Hixon Zuercher Capital Management
Fee-only Registered Investment Advisor in Findlay, Ohio 45840
UPDATE: our new office is coming along nicely! In this video, our CEO, Adam, talked with Kelsey Heitkamp, owner and Principal Designer at KHID. They discussed their vision, the process of planning the remodel, and design plans, as well as toured through the office to show off the current progress of the remodel.
Stay tuned for a follow-up video where we will be excited to reveal the brand new office of Hixon Zuercher Capital Management!
We are delighted to announce that our Co-Founder and Chief Operating Officer, Tony Hixon, recently achieved the Certified Investment Management Analyst (CIMA®) designation.
The CIMA® certification is the only credential constructed specifically for advanced investment advisors. Advisors with CIMA® certification indicate the completion of a rigorous program, have a high level of competency, professionalism, and meet ethical requirements. The CIMA® advisor acquires sophisticated investment concepts and how to apply them for individual and institutional clients during the coursework. Further, the CIMA® designee must complete continuing education to ensure they are always sharpening their skillsets.
Today’s investors need expert investment guidance and a qualified advisor for the job. We’re excited to have a member of our team possess the CIMA® designation so that HZCM can offer specialized knowledge and experience to properly guide you through complex financial challenges!
Please join us in congratulating Tony on this accomplishment!
Last month, our COO, Tony Hixon, was featured on MarketWatch in an article on how financial advisors have dealt with personal tragedy. As you can imagine, this is not his favorite story to share, but at the same time, it is an important one.
In 2010, his mother sought his advice. Then 60, she was ready to retire from her 40-year health care career, and wondered if she could pull it off. She had started as a registered nurse, advancing in her career and spent the last 10 before retirement running a hospice agency.
He crunched the numbers and gave her the go-ahead. His mother promptly retired. “She thrived in that leadership role,” said Hixon. “But it took an emotional toll, and she burned out.”
In planning her retirement, he focused on quantitative computations. Would her savings last? What about her projected expenses? But where he should’ve spent more time, he realizes — and he now emphasizes to clients — was on “softer,” nonfinancial, questions: How, for example, would his mother respond to her new life?
Burdened by a feeling of hopelessness, his mother soon lapsed into a deep depression — despite having no previous history of it. Having enjoyed both a fruitful career and her time as grandmother to his two young daughters, he never expected what happened next.
Click here to read the full article, and how Tony’s family tragedy has changed the way he helps clients, family, and friends transition into retirement.
If you, or a loved one, are struggling with feelings of depression or thoughts of suicide, we encourage you to talk to someone and seek professional help. Your life matters, and you matter to us.
Markets were mixed last week with leading tech stocks falling dramatically as some investors pulled profits. The NASDAQ took the biggest hit, finishing 1.55% down on the week—its worst week of the year. Meanwhile, the Dow rose 0.31% for the week, notching another record close on Friday. The S&P 500 fell 0.30%, and the MSCI EAFE closed the week down 1.22%.
The S&P tech sector dropped 3.3% on Friday; however, it remained up 18% for the year. Major tech stocks account for almost 13% of the total number of stocks in the S&P 500, while comprising nearly 40% of the S&P 500 increase for the year.
Internationally, Asian markets were mixed while European markets closed the week generally higher. The European equities markets took last week’s UK election in stride, though the pound dropped in response to the Conservatives losing their majority.
Domestically, monthly job openings exceeded 6 million in April. Hiring, however, has slowed to only 5 million per month, suggesting workers’ skills may not match job needs. Moreover, the economy continues to show signs of softening.
Indications of a Softer Economy
What Comes Next
The Fed will hold a meeting this week to determine whether to raise interest rates. Expectations are that the Federal Open Market Committee (FOMC) will raise the fed funds rate 0.25% to 1.25% despite the soft economic news, which the Fed characterized as “transitory.” The FOMC meeting will also address quarterly forecasts for the remainder of the year. The markets expect both Japan and Britain’s central banks to also address the issue of interest rates.
In addressing the federal debt, the Treasury Secretary assured last week that the U.S. will not default on its debt. Congress must address the debt limit this summer or fall, but markets may react negatively if delays occur. Meanwhile, Congress continues to wrestle with policy questions around tax reform, an infrastructure program, and healthcare reform. How the government addresses these important initiatives could alter market dynamics in the future.
If you have questions on where you stand as these events unfold, do not hesitate to contact us. We are here to support your financial life with clarity and sound perspectives.
ECONOMIC CALENDAR
Wednesday: Consumer Price Index, Retail Sales, Business Inventories, FOMC Meeting Announcement
Thursday: Industrial Production, Housing Market Index
Friday: Housing Starts, Consumer Sentiment
Last week, the S&P 500, Dow, and NASDAQ closed at all-time record highs. The S&P 500 rose 0.96%, the Dow gained 0.6%, and the NASDAQ grew by 1.54%. Meanwhile, the MSCI EAFE gained 1.64% for the week.
Despite strong equity markets, bond yields dropped to their lowest point in the year. The drop in yield caused by rising bond prices, combined with soft employment numbers and low wage growth, could suggest a slowing economy or a tightening labor market.
While the U.S. equity markets advanced to new highs and bond prices rose, other markets were mixed for the week. Pending home sales dropped 1.3% in April, a second straight month of decline. Oil fell to $47.66 a barrel, the dollar dropped to a seven-month low against the euro, and gold gained 0.8% closing at $1,280.20.
Additionally, soft employment numbers and flat wages could lead to a disappointing Q2 Gross Domestic Product (GDP). With an eye on dropping inflation, the Fed will have to decide whether to still raise interest rates.
Mixed Job Numbers and Slow Wage Growth
May’s job growth reported an anemic 138,000, well below the expected 185,000. At the same time, average hourly wages increased on a year-over-year basis by only 2.5%. Moreover, the revisions to March and April’s payroll numbers fell by 66,000 jobs. The economy is currently averaging 162,000 new jobs per month for the year—again, well below 2016’s 187,000 average.
Despite the unemployment rate falling to 4.3%, the lowest it’s been in over 15 years, the employment-to-population ratio also fell. Still, the data confirms that demand for experienced and skilled workers exists, while the supply is falling.
Fed Will Discuss Raising Interest Rates
On June 14, the Fed FOMC will meet to determine if an interest rate increase is in order. Despite the soft employment numbers and an inflation rate below the Fed’s target of 2%, traders still believe there is a nearly 88% chance that the Fed will raise rates in June. However, the market consensus currently suggests only a roughly 50/50 chance for another rate increase before the end of the year.
International News and Looking Ahead
Manufacturing in China has posted strong returns. Both the manufacturing and non-manufacturing PMIs reported gains above 50. The numbers suggest that China is on track to reach its targeted 6.5% growth for the year. This matters because China is the world’s second largest economy at $11 trillion GDP for 2017.
Other developments in the international arena could influence markets going forward. Reaction to President Trump’s decision to leave the Paris Climate Accord could adversely affect American products in the international markets. The landmark decision also runs the risk of hurting U.S. tech and alternative energy companies.
We will continue to follow developing international and national news as they move the markets. As always, if you have questions about how these events may affect your finances, please contact us. We are here to help you remain informed and in control of your financial future.
Economic Calendar
Monday: Factory Orders, ISM Non-Manufacturing Index
Tuesday: JOLTS (Job Openings and Labor Turnover Survey)
Thursday: Jobless Claims
