Our Perspective on Industry News and Trends

Looking back to very recent history with more vivid recall can be helpful as a case study in economic & market resiliency. Was it “different” even then?  Is it “different” now?  Or will it be “this too shall pass” be vindicated yet again?

In conversations with clients in recent weeks, we have fielded a number of questions related to the economy and markets. In this video, Chief Investment Officer Charles Rinehart, CFA, CAIA, and Managing Director and Portfolio Manager Brandon Zureick, CFA discuss recent trends in the market and economy.

For prudent investors and most of our clients, margin borrowing is not a tactic we employ when constructing an investment portfolio and wealth plan on which a family is expected to depend for decades and beyond. However, borrowing on margin can, in select cases, be a smart move financially when used correctly, cautiously, and in very limited circumstances.

This year's market has felt more like that maze with each passing quarter. The initial wide-eyed enthusiasm and AI-driven investing in the first half of the year has been
replaced by a range of worries. Labor strikes, the resumption of student loan payments, and potential government shutdowns have dominated the financial news cycle. Inflation concerns, a growing deficit, and Fed policy loom large, pushing interest rates higher and bringing volatility back to the stock and bond markets. In the midst of all this, I thought the best use of this quarter's newsletter would be to zoom out and take a fresh look at the map.

It’s challenging to change the lifelong savings habit imprinted on the psyche. But if proper wealth planning and an in-depth cash flow plan yield a very high probability of the capacity to spend more, we are strong advocates. Spending on experiences and time-saving services is often overlooked; however, it can significantly enhance a retirement lifestyle without filling up the basement and garage with more stuff. 

Generally, retirement accounts should remain fully invested, monitored, and left to grow over time. However, as interest rates have increased over the past year, Substantially Equal Periodic Payments (SEPP) have become a viable strategy for individuals to consider in unlocking the flexibility of retirement funds sooner while avoiding the burden of penalties.

Jason Jackman, CFA, Chief Executive Officer of Johnson Investment Counsel, presented the Patrick Chong Memorial Scholarship to two outstanding students, Grace Gehner and Sosi Mahdasian.

The S&P 500 is up over 20% from the lows it set last October. All in all, I’d say the year so far has been off to a surprisingly pleasant start. The 2023 economic environment has hardly been a walk in the park. We’ve seen the Leading Economic Index continues to fall. The current reading, -7.9%, is a level which has preceded or coincided with the recession, without fail, going back at least 30 years

Concentrated positions are a great problem to have because it usually means extremely strong growth, but there are many factors to consider when managing this situation prudently. Handling these situations is a case study of how the integration of investment management, tax planning, estate planning, and cash flow is critical

Johnson Investment Counsel is pleased to announce nine new shareholders to the firm. The shareholders include Bryan J. Andress, CFA, Sandy F. Himmelsbach, CFP®, ChSNC®, R. Ryan Martin, CFA, Laura R. Mattern, CFA, CFP®, Maxwell T. Monk, CFA, Justin T. Rowden, CFP®, and Michael R. Timm, CFA, CFP®.

With so many recent headlines surrounding the debt ceiling, inflation, and interest rates, chatter around a global weakening of the US dollar has ramped up along with concerns by some investors. We think, while concern around this topic is troubling, it should not be the primary focus of a family’s wealth plan. Instead of focusing on US currency relative to other countries, we think families should focus on tax efficient investment and wealth plans that help maintain purchasing power of assets relative to domestic goods and services, which provides a more real-world impact on day-to-day life.  

Private information can be used to open new credit cards, apply for loans or government benefits, and file fraudulent tax returns. There are plenty of software/ services advertised today that offer some protection against this. As good as those services might be, “Deep Freeze” more commonly referred to as a “credit freeze” is a simpler and more cost-effective method for protecting personal credit and can be very impactful.

The S&P 500 gained 7% in the first quarter despite banking sector turmoil and economic anxiety. In typical fashion, early action reflected a reversal from themes that drove last year’s markets. The tech sector showed significant strength after taking a massive hit in 2022. Read Johnson Investment Counsel's 1Q2023 Quarterly Insight newsletter including a Market Update, JIC Blog: Interest Rates and Asset Allocation, and other JIC news.

Anyone who drives down a major highway these days can attest there is no shortage of billboards from banks advertising much more attractive yields on savings accounts and CDs. Obviously, the key driver for this major interest rate shift has been the Federal Reserve’s aggressive rate tightening, which they used to battle the not-so-transitory inflation over the past 18 months. It’s pretty easy to find many banks offering one-year CDs paying between 4.5% and 5.0%+. Read more in this month’s JIC Blog.

It’s only natural that the recent bank failures and accompanying market volatility created some fear among investors.By combining clear-headed analysis of the facts and daily vigilance on the latest developments with time-tested strategies, we’re confident we can successfully navigate this storm and the inevitable storms to come.

Retirement date, social security claiming, spending assumptions, inflation – many factors impact retirement cash flow planning. However, one of the most impactful is longevity. By studying and utilizing more accurate assumptions, retirees can have a better understanding of the risks of running out of money so the factors we CAN control can blunt the risk of the factors we cannot. Read more in this month’s JIC Blog.

Johnson Investment Counsel hosted our 2023 Virtual Wealth Management Forum on February 8. CEO Jason Jackman provided a brief firm update, CIO Charles Rinehart and Director Brandon Zureick provided a detailed economic and market review, and a panel of speakers discussed key wealth and estate planning topics, including impacts of the recently passed Secure Act 2.0. 

The recently passed Secure Act 2.0 does not have the magnitude of changes as the original Secure Act, but it does contain a few impactful changes and many minor changes. Find out what you need to know in this month's blog.

After several years of pandemic impact on our daily lives, we’ve all been longing for a return to normalcy. 2022 was anything but normal—with a bear market in stocks, the worst bond market since the 18th century, and inflation levels not seen since the early 80s. Read Johnson Investment Counsel's 4Q2022 Quarterly Insight newsletter including a letter from CEO Jason Jackman, a Market Update, and other JIC news. 

Quite often, recent retirees consider the tradeoff of working part-time versus volunteering for a cause near and dear to their hearts. It can be helpful for clients to have a general understanding of the potential after-tax “hourly rate” one is earning to evaluate this tradeoff. Learn more in this month’s blog.

For most children, their financial literacy will come from life experiences and lessons from their parents, families, and friends. Realizing this, we though it helpful to provide a jump-start to this education process through some commonsense concepts and tactics to share with any young person to help them establish a life-long and healthy relationship with money. 

Some of our offices will be physically moving to new locations and some will be remodeled in their existing location. As the work is being completed, we want to be sure that you are aware of important details impacting your experience. Seamless client service is our top priority.

In recent years, it has become more apparent than ever that politics have a great influence on the market. As the 2022 mid-term elections are upon us, we invite you to consider two historical trends: how congressional leadership has changed during prior mid-term election cycles and what it has meant for market returns in the past. We also look at what numbers show us and our feelings on allowing elections to influence wealth planning and investment goals.

Market conditions deteriorated in the third quarter as inflation remained stubbornly high and the Federal Reserve aggressively fought against it. After 1.50% of rate hikes in the first half of 2022, the Fed raised interest rates twice more in July and September, each time by 0.75%, jarring stocks and sending bond yields higher.

When already grieving the loss of a loved one, being tasked with serving as an executor may feel stressful and overwhelming. In this month's JIC Blog, Alethea Teh Busken, Esq., Johnson Trust Company Counsel, shares some helpful information that may help you in your role as executor. 

Instead of worrying about whether a recession is impending, we invite you to consider the relevance of a recession to you. Recessions, a side effect of a normal economic cycle, should already be factored into a good investment and wealth plan. In this month’s blog, we also discuss the relevance of a recession at different life stages, such as pre- and post-retirement.

Jason Jackman, CFA, President of Johnson Investment Counsel presented the 2022 Patrick Chong Memorial Scholarship to two outstanding students, Regan Henderson and Caitlin Kelhoffer.

In times of market volatility, we recognize the importance of helping clients achieve peace of mind. We want to share our thought process and the methodology behind the long-held philosophy that drives our Johnson Equity Income strategy. In this month's JIC blog, we will discuss why quality matters, and what Johnson evaluates as quality, in times of market volatility. 

With the S&P 500 Index officially falling into bear market territory and stocks and bonds falling in tandem, market volatility remains a clear theme in the second quarter of 2022. For our 2022 Second Quarter Newsletter, we share our thought process and the methodology behind the philosophy that drives our Equity Income strategy. We discuss why quality matters, and what Johnson evaluates as quality, in times of market volatility. 

If your economic alarm bells are going off, you certainly aren’t alone. As the probability of two consecutive negative quarters grows, so too has the chorus of investors calling for the official start of an economic recession.  In this update, Director and Portfolio Manager Brandon Zureick, CFA, discusses factors impacting the probability of an economic recession and how Johnson continues to evaluate that risk.

In times of market volatility, it is natural to feel unsure about how to navigate financial waters. In this month's blog, Tony Kure discusses ways to remain stable--even when the market is not. Read more about Tony's suggestions to achieve peace of mind, including controlling what you can control and learning from history.

Johnson Investment Counsel is pleased to announce three new shareholders to the firm. The shareholders include Jamie Horn, Jonathan McEvoy, CFP®, AIF®, and Elizabeth Schaefer, CIMA®. Jamie Horn serves as the Director of Marketing at the firm and both Jonathan McEvoy and Elizabeth Schaefer serve clients as Senior Portfolio Managers in our Johnson Wealth Management division.

Johnson Investment Counsel has expanded its footprint at its satellite office in Kenwood, having operated at this location since 2017. The firm will now occupy 33,220 square feet of the building, and accommodate 112 professionals, allowing the company to better serve clients across the region while accommodating its growing team of professionals.

Johnson Investment Counsel has named Charles Rinehart as the firm’s Chief Investment Officer. In his new role, Rinehart will manage the firm’s overall investment policy on behalf of its clients.

In conversations with clients in recent weeks, we have fielded a number of questions related to the economy and markets. In this video, Chief Investment Officer Charles Rinehart, CFA, CAIA, and Director and Portfolio Manager Brandon Zureick, CFA answer some of the most common questions we’ve received and share our perspective, investment philosophy, and discipline that helps us navigate through periods of economic and market uncertainty.

Despite being experts in helping clients achieve optimal financial health, we have found that finances often weave into our client's physical and mental health. Optimal wellbeing lies in a healthy balance between the three. Johnson Investment Counsel seeks to guide clients towards that balance, as we believe that optimal wellness is crucial to achieving true peace of mind. Read more about how to incorporate wellness practices in your life.

Over the past two years, Americans have faced a turbulent economic environment that has included many distinct challenges. Lockdowns, supply chain issues, and the war in Ukraine have all had a material impact on the global economy, leading to high inflation. Senior Portfolio Manager Matt Yung and Research Analyst Kristen Curtiss discuss the inflation outlook and the Federal Reserve's response.

We can’t control what’s happening in the world and how it will impact portfolios, but we can focus on tactics that make sense in any environment. One such tactic is to find opportunities to save money on taxes. One way to do this is to employ a tax-loss harvesting strategy in taxable investment accounts. Think of it as a good spring cleaning of the portfolio!

Stock and bond markets were dragged down in the first quarter by a powerful combination of rising inflation, the Russia-Ukraine war, and tightening Fed policy. Any one of these could have been the sole catalyst for a market downturn, and together they led to broad weakness across asset classes. Read more in this Market Update in our 1Q 2022 Quarterly Insight Newsletter.

Johnson Investment Counsel founder Tim Johnson has built a wealth of knowledge from his 50+ years in investing. In this 2nd edition of a two-part Research Edge, Tim joins Senior Portfolio Manager Jim Hunter to discuss down markets, provide advice for young investors, and examine how JIC became the firm it is today.

We regularly engage with clients to help navigate the complex interactions between investment, tax, charitable, and estate planning matters.  We increasingly see the need to focus on the psychological and emotional issues tied to money, and how to communicate about money; whether it’s to their spouse/partner, children, or even grandchildren. 

Current and former P&G employees can learn more about their Profit Sharing Trust (PST) distribution options during this informative webinar. Mike Stanis, CFA, CFP®, is a Senior Portfolio Manager and the Procter and Gamble (P&G) Retirement Plans Director at JIC. He spent 17+ years with P&G and will share what he learned about transitioning from P&G.

The journey of life is full of challenges, blessings, and opportunities. Each of us walks a unique path, and we only get one chance to live an impactful life. For over five decades, clients have entrusted Johnson Investment Counsel to guide them on the journey. Read more about the distinct phases in life's journey and the planning opportunities they provide.

Johnson Investment Counsel hosted our 2022 Virtual Wealth Management Forum on Thursday, February 3 at 4 pm. President Jason Jackman shared highlights from 2021, JTC President Michael Barnes provided a Trust Company update, and a panel of JIC professionals discussed the markets, inflation, economy, taxes, estate planning, and more. 

We entered last year with the possibility of a return to normalcy, but 2021 was anything but normal. Our job is to navigate all of this on your behalf while instilling financial peace of mind. Our people are committed to delivering on this mission throughout your life’s journey. Read the 4Q2021 newsletter for a look back at the markets and economy and read President Jason Jackman's annual letter.

Tim Johnson founded Johnson Investment Counsel in 1965 with a focus on helping others and providing guidance that could ultimately improve our clients’ lives.  Over his 50+ years in investing, he's gathered a wealth of knowledge about the industry.  In the first edition of a special two-part JIC Research Edge, Tim joins Senior Portfolio Manager Jim Hunter to share some of his experiences with our clients.

Changing tax laws affect taxpayers in different ways, depending on personal situations. Get a quick review of proposed tax changes and some insights on how you can plan for them.

Don’t miss the Golden Window for strategic tax planning. With careful planning, recent or soon-to-be retirees can recognize substantial tax savings over the course of retirement.

The coronavirus pandemic has had a profound impact on daily life and has significantly impacted businesses across all industries.  Perhaps nowhere has the impact been more apparent than in Health Care, and JIC analyst Joe Abbott has had a front row seat to see how the sector has responded.  In this edition of the JIC Research Edge, Joe joins Portfolio Manager Laura Mattern to discuss COVID's impact on the Health Care sector.

A choppy September offset gains in July and August, resulting in flattish third quarter returns for U.S. stocks. Read more of this Market Update and other news in our 3Q2021 Quarterly Insight Newsletter.

As one of the building blocks of retirement planning strategies, Social Security income is critical to almost every cash flow plan. Read more about the future of social security.

Current and former P&G employees can learn more about their Profit Sharing Trust (PST) distribution options during this informative webinar. Mike Stanis, CFA, CFP®, is a Senior Portfolio Manager and the Procter and Gamble (P&G) Retirement Plans Director at JIC. He spent 17+ years with P&G and will share what he learned about transitioning from P&G so that you can make the best decisions for your family.

David Theobald, CFA, Senior Portfolio Manager in our Asset Management division has authored a white paper examining how a diversified portfolio of high-quality short-term bonds can out-earn cash without taking unnecessary risks.

See how regularly reviewing your auto and homeowners insurance coverage can prevent low-probability, high-impact life events from derailing your financial plan.

Considering an annuity as a tool for retirement planning? Learn how annuities work to better understand the select and limited situations they should be applied to.

Learn more about the award-winning Johnson Equity Income Fund in this recorded presentation. Senior Managing Director Jarett Levitsky, CFP®, joined Charles Rinehart, CFA, CAIA, Director and Portfolio Manager for the Equity Income Fund for a webinar on July 27,2021. They discussed key topics related to the fund.

Jason Jackman, CFA, President and Chief Investment Officer of Johnson Investment Counsel presented the 2021 Patrick Chong Memorial Scholarship to two outstanding students, Ana Lucia Gehner and Michael Stanis.

What is cryptocurrency, and why has it surged in popularity recently? As we answer these questions, we consider whether cryptocurrency can improve the overall portfolio.

Economic activity picked up steam as more people were vaccinated and as government restrictions were lifted. It became evident that consumers worldwide were anxious to return to normal. Strange market dynamics, including supply chain bottlenecks and shortages, made more headlines as the fallout from the worldwide shutdown last year continued. Read more of this Market Update in the 2Q Quarterly Insight.
 

When developing our asset allocation and equity models, one of the investment types we consider is real estate.  We believe real estate can add diversification, inflation protection, and a balance of growth and income to client portfolios.  In this edition of the JIC Research Edge, Credit Analyst Brad Morrissey and Portfolio Manager Brian Butt discuss how our clients access real estate and what types of real estate we invest in.

Two Johnson Investment Counsel mutual funds have received 2021 Lipper Fund Awards in recognition of consistently strong risk-adjusted performance relative to their peers. The Johnson Equity Income Fund is a winner of the “Best Fund Over 5 Years” for Equity Income Funds. The Johnson Institutional Intermediate Bond Fund is a winner for “Best Fund over 3 Years” and “Best Fund over 5 Years” for Institutional Mutual Funds. 

In this month's blog, we share the transcript of "A Conversation on Inflation". Managing Director Jarett Levitsky and Director and Economic Strategist Brandon Zureick discuss the recent spike in inflation providing unique insight as to how it happened and answering the question on so many minds… are we in a new era of high inflation?

Whether it’s plywood, used cars, or groceries, consumers have been dealing with higher prices in 2021.  In this update, Jarett Levitsky and Brandon Zureick discuss the recent spike in inflation providing unique insight as to how it happened and answering the question on so many minds… are we in a new era of high inflation?

Are the rapidly rising home prices in 2020-2021 a sign that we’re witnessing another housing bubble? Will it lead to a crash? We conclude that the basic economics of supply and demand are driving much of the pricing action - not speculation. 

A picture is emerging of an economy on the verge of a robust recovery. As more are vaccinated and case counts fall, hiring is happening in earnest, and mobility and spending data show people are anxious to get out and spend money. There is a long way to go, but the snapback effect coming off the lows of 2020 could lead to record growth numbers in the coming quarters. 

High inflation has the potential to erode the purchasing power of one’s savings. In this edition of the JIC Research Edge, Portfolio Manager Max Monk and Fixed Income Portfolio Manager Ryan Martin discuss what inflation is, the primary drivers of recent inflation concerns, and how JIC positions client accounts to offset the potential impact of inflation.

As we look back on the first 100 days of President Biden's administration, there have been many proposed changes to tax rates (both individual and business), estate planning considerations, and more. While the effective date for these changes remains unknown, being prepared is the best approach.
 

We should no longer think of retirement as a binary option with a hard stop. Instead, we should consider a “phase-down” transition. This approach has a positive impact on long-term sustainability of the cash flow plan and may benefit retirees’ mental health.

One characteristic that makes us unique versus other advisors is our in-house research staff.  In this edition of the JIC Research Edge, Portfolio Manager Jeff Cornell and Director of Research Brian Kute give you a behind-the-scenes look into how our research team picks stocks.

2020 will certainly go down as a year to remember and a year to forget. The prudent investor, however, can reflect on this past year as a “teachable moment” on how counterintuitive market performance can be and how attempting to time the market can be confounding, and even dangerous.

On Thursday, February 4th, Johnson Investment Counsel hosted our Virtual Wealth Management Forum. President Jason Jackman shared highlights from 2020 and other JIC professionals shared economic and market updates, as well as a discussion on taxes and estate planning. 

How can one possibly summarize 2020? Amid a global pandemic, the deepest recession since World War II, and a contentious political environment, we witnessed the quickest bear market and fastest return to all-time highs ever. Read JIC's fourth-quarter 2020 newsletter for a look back at 2020 and hear from President Jason Jackman in his annual President's Letter. 

For many, flipping the calendar to 2021 will be the most cathartic turn of a page in decades. 2020 was unforgettable for many reasons, but like every other December, it’s a good time to reflect on the past year and plan for the future. This is definitely true regarding our financial lives. Here are a few suggestions for what to review as we look ahead to 2021 and beyond.