Understanding a Recession

Understanding a Recession

Did you know there are three types of recession? Modernize Wealth Chief Investment Officer John Hebert CPM® CFP® explains the different types of recessions that can occur in an economy, and how they can affect you. John also discusses the current situation caused by the Coronavirus, what kind of recession it is likely to cause, and what the recovery prospects are based on history.

Meet Modernize Wealth

Modernize Wealth – A Modern Approach to Wealth Building & Legacy Creation

Modernize Wealth – A Modern Approach to Wealth Building & Legacy Creation

When we sat down as a family and chose to name our firm Modernize Wealth, we did so with a clear perspective: to provide our clients with an exceptional wealth management experience that integrates your personal and business wealth management strategies to create a legacy for you and your family. Our goal is to be invested in your legacy, by offering you a truly innovative approach that is relatable, and evolves as you succeed.

We start by helping you develop a vision of where you would like to be in the future, and designing a financial plan to allow you to achieve your objectives for both your business and your family. We leave no stone unturned; we explore how to help you build your business, we work with you to design a financial plan to build real wealth, and to provide an exit strategy tailored to your goals.

As a family business ourselves, we are passionate about creating a legacy of wealth for future generations – to stand on your shoulders and lead meaningful, purpose-driven lives.

>Our innovated approach extends to all aspects: we sought to implement more advanced investment strategies, state-of-the-art financial planning tools, and creative risk management strategies to build, track and protect your family’s wealth legacy.

Let’s face it: bull and bear markets don’t last forever, and you need a strategy to cope with both types of markets. It isn’t enough to just gut it out when markets go south; you will need a strategy in place before the market plunges so you can take advantage of opportunities when others are panicking. It’s also critical to remember that bull markets come to an end; how you react will be based on whether or not you have a strategy in place to act in a rational manner when adversity sets in.

Our financial planning is built not just on your personal finances, but your business finances as well. We help you determine what your business value currently looks like in the market, and help you construct a plan to grow the value of the business so you can use it to create your legacy any way you see fit, based on your objectives and values.

Our families are the most important people in our lives. We spend our lives providing and caring for our families; we strive to provide the very best education for our children and instill our values so they can fulfill their dreams in life. As a family business, we recognize this and we have built our wealth management based upon this dream.

That is who we at Modernize Wealth are, and you are who we serve. Please reach out to us at 480.346.1283 or email if you have any questions, or just want to discuss further.

Market Updates

Market Update | May 2020

Market Update | May 2020

As we continue to live through the global pandemic, the overall outlook continues to be murky, but less so as time goes by. When the outlook in the market is uncertain, market volatility is usually driven by conflicting investor sentiment resulting from a dominant market-driven event such as COVID-19.

April ended with nearly half of the S&P 500 reporting earnings, and it surprisingly showed the smallest weekly change since the first week of the year, which reflected ongoing investor sentiment of optimism as the economy slowly begins to reopen.

The Fed is still leaning in the short and mid-term, towards an accommodative environment in which monetary policy will keep the discount rate at near 0% for some period of time, even as growth returns to the economy in the coming months. The Fed has made clear that the spigots of the money supply are open, as market security purchases would likely include corporate bonds, and a whatever-is-necessary strategy would remain in effect until the crisis subsides.

The trend in non-farm payroll data will be closely watched, as expectations are for weak employment numbers for the rest of the year, with the hope of systematic improvements as the economy opens up. Fiscal policy stimulus measures and rescue packages give some hope that the employment trajectory will improve rapidly, but many small businesses will be lost, resulting in an unemployment rate that is unlikely to return to pre-covid levels in the near term.

These volatile times prove that you need a goals-based approach to your portfolio management strategy, and a clear understanding of how your portfolio will adjust to market volatility before these type of events occur, so you are adequately prepared to survive and thrive in the future.

If you have questions, concerns, or would like to discuss this further, we would love to hear from you; please email or call us at 480.346.1283.