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

Weekly Market Insights: 3-17-21 - Economy Reacts to COVID-19 Stimulus

Hi there,

Message from Jon


Weds the 24th at 12pm-1pm

Where We Are At and What We Know Now

*We will be discussing cannabis, inflation, energy, yield curve, and other topics of interest, so be sure to attend by clicking this link and RSVP.




CEFEX Certification. What is it and why did we pursue it?

In business, our experience has been that some subscribe to the “we are going to be cheaper” approach, looking at Wal-Mart, Sears, and JC Penny as examples. We all know that when you want something of quality, you do not necessarily get it at Wal-Mart.

Some choose the “we are going to try to be the best” approach, and that’s impossible to achieve in our industry for a myriad of rules and regulations. What is important to one investor is different than another and so on and so forth.

We chose the “we are going to be different” approach and have worked hard to comply to this view. Our culture is not a suit and tie or a stuffy attitude. Our service model is nice, quick, and accommodating, allowing for clients to be comfortable in their reaching out and satisfied in their answer. Our investment side has strived to get better each and every year. Since the market is a changing place, we too must change to stay relevant and provide clients with the tools necessary for many of them to obtain their needs, wants, and wishes.

CEFEX is the only independent party to actually certify if a firm IS a fiduciary by their processes and not their words alone. They will audit us every year and review our firms process, our service, and our support to ensure we are abiding by industry best practices. From the forms and agreements we use to the way we invest for clients to the manner in which we communicate to our clients all fall under the scope and purview of our certification.

As of 3/02/21 we are the only registered firm in the state of Indiana that is CEFEX certified as a firm. See their list by clicking here.

This certification is yet another degree of separation for our clients to feel that Summit is following the highest fiduciary best practices our industry has to offer.


Market Update Opinion

We have been writing about the coming stimulus and how our opinion was that we would see a good amount of stimulus money flow into the markets, and today, I saw the first article in support of that thought.1 We believe the market is changing course and possibly direction. This thought process has led us to realign portfolios to incorporate more exposure to energy, commodities, as well as foreign and emerging markets with less focus on traditional growth holdings. Our thoughts are that what has worked in the past will not get us to the future in the same way.

We are seeing inflation in a monetary sense beginning to rear its ugly head as a direct response to the necessary stimulus that was infused into the economies around the world due to COVID-19. Our next mutual fund analysis and rebalance will take place in April. Our growth stock portfolio will go through another phase of rebalance in April as well.

After the stimulus money has worked its way into the various locations in the economy and then into the markets, we will likely see a general malaise unless the FED takes yield curve control actions. Does this mean we change our approach? NOPE.


Till we speak again, make your week productive!




  1. https://www.thewealthadvisor.com/article/nearly-10-380-billion-stimulus-checks-may-be-used-buy-bitcoin-and-stocks-survey

General Market Commentary

Stocks touched new record highs last week as bond yields steadied, a fiscal relief bill was signed into law, and confidence in a strong economic recovery grew.

The Dow Jones Industrial Average gained 4.07%, while the Standard & Poor’s 500 tacked on 2.64%. The Nasdaq Composite index rose 3.09% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, gained 3.01%.1,2,3

Dow 32,000

Stocks marched higher as bond yields leveled off and the $1.9 trillion stimulus bill moved through the legislative process. A muted inflation number and a better-than-expected jobless claims report evidenced an improving economy absent an attendant rise in inflation.4

The technology sector was particularly volatile, with the Nasdaq Composite falling into correction territory to start the week as investors rotated into cyclical opportunities.

Technology rebounded strongly as bond yields stabilized and bargain hunters purchased tech names at reduced prices. The bounceback propelled the S&P 500 to a record high, while the reopening trade drove the Dow Industrials above 32,000 for the first time.5,6

The week ended on a mixed note, with the Dow and S&P 500 adding to their record closes and the Nasdaq Composite trimming its weekly gain.

Treasury Auctions

Treasury auctions to finance federal spending are usually staid affairs, but investor trepidation was high ahead of last week’s auctions of 10-year and 30-year Treasuries. Investors were concerned that lukewarm demand amid a huge supply had the potential to drive yields higher and take the pressure on stock prices lower.As it turned out, Wednesday’s auction of 10-year Notes was received with adequate demand, helped by a tame February inflation number and strong overseas interest. The following day’s 30-year auction also went relatively smoothly, though the auction yield was 36.2 basis points higher than last month’s auction. Despite $120 billion of federal debt issuance last week, yields steadied, easing investors’ interest rate concerns for the moment.7

This Week: Key Economic Data

Tuesday: Retail Sales. Industrial Production.Wednesday: Housing Starts. Federal Open Market Committee (FOMC) Meeting Announcement.Thursday: Jobless Claims. Index of Leading Economic Indicators.Source: Econoday, March 12, 2021The 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 Earnings

Tuesday: Coupa Software (COUP).Wednesday: Five Below (FIVE), Cintas Corporation (CTAS).Thursday: FedEx Corporation (FDX), Nike, Inc. (NKE), Dollar General (DG).Source: Zacks, March 12, 2021Companies 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.

“You can cut all the flowers but you cannot keep spring from coming.”

– Pablo Neruda

Couples Who Work Together, Tax Together

As more households decide to start a business, many couples find themselves learning about the tax responsibilities related to that business. There are some things to consider when working together.

Here are a few items to consider:

  • 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 (one spouse substantially controls management decisions). These relationships face different tax situations.

  • If there is an employee/employer relationship, the second spouse (employee) may be subject to income tax, Social Security, and Medicare.

  • If there is a partnership relationship, you may need to report the business income on Form 1065, US 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.gov8

Eat This, Not That: Easy Food Swaps Anyone Can Do

Eating healthier doesn’t have to be hard! You might not have to make any major changes in your current diet! By swapping out unhealthy options for healthier picks, you can cut the bad stuff and still enjoy your meal. Here are some of our favorite food swaps:

  • Mustard instead of mayonnaise (0 calories vs. 90 calories)

  • Scrambled eggs with green onions instead of cheese (170 calories vs. 275 calories)

  • Sparkling water instead of soda (0 calories vs. 140 calories)

  • Fresh fruit instead of dried fruit (69 calories vs. 325 calories)

  • Greek yogurt instead of sour cream (28 calories vs. 60 calories)

  • Olive oil spray instead of a tablespoon of olive oil (5 calories vs. 120 calories)

  • Corn tortillas instead of flour tortillas (100 calories vs. 280 calories)

  • All-bran cereal instead of granola (80 calories vs. 200 calories)

  • Goat cheese instead of Brie cheese (70 calories vs. 100 calories)

Many healthy swaps like these can help you reduce your caloric intake, consume less sugar, and make it easy to create a more balanced meal.

Tip adapted from EatThis.com9

Where does today come before yesterday?

Last week’s riddle: The name of a particular insect is six letters long. You can lop off the last three letters from its name and end up with the name of another insect. What is this six-letter word?  Answer: Beetle.

Hot air balloons at sunrise in Cappadocia, Turkey.

Footnotes and Sources

1. The Wall Street Journal, March 12, 2021

2. The Wall Street Journal, March 12, 2021

3. The Wall Street Journal, March 12, 2021

4. Bloomberg.com, March 10, 2021

5. CNBC, March 11, 2021

6. The Wall Street Journal, March 10, 2021

7. The Street, March 11, 2021

8. IRS.gov, October 7, 2020

9. EatThis.com, September 29, 2020

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.

The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.

The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.

The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. 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 technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.

U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid. 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.

International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.

Please consult your financial professional for additional information.

This content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG is not affiliated with the named representative, financial professional, Registered Investment Advisor, Broker-Dealer, nor state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security.

Copyright 2021 FMG Suite.

Summit Financial Group of Indiana

Licensed in these states: Florida, Illinois, Indiana, Kansas, Kentucky, Maryland, New Hampshire, New Jersey, Ohio, Pennsylvania, South Dakota, Texas, Minnesota, North Carolina, Montana.

Securities offered through Regulus Financial Group, 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 Financial Group, LLC 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 Financial Group, LLC and Regal Investment Advisors.

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