Q3 2012 Letter from the President | Part 1

This week we will be presenting excerpts from the latest President’s Letter by Roger Hewins.  Today’s post from the President’s Letter provides a concise summary of pressing economic issues concerning investors, such as the looming “Fiscal Cliff.” 

It ain’t pretty, but…

Nobody said the “muddle through” scenario was going to be a bed of roses.  Quite the reverse.  The best that can be said is that the struggle continues, but we are OK so far.  Fear continues to dominate markets worldwide, as the “risk on/risk off” two-step dance continues week after week. One day a bad bond auction in Spain sends people racing for the exits and hammers the equity markets.  Then some ray of hope, a new deal in Europe for recapitalizing Spanish banks, for example, appears on the horizon and spirits soar.  For the moment.

Meanwhile, back in the good old U.S. of A, the rhetoric is getting heated.  It seems to be the “Socialist business hater” versus the “evil rich ravager of the poor while grinning and smoking a big cigar” guy.  It would be funny if it weren’t so serious.  The soft U.S. economy is generating very few jobs, leaving overall employment at lows we have not seen for decades, and leaving millions chronically unemployed.  Government spending and debt continue to race out of control as we approach dangerous and uncharted levels of debt/GDP.  Not quite Greece yet, but already far worse than Spain, for example.

Add to that a new threat: we face a looming “Fiscal Cliff” of large tax increases and major arbitrary cuts to government functions that kick in on January 1 unless the legislature and President agree on a different course of action.  But even the seemingly simple step of postponing these changes for a year or two, kicking the old can down the road again, seems beyond their ability.  It is widely believed that the impact of this would be to push the weak economy back into recession.

Stay tuned for tomorrow’s post, “So what’s the good news?” 

Hewins Financial Advisors, LLC d/b/a Wipfli Hewins Investment Advisors, LLC (“Hewins”) is an investment advisor registered with the U.S. Securities and Exchange Commission (SEC) under the Investment Advisers Act of 1940. Hewins is a proud affiliate of Wipfli LLP. Information pertaining to Hewins’ advisory operations, services and fees is set forth in Hewins’ current Form ADV Part 2A brochure, copies of which are available upon request at no cost or at www.adviserinfo.sec.gov. The views expressed by the author are the author’s alone and do not necessarily represent the views of Hewins or its affiliates. The information contained in any third-party resource cited herein is not owned or controlled by Hewins, and Hewins does not guarantee the accuracy or reliability of any information that may be found in such resources. Links to any third-party resource are provided as a courtesy for reference only and are not intended to be, and do not act as, an endorsement by Hewins of the third party or any of its content or use of its content. The standard information provided in this blog is for general purposes only and should not be construed as, or used as a substitute for, financial, investment or other professional advice. If you have questions regarding your financial situation, you should consult your financial planner, investment advisor, attorney or other professional. Hewins does not provide tax, accounting or legal services.
Roger Hewins
Roger Hewins

President

Roger Hewins is the President of Hewins Financial Advisors, based in North Palm Beach, FL. Roger has more than 30 years of experience in investment management, helping bring the sophisticated financial advice typically reserved for large institutional clients to everyday investors, from high-net-worth individuals and families to small businesses and retirement plans.

2 Comments

Comments are closed

Q3 2012 Letter from the President | Part 1

time to read: 1 min