Sunday, February 15, 2015

Happy President's Day


Happy President’s Day – John Quincy Adams

 

Happy Presidents’ Day!  As you know, Presidents’ Day is officially known as “Washington’s Birthday” in honor of America’s first president, who was born on February 22nd.  In many regions, Abraham Lincoln’s birthday (February 12th) is also celebrated. 

Over the years, the holiday has expanded to become a celebration of all presidents—hence the name “Presidents’ Day.”  And while Washington and Lincoln still tend to get the most press, I think it’s good to remember that many others have served as Chief Executive, too.  So many of the rights, freedoms, and privileges we enjoy today are due to men and women whose names and deeds are shrouded by history.  This is even true of presidents.  Some presidents were better than others were, of course, but all deserve to be commemorated. 

For example, take President John Quincy Adams.  He’s not as well-known as many of the presidents who served before and after him, but he looms large in American history as a man who strived to create a stronger, more modern United States. 

The “Most Valuable American Abroad”

As the son of John Adams, John Quincy was earmarked for greatness almost from the cradle.  When he was only eleven years old, he accompanied his father on a diplomatic mission to France.  At age 14, he left his father to serve as secretary to the U.S. envoy in Russia.  By the time he reached adulthood, he was already fluent in French, Dutch, Latin, Greek, and other languages.  These experiences would serve him well later. 

It was clear that great things could be expected of Adams, and a career in politics seemed inevitable.  But Adams wanted none of it, preferring to live a quiet life of study—the exact opposite of what fate intended for him.  When President Washington appointed Adams as the U.S. Ambassador to the Netherlands, Adams initially refused.  Finally persuaded by his father, Quincy served for three years, fell in love, married, and returned home … only for Washington to appoint him Ambassador to Portugal.  Again, he would have refused, until he heard the reason for Washington’s reliance on him.  Said Washington, “[Adams] is the most valuable of America’s officials abroad.” 

Despite his disinclination, Washington’s high regard for him seems to have convinced Adams that his destiny did indeed lie in politics.  His ability to balance a sense of duty with a lack of personal ambition makes him one of the most unique politicians in American history. 

Entry into Politics

What followed was a dizzying succession of posts and offices.  After returning home, he served a brief stint in the Massachusetts State Senate before winning election to the United States Senate.  In 1809, he went abroad again, this time as the U.S. ambassador to Russia, then later to England.  By 1817, Adams’ skills were in such high demand that a new president, James Monroe, appointed him Secretary of State. 

Even if Adams never did anything else, his performance as Secretary would guarantee him an honored place in American history.  Most scholars agree that he was one of the most outstanding diplomats of all time.  As Secretary of State, Adams negotiated the Adams-Onis Treaty, bringing Florida into the Union.  He also ended many long-standing conflicts with England.  Most importantly, he wrote the “Monroe Doctrine,” a defining piece of American foreign policy, which effectively denied European states the right to meddle with the affairs of independent North American countries.

As the 1824 presidential election drew near, Adams’ New England friends persuaded him to enter the race.  His opponents included famous names like Henry Clay, John C. Calhoun, and Andrew Jackson.  It was a tight contest.  In the end, Jackson received the most electoral votes, but not enough to secure a technical “majority.”  Per the Twelfth Amendment, this meant the House of Representatives were responsible for electing one of the top three candidates.  They chose Adams. 

President of the United States

Like his father, Adams only served one term.  This was largely for two reasons.  First, Andrew Jackson accused Adams repeatedly of making a “corrupt bargain” to steal the White House.  This badly damaged Adams’ reputation.  (Nowadays, many experts think Adams won the election fairly.)  Second, Adams’ dislike for traditional politics hampered his chances for a second term.  As a man who would have preferred a life of quiet study, he declined to play “the game” of securing favors and maintaining a political support machine.  As one historian put it, “Seldom has the public mind been so successfully poisoned against an honest and high-minded man.”1 

Still, Adams exerted an enormous influence on America’s future during his four years in office.  He pushed for a system of “internal improvements” designed to transform the United States into a more modern, self-sufficient nation.  “Internal improvements” meant better roads, ports, canals and bridges.  It meant investing in education, specifically in science.  He even reduced the national debt by almost 70%.  While Jackson’s supporters tried to block many of his proposals, the work he started gained momentum and would be carried on by his successors.  Adams’ programs also made commerce easier and more profitable. 

Final Years

Jackson defeated Adams in 1828.  Instead of retiring, Adams ran for the House of Representatives.  While in Congress, Adams continued the work he had begun as President.  He worked hard to advance America’s commitment to science and was instrumental in creating the Smithsonian Institution.  Also, he became one of the country’s leading voices against slavery.  After some Congressmen imposed a “gag rule” against even bringing up the topic of slavery, Adams used every trick in the book to bring the issue up for debate. 

While other politicians stayed silent, Adams relentlessly attacked the idea of slavery, declaring it evil and immoral.  Perhaps his greatest triumph was the Amistad case.  Representing a group of African slaves who had revolted and seized a slave ship, Adams spoke for four hours and convinced the Supreme Court to declare the Africans free. 

On February 21, 1846, a now elderly Adams collapsed on the floor of the House.  Having served his country both at home and abroad in almost every office imaginable, his work was finally done.  He died two days later inside the Capitol. 

His last words were, “I am content.” 

Presidents’ Day is not just a chance for a day off.  It’s also a chance to remember the people who shaped our country’s past, present, and future; a chance to celebrate the good they did and learn from the bad; a chance to commemorate not just well-known names like Washington and Lincoln, but all the other presidents, both famous and obscure, who labored to make our great nation what it is today.

Have a happy Presidents’ Day! 

Monday, February 9, 2015

First 2015 Education Event


Schwartz Financial Weekly Commentary 2/9/15


Schwartz Financial Weekly Commentary

February 9, 2015

 

The Markets

 

What’s in an employment report?

 

Last week, the U.S. Bureau of Labor Statistics’ Employment Situation Summary was full of encouraging data. Employment numbers for last November and December were revised higher which made 2014 the strongest year for job growth since 1999. However, 2015 isn’t off to a shabby start. The economy added just over a quarter of a million jobs in January. In addition, Barron’s reported:

 

“…Wages for private-sector workers ticked higher in January, rising 0.5 percent from December and 2.2 percent year-over-year. That sort of growth must persist to indicate a trend, but it is a promising sign, and one that could quell chatter about deflation in the U.S. The good news doesn’t end there. Low gas prices could save the average household $750 this year, and household net worth remains near an all-time high. It’s no wonder consumer confidence hit its highest level last month in more than seven years.”

 

Consumers are happy. Workers are happy. Who’s not happy? The answer may be companies and investors. Barron’s speculated workers’ gains could come at the expense of corporate profits.

 

Last week, Factset.com reported analysts are expecting to see year-over-year declines in both the overall earnings and revenues of companies in the Standard & Poor’s 500 Index during the first half of 2015. The downward revisions primarily reflect the expected performance of companies in the energy sector. While prospects for the first half of 2015 have dimmed a bit, analysts are expecting profit margins to expand and companies to have record earnings per share, overall, during the second half of 2015.

 


Data as of 2/6/15
1-Week
Y-T-D
1-Year
3-Year
5-Year
10-Year
Standard & Poor's 500 (Domestic Stocks)
3.0%
-0.2%
15.9%
15.2%
14.2%
5.5%
10-year Treasury Note (Yield Only)
1.9
NA
2.7
1.9
3.6
4.1
Gold (per ounce)
-1.5
3.5
-1.2
-10.3
3.1
11.6
Bloomberg Commodity Index
1.8
-1.6
-19.9
-11.1
-4.3
-3.2
DJ Equity All REIT Total Return Index
-1.4
4.7
29.7
14.9
19.7
9.4

S&P 500, Gold, Bloomberg Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; the DJ Equity All REIT Total Return Index does include reinvested dividends and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods.

Sources: Yahoo! Finance, Barron’s, djindexes.com, London Bullion Market Association.

Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly. N/A means not applicable.

 

what is the most common job in the united states? In the late ‘70s and early ‘80s, secretary would have taken top honors in more than one-half of the United States. Machine operators and factory workers were in demand then, too. However, since then, personal computers have made secretarial work less prevalent, and technology and globalization erased many manufacturing positions in the United States.

 

Since the mid-80s, truck driving has become the most common occupation in most states, according to National Public Radio (NPR). One reason is that, so far, truck driving has been relatively unaffected by globalization and automation. As NPR reported, “A worker in China can't drive a truck in Ohio, and machines can't drive cars (yet).”

 

If you’re looking for recession-proof jobs (take that with a grain of salt – the Titanic was billed as being unsinkable), CareerProfiles.com reported the following industries are expected to have the greatest job growth during the next decade:

 

·         Sales and Finance (marketing managers and financial managers)

·         Computer software (systems software engineers)

·         Engineering (chemical, electrical, mechanical, and civil engineers)

·         Computer systems (systems analysts)

·         Finance/Accounting (financial analysts, accountants)

·         Education (certified teachers, teaching assistants and aides)

 

The U.S. government’s predictions for the fastest growing jobs through 2022 are slightly different. The top occupations on that list include:

 

·         Industrial-organizational psychologists

·         Personal care aides

·         Home health aides

·         Insulation workers, mechanical

·         Interpreters and translators

 

Other fields with good prospects include energy and the environment, healthcare, and security.

 

Weekly Focus – Think About It

 

“The Eskimos had fifty-two names for snow because it was important to them: there ought to be as many for love.”

-- Margaret Atwood, Canadian novelist

Value vs. Growth Investing (2/6/15)

3.13
0.33
3.15
2.07
17.59
17.59
16.78
3.13
0.01
2.73
1.66
18.15
17.58
16.12
3.04
-1.30
1.11
1.17
20.72
19.50
17.23
2.48
2.05
5.04
3.62
20.05
18.69
17.36
4.00
-0.78
1.99
0.08
13.75
14.73
13.81
2.99
1.34
4.27
3.24
17.07
18.13
18.64
2.86
1.09
4.04
3.79
19.50
18.46
19.89
2.77
2.05
5.09
2.89
14.21
15.96
18.04
3.37
0.88
3.70
3.04
17.86
20.06
17.97
3.55
0.72
4.33
3.14
12.87
15.94
17.77
3.31
0.48
3.85
2.39
13.89
15.76
17.02
3.58
1.84
5.62
4.54
9.85
15.04
18.55
3.75
-0.11
3.59
2.56
14.80
17.02
17.73
3.02
-0.69
1.89
1.79
20.00
19.04
17.81
2.60
2.03
5.09
3.53
18.19
17.88
17.65
3.85
-0.39
2.46
0.85
14.66
15.97
14.93

 

 ©2004 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) is not warranted to be accurate, complete or timely. Morningstar is not responsible for any damages or losses arising from any use of this information and has not granted its consent to be considered or deemed an “expert” under the Securities Act of 1933. Past performance is no guarantee of future results.  Indices are unmanaged and while these indices can be invested in directly, this is neither a recommendation nor an offer to purchase.  This can only be done by prospectus and should be on the recommendation of a licensed professional.

 

Office Happenings

 

Valentine’s Day: a time for pink hearts, red bows, and white lace; a time for chocolate boxes and rose bouquets, candlelight dinners, and cards.  It’s a time to celebrate romance … and a chance for forgetful husbands and boyfriends to make or break a relationship. 

But in truth, Valentine’s Day is much more than that.  Long before the Hallmark® Card Company was founded or candy hearts invented, there was a real Valentine, and his story is about far more than romance.  It’s about strength and faith, courage, and conviction … friendship and love.

The Real Valentine

It’s hard to imagine now, but well over a thousand years ago, Christianity was not the dominant religion in Europe.  Early Christians faced intense persecution, and it wasn’t until the year 380 A.D. that Christianity became the official religion of the Roman Empire. 

One early Christian was Valentine, or Valentinius in Latin.  Actually, there may have been two Valentines.  Because one or both lived so long ago, it’s impossible to know for certain what is fact and what is fiction.  But it seems that both men—if there were in fact two—were martyred for their faith. 

The first Valentine lived in Rome during the time of Claudius II.  As the story goes, Claudius was a very war-like emperor who found it difficult to retain the men in his army.  Thinking it was because they preferred to stay home and establish families, Claudius forbade his soldiers to marry.  Despite the edict, many Christian soldiers still desired to marry their sweethearts no matter the cost.  For help, they turned to Valentine, a local priest.  Despite the danger and with little regard for his own safety, Valentine performed secret wedding ceremonies for everyone who asked. 

When Claudius discovered this, he promptly arrested Valentine and sentenced him to death.  It was in prison, awaiting execution, that he enshrined himself in the annals of history forever. 

 

Having befriended his jailer’s daughter (some sources claim he fell in love with her; others that he healed the girl of blindness), Valentine frequently sent her letters, each ending with the immortal words:

 

From Your Valentine

And that is where the tradition comes from today. 

Valentine died on February 14. 

The second Valentine was the Bishop of Terni, a town some sixty miles northeast of Rome.  This Valentine was probably imprisoned for proselytizing, although some versions of the story claim that he was the first to wed a pagan man with a Christian woman.  Regardless, he was captured, sentenced to death, and martyred just outside of Rome … also on February 14.  Because of the similarities between these two men, many historians have supposed them to be the same person.

Whether there was one Valentine or two, their stories are remarkable for the same reason: faith under fire, courage in adversity, and an unshakeable conviction in what was right.  And it wasn’t just Valentine who showed these qualities.  Think of the soldiers in the first Valentine’s story, or the Pagan man and the Christian woman in the second, all committed to being with the people they loved despite whatever opposition stood in their way.

And that, to me, is what Valentine’s Day is all about.  It doesn’t matter who you are, what you believe in, or where you come from.  Everyone can identify with Valentine’s story.  Nowadays, corporations and advertisers portray the holiday as being simply about romance, but at its core, Valentine’s Day is really about something deeper.  It’s about celebrating the bond and commitment each of us have with our loved ones.  It’s about the dedication we as ordinary people have to each other … a link that cannot be severed by anyone or anything. 

That makes Valentine’s Day a day worth celebrating.

This year, I plan to spend the holiday remembering how grateful I am for the people I love.  I invite you to do the same.  But however you celebrate, I wish you and yours a

Very Happy Valentine’s Day!

 

Regards,

,

Michael L. Schwartz, RFC®, CWS®, CFS

 

P.S.  Please feel free to forward this commentary to family, friends, or colleagues.  If you would like us to add them to the list, please reply to this email with their email address and we will ask for their permission to be added. 

 

Michael L. Schwartz, RFC, CWS, CFS, a registered principal offering securities and advisory services through Independent Financial Group, LLC., a registered broker-dealer and investment advisor.  Member FINRA-SIPC. Schwartz Financial and Independent Financial Group are unaffiliated entities.

 

This information is provided for informational purposes only and is not a solicitation or recommendation that any particular investor should purchase or sell any security. The information contained herein is obtained from sources believed to be reliable but its accuracy or completeness is not guaranteed.  Any opinions expressed herein are subject to change without notice.  An Index is a composite of securities that provides a performance benchmark.  Returns are presented for illustrative purposes only and are not intended to project the performance of any specific investment.  Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly.  Past performance is not a guarantee of future results.

 

* The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.

 

* The DJ Global ex US is an unmanaged group of non-U.S. securities designed to reflect the performance of the global equity securities that have readily available prices. 

 

* The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.

 

* Gold represents the London afternoon gold price fix as reported by the London Bullion Market Association.

 

* The DJ Commodity Index is designed to be a highly liquid and diversified benchmark for the commodity futures market. The Index is composed of futures contracts on 19 physical commodities and was launched on July 14, 1998.

 

* The DJ Equity All REIT TR Index measures the total return performance of the equity subcategory of the Real Estate Investment Trust (REIT) industry as calculated by Dow Jones.

 

* Yahoo! Finance is the source for any reference to the performance of an index between two specific periods.

 

* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.

 

* Past performance does not guarantee future results.

 

* You cannot invest directly in an index.

 

* Consult your financial professional before making any investment decision.

 

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