National Estate Planning Awareness Week Oct. 21-27, 2019

Jacqueline Runnberg CFP® CERTIFIED FINANCIAL PLANNER™ Professional
Senior Vice President | Wealth Advisor

Estate Planning is a vital component of every financial plan, regardless of the size of the estate. Unfortunately, it’s also an area that is commonly overlooked.

Providing for your future and that of your family, and even for future generations, can be a daunting task. It requires having access to a resource that can expertly guide you through the complexities of changing tax and estate laws, volatile financial markets, and your own shifting personal circumstances. We are a resource in your community, one that may even have been working with you as you built the legacy you now want to protect.

With over 100 years of experience in providing personal trust and estate planning services to families throughout the Chicagoland area and well beyond, O2 Wealth Management is such a resource, one you can rely on to not only advise you, but serve as:

  • Trustee of your revocable living trust or testamentary trust
  • Guardian of the estate of a disabled individual
  • Executor of your estate
  • Agent for your investment account

Count on O2 Wealth Management for your estate and wealth management solutions! oldsecond.com/wealth

Not insured by the FDIC nor any govt institution; Not a deposit or other obligation of, or guaranteed by, the depository financial institution; Subject to investment risks, including possible loss of principal amount invested.

Brexit vote: Wealth Economic Update October 18, 2019

U.S. and World News

  • brexit-1050622194_370British Prime Minister Boris Johnson is set for a big day tomorrow as parliament is set to vote on a Brexit deal that the Prime Minister agreed on with the European Union on Thursday. Boris Johnson stated that he is “very confident” that the House of Commons will support the deal, which is widely expected to be a historically close vote and will determine whether there will be a deal or not before the October 31st deadline. The Northern Irish Democratic Unionist Party (DUP) stated that they are unable to support the deal as it stands, casting doubts over the passage of the deal tomorrow. If the MP’s reject the deal tomorrow, it is still possible that a vote on a “no-deal Brexit” could pass, but that is unlikely given historical votes on the this motion. The likely outcome if the Brexit deal is voted down tomorrow is that the United Kingdom will ask the European Union for another extension.


Markets

  • Markets were mixed this week after corporate earnings and Chinese economic data. The S&P 500 rose 0.55% and closed at 2,986. The Dow Jones fell 0.13% and closed at 26,770. Year-to-date, the S&P is up 20.96% and the Dow Jones is up 16.90%.
  • Yields rose slightly this week. The 5 year and 10 year U.S. Treasury Notes are yielding 1.56% and 1.75%, respectively.
  • The spot price of WTI Crude moved lower this week this week. Prices fell 1.83% and closed at $53.70 per barrel. Year to date, Oil prices are up 18.26%.
  • The spot price of Gold rose by 0.11% and closed at $1,490.67 per ounce. Year to date, Gold prices are up 16.23%.

Economic Data

  • Initial jobless claims rose by 4,000 to 214,000 and the four-week moving average rose by 1,000 to 215,000. Claims increased by 5,000 in California.
  • The level of housing starts fell 9.4% to 1,256k versus expectations for a reading of 1,320k
  • Building permits fell by 2.7% versus expectations for a decline of 5.3%
  • Retail sales fell 0.3% versus expectations for an increase of 0.3%
  • Core retail sales remained unchanged versus expectations for a 0.3% increase
  • Industrial production fell by 0.4% versus expectations for a decline of 0.2%

Fact of the Week

  • In 2008, China’s economy was smaller than the economy of Japan ($4.5 Trillion vs $4.9 Trillion). In 2019, China’s economy is nearly triple that of Japan’s economy ($14.2 Trillion vs $5.2 Trillion)

Please contact a member of the Wealth Management Department if you have any questions about this information.

Rich Gartelmann, CFP® – (630) 844-5730 –  rgartelmann@oldsecond.com
Steve Meves, CFA® – (630) 801-2217 – smeves@oldsecond.com
Brad Johnson, CFA®, CFP® – (630) 906-5545 bjohnson@oldsecond.com
Mike Cava, CFA®, CFP® – (630) 281-4522 mcava@oldsecond.com
Mike Demski – (630) 966-2430 mdemski@oldsecond.com
Jacqueline Runnberg, CFP® – (630) 966-2462 jrunnberg@oldsecond.com

Visit Old Second Wealth Management

Non-deposit investment products are not insured by the FDIC nor any govt agency; not a deposit of, or guaranteed by, the bank; may lose value.

China negotiations, California blackouts: Wealth Economic Update October 11, 2019

U.S. and World News

  • china-1053768454_370Ahead of scheduled trade negotiations today with Chinese Vice Premier Liu He, the Trump administration has added 28 Chinese entities to an export blacklist as a consequence of Beijing’s repression of Muslim minorities. The Trump administration stated that this move is completely unrelated to trade negotiations and it will prevent the blacklisted companies from buying American components without government approval. China quickly responded by saying it would take countermeasures, “urging the U.S. side to immediately correct its mistake.” and announced a plan to restrict visas for U.S. nationals with ties to anti-China groups. The Chinese delegation arrived in Washington yesterday where negotiations began and President Trump announced that talks went “very well”. After the meeting at the White House, President Trump told the press that the U.S. and China have “come to a substantial phase 1 deal”. In exchange for the cancelation of the United States planned increase in tariffs on Chinese goods on October 15th, China has agreed to increase purchases of U.S. agriculture goods from $8 billion to $40-$50 billion and has agreed to be more transparent with regard to their currency.
  • California’s largest utility company PG&E took preventative measures and cut power to 700,000 households ahead of a string of days with 40 mile per hour winds that have sparked wildfires in the past. Late last night, a wildfire started in the San Fernando Valley area, just north of Los Angeles that is responsible for two deaths, covers 823 acres and is 10% contained. Approximately 100,000 people have been ordered to evacuate their homes and over 25 homes have been damaged so far. Water dropping helicopters worked to help extinguish the fire throughout the night and were accompanied by planes early this morning. Investigators say that they know how the Sandalwood Fire started, but they continue to look for any possible criminal activity.


Markets

  • Markets are higher after a volatile week. The S&P 500 rose 0.66% and closed at 2,970. The Dow Jones rose 0.93% and closed at 26,817. Year-to-date, the S&P is up 20.30% and the Dow Jones is up 17.05%.
  • Yields rebounded sharply this week. The 5 year and 10 year U.S. Treasury Notes are yielding 1.55% and 1.73%, respectively.
  • The spot price of WTI Crude rose after an Iranian tanker near Saudi Arabia was attacked. Prices rose 3.77% and closed at $54.80 per barrel. Year to date, Oil prices are up 20.68%.
  • The spot price of Gold fell by 1.09% and closed at $1,488.24 per ounce. Year to date, Gold prices are up 16.04%.

Economic Data

  • Initial jobless claims fell by 10,000 to 210,000 and the four-week moving average rose by 1,000 to 214,000. Claims fell by 4,000 in Michigan, 3,000 in California, and 2,000 in Ohio.
  • The consumer price index (CPI) remained unchanged versus expectations for a 0.1% increase and the year-over-year rate rose by 1.7% versus expectations for a 1.8% increase
  • Core CPI rose by 0.1% versus expectations for a 0.2% increase and the year-over-year rate rose by 2.4%, in-line with expectations
  • The producer price index (PPI) fell by 0.3% versus expectations for a 0.1% increase
  • Wholesale inventories rose by 0.2% versus expectations for a 0.4% increase
  • The University of Michigan’s index of consumer sentiment rose 2.8 points to 96.0 versus expectations for a reading of 92.0

Fact of the Week

  • At the beginning of the bull market that started on 3/10/09, the total market cap of all US stocks was $7.6 trillion. At the end of the third quarter (09/30/19) the total market cap of US stocks was $32.3 trillion. The S&P 500 makes up 80% of the total market cap of US stocks. (Source: Wilshire, BTN Research)

Please contact a member of the Wealth Management Department if you have any questions about this information.

Rich Gartelmann, CFP® – (630) 844-5730 –  rgartelmann@oldsecond.com
Steve Meves, CFA® – (630) 801-2217 – smeves@oldsecond.com
Brad Johnson, CFA®, CFP® – (630) 906-5545 bjohnson@oldsecond.com
Mike Cava, CFA®, CFP® – (630) 281-4522 mcava@oldsecond.com
Mike Demski – (630) 966-2430 mdemski@oldsecond.com
Jacqueline Runnberg, CFP® – (630) 966-2462 jrunnberg@oldsecond.com

Visit Old Second Wealth Management

Non-deposit investment products are not insured by the FDIC nor any govt agency; not a deposit of, or guaranteed by, the bank; may lose value.