July 2018

Post 1 to 8 of 8

The Tax Cut You've Been Waiting For - Indexing Capital Gains To Inflation

We wanted to bring you this news as it unfolds. We have noted that the Trump Administration is considering indexing capital gains taxes to inflation. Under the proposal Mnuchin has the legal authority to change the indexing of capital gains taxes from nominal terms to inflation-adjusted terms, without an act of Congress. The proposal would eliminate taxing inflationary capital gains by indexing that gain to inflation and taxing only the after-inflation gain. Estimates suggest that the tax chang… View More

If trade pressures continue to ease, equities should benefit

Our view over the past four weeks was that the Trump Administration needed a win on trade (outside of China) to build support for larger escalation with China. This process is now in place. After weeks of rising trade tensions, the U.S. and EU meeting last week resulted in some rare positive trade-related news. It is unclear whether this marks a broader shift away from protectionism or is an isolated event. But at this point, the bar for positive surprises is so low that even news that negotiati… View More

Earnings have been strong but the markets are not reflecting current economic realities

We continue to believe that there is a disconnect between the strong US economy / robust corporate earnings and the wall-of-worry (trade, yield curve, debt levels, mid-term elections, etc.). Politics are trumping economics this midterm election year, but our base case remains intact: investors are underestimating the stimulative effects of fiscal stimulus and regulatory easing while overestimating the potential negative impacts of a trade war, a rotation (not a fade) in global growth is underwa… View More

Strong Market performance last week in anticipation to Q2 earnings announcements

The major indices, with the exception of the Russell 2000® Index, which has dominated markets for most of this year, closed higher last week even after a mid-week pullback following the announcement by the U.S. of an additional $200 billion worth of tariffs on Chinese goods in late August.  As of Friday, the Chinese government had not yet responded.  The equity markets rebounded strongly on Friday; for the week the Dow Jones Industrial Average led the indices with a 2.30% gain; the Nasdaq ros… View More

Stock Buy Backs at record levels...Is this a good thing?

$800 billion The approximate value of stock that S&P 500 companies are on track to repurchase this year, which would eclipse 2007’s record buyback bonanza of $589.1 billion. Among the biggest buyers: Oracle, Bank of America and JPMorgan Chase. The historic spending spree isn't giving share prices the boost companies bargained for, and has some analysts worried that they're buying at excessive valuations during the peak of the economic cycle. Separately, business borrowing is picking up… View More

The Trade War Officially Begins, So Now What?

The US has officially imposed tariffs on $34 billion of imports from China, and China in response has imposed tariffs on $34 billion of US goods exported to China.  We want to share some of the relevant facts to put the tariffs in perspective. In 2017, total US imports were $2.9 trillion and total US exports were $2.35 trillion.  The $34 billion of tariffs equates to 1.2% of total US imports, and 1.4% of total US exports.  We think this is important because both the US and China are imposing… View More

Walgreens and CVS vs. Amazon

Looking at Walgreens adjusted 2018 third quarter (Q3) earnings per share (EPS) of $1.53 and revenues of $34.33 billion (surpassing analysts’ expectations of $1.47 and revenues and $33.65 billion respectively), we are reminded of the importance for investors to control emotional responses. After beating on earnings, and raising its quarterly common dividend by 10% to $0.44 a share, along with announcing a new $10 billion share repurchase program, which is scheduled to be completed in the ne… View More

Investor Sentiment is less bullish but not yet bearish

Investor Sentiment is less bullish but not yet bearish (7 on a scale of 10, with 10 being the most bullish). Europe has become strikingly out of favor over the last few months and Technology remains the preferred sector though optimism towards FAANG has moderated slightly. A majority of investors are betting on 2 more hikes this year and a year- end 10-year yield around 3%. Trade dominates the list of concerns and long USD is a widely held view.  The NASDAQ and Growth indices outperformanc… View More

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Fortem Financial Group, LLC, has adopted this policy with recognition that protecting the privacy and security of the non-public personal information we obtain about our customers is an important responsibility.

All financial companies choose how they share your non-public personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your non-public personal information. Even when you are no longer our customer, we will only share your non-public personal information as described in this notice. So, please read this notice carefully to understand what we do.

The types of non-public personal information we collect and share depend on the product or service you have with us. This information can include items such as your Social Security number and income, your account balances and transaction history, and your investment experience and account transactions.

We collect your non-public personal information in a variety of ways. For example, we obtain your non-public personal information when you open an account or give us your income information, tell us about your portfolio or deposit money, or enter into an investment advisory contract. We also collect your non-public personal information from other companies. For example, from the custodians who hold your account assets.

All financial companies need to share customer’s non-public personal information to run their everyday business. Below, we describe the reasons we can share your non-public personal information and whether you can limit this sharing.

We share your non-public personal information for our everyday business purposes such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, report to credit bureaus, to protect the confidentiality or security of your records, or as permitted by law. We may also share your non-public personal information for our own firm’s marketing purposes; so that we can offer our products and services to you.

Federal law gives you the right to limit only sharing non-public personal information about your credit worthiness for our affiliates’ everyday business purposes; sharing non-public personal information about you with our affiliates to market to you; and sharing non-public personal information with non-affiliates to market to you.

We don’t share non-public personal information about your creditworthiness with our affiliates for their everyday business purposes. We don’t share your non-public personal information with our affiliates to market to you. We don’t share your non-public personal information with non-affiliates to market to you. We also don’t share your non-public personal information for joint marketing with other financial companies. State laws and individual companies may give you additional rights to limit sharing.

We share non-public personal information with our parent company affiliate, Focus Financial Partners, Inc, for its internal and external auditing purposes. We also share your non-public personal information with a non-affiliate for the purpose of aggregating it and providing summary information based on this data to our parent company, Focus Financial Partners, Inc.

To protect your non-public personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.

Our policy about obtaining and disclosing non-public personal information may change from time to time. We will provide you notice of any material change to this policy before we implement the change.

If you have questions please call us at 760-206-8500 or go to our website at www.fortemfin.com.


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