November 2016 Letter From My Heart

Whether Good, or Bad, or the Ugly, voting is our responsibility and an obligation to sustaining a free and democratic America – the Land of Liberty. So check your priorities, compare candidates, and be sure to vote.

Sadly, I suspect much of the unspoken will become known after the elections. This will keep me alert and watchful for changes directly impacting our investment strategy. Context and strategy are critical, yet it takes time before any “new” can take effect. Fortunately, we are more than the White House.

Some local stats: Santa Clara County

  • Sale tax receipts have grown + 12% this year.

  • For San Jose & Sunnyvale 3rd Qtr increased +30% compared to 3rd Qtr 2015

  • Labor force – Jan – Aug 2015: employed + 18,000

  • Labor force – Jan – Aug 2016: employed + 25,000

Some Nationwide observations:

  • December 2015, saw the first Fed rate increase of ¼%. Stocks dropped 10% but overtime full recovery and more. Home loans rates drop ½%.

  • December 2016, Feds may move on rates, with US inflation between 2-4% and unemployment sub 5%. Yet Yellen, remains dovish and patient, and I agree.

the Good, the Bad and the Ugly

The Good: Flat market, flat rates, flat stocks. A rare moment of respite as markets await the outcomes of November elections. Catch your breath, you may need it.

The Bad: A statewide government showing continued inability, or lack of will, to run our State. Proof: An election with 17 propositions! Perhaps we need them to work 1 year, then actually meet and listen to voters the next. One year with special interest, then one year to explain why they don’t listen to us. They need to be more accountable and responsible to us, for their actions and votes.

The Ugly: Who wrote the questions posed to the candidates? My guess, those who worked for Bernie Madoff or Global Crossing or Web-Van? We have a right to hear for more about policy and the trade-offs required to implement them. Not sure about you, but I need more policy, plans, and truth, then wandering ideology.

In Closing

Rates continue low and for many people, we have been able to stabilize income and expenses. This is the good news. However, there is a great unknown little discussed – rising health care premiums and increasing out-of-pocket deductibles. Both may have prove to be a threat to our middle-class and their families. It may prove to be the hidden “tax” that slows our economy and effects property valuations. Let me know what you think.

Give a call today. We are ready to listen and love to answer your financial questions. Our skills, experience, and knowledge is what we offer and our track record of success stories. And, why you should call us. Our skill-set is rich in options and we meet you and your needs, as our first priority.

Have a fabulous day and talk with you shortly. We remain,

Gratefully yours.

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