ON IT WITH OFFIT - MARKET UPDATE

Market Update

Hi All,

This past week is a reminder that the markets don’t always go straight up.  We have had a record 587 days without a 5% correction, so investors may feel surprised in the past couple of days to see their account values go temporarily down, due to this long stretch of low volatility and persistent gains.  However, in my On It With Offit newsletter last month, I said “we expect to see an upturn in volatility and a return of more normal market corrections, compared to 2017” but also “the U.S. economy has accelerated over the past several quarters and we expect that economic momentum to carry into 2018.  We are still in the midst of a bull market for stocks”

While corrections are never pleasant, they have been and will always be, a normal occurrence for the equity markets. Fundamentals remain solid and the recent pullback has not changed our belief that we remain in a secular bull market. We are not advocating any re-allocations based on recent market action.

As always, please call with any questions.

Sincerely,
Ben Offit, CFP®

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra IS or Kestra AS. The material is for informational purposes only. It represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. It is not guaranteed by Kestra IS or Kestra AS for accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.

ON IT WITH OFFIT NEWSLETTER

Ben Offit, CFP® is featured in Baltimore Magazine as a 2018 Five Star Wealth Manager

To receive the 2018 Five Star Wealth Manager award, researched and managed by Five Star Professional, a wealth manager must meet 10 objective eligibility and evaluation criteria associated with wealth managers who provide quality services to their clients. 1,759 wealth managers in the Baltimore area were considered for the award. 232 were named in 2018. Five Star Wealth Managers which represents less than 13% of the total wealth managers in the area. Wealth managers do not pay a fee to be considered or placed on the final list of 2018 Five Star Wealth Managers. The Five Star award is not indicative of the wealth manager's future performance.
 

Ben will be speaking at his alma mater, the University of Maryland, on Tuesday January 31st, 2018 about the parallel progression of the University as well as the financial planning industry and how this applies when choosing a financial planner.

On The Road To Clarity...

Many people ask me what they think the markets will do.  I don't pretend to know what will happen tomorrow, next week, or the next year.  My job is not to predict the markets, but more to put my clients in a successful position despite the ebbs and flows of the market.  As history has shown us, there are inevitable temporary ups and downs in the market in the short term, but there is permanent advance in the long term.

However, if you do want some more insight into the markets for 2018, a firm that I have come to like and respect is Clark Capital, a boutique investment firm based out of Philadelphia, PA.  Here are their main thoughts for 2018:

-The U.S. economy has accelerated over the past several quarters and they expect that economic momentum to carry into 2018.

-Their view of the markets remains that we are still in the midst of a bull market for stocks.

- They expect U.S. stocks to post mid to upper single-digit gains for the year, with a target of 2900 on the S&P 500.

- However, they expect to see an upturn in volatility and a return of more normal market corrections, compared to 2017. If there were to be a form of a correction, it would occur around the mid-term elections.  If this does occur, it typically sets the stage for strong rebound rallies. 

-They don’t see a recession on the horizon.  And, if there is any correction, it should be shorter and shallower and set the market up for additional gains.

Financial Planning Tips

Do you have an HSA with your health insurance plan and do you live in Maryland?  If yes, you may want to think about your options, as HSA's have been outlawed in Maryland!

HSA-qualified high deductible health insurance plans (HDHPs) are prohibited from covering any benefits before the deductible is met, except for IRS approved preventive care services. Therefore, it is impossible to purchase an HSA qualified health plan, since no exemption was made for HSA-qualified HDHPs in the Maryland law. The only way to reverse this law in Maryland is through legislative action.

This has happened because in 2016 Maryland passed a law requiring all commercial health insurance plans to provide first-dollar coverage for male sterilization (i.e., no deductible, copays or coinsurance may apply). The law applies to all policies, contracts, and health benefit plans that are issued, delivered, or renewed in the State on or after January 1, 2018 except self-insured employer plans, which are exempt due to Federal ERISA law. 

It is possible, however, if you have an HSA plan that is with a company not based in Maryland, this will not apply.

Please contact me with any further questions!
 
 

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra IS or Kestra AS. The material is for informational purposes only. It represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. It is not guaranteed by Kestra IS or Kestra AS for accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security.

ON IT WITH OFFIT NEWSLETTER

Ben Offit, CFP® has been named President-Electof the Financial Planning Association of Maryland (FPA) by the Board of Governors.  

The Financial Planning Association is the largest membership organization for personal financial planning experts in the U.S. and includes professionals from all backgrounds and business models. FPA helps connect thousands of consumers to competent and ethical planners who uphold the FPA Standard of Care.  Members of FPA are those who commit to the highest standard of professional competence, ethical conduct and clear, complete, disclosure to those they serve. They deliver advice using an objective, client-centered, ethical process. FPA membership consists of financial planners and all those who support the financial planning process. 

Ben Offit was welcomed back to the Hinman CEOs Entrepreneurship program at the University of Maryland on November 29th as a keynote speaker.  Ben graduated with a major in Entrepreneurship from the University and discussed his own journey of launching his own business out of college and also gave some life and financial lessons to consider.

ON IT WITH OFFIT NEWSLETTER - OCTOBER 2017

My wife and I are coming up on our 4 year wedding anniversary on November 30th, 2017. Hard to believe how time goes so quickly. I feel so lucky to be married to my amazing partner who is way out of my league!

Ben Offit and Offit Advisors were exhibitors at the Maryland Chiropractic Association convention in Gaithersburg, MD in October. We were fortunate to meet some great people and medical professionals that we look forward to having long lasting relationships with.

ON IT WITH OFFIT NEWSLETTER- SEPTEMBER 2017

Ben Offit was featured in the Maryland Chiropractic Association journal in September 2017. He also will be speaking at the upcoming Baltimore County Bar Association meeting on October 18th.

ON IT WITH OFFIT NEWSLETTER - AUGUST 2017

My wife and I were fortunate to travel to Spain and Morocco in June 2017.  This is a picture taken at the end of Las Ramblas in Barcelona in June.  Praying for all of the lives lost in this beautiful city yesterday and for peace worldwide. 

This is a picture taken during a hike in the Atlas Mountains, just outside of Marrakesh, Morocco.