I hope you are weathering well the environment in which we find ourselves... I’m missing the crowded restaurants and movies we used to attend and look forward to returning to them. On a very positive note I would like to announce that Nick Weisert has sat for and passed his CFP exam. I could not be happier for his latest achievement. It is not an easy 6-hour exam. Congratulations Nick. Keith Fevurly has just published his 4th book. “Planning for the Elderly” A Financial Guide to Aging”, available on Amazon.com. It is an excellent resource and full of very useful information. If you would like a copy let us know, we have copies to give to you. Congratulations Keith on your 4th book. In other news, after looking at all our options, we have decided to renew our lease for another 3 years here in the Tech Center.
On to the markets. In January, if you would have known that we would experience a pandemic, social unrest, and a drop-in business activity last seen in the Great Depression beginning in 1929, who could have been able to predict that at the beginning of the fourth quarter the Morningstar Total Market Index would be UP 5.84%! The Federal Reserve has used a 2% annual inflation target as the targeted amount of inflation as one of its main goals. However, they have now abandoned that metric and said they will allow inflation to go above the 2% number. Historically (last 10 years), inflation has occurred only at around 1.5% annually. This means low interest rates for a long time. The money supply has exploded as has our national debt. Greenspan spoke of “helicopter money” during the 08-09 great recession and it appears that is what the Fed is doing now. This infusion of funds, along with the almost zero interest rates, are what is helping to hold the market up. Low interest rates and a flooded money supply makes the stock market appear to be the only game in town. As a result, cash savers essentially earn nothing after inflation! I am pleased with the current performance of the market, and the economic indicators are looking positive. However, I worry about the mounting Federal debt; it is now greater than our annual GDP. As has been very well said: “Gold is the money of kings, silver is the money of gentleman, barter is the money of peasants—but debt is the money of slaves”. The amount of debt is an issue that must be addressed lest we become a society of those who pay taxes and those who live off them.
You might want to watch a Netflix documentary I found interesting “The Social Dilemma” it is about an hour and a half and helps explain some of issues which may be causing the polarization of our society. In closing, we all thank you for your business and will work to provide excellent service and advice.
Your Truly,
Willis Ashby, President
5105 DTC PKWY Ste 316
Greenwood Village, Colorado 80111 United States
5105 DTC PKWY Ste 316
Greenwood Village, Colorado 80111 United States