Refinancers Beware

Refinancers Beware - Blog - Blue Chip Partners - ezzFrom the desk of Omar Ezz, CFP®

When compared to today’s historically low 30 Yrs. mortgage rate of ~3%, it’s hard to believe at one point over the past 50 years rates were above 18%. Refinancing is undoubtedly top of mind for many Americans. However, homeowners should recall that lower monthly payments can be a function of both a lower interest rate AND spreading out your current balance over a longer period of time. This leads to minimal to no total interest savings over the course of the new loan. Luckily many mortgage companies have created products outside the standard 15 and 30 Yrs. terms that can match the remaining years of your current mortgage. Be sure to ask your mortgage professional what products they can provide to minimize both monthly payments and total interest paid.

Speculating Vs. Investing: Know The Difference

Notice a change recently in the financial media? Make no mistake, the headline names may have changed, but fads in investing are nothing new. It’s important to understand the difference between investing and speculating.

Shedding Light on Future Economic Developments [Market Analysis]

Like our local weatherman, we can't rely on crystal ball forecasts. While meteorologists use doppler radar, satellites and other data sources to predict the weather, we look to the stock market and historical data for clues. So, we aren't left completely in the dark about future economic developments.

Outperforming the S&P 500 in 2020

 From the desk of Dan Seder:   Are We There Yet? When researching family vacations, I determined it’s precisely 1,169 miles from my house to Disney World in Orlando, Florida. If we pack a cooler and take one bathroom break...

Healthy Consolidation in Technology

From the desk of Dan Seder Sector rotation is the lifeblood of a bull market. Cyclical sectors like Financials, Energy, Industrials and Materials have recently caught a bid, while Technology has taken a breather. However, don’t let this...

The "Big Company" Effect

From the desk of Dan Seder, CFA, CMT, CFP® The S&P 500 was up over 2% yesterday…with more than half of its constituents declining! What a reminder of how a small number of HUGE companies can influence a market cap‐weighted...

Consumer Strength

From the desk of Dan Seder Discretionary stocks have outperformed the S&P 500 Index since the stock market bottomed on 3/23/20. It’s easy to attribute this rally to Amazon’s +22% stake in the market cap-weighted Consumer...

CEO Optimism Turning a Corner?

From the desk of Matt Mondoux, CFA, CMT, CFP® Confidence levels among U.S. CEOs are beginning to show signs of bottoming out. According to Business Roundtable’s quarterly business sentiment survey, after 9 straight quarters of...

Reality Check

From the desk of Dan Seder, CFA, CMT, CFP® Yes, equities have rallied since the end of March. However, the path of a bull market is NEVER straight up. At this point, the recent pullback is nothing but normal.

Who Says Indices Aren’t Actively Managed?

From the desk of Matt Mondoux, CFA, CMT, CFP® The Dow Jones Industrial Average (the “Dow”) experienced a significant rebalance today. Raytheon and ExxonMobil, two of the longest tenured members of the index dating back to the...

New Fed Policy: Average Inflation Targeting

From the desk of Dan Seder, CFA, CMT, CFP® In a subtle but important change to policy, Fed Chairman Jerome Powell confirmed yesterday that rates will stay at rock-bottom levels for longer. The Fed will be less apt to raise rates until...

S&P500 Market Capitalization

From the desk of Dan Seder, CFA, CMT, CFP® Apple (ticker: AAPL) recently topped $2 TRILLION in market capitalization – making it now larger than the market capitalization of the smallest 194 companies in the S&P 500 combined. Why...

Market Recovery

From the desk of Matt Mondoux, CFA, CMT, CFP® WOW! The S&P 500 clocked an all-time closing high on August 18th. What’s more shocking – that the loss of nearly 34% from February’s high required a gain of over 51% to...

S&P 500 Equal Weight Points to Strong Market Rally

From the desk of Omar Ezz, CFP® It’s easy to dismiss the move off the March lows as being driven by Large Cap Tech or day trading on Robinhood. However, there is evidence that the bullish move in the market is more than just big tech...

Market Breakout Confirmation

From the desk of Matt Mondoux, CFA, CMT, CFP® The basis for the stock market rally has more to do with accommodative monetary policy (e.g. Federal Reserve) and less to the fundamental backdrop of earnings and the economy. However, we believe...

2020 Roth IRA Guidance

From the desk of Naoko McKelvey, CFP® You have until July 15th to make your 2020 Roth IRA contribution. If you exceed the income limitations for making a Roth IRA contribution, the potential to tax-efficiently fund a Roth IRA may...

Emerging Markets Continue to Face Headwinds

From the desk of Omar Ezz, CFP® Emerging Markets face several COVID-related headwinds (poor healthcare infrastructure, relative lack of fiscal & monetary stimulus resources, low commodity prices, and dollar denominated debt while the...

Record Spread Between Bond and Utility Yields

From the desk of Matt Mondoux, CFA, CMT, CFP® Utility stocks tend to be the most interest rate sensitive of all domestic equity sectors. The chart below shows the historical 10-year relationship between the dividend yield of the S&P...

Most Bullish Day of the Year?

From the desk of Dan Seder, CFA, CMT, CFP® The first trading day of July is the most bullish day of the year, with the S&P 500 posting a median gain of 0.54% over the last 21 years, according to Jeff Hirsh (@AlmanacTrader). This day has...

Short Sellers Signal a Bull Market

From the desk of Dan Seder, CFA, CMT, CFP® Since the market bottomed in March, net shorts – as measured by S&P 500 future positions – have been at bearish levels not seen since 2011. Short positioning like this does not...

IRS announces new RMD rules for 2020

From the desk of Robert Steinberg, JD, CPA, CFP® Did you take a Required Minimum Distribution before the CARES Act suspended RMDs for 2020? The IRS and the Treasury Department released new guidelines on June 23rd extending the 60-day rollover...

Fortune 500 CEOs Comment on COVID Aftermath

From the desk of Omar Ezz, CFP® While meaningful economic data has been published over the past few weeks, sentiment among business leaders can provide valuable insights for investors into the long-term ramifications of the current pandemic....

Are We Heading Towards a Market Bubble?

From the desk of Hayden Kibbey, BCP Intern Jeremy Grantham, famed investor and chief investment strategist of asset management firm GMO, has called the current market a “Real McCoy” bubble. This has caused the financial media to pause...

Market Volatility Runs Both Ways

From the desk of Matt Mondoux, CFA, CMT, CFP® Downside volatility (and the Federal Reserve) once again reminded market participants to be mindful of the difficult recovery that exists ahead. U.S. Stock market saw it's worst drop on...

CARES Act Suspends RMDs for 2020

From the desk of Jonathan Johnson, CPA, CFP® The CARES Act eliminated an individual’s Required Minimum Distribution for the 2020 tax year from all qualified retirement accounts. Additional guidance by the IRS states that an individual...

June 2020 Fed Report

From the desk of Dan Seder, CFA, CMT, CFP® Here's what the Fed reported today from June's FOMC meeting: Growth: The Fed projects the US economy will contract by 6.5% in 2020. The anticipated recovery of 5% in 2021 is not enough...

Is the S&P 500 Imbalanced?

From the desk of Dan Seder, CFA, CMT, CFP® Do you know what your index fund owns? A common misconception is that the S&P 500 equally represents the largest companies in America. The following pie chart should be a stark reminder of how...

More Evidence for the Bulls...

From the desk of Dan Seder, CFA, CMT, CFP® Is there a disconnect between the stock market and the real economy? While some wait for a “double-dip” in the S&P 500, underlying stock performance suggests the future is bright....

Will Value Stocks Outperform Growth Stocks?

From the desk of Matt Mondoux, CFA, CMT, CFP® Did we just witness a “blow-off top” in relative strength between the Large Cap Growth stocks when compared to Large Cap Value Stocks? As you can see, Growth has built a...

CFA Annual Forecast Luncheon

Last Friday, the Blue Chip Advisors attended the CFA Annual Forecast Luncheon at Motor City Casino. Great comradery, great speakers and the Bloomberg Chief US Economist, Carl Riccadonna suggested that the markets have not yet peaked!