240 South Pineapple Avenue, Suite 200  Sarasota, Florida  34236

You can find reports from our Investment and Research team, timely and informative financial planning topics from our Wealth Management team, and deeper dives on various important topics in our white papers from any team member. Read online, share with friends, or download for your convenience.

As mentioned in previous editions of our weekly charts, the current trade dispute has massive implications for both China and the U.S.; however, to this point, much of the tit for tat retaliation has been in the form of tariffs on the opposing country’s imports.

The chart below displays the portion of unemployed people who voluntarily left their previous job. As can be seen in the chart, a declining trend usually coincides with an economic downturn (the gray bars indicate recessions). This is due to the fact that during economic downturns, individuals know that other employers are likely not hiring, so they hold on to the job that they have. On the other side of the coin, an upward trend can be viewed as a positive sign of confidence in the job market, as workers feel confident enough in the economy to quit their job and pursue higher quality employment.

In an upcoming IMF working paper entitled “Global Market Power and Its Macroeconomic Implications,” the authors discuss the negative implications of the rise of corporate giants. As the graph below shows, the average markups on goods and services in advanced economies, which has accelerated over the past decade, has increased by 43% since the 1980s vs. only about 5% in less developed economies. This concentration of market power has several negative implications. 

Chart of the Week: Home Affordability

The chart above compares median household income relative to the income needed to purchase a median-priced home. A higher reading means that homes are more affordable, while a lower reading indicates that it is more difficult for Americans to keep up with housing costs. As one would expect, in the late 2000s at the height of the housing bubble, home buyer affordability was at a record low. In the years that followed, affordability skyrocketed as real estate prices crashed. Now, a decade removed from the depths of the housing crisis, real estate prices have rebounded, and affordability is once again falling. 

It seems that every American generation since the baby boomers have adopted the same complaint at some point in their working career. It is typically something along the lines of, “My generation will be the first one to pay into Social Security and never be able to draw a check from it.” While generations in the past have all successfully recouped the money that they paid into the system, this complaint now seems to be becoming more of a reality.

White Paper by Luke Nicholas, CFA Portfolio Manager

While the 1960s will always be remembered for free love and peace signs, the ‘80s for bad hair and the ‘90s for the rise of the personal computer – the 2010s may very well be remembered for something far different – record low interest rates. Low interest rates have impacted consumers and financial markets in a myriad of ways over the past decade. I will review some of those impacts, re-introduce the now famous acronym TINA and discuss whether this low interest rate era may finally be coming to an end.

Click here to view the complete white paper. 

 

With home values up significantly from what they were a decade ago, many people are considering selling their homes. This a perfect opportunity for us to remind potential sellers that this doesn’t mean the tax savings accumulated over the years will be lost, but only if purchasing a new primary home within two years’ time. Florida’s Save Our Homes provision allows the ability to carry accrued property tax savings from one piece of property to another, up to $500,000. This is what the State of Florida refers to as “portability.” 

KBFS Bio RaymondThis spring, we were excited to announce Helen Raymond’s promotion to Senior Operations Specialist. After nearly 14 years as a key member of the Allegiant team, we know you’ve come to know Helen professionally.  We thought now was the perfect time to also ask her to share a little more about herself so you could get to know her personally as well.  Here is Helen in her own words…

I was born and raised just outside of Boston, MA., and was blessed with a wonderful childhood when no one ever had to lock their doors, parental supervision was not a necessity, kids played in the streets, and we made up our own fun (no handheld devices, computer games, Facebook, Twitter, etc.). Ahhhh…those were the days! I’m sounding old, I am!! The middle child of three and the only daughter, I was a girly girl. Ballet, flute and oboe became my extracurricular activities. I even found myself playing tuba in the high school marching band - carrying the “H” as we spelled out our town’s name, “NEEDHAM.”

Upon high school graduation, I went to a small college to pursue a career in teaching. While there, I continued my love of dance as a member of the dance team. Unfortunately, by the time I graduated, teaching jobs were few and far between and like so many “wanna be” teachers, I ended up in the world of insurance as a life insurance underwriter…go figure! Back in those days, companies were skeptical about hiring someone that young, fearing I would get married, start a family and quit work shortly after being hired. Well, in this case they were right. I married my high school sweetheart, moved to Connecticut, and started a family.

June 2018: A Letter from Martin J. Kossoff, President

Clients have recently given me feedback requesting a helpful explanation of our company’s structure and addressing our plans for future growth.  I absolutely agree with that recommendation, and it’s also a good time to step back and review where we’ve come from. Allegiant Private Advisors has grown significantly, which was our strategic purpose, and always with a focus on excellent client service and ease of interacting with us. Because of our growth, we now have many more capabilities and service offerings for you than ever before, and more talented staff to work with.

Our growth was driven by two factors: receiving referrals from existing clients of new friends and family that wanted to talk to us; and second, a desire to expand our capabilities so that we could offer deep, comprehensive financial planning advice. Let me quickly recount where we’ve been and where we are today, and how each Allegiant client can take best advantage of everything we have to offer.