Year: 2018

Monthly Newsletter – December 2018

Our December newsletter covers some relevant and timely topics we hope you find value reading.  We begin by sharing BBC’s latest coverage of Brexit.  We are also pleased to provide the latest commentary from Vanguard’s Chief Investment Officer along with the latest monthly commentary from Pacific Asset Management.

Brexit: All you need to know about the UK leaving the EU

Here is an easy-to-understand guide to Brexit – beginning with the basics, then a look at the current negotiations, followed by a selection of answers to questions we’ve been sent.

Brexit: All you need to know about the UK leaving the EU

Vanguard’s CIO talks expectations, interest rates, and blockchain

In the following interview, Vanguard Chief Investment Officer Greg Davis addresses investment and economic conditions, investor expectations, and some of the way’s technology is improving financial market efficiency and transparency.

To read the full guide, click the link below:

Vanguard –  expectations, interest rates, and blockchain 

Pacific November Monthly Commentary

Our partners at Pacific Asset Management share their latest Market Commentary.  Please click the link below to read the latest monthly commentary:

PACIFIC ASSET MANAGEMENT – DECEMBER COMMENTARY

We wish you and your family a wonderful holiday season.  Please contact us if we can be of further assistance.

Monthly Newsletter – November 2018

Monthly Newsletter – October 2018

Monthly Newsletter – November 2018

Our November newsletter covers some relevant and timely topics we hope you find value reading.  This month’s newsletter focuses on the recent market volatility.  Below we share data and market commentary that we feel is of interest.  We are also pleased to provide Touchstone Advisory’s latest guide on “How to Grow Your Wealth” along with the latest monthly commentary from Pacific Asset Management.

Market Commentary

We experienced the second market correction of 2018 (down 10% or more) in October.  Market corrections happen more often than you may think (more on that below) and we recommend reviewing how your investment strategies manage this type of volatility.  Below is some interesting data to consider regarding investing during periods of increased volatility (Source: Market Watch):

  • From 1996 through 2015, the S&P 500 returned an average of 8.2% a year, yet if you missed out on the top 10 trading days because you were trying to time the market, the returns shrank to just 4.5%. And If you missed out on the top 20 trading days, your returns came in at just 2.1%.
  • On average, the market has seen about one correction — defined as a decline of 10% or more — a year going back more than a century.
  • Fewer than 20% of all corrections turn into a bear market. This means that 80% of corrections are just short breaks during a bull market. When the stock market starts tumbling, it can be tempting to abandon ship by selling assets and moving into cash. However, doing so could be a big mistake. You would likely be selling all of your assets at a low, right before the market rebounds!

How to Grow Your Wealth

Investing can be intimidating, a complex world with its own language.  But by recongising and meeting your distinct requirements, we can have a positive impact on your life and investment objectives and help you through the entire process.

To read the full guide, click the link below:

HOW TO GROW YOUR WEALTH

Pacific November Monthly Commentary

Our partners at Pacific Asset Management share their latest Market Commentary.  Please click the link below to read the latest monthly commentary:

PACIFIC ASSET MANAGEMENT – NOVEMBER COMMENTARY

NEW OFFICE ADDRESS

Please note we have moved our office location to downtown Manhattan’s financial district.  Our new address is below:

Touchstone Advisory, LLC

90 Broad Street, Suite 904

New York, NY 10004

We hope you have a wonderful November.  Please contact us if we can be of further assistance.

 

Monthly Newsletter – October 2018

We begin our October newsletter with gratitude.  Last week, Touchstone Advisory, LLC celebrated our one year anniversary of operations.  We want to take a moment to thank every client and partner for their unwavering support throughout the year.  Our mission is to be the leading provider of comprehensive financial planning services for global executives and expatriates living in the United States and abroad.  Below you will find an overview of the core services we now offer along with the latest Monthly Commentary from Pacific Asset Management.

Touchstone Advisory, LLC – Core Services

Global Retirement Planning

Touchstone Advisory, LLC works with clients around the world to help them achieve their retirement goals and objectives. We offer a wide range of US and international options to establish Personal Retirement Plans that may improve your investment & currency flexibility, estate planning needs, and income flexibility.

UK Pension Consulting

Wealth Management & Estate Planning

Touchstone Advisory is proud to provide holistic Wealth Management and Investment Advisory solutions that help our clients grow, protect, and preserve their wealth.

Alternative Investments

We offer our clients the ability to access a wide range of alternative investments strategies to consider that have the potential to provide diversification and reduced risk.

Please visit our Services Website to learn more

Pacific October Monthly Commentary

Our partners at Pacific Asset Management share their latest Market Commentary.  Please click the link below to read the latest monthly commentary:

PACIFIC ASSET MANAGEMENT – OCTOBER COMMENTARY

We hope you have a wonderful October.  Please contact us if we can be of further assistance.

Monthly Newsletter – September 2018

Our September newsletter covers some relevant and timely topics we hope you find value reading.  Below you will find Touchstone Advisory’s Guide to Asset Allocation, Lord Abbett’s article on Emerging Markets: Turkey and China in the Spotlight, and Pacific Asset Management’s latest monthly commentary:

Touchstone Advisory’s Guide to Asset Allocation

Understanding investment risk and determining what level of risk you feel comfortable with before you invest is an important part of the investment decision process. Your potential returns available from different kinds of investment, and the risks involved, change over time as a result of economic, political and regulatory developments, as well as a host of other factors.

To read the full guide, click here

Emerging Markets: Turkey and China in the Spotlight

While investors have been focusing on Turkey and its plunging currency amid political turmoil, the economic outlook for China also is coming under increased scrutiny, given an intensifying trade war with the United States and the uncertainty arising from the conflict.

To read the full article, click here

Pacific September Monthly Commentary

Our partners at Pacific Asset Management share their latest Market Commentary.  Please click the link below to read the latest monthly commentary:

PACIFIC ASSET MANAGEMENT – SEPTEMBER COMMENTARY

We hope you have a wonderful September.  Please contact us if we can be of further assistance.

Monthly Newsletter – August 2018

Our August newsletter covers some relevant and timely topics we hope you find value reading.  Below you will find articles that cover the 3 biggest risks in global investing today & how to avoid them, the case for electric vehicle investment, one of the biggest retirement planning mistakes, and Pacific Asset Management’s latest monthly commentary:

3 Biggest Risks in Global Investing Today & How to Avoid Them (Barrons)

The world looks a lot different than it did a year ago.

In 2017, it was zipping along: Every major economy was growing, global markets were charging higher, and just about every asset class was rising in value. But by this spring, the smooth sailing had given way to choppy waters, and a sea of new developments has left investors looking for direction.

To read the full article, click here

The Bullish Case for Electric Vehicle Investment (thisismoney)

Continued decline in battery costs + evolving consumer preferences & increasingly environmentally-focused policy are positive catalysts

To read the full article, click here

One of the Biggest — and Often Costliest — Retirement Mistakes Investors are Making Today (CNBC)

Target-date funds are all the rage among retirement investors, making it easy to spread money among stocks and bonds and to rebalance as conditions change. Total assets in this sector topped $1.1 trillion at the end of 2017, up from $158 billion at the end of 2008, according to Morningstar.

But is this too much of a good thing?

To read the full article, click here

PACIFIC AUGUST MONTHLY COMMENTARY

Our partners at Pacific Asset Management share their latest Market Commentary.  Please click the link below to read the latest monthly commentary:

PACIFIC ASSET MANAGEMENT – AUGUST COMMENTARY

We hope you have a wonderful August.  Please contact us if we can be of further assistance.

MONTHLY NEWSLETTER – JULY 2018

Our July newsletter covers some relevant and timely topics we hope you find value reading.  We begin by sharing the latest on Brexit and how our UK pension consulting process can help.  We are also sharing Lord Abbett’s Mid Year Outlook.  Finally, our partners at Pacific Asset Management share their latest monthly commentary:

BREXIT UPDATE

Prime Minister Theresa May’s proposal for the U.K. to maintain close ties to the EU after divorce has resulted in political turmoil as Brexit Secretary David Davis and Foreign Secretary Boris Johnson resigned from their respective posts.  The below Bloomberg article details this further:

Face of Brexit Boris Johnson Resigns Plunging May into Crisis (Bloomberg)

For those that have assets in the U.K. – in particular, pensions – now is a timely opportunity to review the options available to you.  We have prepared the below video explaining the benefits of our UK Pension Consulting service:

 

LORD ABBETT MID YEAR OUTLOOK

Lord Abbett investment leaders offer their insights on the macroeconomic and policy factors that could influence markets in the second half of 2018.

To read the full article, click here

 

PACIFIC JULY MONTHLY COMMENTARY

Our partners at Pacific Asset Management share their latest Market Commentary.  Please click the link below to read July’s monthly commentary:

PACIFIC ASSET MANAGEMENT – JULY COMMENTARY

We hope you have a wonderful July.  Please contact us if we can be of further assistance.

Monthly Newsletter – June 2018

Our June newsletter covers some relevant and timely topics we hope you find value reading.  We begin by sharing our latest improvements to our website and service model.  We are also sharing the article I recently published distinguishing Blockchain Technology & Virtual Currencies.  Finally, our partners at Pacific Asset Management share their latest monthly commentary:

 

TOUCHSTONE-US.COM

Over the past month, we have made several improvements to our website aimed at providing greater transparency and adding valuable tools & resources for our clients.  Please visit our website and we hope you enjoy the improved experience.  Here are some of the updates we made:

  • Client Portal – We added a Client Portal that provides:
    • Account Login – access to our main third-party custodians for clients to access their account details online.
    • Financial Planning Tools – access to a wide range of tools that help develop and refine personalized financial plans.
  • News – News section where you can find our latest news updates, including this newsletter.
  • Guides – Complimentary access to a wide range of Financial Planning Guides.

 

UNDERSTANDING VIRTUAL CURRENCIES & BLOCKCHAIN

Virtual Currencies are digital mediums of exchange such as Bitcoin operating in largely unregulated environments with minimal regulatory oversight. It is critically important to distinguish Virtual Currencies as a controversial, potential medium of exchange for transactions vs. the underlying blockchain technology.  Blockchain is a technology platform that provides a distributed ledger to track and bundle transactions.

To read the full article, click here


PACIFIC JUNE MONTHLY COMMENTARY

Our partners at Pacific Asset Management share their latest Market Commentary.  Please click the link below to read June’s monthly commentary:

PACIFIC ASSET MANAGEMENT – JUNE COMMENTARY

We hope you have a wonderful June.  Please contact us if we can be of further assistance.

Understanding Virtual Currencies & Blockchain

VIRTUAL CURRENCIES VS. BLOCKCHAIN

Virtual Currencies are digital mediums of exchange such as Bitcoin operating in largely unregulated environments with minimal regulatory oversight. It is critically important to distinguish Virtual Currencies as a controversial, potential medium of exchange for transactions vs. the underlying blockchain technology.  Blockchain is a technology platform that provides a distributed ledger to track and bundle transactions.

VIRTUAL CURRENCIES & COIN OFFERINGS

In the US and most developed nations, Virtual Currencies are regulated as commodities and are not viewed as currencies/securities.  As a result, Virtual Currencies and Initial Coin Offerings (ICO) are not subject to many of the substantive securities regulations protecting investors dating back to the Securities Act of 1933.

The lack of regulation has opened the door to fraudulent actors pretending to offer opportunities in ICO’s and Virtual Currencies.  There are also perfectly legitimate companies in this space that are adversely impacted by these fraudulent actors.

For now, our view is that until ICO’s and Virtual Currencies are properly regulated, we strongly urge our clients and all investors to be vigilant when considering investing in this space.

The Securities and Exchange Commission (SEC) launched Howeycoins, an educational tool to alert investors regarding investments in Virtual Currencies and coin offerings:

https://www.howeycoins.com/index.html

Howeycoins looks enticing and one may even consider investing with them.  However, when you get that far, you are directed to the following SEC web-page:

https://www.investor.gov/howeycoins

To read the full list of investment red flags, please visit the SEC website https://investor.gov.

BLOCKCHAIN

On the other hand, Blockchain, the technology behind Virtual Currencies, is in our opinion the technology of the future.  The technology is capable of revolutionizing global trade, data security, supply chain management, and financial instrument clearing.  Blockchain is being embraced by industry leading corporations in 3 profound ways, in addition to allowing Virtual Currencies as payment:

Mining Enablers: Companies that either create equipment and/or tools to enable creation of new blockchains or are mining blockchains as their main business.

 

Solutions Providers: Companies engaged in blockchain as service providers. They assist businesses & organizations in the creation and implementation of blockchain applications.

 

Adopters: Companies that primarily use Blockchain technology to increase operational efficiencies, optimize settlement processes, enhance the customer experience and/or increase data security/integrity.

The Innovation Labs Blockchain Innovators Index targets companies that may benefit from blockchain technology, many of them being blue-chip companies across a wide range of sectors.  Below are the top 10 holdings currently [1]:

  • Visa (V)
  • Microsoft (MSFT)
  • Amazon (AMZN)
  • Intel Corp (INTC)
  • Tencent Holdings Ltd (700 HK)
  • Taiwan Semiconductor (TSM)
  • Mastercard (MA)
  • Oracle (ORCL)
  • BP (BP / LN)
  • Cisco Systems

CONCLUSION

We prefer investing in established companies that will benefit from incorporating Blockchain technology, instead of higher risk and poorly regulated initial coin offerings or Virtual Currencies.

SOURCE DATA:

[1] Innovation Shares – https://www.innovationshares.com/

Touchstone Advisory, LLC is a Registered Investment Adviser with the U.S. Securities and Exchange Commission (CRD# 288370 / SEC# 801-110510).  Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies.  Investments involve risk and, unless otherwise stated, are not guaranteed.  Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.

Investment advisory services in the United States provided through Touchstone Advisory, LLC as a fully separate service from the non-US services provided through Touchstone Advisory, Ltd (https://touchstone-global.com). Touchstone Advisory, LLC and Touchstone Advisory Ltd are affiliated but operate as separate entities.