Howard Capital Management Reviews - Wealth Watch & Global Weekly Summary
Tailored Investment Solutions from Howard Capital Management and J. Martin Wealth
Located in Roswell, Georgia, Howard Capital Management (HCM) is an SEC-Registered Investment Advisor Firm. They aim to deliver professional money management solutions to individuals seeking growth while maintaining a prudent investment approach. The firm offers the use of the HCM-BuyLine®, developed by Vance Howard, CEO and Portfolio Manager at Howard Capital Management Inc., which has been their cornerstone since 1996. This unique stop-loss safeguard is crafted to provide timely guidance during market volatility. The HCM-BuyLine® effectively reduces downside risk by moving from equities to cash and cash equivalents while actively identifying opportunities to boost equity exposure during a market upswing.
J. Martin Wealth, based in Arizona, provides fiduciary financial advice tailored to help you meet your financial goals. Led by Jeff Martin, our team focuses on personalized investment strategies that align with your risk tolerance, time horizon, and unique objectives. Whether planning for retirement, managing your investments, or seeking comprehensive financial guidance, we are here to provide solutions that put your best interests first. Serving clients in Gilbert, Chandler, Maricopa, and throughout Arizona, we are committed to delivering transparent, client-centered service.
Howard Capital - Global Weekly Summary
Nvidia Sparks Market Rally, While Geopolitical Concerns Linger - November 15, 2024
- Posted By : Editorial Team
The world’s equity markets continued to rally after chipmaker Nvidia posted unprecedented daily gains during the week. The effect of this surge had a global impact as equity markets rallied even though geopolitical tensions dominated headlines. The yields on fixed income securities advanced and the expectation of a rate cut in the U.S. by the Federal Reserve changed. It is now anticipated that even though there will be multiple rate cuts during the year, it may only happen during the second half of 2024. Geopolitical tensions continued in the Middle East, while the seemingly mysterious death of Alexei Navalny in captivity has raised alarm bells around the world about Russia’s autocracy and further sanctions have been announced by the U.S. against the Kremlin.
Global Updates
- The MSCI All Country World Index rose during the week, primarily driven by the rally in the U.S. equity market.
- The United States has announced more than 500 new sanctions against Russia over its invasion of Ukraine and the death in custody of the opposition figure Alexei Navalny.
- Israeli Prime Minister Benjamin Netanyahu unveiled a plan for Gaza’s future post-Hamas, which includes the “complete demilitarization” of the enclave, closing off the territory’s southern border with Egypt, as well as the overhaul of Gaza’s civil administration and education systems.
- The German and Dutch central banks posted multi-billion euro losses for 2023 and predicted more financial pain ahead. The banks are unlikely to pay dividends for years to come.
- China’s central bank, the People’s Bank of China, has cut its key mortgage reference rate by a record amount. Its five-year loan prime rate has been cut from 4.2% to 3.95%, while keeping the one-year loan prime rate unchanged at 3.45%, as it ramps up efforts to stem a prolonged property crisis.
- Argentina markets double down on Libertarian leader Javier Milei as investors believe that the new President can pull the country out of the present economic crisis.
U.S. Equity
- The S&P 500 advanced during the week, reaching a new all-time high, driven by Nvidia’s impressive rally.
- Nvidia posted revenues which were up by 265% on the booming Artificial Intelligence business, beating earnings and sales estimates.
- Amazon has been added to the Dow Jones Industrial Average, replacing Walgreens Boots Alliance.
- Goldman Sachs’ analysts no longer expect a U.S. interest rate cut in May and see four 25 basis point cuts this year.
- Reddit paved the way for it to be the first major social media company to debut on the stock market in years after filing to go public.
- U.S. money-market fund assets dropped for the second straight week on expectations that short-term rates will remain elevated for longer.
U.S. Fixed Income
- The Bloomberg U.S. Aggregate Bond Index declined over the week as bond yields increased.
- The U.S. 10-year Treasury yield rose from 4.27% to 4.33% over the week, while the yield on the 2-year bond moved up from 4.59% to 4.69%.
- Credit spreads tightened for both investment-grade and high-yield bonds.
- The U.S. Dollar Index weakened over the week.
Wealth Watch: From the desk of Vance Howard
Small Caps, Big Moves – Trends Worth Watching
- Posted By : Vance Howard - November 14, 2024
The market is a bit overbought and may need a brief period to consolidate, but any pullbacks should be considered buyable events at this point. We are expecting the market to move higher into year-end. I think it is very possible we could see as much as a 5% or more rally before the end of the year. With the Trump agenda – lower regulation and keeping taxes where they are, or possibly lowering them – investors are, and should be, very optimistic.
The cryptocurrency industry bet big on the election of Donald Trump, and crypto assets have rallied in the days since he secured a second term in the White House. Crypto companies will likely be looking for Congress to pass crypto legislation, along with new leadership and a friendlier stance at the SEC. Look at (IBIT) if you’re looking for a Bitcoin ETF, and if you prefer individual stocks, take a look at (COIN) Coinbase Global.
Small caps have started to make their move. I have been calling for a small cap rally all year, and the volatility has been almost untradeable, but that seems to have corrected itself and now small caps are in a visible uptrend. Also look at regional banks (KRE) to outperform with the election behind us.
Lots of cash on the sidelines that can move the market higher this year, and next year. Fear of missing out is starting to take hold and we think pullbacks will probably be short-lived.
The Producer Price Index (PPI) for final demand rose 0.2% in October, while the PPI ex-food and energy climbed 0.3%. Both gains were slightly bigger than in the prior month, but in line with expectations. The increase in producer prices was led by services, where a third of the gain was attributed to higher portfolio management costs. Food and energy prices both edged down from the prior month. On a y/y basis, both PPI and PPI ex-food and energy accelerated somewhat to 2.4% and 3.1%, respectively. Intermediate demand prices also firmed up.
Initial claims for unemployment insurance fell 4,000 last week to a lower-than-expected 217,000. This was the fourth decline in the past five weeks, taking claims to their lowest level since May. Longer-term, initial claims have been range-bound since late 2021, as layoffs remain subdued. Although some indicators, such as job openings, quits, and the ISM manufacturing employment index, show continued easing in labor market tightness, the low level of initial jobless claims suggests that labor demand remains healthy.
Continuing claims in the previous week also edged down and have been range-bound longer term, while the insured jobless rate was once again unchanged at 1.2%. It has been at this relatively low level since early 2023, and suggests continued low unemployment.
The HCM-BuyLine® Explained
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Who is Vance Howard?
Vance Howard embarked on his professional career in the financial industry in 1992, establishing Chartered Financial Services, Inc. He subsequently founded Howard Capital Management, Inc. in 1999, a fee-only Registered Investment Advisor. Mr. Howard brings expertise in the analysis, creation, and execution of diverse trading strategies.
Prior to his focus on financial services, Mr. Howard founded Delta Waste Services in 1988, a waste management company he later sold in 1992. Additionally, he co-published investment-focused newsletters, "The Savvy Investor" and the "SI Intermediate-term Trader", which garnered an international readership across over 25 countries between 1992-1999.
Demonstrating a commitment to community, Vance has served on the Huntsville, Texas city council for four terms, including two terms as mayor pro tem. His civic involvement extends to roles such as Huntsville's City Finance Chairman, Chairman of the Huntsville/Walker County 911 Emergency Service, and board positions on the Houston/Galveston Economic Development Council and the District 910 Legal Grievance Committee. He is a former President and active member of the Huntsville Rotary Club.
Outside of the professional sphere, Vance collaborates with family members in the operation of the Bar C Ranch in Madisonville, Texas, where they specialize in raising registered longhorn cattle. His leisure interests include travel with his wife and children, cycling, kayaking, scuba diving, and hiking.
“We aim to take emotion completely out of the equation. Trading with emotions, in our opinion, ruins long-term returns.”
— VANCE HOWARD, CEO + PORTFOLIO MANAGER
Howard Capital Management, Inc, issues this communication. It is for informational purposes and is not an official confirmation of terms. It is not guaranteed as to the accuracy, nor is it a complete statement of the financial products or markets referred to. Opinions expressed are subject to change without notice. Howard Capital Management, Inc. may maintain long or short positions in the financial instruments referred to and transact as principal or agent. Unless explicitly stated otherwise, this is not a recommendation, offer, or solicitation to buy or sell, and any prices or quotations contained herein are indicative only. To the extent permitted by law, Howard Capital Management, Inc. does not accept any liability arising from using this communication. Howard Capital Management is an SEC-registered investment advisor that only does business where it is properly registered or is otherwise exempt from registration. SEC registration does not constitute an endorsement of the firm by the Commission nor indicates that the advisor has attained a particular skill or ability. Past performance is no guarantee of future results.
This newsletter is a publication of Howard Capital Management, Inc. It should not be regarded as a complete analysis of the subjects discussed, nor should the newsletter be construed as personalized investment advice. All expressions of opinion reflect the author's judgment as of the publication date and are subject to change. It should not be viewed as legal or tax advice. Always consult an attorney or tax professional regarding your legal or tax situation. There can be no guarantee that the HCM-BuyLine® indicator will perform as anticipated. Stoploss protection will not necessarily limit your losses to the desired amounts due to the limitations of the HCM-BuyLine®, market conditions, and delays in executing orders. It is not an actual stop-loss order that automatically sells securities in the portfolio at a certain price.