marketSHARE
JUNE 2017
These are unusual times indeed. New presidents/governments, increasingly
frequent acts of terrorism, sabre rattling between governments…and we haven’t
even started talking about financial markets! What’s an investor to do?
marketDATA
Price
YTD
1 Month
21,083
6.68%
0.41%
1.25%
2,415
7.87%
1.11%
2.02%
NASDAQ 1
6,205
15.27%
2.98%
6.16%
Russell 2000 3
3,438
1.93%
-1.96%
-0.80%
Wilshire 5000 4
24,930
7.12%
0.71%
1.62%
Dow Jones
1
S&P 500 2
3 Months
Data as of: 5/26/17
1
Source: Google Finance
2
Source: standardandpoors.com
3
Source: russell.com
4
Source: wilshire.com
quickSHARE
We at BB&T Scott & Stringfellow
would like to wish a Happy Father’s Day
to our clients and friends.
Stay grounded in your long-term plan, knowing that uncertainties are always
swirling in some form or fashion. We should take some solace in the fact that much
of the economic information seems to be better or steady. Those positive economic
trends are not just domestic…they are being seen around the world, in developed
and emerging markets. Yes, it’s not perfect, but it’s good that it’s not perfect. Sir
John Templeton reminds us that “bull markets are born on pessimism, grow on
skepticism, mature on optimism, and die on euphoria.” Anybody feeling euphoric?
First quarter earnings are basically in the books, with U.S. markets registering the
first double-digit earnings growth rate in a long time. The Federal Reserve is seeing
enough good news that another rate hike is likely on the near-term horizon, and
the markets already expect that plus another hike later this year it would seem. We
even read that the U.S. government has started considering the issuance of 50- or
100-year bonds, which is far from a certainty, even though there is an appetite
among bond buyers and an economic justification. OPEC seems happy with its
current lot in life, and says it will retain production caps to help keep oil prices
steady through at least early next year.
When you start to get more anxious about your investments, maybe come back to
these few positive points that could center you: Interest rates are historically low;
stock market volatility is low; company earnings are up and balance sheets are flush
with cash; unemployment is low; home prices are climbing slowly as are 401(k)
values; oil prices are low; and tax relief could be on the horizon. That’s a lot of
good news that could work for fixed income investors and equity investors. Does
that guarantee investing success? No, investing is not a guarantee business. As long
as humans are involved in financial markets, there will be short-term emotional
reactions to political party bickering, surprising news, and a host of other
tangential information. This will likely cause unexpected movements day-to-day in
the financial markets, and along with those movements could come opportunities
for patient investors. Stay grounded during noisy times…give your long-term plan
a chance to succeed.
Source: Sterling Capital Management – 5/26/17
BBTScottStringfellow.com
JUNE 2017
GLOBAL CORE ETF STRATEGIES
Global assets invested in exchange-traded funds (ETFs) are rapidly
approaching $4 trillion. ETFs have set new, high watermarks for total invested
dollars for nine consecutive years. Those dollars are being spread among
a constantly growing menu that now numbers close to 5,000 individual
ETF choices. The demand for ETFs as an investment vehicle is remarkable
– and for good reason. They offer a highly liquid entry point for domestic
and global markets, often for a fraction of the cost (i.e., expense ratios) of
most alternatives. ETFs primarily invest like mutual funds (i.e., in a basket
of securities) but trade like individual stocks. They are traded intraday on
transparent exchanges around the world. This is in contrast to mutual funds,
which price only once daily at the conclusion of each trading session. The
enhanced liquidity of ETFs provides investors with real-time price discovery
and better support for more nimble investing strategies. Furthermore, because
most ETFs are designed to mimic large equity or fixed income indices,
investing in ETFs typically provides the buyer with broad diversification
immediately at the time of purchase.
In response to the growing demand for ETF-based investment strategies, we
are pleased to announce the official launch of BB&T Scott & Stringfellow’s
Global Core ETF Strategies, our low cost, actively managed ETF solutions
available only to BB&T Scott & Stringfellow clients. The strategies deliver
globally diversified equity and fixed income exposure through thoughtfully
constructed ETF portfolios. Though individual ETFs are typically passive in
nature, the portfolio managers actively seek strategic and tactical opportunities
to reposition these portfolios to capture outperformance in global markets and
sectors.
The Global Core ETF Strategies are managed internally, providing our clients
with direct access to professional equity and fixed income ETF portfolio
management – without the manager fees. Studies show one of the biggest
detractors from long-term investment performance is the accumulation of
fees, which creates a consistent drag on portfolio growth. By eliminating
manager fees, we have created an additional opportunity for improved
performance by maximizing the dollars invested in these strategies.
We strive to deliver the best client experience in the industry by putting you
and your investment goals first. We believe these strategies offer a powerful
tool to help deliver on those objectives. If you have any questions about the
Global Core ETF Strategies or are ready to get started, please call us today.
IT’S NEVER TOO EARLY TO LEARN
ABOUT INVESTING
While your children have some free time this
summer, consider educating them about money
and investing. It’s never too early to start
learning!
Please consider the following:
The sooner the better – Until they start
supporting themselves, children are likely to
spend money like they have an endless supply.
Teaching your children the concept of saving
money as early as possible will give them a
strong foundation. It may take them longer to
understand you have to actually work for your
money, but they will get it.
Children are conservative – Once they learn
they can buy things they want with money,
many children will begin hoarding every dime
they can get. How this urge is channeled can
determine what kind of financial manager your
child will be as an adult.
An allowance can be an effective teaching tool
– When your children are young, giving them a
small allowance they have earned will plant the
seed for later in life when they have to support
themselves on the money they make.
Teenagers and college-age children have bigger
responsibilities – Checking accounts, credit
cards and debt are a fact of college life. Teaching
high-school age children about banking and
credit will make them more aware and hopefully
less likely to get into financial trouble.
Investing should be learned early – Children in
their mid-teens can and should be taught about
investing in the market. Encourage them to buy
a few shares of stock or give them stock as a gift.
They will feel a real sense of accomplishment
watching their portfolio perform.
marketSHARE was prepared by the BB&T Scott & Stringfellow Marketing department for use by the firm’s financial advisors. Past performance does not guarantee future results. BB&T Scott & Stringfellow is a division of BB&T Securities,
LLC, member FINRA/SIPC. BB&T Securities, LLC, is a wholly owned nonbank subsidiary of BB&T Corporation. Securities and insurance products or annuities sold, offered or recommended by BB&T Scott & Stringfellow are not a deposit,
not FDIC insured, not guaranteed by a bank, not insured by any federal government agency and may lose value.