07 Sep IMPORTANT ANNOUNCEMENT AND MARKET UPDATE AUGUST 2017
Please help with congratulating Saxon Knight on his successful completion of the Chartered
Financial Analyst (CFA) Program. This was a long four year arduous process of rigorous
studying and exam preparation. The CFA charter is considered the highest distinction in the
investment management profession. Not only does the program equip Saxon with
unmatched expertise for investment and financial decision making but also provides a
strong ethical foundation that can sometimes be lacking in our industry.
On average, less than 1 in five candidates who begin the program receive the CFA Charter.
Our firm is excited about this achievement and along with our recent reorganization into a
Registered Investment Advisor, Sklar Capital is better equipped than ever to deliver quality
financial advice. We look forward to constantly improving and providing great service. We
are grateful for our relationships with you that sometimes stretch back over 20 years and
hopefully you feel the same.
Sklar Capital is always evolving to stay on top of industry trends and changes. We will never
rest on our laurels, and we believe these accomplishments are proof. Below is a market
Market Update- August 2017
This year can be summed up so far by this common question- "How are markets still up
when there is chaos in Washington and constant geopolitical risk around with world with bad
actors such as North Korea?" If you watch or read any financial news you are bound to see
this sentiment broadcast loud and clear. 2017 has so far been a steady climb in the stock
market with very low volatility. The exact opposite reaction one would expect, especially if
you are a Trump disdainer. The bottom line that we have come to understand more and
more is that these headline grabbing news bits just do not affect the market as much as one
is lead to believe. The proof is in the pudding so to speak. Looking back historically would
show that news headlines do not have any consistent reliable effect on stocks. Here is a
Certain negative impactful news events may create a knee jerk reaction, but they often have no lasting influence. The events surrounding this chart as clearly more impactful than anything we are experiencing today, so why would disagreement with the President or tensions between the US and North Korea have any lasting impact?
Currently, around the world most major economies are growing steadily, employment continues to be solid and expanding, inflation is low, interest rates are low, oil is low, house prices are up, technology continues to make things cheaper, retail sales are up, stocks are up, and consumer confidence continues to be positive.
These data points have more impact on our everyday lives than news headlines. This is
what we focus on. We don't want to sound like a Pollyanna, but until we see the underlying
trends change we must continue to be somewhat optimistic. Otherwise, we wouldn't be
doing our job. So, please remember that it is not the news that will direct the market,
rather market sentiment directs the market.
Saxon Knight, CFA, CFP®