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Axiom | Vol 274

Client Axiom | Vol 274

Rough September Still Finds US Markets Ahead Of Internationals

Meet The Axiom®’s Guest Editor: Mark Beck

I’m Mark Beck, Managing Director of Wealth Management Services and host of The Annex Wealth Management Investment Show on NewsTalk 1130 WISN. 

I’ve been fortunate enough to help lead a team of exceptional wealth managers who are dedicated to great client outcomes. Annex is truly unique in its depth of comprehensive planning and client engagement, and I’m proud to say that I’ve been part of the team that envisioned and brought to life this great model. I find it truly rewarding to know that we make a difference in people’s financial lives and help impact their overall well-being in a positive way.  

I was born and raised in Kaukauna, WI, went to UW-Whitewater, and now live in Waterford, WI where Cathy, my wife, and I raised two fantastic kids. 

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What I like about the Axiom is that it’s full of information, from simple to complex. We seek to share insights from across the spectrum of wealth management, and I feel like there is something for everyone.

– Guest Editor: Mark Beck | Managing Director of Wealth Management Services 
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Rough September Still Finds US Markets Ahead Of Internationals

September is historically one of the worst months for markets. September 2021 was no different, but as other international economies slip, investors may find American markets the best option available. Annex Wealth Management’s Dave Spano and Derek Felske discuss.

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The calendar has turned and there’s no use in denying it: fall is here.

Time to embrace some classic fall activities and enjoy it while we can!

Time to pull out those sweaters, scarves, and boots, or if you are one of those people who likes colder weather, then maybe it just means you finally have to wear pants. We like to think of September as the month where we pretend it’s still summer. But with October arriving, it’s truly fall – we can’t deny it anymore.

Just like everything else in our language, the word “fall” did not originate in North America. The word is actually a shortened version of the English phrase “fall of the leaf” which was common in England in the 17th century.[1]

Even “autumn” is both foreign and old – an English version of the Latin “autumnus” which can be traced back as far is the 1300s.[2] So, we can thank our foreign roots for the name of this season that most people love so much.

The calendar year wasn’t always split up into the four seasons that we have today. For instance, in some American Indian cultures, time was measured solely by Winter.[3] For instance, four winters would actually mean four full years. Game of Thrones, anyone?

Fall becomes the official season for the Northern Hemisphere once we reach the autumnal equinox. The term equinox is Latin and literally means equal (equi) night (nox) to mark when the sun passes over the equator and day and night are almost the same length.[4] For the Northern Hemisphere, this marks the start of fall, as we are starting to tilt away from the sun. For the Southern Hemisphere, this is the time when their hotter seasons starts.

Since our equinox has come and gone, bring out all things pumpkin! It may be cliché, but it’s only because it just feels so right as the temperatures start to drop.

Whether its pumpkin flavor, pumpkin scented things, or pumpkin decorations, now is the time to embrace it all.

Looking for a few ways to enjoy fall?

For the kids:

Pumpkins are everywhere! At the farmers market, the grocery store, the local pumpkin patch, or even in a cart on the side of a country road. The ideas for what to do with them are almost as vast as the number of pumpkins out there to pick from. While we won’t explain every single one, here are a few unique ones we found[5]:

Paint or glue decorations on them rather than the traditional carving. This may be a safer option for younger kids, and everyone’s pumpkins can look different with colors, beads, leaves, or whatever you have around the house that can stick with glue!

Use it as a planter. Hollow out the pumpkin and place fresh flowers inside for truly fall themed décor.

Pumpkin bowling. Set up whatever you’d like as pins in the yard – bottles, cans, tubes, etc. and pick a pumpkin you have that looks round and get your lane up and running. We can only guess how many weird bounces it will take!

Already at a farm to look for pumpkins? Take a hayride through the property for the kids to see the farmland, look around at the fall colors and trees, and enjoy the novelty of bouncing around being pulled by a tractor. Or, if you’re feeling extra ambitious, take a trek through a corn maze – just make sure you have a map! Give it a try, this opportunity only comes around once a year!

Maybe pumpkins aren’t your thing. Another crop ready for picking in the fall is apples, or Asian Pears if you live in Florida![6] This has become a popular picture-worthy fall activity. If you can dodge the selfie takers, kids and adults alike can enjoy the rows and rows of different varieties and enjoy the hunt of finding one that’s perfectly ripe!

For the adults:

With all the fresh produce you’ve picked, there are many ways to use it and you’re sure to find something you’ll love. Pumpkin french toast, baked pumpkin seeds, pumpkin chocolate chip cookies, pumpkin flavoring in soup, or pumpkin bread – the options are almost endless! And apples…need I say more? Applesauce, apple pie, apple strudel, oh my!

Pro tip: pumpkin puree can replace oil and butter in many baking recipes and adds extra flavor and creaminess while also being low in calories and fat, and high in vitamins and minerals. If you’re feeling ambitious, try this recipe for Pumpkin Alfredo sauce – yes, you read that right!

Pumpkin Alfredo Sauce

  • 2 tablespoons butter
  • 3 large clove garlic chopped
  • 1 cup pumpkin puree
  • ½ teaspoon nutmeg or allspice (more pumpkin pie flavor)
  • 2 cups light cream
  • ½ cup grated Parmesan cheese
  • 1 tablespoon chopped fresh sage (optional)

Heat butter and sweat the garlic. Add cream and heat but do not boil. Whisk in cheese and spices and simmer for 5 minutes until cheese is fully incorporated. Whisk in pumpkin. Toss in your favorite prepared pasta.[7]

Throwing a fall harvest or Halloween costume party? Fall flavored cocktails can take your party up a notch for the adults! Try things like a Pumpkin Spice White Russian or an Apple Cider Hot Toddy. We did some research for you; find an extensive list of recipes here.

Also, all of the kids things above, because you never are too old to enjoy some simple fun!

We can’t deny fall is here. The air is cooler and more crisp (which is a funny way to describe air, and yet we all know what that means) and it’s finally time to accept it and enjoy it! Take your kids and grandkids out to enjoy some of these great activities, or you can enjoy them yourselves!

As the kids say these days, Happy Fall, Y’all!

 

[1] https://www.metoffice.gov.uk/weather/learn-about/weather/seasons/autumn/autumn-facts

[2] https://www.merriam-webster.com/words-at-play/autumn-vs-fall

[3] https://www.jstor.org/stable/15981

[4] https://www.metoffice.gov.uk/weather/learn-about/weather/seasons/equinox-and-solstice

[5] https://christianwayfarm.com/2019/10/10/top-14-things-to-do-with-pumpkins/

[6] https://www.visitkeystoneheights.com/fruits-vegetables-picked-during-fall/

[7] https://www.heraldstandard.com/food/locally_carei/locally-carei-use-pumpkin-puree-as-a-substitute-in-cooking/article_eafa014f-c4ae-54e5-ba6f-cd21a27f2e45.html

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Congress is getting closer to passing new tax legislation.

Poll: Who do you think the tax legislation will affect most?

Oops! We could not locate your form.

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Annex supports women who want to have a say in their financial knowledge and health.

Our Women & Wealth group is designed specifically for just that.

Our team designs content specifically for situations that women may face throughout their lives, and equips them with the tools, knowledge, and resources to better face any changes, whether expected or unexpected.

Women & Wealth offers a safe and inclusive environment for women from all walks of life who share the common desire to be more involved in their financial situations. We laugh together, learn together, and celebrate successes and understand each other when challenges arise.

Come join us for our in-person or online events that we have coming up! Invite a friend and be ready to take notes during these specially crafted classes designed to support the women around us as we all navigate the financial waters together. During our Women & Wealth events, you will be able to meet with other clients to share stories, lessons, and maybe even a treat while enjoying each other’s company.

We are always excited to see our friends at these events or online, because learning together is also growing together. Friendships formed, knowledge gained, and support given. That’s what we’re all about.

Join us for one or more of our upcoming events. You can register by reading more about each event at the end of the Axiom or on our Events page.

Upcoming Events:

Webinar: Women & Wealth: Financial Self Defense – 10/12 from 4-5pm

In-Person: Women & Wealth: Financial Self Defense – 10/21 from 6-7pm

Webinar: Women & Wealth: Passion Assets – 11/9 from 4-5pm

In-Person: Women & Wealth: Passion Assets – 11/18 from 6-7pm

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We give our readers a forum to ask their questions via Ask Annex, and the Did You Know section shares education and insights into a wide variety of financial topics as well as how we do things at Annex.

– Guest Editor: Mark Beck | Managing Director of Wealth Management Services 
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This week’s Ask Annex comes from Chris, who asks:

What’s earning season & what does forward guidance have to do with it?

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We asked Annex Wealth Management’s Todd Voit, PhD:

In order to be considered a “publicly-traded company,” a firm must regularly update interested parties about their financial health. The regular updates are delivered so that investors can make informed decisions about whether they want to remain stockholders—or even potentially buy more shares of the firm.

When those quarterly updates for public companies are released, it’s called “earnings season.”

Earnings season starts about two weeks after quarter and lasts through the middle of the next month. The reporting is often shared on a conference call, which is when publicly traded companies will report:

  • The company’s earnings for the quarter
  • The company’s earnings for the past year
  • Forward guidance of what to expect in the future

Sometimes, companies will disseminate worse-than-expected earnings weeks before they actually report (earnings date). If enough companies do this or the backdrop of the market is negative, these pre-announcements can have a suppressing effect on the market. While negative news is sometimes pre-announced, companies generally don’t disseminate better-than-expected earnings before their actual report date. 

At Annex, we listen to earnings calls all the time, and they generally follow similar formats:

Typically, an earnings call will begin with the Chief Executive Officer (CEO), discussing the state of the company, and significant events that have occurred. It’s generally accepted that the CEO will try to paint as rosy a picture as possible during this portion of the discourse.

After the CEO speaks, the call typically gets turned over to the Chief Financial Officers (CFO), who go through the firm’s earnings number, followed by a Q&A period. For us on the Annex investment team, this is the more interesting part of the earnings call – when investors who are listening or participating get a chance to hear analysts ask
(sometimes) very pointed, or at least insightful, questions. 

Earnings season provides more than just individual corporate outlooks. Analysts will often knit together earnings estimates from multiple companies to build projections about the overall trajectory of the broader market. Once a company’s reporting is compared to estimates, analysts may revise estimates.

Because the season is both about estimates and reality, I’d extend a word of caution to those studying trade activity in the days leading up to and including an earnings report date. It may appear that an analyst knows something you don’t. In my experience, I’ve seen analysts nail corporate earnings with their estimates – and I’ve seen their suppositions miss. 

There’s a lot of literature on earnings reporting, and if you’re interested, let me or anyone on the investment team know, and we’ll make sure you can read it.

 

Todd Voit, PhD

Chief Investment Strategist

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KNOW THE DIFFERENCE MINUTE:

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