News & Info
Quarterly Client Letter
We decided to delay the third quarter market and economic review letter until after our annual National Education Conference in order to bring you some of the themes from the meeting. In total, nine members of HAM attended the conference, which occurred from October 5th through the 10th. During the conference we heard a variety of speakers, including the 22nd United States Secretary of Defense, Robert Gates, multiple economists and market strategists and a physicist, Dr. Michio Kaku.
Mr. Gates spent considerable time discussing global cyber security before closing with a few words regarding his disappointment in the inability of our current elected officials to compromise. During his presentation he reported that the military and government cyber infrastructures are well positioned and are successfully fending off cyber attacks, however he indicated that the corporate world, while improving, is not as well protected. When commenting on the current political environment in Washington D.C. he described it as, “A place where the high road of humility encounters little traffic.”
The bulk of our time was spent listening to and in discussions with economists and market strategists. While each presenter’s rationale and method differed slightly, they all arrived at the same conclusion; the economies both domestically and abroad are on a positive track, though growth is being inhibited by political uncertainty here in the US. There was consensus that the debt ceiling is unnecessary and the ensuing “debates” have simply turned into a media spectacle. Of 187 globally recognized economies, only the US and Denmark have “debt ceilings”. According to economist Dr. Bob Froehlich’s research the US debt ceiling has been hit and raised some 75 times over the last 50 years. Even our politicians understand that it is impractical for the US to consider defaulting; however they increasingly continue to use the subsequent “debates” to leverage their agendas, thus imposing turmoil and angst into the financial markets.
Physicist Dr. Michio Kaku shed light on the advancement of technological innovations on the marketplace and evolving implications for the workforce. He introduced several new devices that are currently being utilized by research institutions as well as our military that appear to be straight out of a science fiction movie. He went on to discuss the growing pains of the current shift in the job market and the similarities to other job market transitions that resulted from innovation throughout history.
The overwhelming message from the meeting is that market fundamentals and changing demographics have the economy and financial markets poised for further advancements. Unfortunately the political dysfunction in Washington D.C. continues to provide headwinds that are inhibiting our ability to attain our full potential. Based on the current investment landscape we recommend that our clients maintain their long term focus as we push through this unpredictable turbulence in Washington D.C.
As always should you have any questions or concerns or if your situation has changed, please don’t hesitate to call. We thank you for the privilege to be of continued service.
Although the information has been gathered from sources believed to be reliable, it cannot be guaranteed. Views expressed in this newsletter may not reflect the views of SagePoint Financial. This information is not intended to be a substitute for specific individualized investment planning advice.
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