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China's Currency - Revisited

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Contributed by: Nicholas Boguth Nicholas Boguth

I want to revisit a topic I first discussed back in March – China’s currency.

In the previous blog, I explained why China was devaluing their currency and what potential effects it could have on their economy. As previously stated, one of the biggest risks with currency devaluing is the risk of capital outflow. If investors think that there are better opportunities elsewhere, they will move themselves or their money into a country with stronger currency prospects. In the chart below, we can see this exact event currently happening in China.

This is a topic that catches a lot of headlines, and it should be useful to have some background to filter through all the noise. We are likely to see headlines about how China is managing its currency well into the New Year; maybe headlines about Chinese goods getting cheaper as the US Dollar strengthens relative to the yuan, or you may have already seen the most recent headline about China placing restrictions to attempt to slow the capital outflow from the country. They want to slow this mass capital outflow because it is increasing their supply of yuan and triggering inflation that can be harmful in excess. We will stay tuned and observe how the country acts and reacts going forward. If you have any questions about these changes, don’t hesitate to reach out to the Investment Department here at The Center!

Nicholas Boguth is an Investment Research Associate at Center for Financial Planning, Inc.® and an Investment Representative with Raymond James Financial Services.

The information contained in this blog does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Nick Boguth and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or loss regardless of strategy selected. Past performance may not be indicative of future results.

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Humbling Experience: Volunteering with Humble Design

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On December 7th, eleven volunteers from The Center braved the cold and made their way to Pontiac to meet at the Humble Design warehouse. There we learned about the truly humble beginning of this non-profit that furnishes homes for families who have previously experienced homelessness. Humble Design goes into homes, procured by agencies, and adds furnishings—like a bed for each child, kitchen supplies, and furniture for living spaces—as well as character to the previously empty space. They take each unique family into consideration and decorate to their needs and likings. Each child gets their own bed, something most children living in shelters don’t have the luxury of experiencing, and those kids then for the first time have their own space to learn, to dream, and to live. Every kitchen is furnished with new pots and pans procured through valuable partnerships Humble Design has initiated. Most importantly, every house has a dining room table that is set and ready for family meals; again something most transient families are unaccustomed to. Humble Design attains all these materials from gracious donations, advantageous partnerships with organizations, and companies, like Center for Financial Planning, who sponsored a specific family.

We at The Center were so excited to start this partnership with Humble Design after having a few of our partners work with them in the past. In October, we had a couple employees volunteer in the warehouse, sorting donations and the like, and in December we were able to extend this partnership further to sponsor the design and furnishing of a house for a family of four in Detroit. Our volunteers carried boxes filled with pictures, lamps, pots and pans, in order to design and stock the house with the essentials and designed it in a truly beautiful way. At the end of the day the family was able to move into an already furnished house with all of their needs covered, and have it feel like a readymade home. We may have provided the things and donated our time, but that family will add the life, the love, and the happiness to make the house a home. We are truly grateful to have been a part of such a wonderful opportunity to make a family feel safe and welcomed in a place to call their own.

Raymond James is not affiliated with and does not endorse the services of Humble Design.

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How Much of My Income Should I Be Saving?

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Contributed by: Nick Defenthaler, CFP® Nick Defenthaler

This is a common and logical question to ask, right?  Unfortunately, there are too many unknown factors to give a precise answer.  If you’re 45, you have at least 15-20 years before you retire.  A lot can change in life during this time frame! What you think you may want retirement to look like might drastically change over the course of nearly two decades. How much you save obviously can have a big impact on your retirement goals. The simple answer I often hear in regards to this question is, “save at least what your company match is.” Meaning, if your employer offers a 4% match, you should contribute at least 4% to be eligible for the free money your employer is offering by incentivizing you to save for the future. Time to get blunt. Saving 4% isn’t enough. If you’re in your mid to late twenties, this is an acceptable savings rate to get in the habit of saving for retirement, in conjunction with paying down student loans, saving for a house, wedding or having children. When you’re 20 or fewer years away from retirement, however, that number simply needs to be more than the company match – probably closer to 15% - 20%. 

Thirty or forty years ago, saving 4% often times could in-fact create a successful retirement. So what’s changed? The extinction of the company pension plan.  Do you know that it would take a $615,000 retirement account to re-create a $40,000 income stream for 30 years, assuming a 5% distribution rate? In addition, most retirees who do receive a pension don’t just spend their pension income, they withdraw from their portfolio as well -- meaning far more than the $615,000 in my example would have to be accumulated prior to retirement to supplement spending for a 25+ year time horizon. 

So, if you’re not saving in the teens or twenties for retirement, how do you get there? I recommend implementing what I call the “one per year” strategy.  Meaning, you commit to increasing your 401k savings percentage by at least 1% each and every year until you get where you need to be in regards to your retirement saving goals. This is typically very doable for most; we just simply don’t make the change online or with our Human Resources department. As the New Year quickly approaches, now is the perfect time to evaluate your current savings level and check in with your planner to see if you need to be doing more. Many 401k plans now actually offer a great feature that automatically increases your contribution level each and every year, typically in January. Studies have shown that when things are automated, such as savings, they actually get done!  Ask your HR manager or 401k administrator if the plan allows for this and if so, seriously consider taking advantage of it.  

By increasing savings gradually, it will help make retirement savings far more manageable and realistic for many.

Think about it, if you’re trying to lose 100 pounds and you become fixated on that large number, chances are you’ll become overwhelmed and give up on your weight loss goal. Those who have the most success are the ones who focus on small victories. Losing a few pounds per month until that goal is met– the same goes for retirement savings.  

Keep it simple and be consistent – good things usually happen when we do just that!

Nick Defenthaler, CFP® is a CERTIFIED FINANCIAL PLANNER™ at Center for Financial Planning, Inc.® Nick is a member of The Center’s financial planning department and also works closely with Center clients. In addition, Nick is a frequent contributor to the firm’s blogs.

The information contained in this blog does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Nick Defenthaler, CFP® and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or loss regardless of strategy selected. 401(k) plans are long term retirement savings vehicles. Withdrawal of pre-tax contributions and/or earnings will be subject to ordinary income tax and, if taken prior to age 59 1/2, may be subject to a 10% federal tax penalty. Matching contributions from your employer may be subject to a vesting schedule. Please consult with your financial advisor for more information.

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Restricted Stock Units vs Employee Stock Options

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Contributed by: Kali Hassinger, CFP® Kali Hassinger

Some of you may be familiar with the blanket term "stock options." In the past, this term was most likely referring to Employee Stock Options (or ESOs). ESOs were frequently offered as an employee benefit and form of compensation, but, over time, employers have adapted stock options to better benefit both the employee and themselves.

ESOs provided the employee the right to buy a certain number of company shares at a predetermined price for a specific period of time. These options, however, would lose their value if the stock price dropped below the predetermined price, thus becoming essentially worthless to the employee. As an alternative to this format, a large number of employers are now utilizing another type of stock option known as Restricted Stock Units (or RSUs). This option is referred to as a "full value stock grant" because, unlike ESOs, RSUs are worth the "full value" of the stock shares when the grant vests. This means that the RSU will always have value to the employee upon vesting (assuming the stock price doesn't reach $0). In this sense, the RSU is more advantageous to the employee than the ESO.

As opposed to some other types of stock options, the employer is not transferring stock ownership or allocating any outstanding stock to the employee until the predetermined RSU vesting date. The shares granted with RSUs are essentially a promise between the employer and employee, but no shares are received by the employee until vesting. Since there is no "constructive receipt" (IRS term!) of the shares, there is also no taxation until vesting.

For example, if an employer grants 5,000 shares of company stock to an employee as an RSU, the employee won't be sure of how much the grant is worth until vesting. If this stock is valued at $25 upon vesting, the employee would have $125,000 of compensation income (reported on the W-2) that year.

As you can imagine, vesting can cause a large jump in taxable income for the year, so the employee may have to select how to withhold for taxes. Some usual options include paying cash, selling or holding back shares within the grant to cover taxes, or selling all shares and withholding cash from the proceeds. In some RSU plan structures, the employee is allowed to defer receipt of the shares after vesting in order to avoid income taxes during high earning years. In most cases, however, the employee will still have to pay Social Security and Medicare taxes the year the grant vests.

Although there are a few differences between the old school stock option and the newer Restricted Stock Unit hybrid, these options can provide the same incentive for employees. If you have any questions about your own stock options, please reach out to us!

Kali Hassinger, CFP® is an Associate Financial Planner at Center for Financial Planning, Inc.®

The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Kali Hassinger, CFP® and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or loss regardless of strategy selected. This information is not intended as a solicitation or an offer to buy or sell any security referred to herein. Investments mentioned may not be suitable for all investors. This is a hypothetical example for illustration purpose only and does not represent an actual investment.

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Should I Accelerate My Mortgage Payoff?

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Contributed by: Matt Trujillo, CFP® Matt Trujillo

Most homeowners make their regular mortgage payments every month for the duration of the loan term, and never think of doing otherwise. But by prepaying your mortgage, you could reduce the amount of interest you'll pay over time.

How Prepayment Affects a Mortgage

By prepaying your mortgage, you could reduce the amount of interest you'll pay over the life of the loan, regardless of the type of mortgage. Prepayment, however, affects fixed rate mortgages and adjustable rate mortgages in different ways.

If you prepay a fixed rate mortgage, you'll pay your loan off early. By reducing the term of your mortgage, you'll pay less interest over the life of the loan, and you'll own your home free and clear in less time.

If you prepay an adjustable rate mortgage, the term of your mortgage generally won't change. Your total loan balance will be reduced faster than scheduled, so you'll pay less interest over the life of the loan. Every time your interest rate is recalculated, your monthly payments may go down as well, since they'll be calculated against a smaller principal balance. If your interest rate goes up substantially, however, your monthly payments could increase, even though your principal balance has decreased.

Should I Prepay My Mortgage?

A common predicament is what to do with extra cash. Should you invest it or use it to prepay your mortgage? You'll need to consider many factors when making your decision. For instance, do you have an investment alternative that will give you a greater yield after taxes than prepaying your mortgage would offer in savings? Perhaps you'd be better off putting your money in a tax-deferred investment vehicle (particularly one where your contributions are matched, as in some employer-sponsored 401(k) plans). Remember, though, that the interest savings you'll obtain by prepaying your mortgage is a certainty; by comparison, the return on an alternative investment may not be a sure thing.

Other factors may also influence your decision. The best time to consider making prepayments on your mortgage would be when:

  • You can afford to contribute money on a regular basis

  • You have no better investment alternatives of comparable certainty

  • You cannot refinance your mortgage to obtain a lower interest rate

  • You have no outstanding consumer debts that are charging you high interest that isn't deductible for income tax purposes (e.g., credit card balances)

  • You are in the early years of your mortgage, when, given the amortization schedule, the interest charges are highest

  • You have sufficient liquid savings (three to six months' worth of living expenses) to cover your needs in the event of an emergency

  • You won't need the funds you'll use for mortgage prepayment in the near future for some other purpose, such as paying for college or caring for an aging parent

  • You intend to remain in your home for at least the next few years

Particularly against a fixed rate mortgage, regular contributions toward prepayment can dramatically shorten the life of the loan and result in savings on the total interest you're charged. As always, consult your financial planner before make any large financial moves. We’re here to look at the big picture and help make the best decisions for you particular situations.

Matthew Trujillo, CFP®, is a Certified Financial Planner™ at Center for Financial Planning, Inc.® Matt currently assists Center planners and clients, and is a contributor to Money Centered.

Raymond James Financial Services, Inc. and your Raymond James Financial Advisor do not solicit or offer residential mortgage products and are unable to accept any residential mortgage loan applications or to offer or negotiate terms of any such loan. You will be referred to a qualified Raymond James Bank employee for your residential mortgage lending needs.

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How to Get on the Same Financial Page

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If I told you that over 40% of couples don’t know how much their partner earns, would you believe it? The Couples Retirement Survey recently published by Fidelity Investments revealed that this statistic is in fact true. My first thought was, “how can this be” and a close second was “what’s the best way for folks falling in the 40% to get in sync financially?”   

Here are 5 straightforward questions to help get the conversation started.

Getting to the answers may not be easy especially if there is no centralized management in the household. Ready – set – go!

  1. Do we have any financial secrets? Talk about debt, obligations, past mistakes and what you learned. Are you a spender or a saver? Develop a shared vision for the future.

  2. How much do we earn? Include bonuses in your discussion and consider your future career goals and earning potential as well. 

  3. What’s our budget? Do you know your cost of living? Is it above your means or below? Create and maintain a budget together.

  4. What do we own and what do we owe? Take an inventory or your collective assets and liabilities; property, insurance policies, bank and retirement accounts—anything that involves money.

  5. How much are we saving for retirement and where are the accounts? Keep track of your 401(k)s, including those from previous jobs; IRA’s and other accounts dedicated to retirement savings. How much are you contributing and whose name is on each?

The preceding five questions are conversation starters. Want to get started? Set a date to talk money using these questions as a starting point. Compile all of your account numbers and passwords in a secure place for easy reference and share with your partner. Schedule time with your financial planner to review your progress and strategize for a more complete understanding of your financial status as a couple which is crucial to planning, budgeting and saving toward future goals.

Laurie Renchik, CFP®, MBA is a Partner and Senior Financial Planner at Center for Financial Planning, Inc.® In addition to working with women who are in the midst of a transition (career change, receiving an inheritance, losing a life partner, divorce or remarriage), Laurie works with clients who are planning for retirement. Laurie is a member of the Leadership Oakland Alumni Association and is a frequent contributor to Money Centered.

This information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete.

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Finding The Center

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Contributed by: Emily Lucido Emily Lucido

Looking for a new job is not the greatest thing in the world. Let’s not sugar coat it. It’s hard and it can be exhausting at times. Whether searching for a new job because of location, personal growth, or current discontent, it can be hard to find something “better” or even just a good fit for you.

So I wanted to share my Center Story. Instead of painstakingly searching for a specific job I wanted, I took the approach of looking for a good company. Because, let’s be honest, most of your happiness at work can sometimes just be about the company you are working for instead of the job itself.

As I started my research within the financial services industry, The Center stood out to me immediately. I liked that it was a smaller financial firm, and you can sense its cool vibe, great culture, and core values as soon as you step through the doors. It struck me as exactly the kind of place where a recent finance grad, like me, could really spread my wings.

The Center was recognized in Crain’s 2014 Cool Places to Work Award Program (fun fact: our Director of Client Services, Lauren Adams, found The Center after reading the Crain’s article too!), and I have to say, the award does not lie.

After being here for about two months, this is somewhere where you just feel at home. When your company takes care of you, you want to do a good job every day, and that is exactly how I feel here.

The Center strives for growth, which is something extremely important to me. I have learned so much in the past two months about the financial planning process and have stretched myself to do and learn more. Being a part of The Center doesn’t just mean doing your job; it means being involved with each other, engaged with our internal committees (like Health & Wellness), and committed to community services through our company sponsored volunteer programs. Everyone has equal value, and you respect everyone for the amount of work and time they’ve put into their jobs, which makes you want to do a good job as well.

And good work doesn’t go unnoticed! I remember vividly during my first weeks when I received a compliment from Tim Wyman, Partner and Branch Manager, about one of my first client phone calls. Being new and just getting started, it was refreshing to receive that kind of support especially from someone higher up in the company.  It meant a lot to me and motivated me to do even better for our clients.

So if you need advice and are looking for a new job or career, my two cents are to look at the company first. Look at its values and goals, see if it recognizes employees, and make sure you will be treated fairly. Happily, this is something I don’t have to worry about now that I work here, at The Center.

Emily Lucido is a Client Service Associate at Center for Financial Planning, Inc.®

Any opinions are those of Emily Lucido and Lauren Adams and not necessarily those of Raymond James.

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Medicare Changes in 2017

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Contributed by: James Smiertka James Smiertka

We all know Medicare can be complicated, and the cost of benefits change each year. In recent years, you may have heard that you should expect rising premiums and higher out-of-pocket deductibles. These Medicare costs are tied to the COLA (cost-of-living adjustment) that increases the benefit of Social Security recipients each year. The Social Security Administration decides the year’s COLA based on the inflation rate from the prior year.

Most recipients of Medicare pay premiums for Part B coverage whether they pay for Part A coverage. Generally, Medicare recipients with 40 quarters of Medicare-covered employment receive Part A coverage while not paying a premium. Part A covers hospital stays, skilled nursing facilities, and home health and hospice care. Part B covers other things like doctor visits, outpatient procedures, and medical equipment. Premiums are also required for Part D prescription drug coverage.

So how exactly does this year’s 0.3% Social Security COLA tie in with Medicare costs?

In 2016, there was no COLA for Social Security, and with the increase in Medicare Part B premiums about 70% of Social Security recipients did not have to pay the higher premiums do to the “hold harmless” provision which prevents them from having their Social Security incomes drained by the rising Medicare premiums. With this year’s 0.3% Social Security COLA recipients can expect to pay just a few dollars more per month. The average increase will be about 4%.

Medicare announced increases of about 10% for 2017 part B premiums & deductibles. There are modest increases for Part A premiums, and Part D plans have already been set and are not affected by the Part A or Part B changes. This year’s 0.3% Social Security COLA will be too small to fully fund higher Part B premiums so many recipients will once again be saved from increases by the “hold harmless” provision.

Here are Medicare numbers for 2017 from Raymond James.

  • Premiums are higher for those with higher taxable incomes ($85,000 for individuals and $170,000 for couples filing jointly).

  • The average Medicare Part B premium in 2017 will be about $109 (compared to $104.90 for the past 4 years).

  • Standard premium is increasing from $121.90 in 2016 to $134 in 2017.

  • The Medicare Part B deductible is increasing from $106 in 2016 to $183 in 2017.

  • The monthly Medicare Part A premium for those needing to buy coverage is increasing from $411 in 2016 to $413 in 2017.

  • The Medicare Part A deductible for inpatient hospitalization is increasing from $1,288 in 2016 to $1,316 in 2017, with additional increases to daily co-insurance amounts for stays that exceed 61 days.

  • The co-insurance cost for beneficiaries in skilled nursing facilities will increase from $161 in 2016 to $164.50 in 2017 for days 21 through 100.

For the 5 to 6 percent of enrollees that earn enough to trigger the high-income surcharges, here are the numbers:

  

If you’re not enrolled in Medicare, remember to enroll in the 7-month period around your 65th birthday, and contact your financial planner with any questions.

Additional Links

James Smiertka is a Client Service Associate at Center for Financial Planning, Inc.®

Any opinions are those of James Smiertka and not necessarily those of RJFS or Raymond James. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete."
Sources: http://www.hhs.gov/about/budget/fy2017/budget-in-brief/cms/medicare/index.html
https://www.thestreet.com/story/13747734/1/how-to-prepare-your-finances-for-medicare-changes-coming-in-2017.html
https://www.medicare.gov/pubs/pdf/10050-Medicare-and-You.pdf
http://www.pbs.org/newshour/making-sense/2017-medicare-premiums-and-deductibles/
https://www.medicare.gov/pubs/pdf/10050-Medicare-and-You.pdf
http://www.raymondjames.com/pointofview/medicare-updates-for-2017

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Giving Thanks

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Contributed by: Gerri Harmer Gerri Harmer

Most of us give thanks on Thanksgiving. Some have started listing what they’re thankful for every day of November on social media which I think is absolutely fantastic. It’s how I start my day, not on social media but some kind of affirmation to myself. Most of the things they mention are big things they are most grateful for such as people like family and friends. While I know those are indeed the most important things, I’ve found that the little things about those big things are the things I remember most.  When I think back about some of the best times with family, I don’t always remember the gift I got my son for his birthday but I do remember that big mega-watt smile that spread over his face and the feeling of joy in my heart knowing his day was filled with excitement and bliss. I don’t recall the jokes my dad told or his bigger than life stories but I do remember his voice and the way his eyes lit up when he laughed. I recall my grandmother’s advice and her listening to my latest adventures with excitement as if it were the greatest story she’d ever heard or the hugs I received from grandpa or Mom putting the special spice in the recipe. These small moments fill us. They are what we hold in our hearts. I think Maya Angelo said it best, “People will forget what you said, people will forget what you did, but people will never forget how you made them feel.”

It may sound corny but how we make clients feel is what we hold dear here at The Center. We consider our clients to be part of our extended family. It’s important to us to we take care of their needs, spoken or unspoken, to the best of our ability. If we don’t have the answer, we’ll research it. When our clients call, we do our best to respond as quickly and thoroughly as possible and if we can put a smile on their face or a more peaceful feeling in their hearts then we’re content. When clients go through a joyful occasion, we cheer, when they’re going through a rough time, we feel it and do what we can to make it easier. We prepare in advance for possible emergencies whether it’s economic or situational. We try to get to know clients’ families, in case anything should happen we know who to contact and how to help. We take time to think about how we can do better for our clients even if we’re doing great. We want our client families to create the best lives they can possibly imagine and we feel incredibly thankful they have chosen us to share time and those moments.

Happy Thanksgiving from your Center Family!

Gerri Harmer is a Client Service Manager at Center for Financial Planning, Inc.®

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Market Sector Impact of Donald Trump's Presidential Win

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Contributed by: Jaclyn Jackson Jaclyn Jackson

By appealing to white, blue collar voters, Donald Trump unexpectedly captured rustbelt states and secured the 2016 presidential election. Additionally, Republicans made a clean sweep taking both the House and Senate majority. Uncertainty remains as many await cabinet selections and the unveiling of comprehensive policy. Market industry professionals anticipate rising performance from equity sectors that benefit from tax reform, infrastructure stimulus, and deregulation. The “Post-Election Day Winners and Losers” chart gives us insight as to how market sectors have performed post-election. Below, I’ve explored how each sector could continue to win or lose under the Trump administration.

The Winners

Industrials/Materials: Throughout the campaign trail, Trump showed great enthusiasm for infrastructure spending. Accordingly, industrials picked up after the election. Civil infrastructure companies and military contractors will likely have more opportunity for government work under his administration. As a result, the material and industrial sectors should have legs to run. 

Energy: Companies linked to fossil fuel energy may see a lift under a Republican White House because of less regulation and slower adaptation to renewable energy. Trump’s support of coal energy positions the energy sector for rebound.

Healthcare: Assuredly, the Affordable Care Act is on the agenda for repeal under the Trump administration. Companies that have benefited from Obamacare may decline. In contrast, pharmaceutical and biotech stocks have rallied due to the President-elect’s relatively lenient stance on drug pricing. Yet, there are no sure signs this sector will remain a winner since Trump also favored prescription drugs importation (unconventional for GOP policy) during his campaign run. According to Morgan Stanley analysis, prescription drug importation could negatively impact pharmaceutical companies.

Financials: Banks have rallied as Trump’s victory points towards deregulating financials. Conversely, well-known investment management corporation, BlackRock, challenged that repealing the Dodd-Frank law may result in “simpler and blunter, but equally onerous rules.”

The Losers

Treasuries: As votes tallied in favor of Trump’s victory on election night, investors fled from equities to Treasuries. The risk-off approach, however, dissipated overnight; perhaps because Trump’s victory speech was more conciliatory than expected revealing hope for moderate governance. Ultimately, U.S. Treasury concerns hinge on whether Trump’s policies widen the deficit.

Emerging Markets: Mexico’s reliance on exports to the US leave it vulnerable to tariffs/trade wars, therefore, Mexico and countries alike (Brazil, Argentina, Columbia) could sell off. We’ve already witnessed the peso falling in response to Trump’s protectionist views. On the other hand, JPMorgan’s chief global strategist, Dr. David Kelly, encouraged investors to evaluate emerging markets by their own “strengths.” China and some countries in Latin America, for example, are adjusting well to growth and lack populous sentiment. Overall, emerging markets have forward momentum with improving economies, easing monetary policies, and a global focus on spending.

Developed Markets/Euro: Companies with money overseas in the technology, healthcare, industrials, and consumer discretionary sectors, could gain from Trump’s desire to incentivize business repatriation of offshore cash. Subsequently, the Euro has fallen provided high concentrations of US based multinationals’ earnings are in Europe.

Consumer Stocks: Consumer stocks could be hurt because tougher immigration restrictions may deter labor supply and consumer demand. Additionally, policies that force tariffs on countries like China and Mexico may unintentionally pass on the costs of tariffs to US consumers.

If you have questions about your portfolio or how these “winners and losers” might affect you and your future, please reach out to your planner. We’re always here to help and answer your questions!

Jaclyn Jackson is an Investment Research Associate at Center for Financial Planning, Inc.® and an Investment Representative with Raymond James Financial Services.

The information contained in this blog does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Jaclyn Jackson and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or loss regardless of strategy selected. This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. This information is not intended as a solicitation or an offer to buy or sell any security referred to herein. Investments mentioned may not be suitable for all investors. Sector investments are companies engaged in business related to a specific sector. They are subject to fierce competition and their products and services may be subject to rapid obsolescence. There are additional risks associated with investing in an individual sector, including limited diversification. Investing in emerging markets can be riskier than investing in well-established foreign markets. Investing involves risk and investors may incur a profit or a loss. Past performance may not be indicative of future results.

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