for making their investments as well as a resurfacing of concerns about the V-shape vs U-shape recovery.5,6

The major tech companies are becoming very expensive due to the passive investing efforts of investors coupled with the FOMO piling on by retail investors and hedge funds alike in our opinion. This may continue until one day when it doesn't and then, uh, oh! This brings to mind Wile E. Coyote when he runs past the edge of the cliff and doesn't realize it until it's too late and then...

covid19 has us shifting our investment strategies 7 major tech companies are becoming very expensive8


I will be traveling and out of the office Wednesday-Friday, but staff will be in should something arise.


Till we speak again, enjoy your week! 



  1. https://www.forbes.com/sites/allbusiness/2020/07/08/ppp-loan-program-extended-loan-data-released-what-small-businesses-need-to-know/#3c5d4dac7f11
  2. https://www.forbes.com/sites/ryanguina/2020/07/09/second-stimulus-checks-will-come-fast-if-approved-but-fewer-people-may-receive-them/#747eaabe2e84
  3. https://taxfoundation.org/joe-biden-tax-plan-2020/
  4. https://www.bloomberg.com/opinion/articles/2020-07-13/biden-tax-plan-is-bad-for-the-economy?sref=b4l2qMTa
  5. https://www.cnbc.com/2020/07/10/us-reports-record-single-day-spike-of-63200-new-coronavirus-cases.html
  6. https://www.cnbc.com/2020/06/29/more-states-reverse-or-slow-reopening-plans-as-coronavirus-cases-climb.html 
  7. https://www.vox.com/2015/3/5/8157519/chuck-jones-rules-for-roadrunner-coyote
  8. https://looneytunes.fandom.com/wiki/List_of_Wile_E._Coyote_%26_Road_Runner_cartoons

Stocks Gain After Volatile Week


The Week on Wall Street

Stock prices notched solid gains last week, looking past an increase in COVID-19 cases and any potential economic concerns raised by the trend.

The Dow Jones Industrial Average increased by 0.96%, while the Standard & Poor's 500 climbed 1.76%. The Nasdaq Composite Index bounded 4.01% higher for the week. The MSCI EAFE Index, which tracks developed stock markets overseas, gained just 0.07%.[1][2][3]

Virus ConcernsStocks experienced a volatile week as investors negotiated the crosswinds of encouraging overseas economic data with an accelerating number of COVID-19 cases in several states. Ongoing support of the financial markets by the Federal Reserve appeared to offset any concerns about an economic rebound. The big technology companies continued to shine, leading the Nasdaq Composite to multiple new record highs. News of positive trial results for a potential COVID-19 treatment boosted stocks on the final trading day, closing the week on an encouraging note.   On the Record Regional Federal Reserve presidents had several speaking engagements last week, and the message was a consistent one: expect the economic recovery to remain bumpy. Cleveland Fed President Loretta Mester said that the economy in her region is slowing due to rising COVID-19 cases. She linked gains in combating the virus with further economic progress. She also echoed earlier comments by Fed Chairman Powell that more fiscal support is necessary.[4] Meanwhile, San Francisco Fed President Mary Daly observed that it was unlikely many companies would be rehiring all their employees. Thomas Barkin, president of Richmond Federal Reserve, reiterated the challenges of a labor recovery, but also spoke of the strain on local and state governments.[5][6] THIS WEEK: KEY ECONOMIC DATATuesday: Consumer Price Index (CPI). Thursday: Jobless Claims. Retail Sales. Friday: Housing Starts. Source: Econoday, July 10, 2020The 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. THIS WEEK: COMPANIES REPORTING EARNINGSMonday: PepsiCo, Inc. (PEP).Tuesday: JPMorgan Chase & Co. (JPM), Citigroup (C), Wells Fargo (WFC).Wednesday: International Business Machines (IBM), Goldman Sachs (GS), eBay, Inc. (EBAY).Thursday: Microsoft (MSFT), Netflix (NFLX), Bank of America (BAC), Johnson & Johnson (JNJ), UnitedHealth Group (UNH), Abbott Laboratories (ABT), Morgan Stanley (MS), Honeywell International (HON).Friday: Blackrock, Inc. (BLK). Source: Zacks, July 10, 2020Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. 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

"The longer I live, the more I realize the impact of attitude on life." - Mark Twain

Recipe Of The Week

Fork and Knife

Egg-in-a-Hole Breakfast Sandwich

1 serving You might be familiar with the classic "egg-in-a-hole" toast, but this recipe takes it up a notch! Ingredients:
  • 2 eggs
  • 2 large slices of crusty bread (like sourdough)
  • 1 avocado
  • 2 slices of cheese
  • 1 tomato slice
  • 1 egg
  • Salt and pepper
  • Butter
  1. Cut a hole in the middle of one of the pieces of bread (tip: use a cookie cutter or cut around the top of a drinking glass).
  2. Butter both sides of each slice of bread and brown them in the pan.
  3. Turn the heat to low and top one of the slices with the avocado, cheese, and tomato.
  4. Crack an egg in the hole of the other slice of bread.
  5. Cover the pan and cook until the egg is done to your liking (usually 3 to 5 minutes).
  6. Sandwich the two pieces of bread together and enjoy!
Recipe adapted from Brit.co[7]


Tax Tips


Couples Who Work Together, Tax Together

More and more couples are starting to do business together. There are some considerations to working together, though, and they're not just who's going to drive the car to work that day.  In terms of taxes, there are a few considerations to be aware of.
  • You should first establish if you have a partnership business (where both spouses have an equal say in the affairs, services, and capital of the business) or an employee-employer relationship (where one spouse substantially controls management decisions). These relationships face different tax situations.
  • If there is an employee-employer relationship, the "employee" spouse may be subject to income tax, Social Security, and Medicare.
  • If there is a partnership relationship, your business income may need to be reported on Form 1065, U.S. Return of Partnership Income. 
*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


A Little Bit Goes a Long Way

If you want to improve your golf game, good news! There are things you can do both on and off the course that will help with your swing. Sometimes, we just can't get out to play, but that doesn't mean that your game has to suffer. Golf pros encourage spending 10 to 20 minutes a day on something golf-related to stay in the swing (see what we did there) of things.


For example, you might take some time to work on your full swing, work on your putts, or even just research some tips from the pros. No matter what, though, spend some time on something golf-related every day. Your score will thank you!

Tip adapted from Practical-Golf.com[9]

Healthy Lifestyle

Medical Cross

Tasty Treats for Health Nuts

If you're looking for a healthy snack, look no further than nuts! Nuts are full of protein, good fats, and fiber. Plus, they're delicious!


Here are some of our favorite nuts:

  • Almonds - A handful of almonds has about 6 grams of protein. In addition, they also have about 14 grams of monounsaturated fat (one of the healthier fats).
  • Pistachios - Pistachios are full of protein and fiber!
  • Walnuts - Walnuts are a great source of omega-3 fatty acids.
  • Cashews - Cashews have a little bit of everything, including healthy fats, protein, carbohydrates, fiber, vitamin E, and magnesium.
  • Pecans - Pecans contain polyphenols, which are antioxidants that provide a host of benefits to the body.

Not only are nuts delicious on their own, but they can also be added to cereal, oatmeal, and even desserts for a protein-packed punch.


Tip adapted from Healthline.com[10]

Green Living


The Perfect Composting Recipe


Composting is great for your garden! The nutrients in composted soil give your flowers or houseplants a little extra boost. But not just any compost soil will do. Here are some tips on how to create the perfect compost recipe.

  • There's a difference between composting "greens," like kitchen scraps, and "browns," like dried leaves or cardboard. Your compost recipe should have a good mix of both.
  • Greens are nitrogen-rich, while browns are carbon-rich.
  • Ideally, you should shoot for a 30:1 ratio in carbon to nitrogen. You'll know if you have too much nitrogen if your pile is slimy and stinky. And if you have too much carbon, the pile will be dry and slow to decompose.
  • Add your nitrogen-rich ingredients in thin layers to make sure all of the greens are in contact with carbon-rich browns.
  • When in doubt, err on the side of too much carbon! 

Once you nail your composting recipe down, you'll be helping the environment by repurposing your scraps and yard waste and helping your garden thrive.


Tip adapted from ModernFarmer.com[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 professional 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.

The market indexes discussed are unmanaged and generally considered representative of their respective markets. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results. 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.

 [1] The Wall Street Journal, July 10, 2020

[2] The Wall Street Journal, July 10, 2020

[3] The Wall Street Journal, July 10, 2020

[4] CNBC, July 7, 2020

[5] MarketWatch, July 7, 2020

[6] MarketWatch, July 7, 2020

[7] Brit.co, July 10, 2020

[8] IRS.gov, May 27, 2020

[9] Practical-Golf.com, July 10, 2020

[10] Healthline.com, July 10, 2020

[11] ModernFarmer.com, July 10, 2020

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