Voice of Moneta

Some Thoughts on Gold

mboggess@monetagroup.com (Meredith Boggess) — Fri, 19 Apr 2013 19:11:33 GMT

On the off chance you haven’t noticed, the price of gold has been falling. Gold reached its peak in September 2011, topping out at just over $1,900/oz. On April 15, 2013, gold was trading at around $1,366/oz, and was down about 8 percent on that date alone. There are many theories about why the selloff has occurred, including hedge funds exiting positions and the Yen weakening versus the dollar. But in reality it doesn’t matter why gold is down: it is down.

Tax Season Reminder

mboggess@monetagroup.com (Meredith Boggess) — Tue, 19 Feb 2013 21:37:42 GMT

“The tax man cometh….” Actually the play is titled The Iceman Cometh, but for most, this time of year—and a reasonably mild winter thus far—means careful preparation for the tax man. No matter how many times you go through the exercise of gathering the necessary documents and information for your tax preparer, changes in the tax laws and individual circumstances can add new challenges. As you begin the process of gathering your tax data, here is a list of some of the commonly overlooked items. . .

Moneta Group Shred Day

mboggess@monetagroup.com (Meredith Boggess) — Tue, 19 Feb 2013 21:23:38 GMT

Tax season generates documents containing personal information, prompting a clearing out of desks, filing cabinets and offices. Don’t spend hours feeding a stack of sensitive documents into a ‘home-sized’ shredder (or tearing them into tiny pieces); instead take advantage of Moneta's shred service!

2013 Economic Outlook

mboggess@monetagroup.com (Meredith Boggess) — Tue, 29 Jan 2013 16:30:00 GMT

The conventional wisdom asserts: equity market advances occurring against the backdrop of a ‘wall of worry’ indicate that investors are confident that the issues will be resolved at some point in the future. If that is the case, 2012’s performance should generate a high degree of confidence that the looming debt ceiling debate, higher taxes, and below-trend forecasted economic growth are temporary bumps in the road. Read more. . .

A Summary of The American Taxpayer Relief Act of 2012

mboggess@monetagroup.com (Meredith Boggess) — Thu, 03 Jan 2013 22:16:51 GMT

Media outlets, newspapers and news organizations are filled with analyses of what The American Taxpayer Relief Act of 2012 will mean to American taxpayers. With the help of our sister company, Tax Strategies, LLC, we are providing our Moneta clients with the following summary, and hope it is useful in helping you plan for the coming changes.

Designations

mboggess@monetagroup.com (Meredith Boggess) — Fri, 07 Dec 2012 18:01:17 GMT

Most people are looking for an advisor with knowledge and experience, someone who will address the complexities wealth presents. Professional designations are one way of evaluating a potential advisor.

Protecting Client Assets

mboggess@monetagroup.com (Meredith Boggess) — Thu, 06 Dec 2012 20:07:25 GMT

The trust our clients place in us is never taken lightly. Chief Counsel and Compliance Officer Steve Frontczak explains how we protect client assets.

Password Security

mboggess@monetagroup.com (Meredith Boggess) — Thu, 06 Dec 2012 18:38:34 GMT

The increasing incidents of online fraud give everyone pause. One way to be better protected from hackers is to have passwords that are very tough to crack.

Electronic Fraud

mboggess@monetagroup.com (Meredith Boggess) — Thu, 06 Dec 2012 18:14:53 GMT

We are concerned at the increase in online fraud and are alerting you to two different ways you may be at risk.

All That Glitters is Not Gold

host@example.com (Moneta) — Fri, 20 Jul 2012 20:34:17 GMT

With a seemingly endless supply of ominous global economic news, investing in gold has grabbed much of the media’s and investors’ attention. Many investors have become mesmerized by the luster of profit and safety. But are the touted expectations too lofty, only a sales pitch, pure sensationalism or are they reasonable? What are the risks and rewards associated with gold investments?

The Patient Protection and Affordable Care Act: What Does It Mean for You?

host@example.com (Moneta) — Fri, 20 Jul 2012 20:04:11 GMT

In the aftermath of the decision of the Supreme Court, many questions have surfaced regarding its direct impact on Americans. There are some benefits to be realized, but the cost attached to these benefits will affect some tax payers.

The Application of Alternative Investments: An Historical View

host@example.com (Moneta) — Fri, 20 Jul 2012 19:52:26 GMT

The advantages of diversification within an investment portfolio are not always obvious. Certainly, during dramatic market declines, diversified portfolios have the ability to provide investors with some loss mitigation. Director of Alternative Investments Chris Jordan provides insight on how a diversified portfolio with alternative investments would have performed over the past 20 years.

Document Shredding Day

mboggess@monetagroup.com (Meredith Boggess) — Fri, 08 Jun 2012 18:56:00 GMT

Tax season often generates documents containing personal information, prompting a clearing out of desks, filing cabinets and offices. Instead of spending hours feeding a stack of sensitive documents into a ‘home-sized’ shredder (or tearing them into tiny pieces) take advantage of Moneta's shred service!

To Cope with Market Volatility, Remember Five Simple ‘Philosophies for Success'

mboggess@monetagroup.com (Meredith Boggess) — Fri, 08 Jun 2012 18:54:35 GMT

We can agree that 2011 was a challenging year: high equity volatility; low bond yields; negative headlines from Europe; and a very charged political climate all contributed to investor anxiety. These worries often leave many restless and looking for the next “new” thing as it relates to investments (as if that exists!). In a perfect world, every client would want Moneta to be able to say, “We know exactly when the market is about to decline and we will move you to cash and then put you back in as soon as it hits absolute bottom so you don’t miss the ride back up.” But without benefit of a crystal ball, no one can do that consistently over a long (probably any) period of time, and to think otherwise or pretend it’s even a remote possibility is naïve.

In the Context of Global Financial Markets of the Past Several Years, 2011 Reinforces Attributes We Believe are Critical to Successful Investors

mboggess@monetagroup.com (Meredith Boggess) — Fri, 08 Jun 2012 18:53:02 GMT

While 2008 is etched in many investors’ minds, 2011 was also a very difficult year, although on the surface it looks relatively unremarkable. The Dow Jones Industrial Average was up 6 percent, and the broader, more representative S&P 500 was basically flat (both quoted on a price basis). Although the S&P 500 stood at 1257.64 on the last trading day of 2010 and 1257.60 exactly one year later, 2011 was a year full of crises that sapped investor confidence. Still, the markets showed tremendous resiliency in the face of numerous challenges: European debt crisis, debt ceiling debate, Japanese tsunami, Arab Awakening. More importantly, despite tepid returns, domestic equity valuations improved as earnings increased, bond yields provided little competition for risk capital, and the economic data showed improvement.

2011 Vol. XIII

mboggess@monetagroup.com (Meredith Boggess) — Fri, 08 Jun 2012 18:51:53 GMT

As the final days of 2011 unwind, we take this opportunity to once again thank you for allowing us the privilege of serving as your advisor, colleague, associate and friend. We are proud to be your partner and value the relationships we enjoy with all our constituencies.

This has been a somewhat tumultuous year in the markets! Thank you for reading—and often responding to—our Voice of Moneta communications. We have tried to provide our outlook on timely and important topics that have been in the news and on your minds. We have also endeavored to keep you informed about items of interest to you and to educate you about circumstances that might affect you.

To our valued clients, we are grateful for your loyalty and for your continued trust in us as your Family CFO. For our other constituencies—friends, business associates, prospects and others—thank you for your interest in Moneta Group and for the opportunity to be in communication with you.

We send warm wishes for a joyous end of the year and best wishes for a healthy and prosperous 2012.

2011 Vol. XII

mboggess@monetagroup.com (Meredith Boggess) — Fri, 08 Jun 2012 18:50:34 GMT

At Moneta Group, part of our job as your Family CFO is to be your eyes and ears for any and all regulatory changes that could have an impact on your financial lives. With that in mind, we’d like to let you know of some new regulations pertaining to tax reporting requirements beginning with the 2011 tax year.

One of the changes brought about by the Emergency Economic Stabilization Act of 2008 is that custodians will be required to report cost basis information for the first time to the IRS. For tax year 2011, the custodians will report cost basis for equities acquired on or after January 1, 2011. Next year they will report cost basis on mutual funds and dividend reinvestment plan (DRIP) shares acquired on or after January 1, 2012. In order to reflect the updated reporting requirements, you will notice your 1099 forms will have a new look this year.

In advance of this change, your Moneta Group team has been working in conjunction with the custodians to make sure this transition is a relatively seamless one for you. As with any change, we anticipate there may be questions as we proceed. We welcome them, and assure you we are poised to make the upcoming tax season as easy as possible for you and your tax professional.

2011 Vol. VII

host@example.com (Moneta) — Wed, 03 Aug 2011 14:31:30 GMT

The ongoing market volatility has sapped confidence and has many investors asking, “Is this another 2008?” and “Can I emotionally survive another downturn?” These are timely questions without easy answers. Equity volatility, by any measure, has increased dramatically since the beginning of August. One widely-followed measure is the Chicago Board Options Exchange Volatility Index (VIX ), which recently touched levels last seen during the 2008 credit crisis. However, most investors have their own ‘stomach acid’ indicator which, with 500 point swings during several trading sessions, has kicked into high gear. Trying to divine if the market (as measured by the S&P 500) is poised for another 51 percent drawdown is, as always, an unwinnable proposition. However, it is useful to be mindful of the fact that despite the challenges currently facing the economy, valuations for equities are much better today than when the market peaked in the fall of 2007.

Dividend yields – The S&P 500 yields approximately 2.3 percent today vs. 1.80 percent at the market peak in October 2007. Today the S&P yields more than the 10-year Treasury bond (2.3 percent vs. 2.08 percent). Today’s yield is obviously a function of lower prices, but dividends-per-share for the S&P have actually increased since bottoming in the third quarter of 2009 after many financial companies that took TARP assistance reduced dividends to de minimus amounts.

2011 Vol. VI

host@example.com (Moneta) — Tue, 02 Aug 2011 14:28:19 GMT

Recent news has resulted in heightened sensitivity to risks inherent in the fixed income markets; however, our philosophy remains unchanged. We view fixed income as an asset class to generate current income and help mitigate equity market risk. Based on current market conditions (the level of yields, risk premiums, and recent ratings actions) we don’t feel a need to alter our core philosophy and buying parameters as it relates specifically to fixed income.

Although it’s difficult for investors not to focus on the recent (mostly) downside volatility in the equity markets, the fixed income markets have had an equally eventful period and significant price movements also. Two events over the past three trading days will have important and ongoing impacts on the credit markets.

2011 Vol. V

host@example.com (Moneta) — Mon, 01 Aug 2011 14:21:43 GMT

When the financial news is bad (which it has been as we watched our elected officials play at politics while debating the raising of the debt ceiling) our clients begin to worry. Moneta Group's message doesn't change because the headlines are telling us to run for the hills. We still recommend sticking with a long-term strategy based on a diversified portfolio across multiple asset classes and strategies and, as always, we advise clients against making decisions driven by fear. But when global economic news is grim and the market is falling, that might not be what our clients want to hear.

The facts of the situation are often less exciting and sometimes more complex, and they don't usually make for great headlines, but they are important in helping clients understand our thinking. We believe this is what you expect from us; information about what we think of the current situation.

2011 Vol. IV

host@example.com (Moneta) — Wed, 01 Jun 2011 14:17:32 GMT

Recent media buzz surrounds comments made in a December 19, 2010 interview on "60 Minutes with Meredith Whitney, banking analyst and frequent contributor to CNBC, Fox Business, and Bloomberg News programs. On the topic of municipal bonds, Whitney said, "You could see 50 sizeable defaults, fifty to 100 sizeable defaults. More. This will amount to hundreds of billions of dollars' worth of defaults." (see interview from "60 Minutes": http://www.youtube.com/watch?v=CP4QHNJ7EWo&feature=related

However, May 23 on Bloomberg Radio hosted by Tom Keene, Whitney is quoted as saying, "I never said that there would be hundreds of billions of defaults. It was never a precise estimate over a specific period of time." As for the timing of the predicted defaults, on the "60 Minutes" segment, she said, "It'll be something to worry about within the next 12 months." Yet in her Bloomberg interview she said, "In the cycle of this municipal downturn, I stand by it. But we never had a specific estimate for that. That's not the nature of our research."

2011 Vol. III

host@example.com (Moneta) — Sun, 01 May 2011 14:12:36 GMT

2011 Vol. II Real Property Reassessment

host@example.com (Moneta) — Fri, 01 Apr 2011 14:06:25 GMT

As homeowners winced at the drop in real estate prices over the past three years, they may also shudder when receiving biennial property reassessments. By law, the Saint Louis County Assessor is required (Missouri State Statute 137.115) to establish the fair market value of all real property as of January 1 of every odd year (like 2011 and 2013), so 2011 will see homes reassessed. The assessed value is applied to the tax rates established by the taxing districts to determine the amount of tax levied against a property. The reassessment process involves establishing the value of about 389,000 parcels of real property, providing owners the opportunity to appeal, then finalizing, certifying and communicating the values to the individual taxing districts.

2011 Vol. I

host@example.com (Moneta) — Tue, 01 Mar 2011 13:55:55 GMT

In the past year or so, we have written about the controversy regarding the standard by which clients receive advice, particularly the difference between the 'fiduciary' standard and the 'suitability' standard. The Investment Adviser's Act of 1940 mandated that RIAs (like Moneta) must act in the best interest of their clients (the fiduciary standard) while broker/dealers must act 'in a manner consistent with client needs' (the suitability standard).

The distinction can be confusing, because there are 'separate but unequal' regulations for presumably the same services; some who provide financial advice can wear both hats, putting on the 'suitability' hat when acting as a broker or recommending products for which they receive a commission, and changing to the 'fiduciary' hat when giving financial advice. It's easy to see why clients can be baffled about which hat their advisor is wearing—and when they change hats.

2010 Vol. XII - Expansion of Moneta's Investment Department

host@example.com (Moneta) — Fri, 22 Oct 2010 19:09:37 GMT

Since the financial turmoil in 2008, many Moneta Group clients have had a heightened awareness of the vicissitudes of the markets and susceptibility of their financial planning to unforeseen events. At Moneta Group, we understand that the world and financial markets are changing, and we are dedicated to exploring all available opportunities in order to provide each individual client the best and most appropriate options. In this global marketplace, our clients expect us to provide expertise across all financial markets.

We have always challenged the status quo. One goal has been to build a robust and expert investment department. Under the direction of Bill Hornbarger, chief investment strategist, we have continued to work toward fulfilling that goal. The most recent addition to the investment team is Chris Jordan, director of alternative investments. Along with Rich McDonald, director of fixed income and Luke Ferraro, director of investment research, we have ...