Financial Advice, Planning and Guidance.

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Our Consultative Approach is a time-proven method that focuses on your needs, your goals and your priorities. Isn’t that a better idea?
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Financial Advice and Strategies

Active money management is more than just a good idea: it is a responsibility. Are we the right partner for your retirement goals?Learn More

Planning. It's Really Not So Complicated

When you finally do figure out what to do with the rest of your life…you’ll probably want the rest of your life to start immediately. How about today?Learn More

Guidance: In Every Client Relationship.

At Denk Strategic Wealth Partners, our insight offers the ‘How’ and the ‘Where’…but only after your vision tells us the ‘Why’.Learn More

Weekly eLetter 3/16/2018 – Peering Into the Future

Here at DSWP we enjoy the opportunity to share our thoughts with you through this weekly e-Letter. We think it’s good that you know what guides our thinking as we continue to optimize opportunities for our clients and just as important protect and preserve their wealth. Our newsletter is also shared with a number of other financial professionals — people who we consider to be thought leaders in the industry. We also receive newsletters from many of these high quality sources. And, the one this week from the good folks at Zack’s Investment Management reminded us of a couple of things we’ve not talked about for a while. In light of the recent rockiness exhibited in the markets, we thought that now would be a good time to revisit those subjects.

First, let me quickly say that when evaluating any equities the paramount consideration is corporate earnings, which includes a careful eye on any changes in a company’s own outlook of their anticipated performance. Next, we want to be aware of a broader picture. We want to identify trends as quickly as possible. On the other hand, we do not want to react to a trend that has not yet substantiated itself, in other words a false trend.

One of the most reliable data sets comes from the Conference Board. Our friends at Zack’s agree:

“We believe that the Conference Board Leading Economic Index (LEI) is arguably one of the most underrated macroeconomic metrics/indicators out there. If you try to find an instance where the LEI was going up and the economy fell into a recession, you wouldn’t find one. Any time the LEI is high and rising, the economy has grown. It makes sense then that the key elements of the LEI are designed to signal peaks and troughs in the business cycle. It coincidentally looks at factors like manufacturers’ new orders, building permits, the interest rate spread, weekly claims for unemployment insurance, amongst a few others. These are all indicators that may be able to offer forward-looking insights into economic activity, versus a metric like GDP that looks backward.
As of this writing, the LEI is high and rising – another good sign, for now (according to Conference Board LEI).”

Another very important trend we keep an eye on is the Yield Curve or, more specifically, signs that the yield curve is flattening.  At this point some readers will be asking “What’s a yield curve?”

– Read more …