News & Events

Market Thoughts and Update March 28, 2018

 

 
 
Market Thoughts and Update
 

To Our Valued Clients & Friends,

 

The fear of an all-out trade war gripped Wall Street last week, driving stock prices down to near calendar year lows. With just 4 trading days remaining in the first quarter 2018 (the markets are closed this next Friday), the S&P 500 is down 2.8% YTD (total return). A negative quarter would break the index’s streak of 9 straight positive quarters and would be just its 2nd down quarter in the last 5 years. The S&P 500 has had 20 trading days YTD that have resulted in at least a 1% gain or loss, more than double the 9 such trading days that the index experienced in all of 2017 (source: BTN Research).    

 

Ironically, by the time the contentious steel and aluminum tariffs became effective last Friday (3/23/18), 32 additional countries had been added to the exception list from the original 2 exempted nations – Canada and Mexico. All 28 European Union (EU) countries plus Argentina, Australia, Brazil and South Korea, received last minute suspensions from the 25% steel and the 10% aluminum tariffs. Further exemptions are expected over the next 5 weeks (source: White House). Clearly the tariff situation is looking much less draconian.

 

The US government came within 11 hours of its 3rd government shutdown this year, but ultimately Congress and the White House agreed on federal spending levels for the fiscal year which will be half over later this week. Legislation signed by President Trump funds the federal government through 9/30/18 and allowed both parties to claim victory – Republicans increased military spending by $66 billion over its 2017 level and Democrats added $52 billion to domestic programs. Apparently, “Fiscal discipline” is simply not a popular concept held by many current Washington lawmakers (source: BTN Research).            

 

Notable Numbers for the Week:

HALF OF ONE PERCENT - The Federal Reserve began a rate-tightening cycle on 12/16/15. In the 27 months since then (through Friday 3/23/18), the yield on the 10-year Treasury note has increased 0.52 percentage points from 2.30% to 2.82% (source: Treasury Department).  

 

ENERGY INDEPENDENCE? - American oil producers have pumped at least 10 million barrels a day of crude oil for the last 7 weeks, hitting 10.407 million barrels per day for the week ending Friday 3/16/18. The last time US oil producers hit 10 million barrels a day of crude oil was in 1970 (source: EIA).   

 

ONE MONTH - The US government ran a $215 billion budget deficit in February 2018. Until 1986, the government had not recorded an annual deficit as high as $215 billion (source: Treasury Department).

 

DEMOGRAPHIC SHIFT - By the year 2035, the projected number of Americans seniors aged 65 and up (78.0 million) will exceed the number of American children under the age of 18 (76.4 million), the first time in US history that will have occurred (source: Census Bureau). 

 

I hope you found this email helpful and informative.

 

Best regards,

 

Michael

 

 

Reproduction Prohibited without Express Permission. Copyright © 2018 Michael A. Higley. All rights reserved. The content of this material was provided to you by Lincoln Financial Securities Corporation for its representatives and their clients.  

 Securities offered through Lincoln Financial Securities Corporation, (Member SIPC) a broker-dealer. Past performance isn’t indicative of future performance. An index is unmanaged, and one cannot invest directly in an index. 

This e-mail may include forward-looking statements that are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied.

If you do not want to receive further editions of this weekly newsletter, please contact me at 617-338-8747 or e-mail me at Mkaleel@kaleelcompany.com or write me at 77 Franklin Street, Suite # 501, Boston MA 02110.

 

03/26/18 Monday   LFS-269527-032618

 

 
 
Michael Kaleel, CLU, ChFC
President
 
Financial success today requires complex problem solving to manage the risks you see, and those you don't.
 
Recognized in the financial industry as a leader and complex problem solver for uncommonly successful individuals, Michael Kaleel and his team of specialists use their intellectual capital to create sophisticated insurance and investment solutions.
 
 *This message is intended for the use of the addressee and may contain information that is privileged and confidential. If you have received this message in error, please erase all copies.
 
*Investments offered through representatives of Lincoln Financial Securities, Member SIPC. Michael M. Kaleel, Branch Manager.

*Advisor services offered through representatives of Kaleel Investment Advisors, LLC. Michael M. Kaleel, Registered Investment Advisor.

*The Kaleel Company, Inc. & Kaleel Investment Advisors, LLC. and Lincoln Financial Securities are not affiliated.
 

 

Recent Market Changes

 

 
 
Recent Market Changes
To our valued clients,
 
The market’s recent volatility has surprised many investors and has created headline news. While the sudden onset of volatility is unsettling, it’s certainly not unexpected. To help allay your concerns, we’d like to share our perspective on the reasons for the recent market volatility.
 
A summary of the market
 
Global equities turned in a greater than 20% return in 2017. The momentum carried over into 2018 with a continuation of the advance. Then February brought a quick and powerful reversal. In just a few days, the impressive gains of January were largely erased, essentially leaving markets where they began. After the market close on February 5th, media outlets called the decline the “biggest drop” in history. While this may be true of intraday trading on a point drop in the DJIA, it isn’t particularly helpful in assessing the decline.
 
When viewed on a percentage change basis, the story is considerably different. It was far from the biggest drop ever: on August 24, 2015 the market fell intraday 6.6%, and in May of 2010, it dropped a staggering 9%. As time and markets advanced, those days are now largely forgotten. To state it more accurately, the February 5th decline was the largest drop in 30 months, and only the 99th largest drop in the last 120 years.
 
This is not to say that we are dismissive or unconcerned about the decline. As an advisor and steward of capital, we are concerned about anything that affects our clients, their portfolios, and their goals. This situation continues to develop and the short-term direction of markets remains unclear. A case in point: On February 6th, equity markets oscillated wildly between losses and gains throughout the day, and ultimately ended up 567 points. Rest assured, we will continue to monitor the market with an eye toward prudent management of your capital.
 
A historical perspective
 
While the equity markets have enjoyed several years of low volatility, market downturns are not uncommon over time. It is important to note that the market tends to move in a “two steps forward, one step back” fashion.
 
A History of Declines (1900-February 2018)
 
Type of Decline     Average Frequency*        Average Length**   Last Occurrence
-5% or more          About 3 times a year               47 days             February 2018
-10% or more        About once a year                 115 days             August 2015
-15% or more        About once every 2 years      215 days            October 2011
-20% or more        About once every 3½ years   341 days            March 2009
Source: Capital Research and Management Company Past performance is no guarantee of future results.
*Assumes 50% recovery rate of lost value    
**Measures market high to market low
 
Until recently, volatility in the markets had been uncharacteristically muted. As unsettling as it is, this may merely be a return to a more normal market environment. Over the past two years, the markets marched steadily forward. Importantly, through January 2018, the S&P 500 advanced 15 straight months on a total return basis. It is a typical human trait to become less accustomed to events when they become less frequent. The recent declines in the markets become more painful to many because they seem less common. These perceptions, however, don’t alter the fact that periodic declines are both common and unavoidable.
 
What happens now?
 
We focus on what is happening in the economic environment rather than the daily price changes of the indices or individual companies. The current environment continues to be on good economic ground. The news outlets will want to keep you engaged and tuned in to their stations by stating this was the “largest drop” or the “fastest decline” since whenever. These statements can get many people agitated; however, the worst possible reason to make changes is the emotional reason.
 
We realize that market declines are unnerving to even the most disciplined investor. A great quote on what to do in times of market corrections comes from John Bogle founder of the Vanguard funds. When faced with a serious market sell off he said, “Don't do something, just stand there." This is sound advice on how not to react from a great investment expert.
 
Please don’t hesitate to call with answer any questions or concerns.
 
Best regards,
  
Michael Kaleel
 
 
LFS-2020997-020718
 
 
Michael Kaleel, CLU, ChFC
President
 
Financial success today requires complex problem solving to manage the risks you see, and those you don't.
 
Recognized in the financial industry as a leader and complex problem solver for uncommonly successful individuals, Michael Kaleel and his team of specialists use their intellectual capital to create sophisticated insurance and investment solutions.
 
 *This message is intended for the use of the addressee and may contain information that is privileged and confidential. If you have received this message in error, please erase all copies.
 
*Investments offered through representatives of Lincoln Financial Securities, Member SIPC. Michael M. Kaleel, Branch Manager.

*Advisor services offered through representatives of Kaleel Investment Advisors, LLC. Michael M. Kaleel, Registered Investment Advisor.

*The Kaleel Company, Inc. & Kaleel Investment Advisors, LLC. and Lincoln Financial Securities are not affiliated.
 
LFS-1708774-021017

 

Tax Changes in 2018

 

 
 
Tax Changes to Come in 2018

On December 20, 2017, Congress passed (on a party-line basis) the biggest tax reform law in thirty years, one that will make fundamental changes in the way you, your family and your business calculate your federal income tax bill, and the amount of federal tax you will pay. Since most of the changes will go into effect next year, there's still a narrow window of time before year-end to soften or avoid the impact of crackdowns and to best position yourself for the tax breaks that may be heading your way. Taxpayers should understand that a majority of the tax reform provisions are applicable only through 2025. Here's an overview of some last-minute moves you should consider.

General Planning Opportunities

 

The general plan of action to take advantage of lower tax rates next year is to defer income into next year or accelerate deductions into this year. Some possibilities follow:

 

Individual Taxpayers

 

       State and Local Tax Issues. After 2017, individuals (as opposed to businesses) will only be able to claim an itemized deduction of up to $10,000 ($5,000 for a married taxpayer filing a separate return) for the total of (1) state and local property taxes; and (2) state and local income taxes. To avoid this limitation, pay the last installment of estimated state and local taxes for 2017 no later than December 31, 2017, rather than on the 2018 due date. Only prepay state and local taxes if the 2017 deduction is not otherwise limited by the AMT. But don't prepay in 2017 a state income tax bill that will be imposed next year (i.e., 2018) – Congress says such a prepayment won't be deductible in 2017. However, Congress only forbade prepayments for state income taxes, not property taxes, so a prepayment on or before December 31, 2017, of a 2018 property tax installment is apparently permissible.

 

       Postpone IRA Conversion. If you are about to convert a regular IRA to a Roth IRA, postpone your move until next year. That way you'll defer income from the conversion until next year and have it taxed at lower rates.

 

       Roth Recharacterization. Earlier this year, you may have already converted a regular IRA to a Roth IRA but now you question the wisdom of that move, as the tax on the conversion will be subject to a lower tax rate next year. You can unwind the conversion to the Roth IRA by doing a recharacterization—making a trustee-to-trustee transfer from the Roth to a regular IRA. This way, the original conversion to a Roth IRA will be cancelled out. But you must complete the recharacterization before year-end. Starting next year, you won't be able to use a recharacterization to unwind a regular-IRA-to-Roth-IRA conversion.

 

       Delay Large Gifts. Individuals contemplating making large gifts, resulting in gift or GST taxes, should consider delaying such gifts until 2018.

 

       Postpone Debt Cancellation. The reduction or cancellation of debt generally results in taxable income to the debtor. So, if you are planning to make a deal with creditors involving debt reduction, consider postponing action until January to defer any debt cancellation income into 2018.

 

       Accelerating Charitable Contributions. Consider accelerating 2018 charitable contributions to 2017, if it appears your itemized deductions will not exceed the new larger standard deduction in 2018.

 

Business Taxpayers

 

       Cash Basis Business—Defer Billings. If you run a business that renders services and operates on the cash basis, the income you earn isn't taxed until your clients or patients pay. So, if you hold off on billings until next year—or until so late in the year that no payment will likely be received this year—you will likely succeed in deferring income until next year.

 

       Accrual Basis Business—Defer Income. If your business is on the accrual basis, deferral of income till next year is difficult but not impossible. For example, you might, with due regard to business considerations, be able to postpone completion of a last-minute job until 2018, or defer deliveries of merchandise until next year (if doing so won't upset your customers). Taking one or more of these steps would postpone your right to payment, and the income from the job or the merchandise, until next year. Keep in mind that the rules in this area are complex and may require a tax professional's input.

 

Other Year-End Strategies for Individuals


Here are some other last-minute moves that may save tax dollars in view of the new tax law:

 

Individual Taxpayers

 

         Take Advantage of Increased AMT Exemption. The new law substantially increases the alternative minimum tax (AMT) exemption amount, beginning next year. There may be steps you can take now to take advantage of that increase. For example, the exercise of an incentive stock option (ISO) can result in AMT complications. So, if you hold any ISOs, it may be wise to postpone exercising them until next year. And, for various deductions (e.g., depreciation and the investment interest expense deduction), the deduction will be curtailed if you are subject to the AMT. If the higher 2018 AMT exemption means you won't be subject to the 2018 AMT, it may be worthwhile, via tax elections or postponed transactions, to push such deductions into 2018.


 

 

         Moving Expense Deduction Suspended. The new law suspends the deduction for moving expenses after 2017 (except for certain members of the Armed Forces), and suspends the tax-free reimbursement of employment-related moving expenses. So, if you are in the midst of a job-related move, try to incur your deductible moving expenses before year-end, or if the move is connected with a new job and you are getting reimbursed by your employer, press for a reimbursement to be made to you before year-end.


Business Taxpayers

 

         Accelerate Like-Kind Exchanges. Like-kind exchanges are a popular way to avoid current tax on the appreciation of an asset, but after December 31, 2017, such swaps will be possible only if they involve real estate that isn't held primarily for sale.

 

         Accelerate Business Entertaining Costs. For decades, businesses have been able to deduct 50% of the cost of entertainment directly related to or associated with the active conduct of a business. For example, if you take a client to a nightclub after a business meeting, you can deduct 50% of the cost if strict substantiation requirements are met. But under the new law, for amounts paid or incurred after December 31, 2017, there's no deduction for such expenses.

 

         Accelerate Employee Business Expenses. Under current law, various employee business expenses (e.g., employee home office expenses), are deductible as itemized deductions if those expenses plus certain other expenses exceed 2% of adjusted gross income. The new law suspends the deduction for employee business expenses paid after 2017. Also, now would be a good time to talk to your employer about changing your compensation arrangement—for example, your employer reimbursing you for the types of employee business expenses that you have been paying yourself up to now, and lowering your salary by an amount that approximates those expenses. In most cases, such reimbursements would not be subject to tax.

 

Please keep in mind that I've described only some of the year-end considerations in light of the new tax law. If you would like more details about any aspect of how the new law may affect you, please do not hesitate to call.

 

Very truly yours,

Michael Kaleel

 

P.S. The following is additional detail regarding the new tax law.



Individual Taxation Changes and Considerations

Lower Tax Rates Coming

There will be seven individual income tax brackets under tax reform.  The top individual income tax rate for ordinary income will be 37%.

 

Tax rates for married individuals filing joint returns and surviving spouses.

“If taxable income is:

The tax is:

 

 

Not over $19,050

10% of taxable income.

Over $19,050 but not over $77,400

$1,905, plus 12% of the excess over $19,050.

Over $77,400 but not over $165,000

$8,907, plus 22% of the excess over $77,400.

Over $165,000 but not over $315,000

$28,179, plus 24% of the excess over $165,000.

Over $315,000 but not over $400,000

$64,179, plus 32% of the excess over $315,000.

Over $400,000 but not over $600,000

$91,379, plus 35% of the excess over $400,000.

Over $600,000

$161,379, plus 37% of the excess over $600,000.

 

Disappearing or Reduced Deductions, Larger Standard Deduction

Beginning next year, the Tax Cuts and Jobs Act suspends or reduces many popular tax deductions in exchange for a larger standard deduction.

 

       Individuals (as opposed to businesses) will only be able to claim an itemized deduction of up to $10,000 ($5,000 for a married taxpayer filing a separate return) for the total of (1) state and local property taxes; and (2) state and local income taxes.

 

       Under current rules, alimony payments generally are an above-the line deduction for the payor and included in the income of the payee. Under the new law, beginning in 2019, alimony payments aren't deductible by the payor or includible in the income of the payee, generally effective for any divorce decree or separation agreement executed after 2018. For any divorce decree or separation agreement executed prior to 2019, the new law will apply if such agreement is modified after 2018 and the modification expressly provides that the new law applies to the modification.

 

       The itemized deduction for charitable contributions won't be chopped. But because most other itemized deductions will be eliminated in exchange for a larger standard deduction (e.g., $24,000 for joint filers), charitable contributions after 2017 may not yield a tax benefit for many because they won't be able to itemize deductions.

 

       The new law temporarily boosts itemized deductions for medical expenses. For 2017 and 2018 these expenses can be claimed as itemized deductions to the extent they exceed a floor equal to 7.5% of your adjusted gross income (AGI). Before the new law, the floor was 10% of AGI, except for 2017 it was 7.5% of AGI for age-65-or-older taxpayers. But keep in mind that next year many individuals will have to claim the standard deduction because many itemized deductions have been eliminated.

 

       The principal residence mortgage interest deduction will be limited to interest on $750,000 of indebtedness, for loans after 2017.

 

       Elimination of personal exemptions, the deduction for home equity debt, miscellaneous itemized deductions subject to the 2% floor (e.g., investment advisory fees and tax preparation fees), the Pease rule (i.e., phase-out of itemized deductions), the deduction for casualty losses (except for Federally declared disasters), and moving expenses (except for certain military personnel).

 

       Estate, Gift and GST tax exemptions will double to $10 million (expected to be $11.2 million for 2018 with inflation indexing).  Thus, for a married couple the combined exemptions would be $22.4 million in 2018.

 

Some Items Not Changing for Individuals


       The preferential top rate (i.e., 20%) on capital gains and qualified dividends.

 

       Annual exclusion gifts ($15,000 for 2018).

 

       The 3.8% net investment income tax is not changing, thus, net investment income (e.g., interest, dividends, capital gains, annuity income, rents, etc.) will be taxable to the extent it exceeds the applicable thresholds (e.g., single taxpayers $200,000, married filing jointly $250,000).

 

       A taxpayer’s ability to sell specific lots of securities. The original tax reform bills in the House and Senate would have forced FIFO treatment for the sale of securities (e.g., stocks).

 

       Stretch-out distributions for beneficiaries of IRAs and other qualified plans.

 

       Rules for excluding gain on the sale of a principal residence.

 



Business Taxation Changes and Considerations


Lower Tax Rates Coming for Businesses

The Tax Cuts and Jobs Act will reduce tax rates for “c corporations”, effective for the 2018 tax year. Additionally, other businesses, including those operated as pass-throughs (such as partnerships, limited liability companies taxed as partnerships or s corporations, and s corporations) may see their tax bills cut.

       The graduated “c corporation” tax rates ranging from 15% to 35% will be reduced to a flat 21% rate.

 

       The corporate AMT is fully repealed beginning in 2018.

 

       A new like-kind exchange rule limits exchanges to real estate not held primarily for sale.

 

       The IRC section 179 deduction will double to $1 million, subject to phase-out.

 

       Doubling of bonus depreciation to 100% and expansion to include used property. The effective date is for assets acquired and placed in service after September 27, 2017 and before January 1, 2023.

 

       Pass-through entities (e.g., partnerships, s corporations, and sole proprietorships) will be entitled to a 20% qualified business income deduction. The provision is applicable for business owners with income under $157,500 ($315,00 for married filing jointly). In addition, the benefit is subject to phase-out.

 

CRN-1978139-122217

 

Lincoln Financial Securities Corporation. letter disclosure.

The content of this material was provided to you by Lincoln Financial Securities Corporation for its representatives and their clients. Lincoln Financial Securities Corporation and its representatives do not provide legal or tax advice. You may want to consult a legal or tax advisor regarding any legal or tax information as it relates to your personal circumstances.

 
 
Michael Kaleel, CLU, ChFC
President
 
Financial success today requires complex problem solving to manage the risks you see, and those you don't.
 
Recognized in the financial industry as a leader and complex problem solver for uncommonly successful individuals, Michael Kaleel and his team of specialists use their intellectual capital to create sophisticated insurance and investment solutions.
 
 *This message is intended for the use of the addressee and may contain information that is privileged and confidential. If you have received this message in error, please erase all copies.
 
*Investments offered through representatives of Lincoln Financial Securities, Member SIPC. Michael M. Kaleel, Branch Manager.

*Advisor services offered through representatives of Kaleel Investment Advisors, LLC. Michael M. Kaleel, Registered Investment Advisor.

*The Kaleel Company, Inc. & Kaleel Investment Advisors, LLC. and Lincoln Financial Securities are not affiliated.
 
LFS-1708774-021017

 

A note to clients and friends: our thoughts on 2017

 

 
 
 
In times like these it helps to recall that there have always been times like these.Paul Harvey
 
"No days off." Bill Belichick
Over the past month, your allocations and holdings have had an intense review. Our analysis involves comparisons and assessment as to whether your holdings and your allocations are positioned for success in the coming months ahead. We are planning to add some strategies to your portfolio and to adjust some of the allocations. The selections are expected to help smooth the sometimes bumpy ride that comes with investing and keeping you on the right path towards a financially secure future.
 
We will be calling to discuss the changes and make sure that the allocations are still appropriate for where you are today.
 
Risk redefined for you
Many of you tell us that you don’t want to take risk.  Most people think of risk as simply losing money.  Losing money is when you place a bet on a horse that you know nothing about and sadly your horse finishes last. You have indeed lost your money.  There is no waiting to see what that horse will do next time.  Your money is gone.  If you’ve owned a business, you took risk to make that business grow. Without risk, companies do not grow, invent or profit. Markets go up and down. Sometimes they go up when the economy is terrible.  Sometimes the market seems to make little sense. So how does this translate to what we do for you?
 
Focusing on what matters
The world of investing can seem complicated. But, no matter how complicated it can be, there are some simple truths.  Investments are only useful to the extent that they improve the likelihood of a successful outcome.  In order to achieve that for you, we build portfolios with financially strong companies that have healthy balance sheets, good cash flow and earnings growth as the foundation for future growth. These are the companies we expect will provide protection in down drafts and participate in the upswings of the market.
 
Coming soon…what’s in your account?
One of the things we will be sending through these Kaleel Communiques over the next few months will be a Holdings Highlight Series. While you may not necessarily want to know every last data point about your holdings, you may be interested in reading the series from an education standpoint or just to satisfy your curiosity as to why each holding has a place in your account.
 
We hope you will enjoy reading each letter in this series and look forward to your input. We look forward to a positive 2017 and to seeing you soon.
 
As always, thank you for your loyalty and confidence.
 
Michael
 
 
Michael Kaleel, CLU, ChFC
President
 
Financial success today requires complex problem solving to manage the risks you see, and those you don't.
 
Recognized in the financial industry as a leader and complex problem solver for uncommonly successful individuals, Michael Kaleel and his team of specialists use their intellectual capital to create sophisticated insurance and investment solutions.
 
 *This message is intended for the use of the addressee and may contain information that is privileged and confidential. If you have received this message in error, please erase all copies.
 
*Investments offered through representatives of Lincoln Financial Securities, Member SIPC. Michael M. Kaleel, Branch Manager.

*Advisor services offered through representatives of Kaleel Investment Advisors, LLC. Michael M. Kaleel, Registered Investment Advisor.

*The Kaleel Company, Inc. & Kaleel Investment Advisors, LLC. and Lincoln Financial Securities are not affiliated.
 
LFS-1708774-021017

 

A note to clients and friends: our thoughts on 2017

 

 
 
Steady as She Goes
 
As 2016 fades in the rear view mirror, we look forward to 2017.
 
No matter what the conditions of politics, economics, or the state of the world, we are here to guide you through the complexities of your world. Our goal is to help you make the best possible decisions to protect and grow your financial future.
 
Undoubtedly the events of 2016 are going to impact investor sentiment as well as the economic outlook over the coming year. So many opinions and so little time to read the commentary and listen to the rhetoric. As you know, these communications are attempts to catch your attention, sell news and increase readership. We are here to help you sort through the litany. On the other hand, irrational exuberance can also be harmful. 
 
What could lie ahead in 2017 
There is no predicting the future; however, we can look to the  environment and anticipate some possible outcomes. We believe that the possibility exists for the following themes in 2017:   
  • Higher interest rates
  • Inflation potential
  • Higher market volatility
Preparing for what could lie ahead 
With these themes in mind, here are our thoughts on how we plan to approach the year ahead.
 
Higher interest rates benefit those who need more income but are not good for certain stocks and long maturity bonds. We continue to look for ways to reposition your stocks and bonds to provide you protection in a rising interest rate environment.
 
Inflation is the enemy. We believe that both low and high levels of Inflation are the biggest obstacles in maintaining wealth. Over the last 45 years, we have experienced inflation at all levels. We will be discussing the use of strategies that are expected to move with inflation such as inflation protected Treasuries and commodities.
 
On volatility, the ups and downs of the stock market become exaggerated as uncertainty rises. Volatility is not always a bad thing as it can provide opportunities to enter an asset class or strategy.  In anticipation of market volatility, we are looking to add exposure in areas such as certain dividend paying stocks. These investments can provide a buffer in down markets and a good source of income.
 
Experience and fundamentals matter 
Ultimately, the value of investments relies on fundamentals such as earnings growth, cash flow, and a healthy balance sheet. These are the things that we focus on and look to invest in for the long run.
 
Over the last four decades, we have gained experience, perspective and hopefully some wisdom. Our outlook for the future is bright and positive.
 
 
More than a financial statement
Through our years of working with successive generations, we know that your financial life is not just stocks and bonds, it’s family dynamics, taxes, gifts, legacy, trusts, insurance etc. We are here to help you navigate your areas of concern in your unique situation. 
 
We look forward to getting together with you in 2017 and invite you to call us with your comments or thoughts.  
 
Thank you for continued friendship and support. 
 
 
Best wishes,
Michael

LFS-1685362-011717

 
 
Michael Kaleel, CLU, ChFC
President
 
Financial success today requires complex problem solving to manage the risks you see, and those you don't.
 
Recognized in the financial industry as a leader and complex problem solver for uncommonly successful individuals, Michael Kaleel and his team of specialists use their intellectual capital to create sophisticated insurance and investment solutions.
 
 *This message is intended for the use of the addressee and may contain information that is privileged and confidential. If you have received this message in error, please erase all copies.
 
*Investments offered through representatives of Lincoln Financial Securities, Member SIPC. Michael M. Kaleel, Branch Manager.

*Advisor services offered through representatives of Kaleel Investment Advisors, LLC. Michael M. Kaleel, Registered Investment Advisor.

*The Kaleel Company, Inc. & Kaleel Investment Advisors, LLC. and Lincoln Financial Securities are not affiliated.
 

The Kaleel Company is Proud to Sponsor The Boston Cup

 

Brexit Update

June 27, 2016
After weeks of speculation and debate over the so-called “Brexit”, British citizens have voted to withdraw from the European Union. As is often the case when it comes to an ominous headline, media outlets are abuzz with “experts” making predictions. The initial reaction has been a sell-off in global equities. As your advisors, we would like to offer additional information that may put Thursday’s vote into perspective.
 
So, what exactly is the European Union?
 
The European Union is a political/economic union of 28 member states located primarily in Europe. Current European Union members represent about 7% of the world’s population. Member countries seek united policies to help promote common stances on trade, capital and development. Legislation and regulations are in place that govern economic interaction among members resulting in a single market objective. As a result, the U.K.’s government and economy are intertwined with other member countries in very complex ways. 
 
Has the U.K. left the European Union?
 
No, not yet. The electorate has voted on a non-binding referendum to exit. For now, the U.K. remains a member but negotiations will begin leading to a possible withdrawal. It is possible that given the agreements that are necessary for a withdrawal, the separation could take months or even years.
 
What happens next?
 
Frankly, it is too early to tell with certainty. The somewhat surprising result of the vote was only announced late Thursday night. It is too soon to put forward reliable estimates. This situation will go on for a very long time and certainly have many unexpected twists and reversals. However, there are some things we do know. While the U.K. is a major world economy, it represents just 4% of global GDP. Also, if the exit does proceed, the U.K. will not have to withdraw from the euro currency as they have continued to use the British pound. That is not to say that this should be ignored. An event like this warrants attention and we are continuing to monitor it. 
 
Regarding your goals and your portfolio
 
It is likely that there will be considerable volatility over the near term. While some will be happy to react to uncertainty with fear and speculation, you deserve better than that.  It is important to have a strategy during times like these. That is what we do here. As the fall and recovery from the sub-prime crisis and other crises have shown, panic is not a strategy. It is often a recipe for magnified losses. Any alterations to our strategy and portfolio should be weighed rationally and with restraint. As stewards of your wealth, we intend to continue to rationally evaluate the challenges and opportunities that uncertainty in the capital markets presents. We will work with you to make any needed adjustments to your investment portfolio, always focusing on your long-term goals and personal situation. We take the responsibility of helping you, through good times and bad, very seriously. We stand ready to help and are willing to discuss your portfolio at your convenience. Please call with any questions or concerns you may have.
 
Sincerely,
 
Michael M. Kaleel
 
Michael M. Kaleel
President
The Kaleel Company, Inc.
Kaleel Investment Advisors, LLC
77 Franklin Street, Suite 501
Boston, MA 02110
(617) 338-8747 x111 Phone
(617) 338-9410        Fax
mkaleel@kaleelcompany.com
www.kaleelcompany.com
  
*This message is intended for the use of the addressee and may contain information that is privileged and confidential.  If you have received this message in error, please erase all copies.
*Investments offered through Lincoln Financial Securities Corporation, Member NASD, and SIPC. 
One Granite Place, Concord NH. 03301
(800) 258-3648. Michael M. Kaleel, Branch Manager.
*Advisory services offered through Kaleel Investment Advisors, LLC. Michael M. Kaleel, Registered Investment Advisor.
*The Kaleel Company, Inc. & Kaleel Investment Advisors, LLC. and Lincoln Financial Securities Corporation are not affiliated.
 
The content of this material was provided to you by Lincoln Financial Network for its representatives and their clients. Lincoln Financial Network is the marketing name for Lincoln Financial Advisors Corp. and Lincoln Financial Securities Corporation. 
 
Source of data – – Morningstar, U.S. Department of Commerce, ECB,  The Federal Reserve. The performance of an unmanaged index is not indicative of the performance of any particular investment.  It is not possible to invest directly in any index.  Past performance is no guarantee of future results.  This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Additional risks include changes in economic conditions, interest rates, and supply and demand.  Stocks can have fluctuating principal and returns based on changing market conditions.  International investing involves special risks not found in domestic investing, including political and social differences and currency fluctuations due to economic decisions.  Investing in emerging markets can be riskier than investing in well-established foreign markets.  CRN-1533094-062416 
 
 
 
 

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Investments offered through representatives of Lincoln Financial Securities Corporation, Member SIPC (http://www.sipc.org) to residents of CA, CO, CT, FL, MA, ME, NC, NH, NY, PA, SC, VA & VT. Lincoln Financial Securities and its representatives do not offer tax or legal advice. Individuals should consult their tax or legal professional regarding their specific circumstances. Advisory services offered through Kaleel Investment Advisors, LLC, a Massachusetts registered Investment advisor. Lincoln Financial Securities and Kaleel Investment Advisors, LLC are not affiliated.