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Most investors that I speak with have a punch list of planning items that they intend to address. Often, the missing link is a process to make incremental progress on tax planning, estate planning, and investment strategy. The ability to use the summer to make advances by “taking a lap” around your advisory team is the focus of this week’s program.

Tax season stresses CPA’s and investors with unrealistic deadlines and complexity. Many of the families that we serve simply choose to file an extension and schedule a wrap up during the summer when tax preparer’s have the advantage of a more relaxed schedule.   For many investors, this also allows more time for proactive planning and tax minimization strategy. Further, we find that a relaxed conference call with the CPA and investment advisor can diffuse issues at year end and the April tax season panic. For those who are seeking the advice of a new CPA we have a list of tax professionals that our clients have worked with: CPA List.

Estate planning updates with the family attorney often lack coordination with the investment advisory firm. The basic step of making sure that your advisor has PDF copies of your estate planning documents in a secure document vault is a simple and vital part of the logistics and planning. Trustee boot camp is the process of engaging the family and friends that you wish to help you in the future. The Estate Planning Package and our Trustee Boot Camp enable you to make more informed progress and engage your future trustees as well as those who have asked you to serve as executor or trustee.

This week’s program takes a long term view of the financial planning steps that correspond to investment results.   While the markets enter crisis, investors with a commitment to own great assets can often benefit from attractive pricing. Further, planning when a portfolio should harvest gains to protect can build in a risk reduction strategy before inflection points.

We look forward to Summer Planning Season and helping to coordinate your future success.

Featured Research Solutions:

Investors are invited to improve decision making with a comprehensive tour of global economics, indicators, and actual results.

Headline Round Up!

  • Why Cohen and Steers Estimates $100 Billion in Potential Institutional Buying of Real Estate Investment Trusts.
  • Fastest Growing Cities in Texas.
  • Bond Buyers Love Austin Based Dell Computer.
  • No Encore for Oncor!
  • Equity Markets Wilt into Negative Territory for 2016. There has to be a better way!
  • Net Worth Reports: How Rich are Donald Trump and Hillary Clinton? How Poor is Bernie Sanders?
  • Wall Street Journal Highlights Excessive Duration Risk in U.S. Treasuries and Other Long Government Bonds! What does it mean for investment strategy?
  • What Do This Week’s FOMC Minutes by the Federal Reserve Really Tell Us?

Get A Plan!

Investors:  Start the process of upgrading your strategy and long term plan today by setting an appointment to come to the Crescent and meet the team that cares

Q2 2016 MGAM Client Updates

The first 3 months of 2016 appeared to reflect significant changes in the perspective of investors, apparently moving to extreme pessimism and back to realistic optimism.   The corrections of 2015 and early 2016 culminated with what could be diagnosed as a temporary freeze in global credit markets, based upon the pricing of US high yield corporate bonds at the February 11th discount of 75% of par value as measured by HYG, the Dow Jones Industrial Average twice approaching 15,500, and the concurrent implosion of domestic oil prices to $27 per barrel.

Springtime appeared to change perspectives: anxiety melted, trees bloomed, and investors bought investments that pay reliable cash flow as evidenced by increases in the Utility Index and US Corporate High Yield Index:


Graph courtesy of Bloomberg L.P.

What is a yield panic?

One relevant scenario is 2012.  The premise that interest rates could stay lower for longer was put forward, prior to 2012, by Scott Minerd of Guggenheim. During 2012, the values of high cash flow assets paying substantially more that U.S. Treasuries generally rallied in price.  It appeared that investors, realizing rates did not have to rise, began to purchase allocations that could provide yield advantages.


Graph courtesy of Bloomberg L.P.

Conclusions for 2016-2017

March appears to indicate that the 2012 yield panic scenario could continue to push prices up for high cash flow assets.  While discounts to maturity value under control are available, investors should continue to consider that capital flows at the end of the first quarter of 2016 could signal opportunities for the remainder of this year as well as 2017.


Graph courtesy of Bloomberg L.P.


Start the process of updating your investment plan today?