MWM Weekly Update

The Week of August 16, 2021

MWM Weekly Update

The Week of August 16, 2021

“A person’s relationship with money is daily and lifelong,
therefore it is crucial to life success, security and freedom to master it.”

- Sam X Renick, educator

Greetings everyone,

How do we think about money? Most of us formed our feelings around money when we were children through our life experiences and the messages we received living with our families. Understanding personal finance is not based on math or economics, but it is rather psychology. It is our emotional response to money that will dictate how we choose to spend, save, or invest.

Emotions are so powerful around money that they affect our rational judgment. When you were a child, you might remember conversations where values around money were shared. Some families have experienced hard times when money was scarce. Parents or grandparents that grew up during the Great Depression shared their values with the generations that followed. Many told stories of their lives. Helen Oliver, age 83, wrote, “I believe working hard, sticking together, and watching our pennies helped us through those difficult times. ‘Waste not, want not' – important even today. Keep a positive attitude. Remember ‘Above the clouds the sun still shines.' "

The Great Depression came on the heels of the roaring twenties, just 100 years ago. People were partying it up with little thought of tomorrow. They borrowed money when just three decades before borrowing was considered shameful. They behaved as if borrowing “easy” money was considered the key to prosperity. In the days of the Great Depression, words like “instant gratification” and “me” were replaced with “we’ll have to wait” and “us”.

What are the lessons we are teaching our kids today? You have the power to start the conversation with your families to help develop awareness of the financial world. They can learn how to channel their emotions regarding money into positive behaviors and avoid destructive patterns. Learning to understand money and its mission in life is one of the most important skills to putting your kids on a path to success.

We are sharing a book by Sara Allison, MBA & Jonathan Knapp, MBA, CFP®, Raising Financially Aware Kids.  Free for the asking while they last.

Below is a fun picture of Sarah Berry’s sweet daughter, Bella. Bella is certain to become an entrepreneur with her merchandising success this past weekend.




As this summer is coming quickly to an end, we appreciate our clients and hope you are doing well.  Your team is always here for you. Let us know if you’d like to visit.

DID YOU KNOW?

What do kids think it takes to become a millionaire?
32% Having a savings account
24% Becoming famous
21% Investing in stocks and bonds
18% Winning the lottery
5%   Inheriting from parents!
Resource: Mint.com

Judith McGee, L.H.D., CFP®, ChFC®
Executive Vice President and Senior Lead Advisor

In the Markets

LAST WEEK
  • Stocks closed mostly higher last week, with only the Nasdaq unable to end in the black. The Dow and the S&P 500 each closed the week at record highs, buoyed by a strong corporate earnings season. Treasury yields finished the week where they began, crude oil prices fell for the second consecutive week, the dollar and gold prices weakened. Consumer staples, financials, materials, industrials, and utilities led the sectors. All the major benchmark indexes remain well above their 2020 year-end closing values. The S&P 500, up nearly 19.0% since the beginning of the year, has nearly doubled since the pandemic lows of March 2020, with the energy sector the biggest climber during that period.
  • Equities opened last week mixed, with only the Nasdaq able to post a gain. The Dow (-0.3%), the S&P 500 (-0.1%), the Russell 2000 (-0.6%), and the Global Dow (-0.2%) each dipped lower. Several of the market sectors fell, led by energy, which declined 1.5%. Only health care, financials, and consumer staples advanced. Crude oil prices decreased nearly 3.0%, falling to $68.47 per barrel. The dollar and Treasury yields moved higher.
  • Stocks rebounded last Tuesday, with the S&P 500 and the Dow climbing to record highs. Energy, materials, financials, and industrials led the market sectors, each gaining more than 1.0%. Information technology slumped, dragging the Nasdaq down 0.5%. Crude oil prices, Treasury yields, and the dollar increased.
  • The S&P 500 and the Dow rose to new record highs last Wednesday on news that consumer price increases slowed in July, possibly reducing the urgency to ease stimulus measures currently in place. The Russell 2000 and the Global Dow also climbed higher. Only the Nasdaq slipped marginally. The yield on 10-year Treasuries and the dollar fell, while crude oil prices increased. Among the market sectors, materials, industrials, and financials continued to advance.
  • Wall Street ended last Thursday mostly higher, with the S&P 500 reaching a record high for the third consecutive session. The Nasdaq and the Dow also closed higher, while the Global Dow and the Russell 2000 edged lower. Passage of a $1 trillion infrastructure bill in the U.S. Senate helped boost industrials and materials, which would likely benefit from increased government spending on physical structures. The dollar and Treasury yields advanced, while crude oil prices slid.
  • Equities hovered near record highs in light trading last Friday. The Dow and the Nasdaq were flat, the S&P 500 inched up 0.2%, and the Global Dow rose 0.3%. The Russell 2000 dipped 0.9%. Yields on 10-year Treasuries, the dollar, and crude oil prices fell. The sectors closed mixed on the day, with consumer staples, health care, real estate, information technology, communication services, materials, and utilities gaining, while consumer discretionary, energy, financials, and industrials declined.

THIS WEEK

The housing sector is slowing somewhat. June saw the number of issued building permits lag from May's total, although housing starts increased. On the other hand, industrial production has risen fairly steadily since February and is expected to continue to rising accommodate increasing demand.

Source: Broadridge Investor Communication Solutions, Inc.

Articles & Education

Annuities: Good, Bad, or Misunderstood?

Annuities can play an important role in your financial portfolio. You should review them in the context of your overall plan just as you would other financial solutions. Learn about common myths and misconceptions, and how you can determine if annuities have a place in your wealth plan.

Medicare Deadlines Are Soon – What You Should Know

If you’re nearing age 65, you’ll need to have a plan for Medicare – even if you’re still working. Here are some basic facts about Medicare and why it’s critical that you don’t miss enrollment deadlines. There are many options available and choices you need to make regarding your care coverage, so it’s important to do research upfront before deciding and enrolling in Medicare.
Investment Term of the Week

Thought of the Week

Please Note: McGee Wealth Management is a tradename. All services are provided by McGee Wealth Management investment professionals are provided in their individual capacities as investment adviser representatives of Mercer Global Advisors Inc. (“Mercer Advisors”), an SEC registered investment adviser principally located in Denver, Colorado, with various branch offices throughout the United States doing business under different tradenames, including McGee Wealth Management.

Mercer Advisors Inc. and/or Mercer Global Advisors Inc. WILL NOT ACCEPT time-sensitive transactional directives via email. This includes, but is not limited to a directive to buy or sell securities, instruction regarding account allocation or any other manner of change notice affecting a client account. For your protection, please do not include your social security number, account number, or any other personal or financial information in the content of the email.

Securities offered through Lion Street Financial, LLC. (LSF), member FINRA & SIPC. Investment Advisory Services offered through Mercer Global Advisors Inc., which owns and utilizes the McGee Wealth Management wordmark and logo in marketing its investment advisory and ancillary services. LSF is not affiliated with McGee Wealth Management or Mercer Global Advisors.

CONFIDENTIALITY NOTICE: This email and any attachments are strictly confidential and may be protected by legal privilege. If you are not the intended recipient, be aware that any disclosure, copying, distribution or use of this email or any attachment is STRICTLY PROHIBITED. If you have received this email in error, please notify us immediately by returning it to the sender and delete this copy from your system. Thank you for your cooperation.

Investment products are: Not deposits. Not FDIC or NCUA Insured. Not guaranteed by the financial institution. Subject to risk. May Lose Value.The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. There is no guarantee that these statements, opinions or forecasts provided herein will prove to be correct. Investing involves risk and you may incur a profit or loss regardless of strategy selected.  The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market. The Dow Jones Industrial Average (DJIA), commonly known as “The Dow” is an index representing 30 stock of companies maintained and reviewed by the editors of the Wall Street Journal. The NASDAQ composite is an unmanaged index of securities traded on the NASDAQ system. Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor's results will vary. Past performance does not guarantee future results. This information is not intended as a solicitation or an offer to buy or sell any security referred to herein. Asset allocation and diversification do not ensure a profit or guarantee against loss.

Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

The ChFC® mark is the property of The American College, which reserves sole rights to its use, and is used by permission.

The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3000 Index, which represent approximately 8% of the total market capitalization of the Russell 3000 Index.
The Global Dow is an equal-weighted stock index. It is composed of the stocks of 150 top companies from around the world as selected by Dow Jones editors and based on the companies' long history of success and popularity among investors.

Sector investments are companies engaged in business related to a specific sector. They are subject to fierce competition and their products and services may be subject to rapid obsolescence.  There are additional risks associated with investing in an individual sector, including limited diversification. The companies engaged in the communications and technology industries are subject to fierce competition and their products and services may be subject to rapid obsolescence. Investing in the energy sector involves special risks, including the potential adverse effects of state and federal regulation and may not be suitable for all investors.

There is no guarantee that ESG (Environmental, Social, Governance) investment products or strategies will produce returns similar to traditional investments.  ESG investment criteria exclude certain securities/products for non-financial reasons, and therefore investors may forego some market opportunities available to those who do not use such criteria.

Making Life a Richer Experience