February 2018Submitted by Southwest Investment Advisors on February 6th, 2018
Last week the Dow Jones Industrial Average interrupted its strong run, and thus far is within the fluctuation realm when considered on a percentage basis. The size of the numbers makes the decline seem far more dramatic than it really is. Many of the pundits from the media attributed the decline to expected interest rate hikes by the Federal Reserve. However, on average there’s been a 10% annual market correction since 19001. A correction is defined as a drop of at least 10% but not more than 20%. A bear market is a drop of more than 20%. Historically, the average correction sends the market down 13.5% and averages 54 days, less than two months. We believe the markets were long overdue for a pull back, but not a Bear Market.
We see no recession in sight. Earnings growth and unemployment numbers are healthy.
Due to the recent transition process of our back office from National Planning Corporation (NPC) to LPL Financial (LPL), you could be receiving two sets of year end 1099 tax documents for 2017: one from NPC’s Pershing covering January 2017 through November 2017, the other from LPL covering December 2017. Both will be available online if you signed up for online access.
You can expect the Pershing 1099s to be mailed on February 15, 2018. Should a correction be needed, it will be mailed by February 28, 2018. LPL is expecting to mail theirs also on February 15, 2018.
Due to this transition, we will not receive a copy of your Pershing 1099s here at our office, so it is important for you to retain them. Now, being at LPL, we will have a copy of LPL documents for future needs. If your account is held directly with an annuity or mutual fund, you should receive just one 1099.
As always, please let us know if you need help or have questions regarding your tax documents.
Thank you for your business and referrals. We look forward to a prosperous 2018.
1 Forbes: Understanding A Market Correction. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly The Dow Jones Industrial Average is comprised of 30 stocks that are major factors in their industries and widely held by individuals and institutional investors.