Ken's 4th Quarter 2019 Recap

January 10, 2020

Ken’s 4th Quarter 2019 Recap

  1. Seems like a good time to look back, and forward!

Hi all, and welcome to the 2020’s.  We can’t call it the “Roaring 20’s” again, can we?  Will the 2020’s be remembered as the decade we left the combustion engine behind?  Or will it be for our skies becoming overrun with drones of all kinds?  Maybe we’ll recall that space tourism came to the masses, or maybe all of these or maybe something completely new no one is yet talking about?  I guess time will tell and I look forward to finding out what the future brings!

Ten years ago markets were still recovering from the housing bubble burst in 2007-2008.  The 2010’s didn’t see any period of extended negative returns after the 2000’s had experienced two major pullbacks.

So what was Ken up to 10 years ago?

In 2010 I was still in my “past life” as I call it, as an Industrial Engineer with UPS in Harrisburg, PA.  It was a good job but the stress of only being as good as yesterday’s results wears on you and much of my work was second shift 1pm-11pm(ish).  This made dating difficult, so I was 28 years old, single & living alone in my townhome (aka the bachelor’s pad) that had not yet had a flood with 5 feet of Swatara Creek into the first floor.  That didn’t come until 2011, most inconveniently at exactly the same time I changed careers.

 Looking back, things were much simpler then, the most important thing each week may have been which bar to hang out at that weekend with friends.  Sometimes we may remember those simpler times with a certain fondness, but a new career, a wife, twins, a minivan, an adopted dog and a the sale of the oft soggy bachelor pad later and I’ve got a smile on my face way more often than 10 years ago, which is important to remember!

And where will Ken be in 2030?

A fine question.  If all goes according to plan I’ll be blissfully married 11 years, the girls will be perfect angels and in the 5th grade.  My family will have been in our forever home about 9 years and I’ll have a team working with me to keep up with the ever-growing business.  Man if that doesn’t light a fire under me to tackle the next decade I don’t know what will!

 

Market recap

What a quarter, what a year, what a decade! 

The 4th quarter 2019 was pretty much up and to the right and nary a scare.  It makes one part of my job easier, clients obviously like when their accounts grow and a rising tide raises all ships - but sometimes it’s harder to find new folks to help as most don’t seek to switch to a new advisor without a pain point driving that change.  Alas, there’s always a challenge for me no matter the market condition.

4th Quarter Market Snapshot

Index:                                      Close 9/30/19        Close 12/31/2019    4th Qtr 2019 +/-     2019 +/-

Dow Jones Industrial Average   26,916.36                 28,538.44              6.03%                  22.34%

S&P 500                                     2,976.74                  3,230.78                8.53%                  28.88%

NASDAQ                                    7,999.34                  8,972.60               12.17%                 35.23%

 

For some perspective on the 2010’s, take a look at this:
                       

Index:              Price 1/1/2010             Price 12/31/2019        Price only % increase

DJIA                  10,428.05                    28,538.44                    273.67%

S&P 500           1,115.10                      3,230.74                      289.73%

NASDAQ          2,269.15                      8,972.60                      395.42%

(Source – Broadridge Investor Communication Solutions, Inc. - Quarterly Market Review: Jan 2010-Dec 2019.  Copyright 2020, Broadridge Investor Communication Solutions, Inc., All rights reserved.)

Chart reflects price changes, not total return. The Dow Jones Industrial Average (DJIA) is a price-weighted index composed of 30 widely traded blue-chip U.S. common stocks. The S&P 500 is a market-cap weighted index composed of the common stocks of 500 leading companies in leading industries of the U.S. economy. The NASDAQ Composite Index is a market-value weighted index of all common stocks listed on the NASDAQ stock exchange. Market indices listed are unmanaged and are not available for direct investment. Past performance is no guarantee of future results.

 

On the business side

I wanted to take a minute to more clearly define the structure we’ve got here at Jones Financial Group and then discuss one area that is currently experiencing some transitional disruption.

-Jones Financial Group

This is us.  It’s the name of our business and what we use for marketing to the public.  Hopefully you’ve seen the nice new sign out front!  (See post - @KenLoganCFP posted 12/20/19)

 

-Waddell & Reed,Inc. – a division of Waddell & Reed Financial, Inc.

This is our broker dealer of choice and they provide most of the products and platforms we use to serve our clients’ needs.  Tim, Andrew and I are independent Financial Advisors associated with Waddell & Reed.

 

-Ivy Investments – a division of Waddell & Reed Financial, Inc.

This is a mutual fund investment company that many of our clients utilize for their investments.  I consider myself very knowledgeable in Ivy Investments.

 

-SS&C Technologies

This is the “behind the scenes” financial services provider that now handles processing transactions on behalf of Ivy Investments.  SS&C recently purchased the previous transaction processor.

 

I wanted to mention all that because investors with Ivy Investments may have been experiencing a little pain with the transition to SS&C as the new transaction provider.  The whole team at JFG are currently putting extra effort into double and triple checking each transaction to verify that every item is processed correctly and we thank any affected clients for their patience with any delays or corrections they may have experienced during this transition. 

As you know, if there’s one thing that’s constant it’s that things change, and we fully expect this to be a temporary nuisance rather than a persistent problem.  The biggest takeaway for you is that we are on top of this and making sure each transaction is either A) done properly the first time or B) catching errors and correcting them.

           

On the personal side

Well nobody really cares about me anymore…the life of a new Dad 😊

Lenny and Aggie just hit 6 months already and have emerged happy and healthy out of the other side of a respiratory infection just after Christmas.  Aggie didn’t like her nebulizer treatments one bit!  Mom and Dad got it too, and it seems to be lingering for Dad…yay. 

They’re getting more and more into their toys and solid foods and on my near term to do list is to baby proof the house as they’ll be all over the place before we can blink.

Aggie, born 4lbs 14oz, recently weighed in at 14lbs 3oz and Lenny, born 5lbs 11oz, is now 13lbs 10oz

If you’re good at math you’ll realize Aggie, our tiny little girl and “Baby B”, has now become the bigger of the two!  Lenny told me to tell you though that she is still 0.4 inches taller.

The days really do take forever but the weeks fly by.  It’s a weird sort of timewarp Lesley and I live in, it must have something to do with the lack of sleep.  Thankfully, we appear to be turning a corner in that department.  “Sleep training” they call it, but for the parents it just means lack of sleep!

Lenny is on the left and Aggie is on the right

Events

The 4th annual mini photo shoot was a success!  Year 1 was beautiful weather, Year 2 was a bit of rain, Year 3 was mainly the wind and this year was a little chilly but not too terrible.  We’re looking at October in 2020 to hopefully get some better weather.  I guess I need 3 years of tough conditions to learn my lesson!  (See post - @KenLoganCFP posted 12/04/19)

More to come on the events side.  In addition to Putt It Into the Park and the mini photo shoot each year I’m looking for and working on two more fun events for clients and/or prospects each year.  Let me know if you’ve got a good idea!

The JFG Blog

We took a bit of a hiatus at the end of the year but we’re back and intend on weekly posts moving forward.  One thing I’m focusing on is more fun updates and less business/educational updates this year – my goal is for about 1 of 3 posts to fall in the “fun” category.  Look for them on the JFG website and we’ll promote the links via Facebook & LinkedIn as well.

 

I think that’s enough for now, as always enjoy the next 3 months and looking forward to serving you!

Ken

 

This is meant for educational purposes only.  It should not be considered investment advice, nor does it constitute a recommendation to take a particular course of action. Please consult with a financial professional regarding your personal situation prior to making any financial related decisions.

LPL Financial is not affiliated with SS&C Technologies.