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WEALTH MANAGEMENT MI DWEST, I N C
As I see it—Fall 2016
20 N. Lake Street
Suite 310
Forest Lake, MN 55025
Phone: 651-464-2664
Toll Free: 888-600-2664
Website:
www.wealthmanagementmidwest.com
David E. Purdy
Founder & CEO
Chad P. Olson
President/Operations Manager
Sarah Bjork
Client Services Manager
Kayla Hauble
Client Services Associate
Lorelei N. Purdy
Client Events-Marketing
Proud to be a fiduciary
working in your best interest!
Donald Trump has completed his landmark quest and will become the nation’s
45th President after a contentious and often divisive campaign. In addition, the
Republican Party has retained control of both houses of Congress. This out-
come marks a significant reversal from just a few weeks ago when a Hillary
Clinton presidency was highly probable and even a Democratic party sweep of
Congress was possible.
While this outcome is certainly a shock to many, it is important to remember
that the result isn’t a surprise to the plurality of American voters that spoke
their collective will at the ballot boxes. The strength of a democracy is not in
whether we like the outcome, but rather in how we accept the result as the
voice and will of our republic.
While many things are promised on the campaign trail, all newly elected Presi-
dents enter with a constrained ability to enact their agenda unilaterally. As a
result, immediate and sweeping political changes are a process, which give
markets and the American public time to digest and react. Although often de-
rided by partisans, the inability of a President to swiftly change policies is a
strength of our political system, not a weakness of it.
Moreover, the current market volatility is not because Trump was elected Presi-
dent, as markets do not have political affiliations. Rather, it reflects the mar-
ket’s adjustment to a surprise presidential winner and the market’s tentativeness
regarding the vast uncertainty over which of President-elect Trump’s stated
policies he will be able to enact. The first major step towards clarity will come
with Trump’s choices for key administration officials; his selections will give a
better sense of the priorities for the Trump administration. This should provide
some path to further understanding and calm markets.
For the first time in 10 years, the Republican party will have control of the
Presidency and both houses of Congress. As in all things, this may solve some
problems, and perhaps exacerbate others. For example, potentially divisive up-
coming issues, such as the necessary expansion of the debt ceiling and reforms
to the corporate tax code, could be easier to navigate. There is a common per-
ception that the markets like divided government. While that may often be cor-
rect, it is not necessarily true at every point in time.
Most importantly, however, over time we have witnessed corporations and fi-
nancial markets adapting smoothly to new political environments. The uncer-
tainty surrounding the Trump presidency could be greater than a typical transi-
(Continued on page 2)
Quarterly Investment Newsletter Volume 4, Issue 4
The opinions voiced in this material are for general information only and are not
intended to provide specific advice or recommendations for any individual se-
curity. To determine which investment(s) may be appropriate for you, consult
your financial advisor prior to investing. All performance referenced is historical
and is no guarantee of future results. Indexes are unmanaged and cannot be
invested into directly. Economic forecasts set forth may not develop as predict-
ed. The S&P 500 Index is a capitalization-weighted index of 500 stocks de-
signed to measure performance of the broad domestic economy through
changes in the aggregate market value of 500 stocks representing all major
industries. Investing in stock includes numerous specific risks including: the
fluctuation of dividend, loss of principal and potential illiquidity of the investment
in a falling market. This research material has been prepared by LPL Financial
LLC. Securities offered through LPL Financial LLC. Member FINRA/SIPC.
Page 2 Quarterly Investment Newsletter—Fall 2016
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Office News
From Sarah & Kayla
tion; therefore, the markets may take additional time to process any
changes. However, the uncertainty itself is not unusual.
Separating political views and emotions from investment decisions
is difficult. Whether this election result was your favored outcome
or not, what we have learned over the years is that although Presi-
dents can set an overall tone for the markets, over the long term, it
is the underlying fundamentals of the economy and the strength of
corporate profits that matter more. Overall, we continue to be en-
couraged by the underlying fundamentals in the economy and the
related resilience of the stock market. Recently, encouraging eco-
nomic data, including a record 73 consecutive months of private
sector jobs growth, high consumer confidence, and an increase in
manufacturing activity, all suggest a recession in the next year is
unlikely. And, although the stock market has been essentially flat
over the past three months, the S&P 500 has returned 5.2% year to
date (through market close on November 8, 2016).
As this historic election cycle comes to a close, I suggest casting a
“vote of confidence” for the U.S. economy and markets. While un-
certainty will certainly be prevalent over the short-run, our political
and economic systems are resilient and can, after a period of adjust-
ment, adapt to new realities. As investors, we all need to try and put
this election into perspective, as our investment horizons extend far
beyond yesterday’s votes or any political cycle. And, the keys to
your investment success of relying on independent investment ad-
vice and sticking to your long-term investment strategies should not
change, regardless of who is in office.
As always, if you have questions, I encourage you to contact me or
Chad.
Let’s make it a great quarter.
David E. Purdy
(Continued from page 1 As I See It)
From the Desk of Chad Olson:
Let’s Talk Beer Oktoberfest was recently upon us and that means beer. In the United States, celebrations are likely to include craft-brewed drafts, which are a far cry from traditional American lager, according to the Brewer’s Association. The Econo-
mist wrote:
“Any American university student can inform you that much of the beer in the
United States is utter swill. Those who graduate from the red Solo cup – the brand so synonymous with beer pong and college life – can afford to purchase better. And so they do. Craft beer, the stuff made by small and independent breweries, has exploded be-
yond just hipsters. Sales reached $22.3 billion in 2015, and volumes have climbed 13 per-
cent over the past year, even as overall beer sales in America dipped somewhat.”
Craft brewers have been winning market share from big brand names for some time. Less than 50 years ago, more than 99 percent of the beer quaffed in the United States was lager
produced by large domestic breweries, according to research cited by Forbes.
Since then, the drafts produced by microbreweries, brewpubs, regional craft breweries, and contract brewing companies have gained popularity. In 1994, there were 537 craft brewers
in America. That number swelled over the next two decades and, by 2013, there were 2,800
craft brewers and more than 1,500 additional breweries in development.
Remarkably, Vermont, which is one of the smallest states, has the most craft breweries per capita – 44 of them. Oregon, Colorado, Montana, Maine, and Washington also boast a signif-
icant number of small breweries, while Mississippi, Louisiana, and Alabama have the fewest.
After tallying the numbers, the Brewer’s Association reported craft beer accounted for more than 12 percent of sales during 2015, and imports for almost 16 percent. The craft brewing
industry contributed almost $56 billion to the U.S. economy in 2014, and has created more than 424,000 jobs.
SOURCE: PEAK ADVISOR 2016
Page 3 Quarterly Investment Newsletter—Fall 2016
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Wealth Management Midwest:
Mission & Vision Mission
To inspire our clients to make sound financial choices, avoid costly mistakes, and live their best financial life.
Vision
Our industry needs leadership to move forward and be reshaped into a valued and supportive role in our clients’ lives. We will help lead this change by com-mitting to always do what we believe is in our clients’ best interest. Our clients must have faith that our advice is drawn from our knowledge and desire to help them work towards their unique goals, and not from a position of conflicted interest.
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Page 4 Quarterly Investment Newsletter—Fall 2016
From the desk of Dave Purdy:
Small Social Security Raise For 2017
Millions of Social Security recipients and federal retirees will get a 0.3% increase in monthly benefits next year, the fifth year in a row that older Americans will have to settle for historically low raises. There was no increase this year. Next year’s benefit hike will be small because inflation is low, driven in part by lower fuel prices. The fed-eral government announced the cost-of-living adjustment, or COLA, earlier this week. By law, the COLA is based on a government measure of consumer prices. The COLA affects more than 70 million people—about 1 in 5 Americans. The average monthly Social Security payment is $1,238. That translates into a monthly increase of less than $4 a month.
More bad news for seniors: Medicare Part B premiums, which are usually deducted from Social Se-curity payments, are expected to increase next year to the point in which they will probably wipe out the entire COLA. By law, the dollar increase in Medicare’s Part B premium cannot exceed a beneficiary’s cost-of-living raise. That’s known as the “hold harmless” provision, and it protects the majority of Medicare recipients.
But another federal law says that the Part B premium must raise enough money to cover one-fourth of expected spending on doctors’ services. That means that a minority of beneficiaries, in-cluding new enrollees and higher-income people, have to shoulder the full increase. Their premi-ums would jump.
More than 60 million retirees, disabled workers, spouses and children get Social Security benefits. The COLA also affects benefits for about 4 million disabled veterans, 2.5 million federal retirees and their survivors, and more than 8 million people who get Supplemental Security Income, the disabil-ity program for the poor. Many people who get SSI also receive Social Security.
Since 2008, the COLA has been above 2% only once, in 2011. It’s been zero three times.
Source: Social Security Administration 2016
Thank You To Everyone For Stopping By!
Our recent Grand Opening event was an incredible success!! We'd like to thank everyone for taking the time to stop by and tour our new office space. It was a great opportunity to show-case the conference rooms and updated technology we have available to serve you better now and in the future.
Sarah Bjork
Happy Fall to everyone! This season is my absolute favorite and I wish it would stick around for a lot longer than it does. The summer went by very fast with so much going on around the office. We are finally moved into the new space and getting settled into a new flow around the office. The conference rooms have been such a great addition to our office and I can’t wait for each of you to
come in and really utilize the new space. Our office went to Omaha, NE for the Peak Advisor Alliance conference in early October and that was a great learning experience for me re-garding financial planning. The picture shown is after Dave, Kayla, and I went to an awesome breakfast in Omaha. I hope everyone has a great upcoming holiday season and I look for-
ward to seeing you soon.
Dave Purdy
The fall is my favorite season of the year! Lori recently returned from a great getaway trip to Costa Rica with her un-
cle Jim, who is considering retiring there. Lori was amazed at the beautiful beaches and mountainous terrain but she
said the traffic in San Jose was like racing in the Indy 500! Gnatt, our 9 lb. Toy Manchester terrier, has taken up the
sport “Barn Hunt”. The object of Barn Hunt is to test the vermin hunting skills of your dog. Gnatt loves it and with his
natural terrier instinct he has done quite well, gaining 2 titles in three weekends and is now competing at the Senior
level. I enjoyed a trip to the Black Hills with my brother and good friend in August. While there, we experienced
“Jewel Cave”, the third longest cave in the world which is several
hundred feet below the earth’s surface. It was a scorcher outside
the day we visited, however, after going down in the cave, when
the elevator door opened it was a cold damp 49 degrees! I would
recommend taking the tour when you are in the area. Our remod-
eled and expanded office is just fantastic! Thanks to the more than
90 people who attended our open house. As most of you know I
have a passion for electric guitars so the office has that as a theme.
For fun, the guitar in the glass case in our conference room is an
exact replica of Eddie Van Halen’s “Circles” guitar from their
1981 Fair Warning World Tour.
Chad Olson
I hope everyone enjoyed the sum-
mer. With all the rain, it seemed like I
spent more time mowing my lawn than in
my house! I was able to get out to golf a
few times with friends, which was very
nice because I really haven’t played
much over the last couple of years. In
August we celebrated my daughter,
Aria’s, first birthday with friends and fam-
ily at our home. It was fun to see every-
one and to watch Aria’s face as she took
her first bite of birthday cake. Brielle
started her second year of Preschool and
it has been exciting to hear about all the
new things she is learning. It was great
to see so many of you at our Grand Re-
Opening open house in September.
Quarterly Investment Newsletter—Fall 2016
Personal Notes
Page 5
Kayla Hauble
I had a very eventful summer this year and crossed something off my bucket
list! We journeyed up to the Apostle Islands in Bayfield, WI in late July and it
was spectacular! The picture is of Devils Island, about an hour boat ride from
Bayfield, but well worth the trip. The
weather was perfect; upper 70s and low-
er 80s. We never got to go fishing, but
traveled from island to island to check out
the amazing sites. We also stopped at
Madeline Island which is a great place for
a burger and drinks with a bunch of local
shopping. If you have never been there,
it is well worth a trip, but make sure to
bring a big boat, because the waves are
like being on the ocean!
Award based on 10 objective criteria associated with providing
quality services to clients such as credentials, experience and assets
under management among other factors. Wealth managers do not
pay a fee to be considered or placed on the final list of 2012, 2013,
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20 N. Lake Street, Suite 310
Forest Lake, MN 55025
651-464-2664
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5. We review and update you with an annual progress report. We will review any changes in goals and ob-
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“A retired hus-band is often a wife’s full-time job.”
~Ella Harris
Quote Of The Quarter
