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!