RFG Advisory - Latest News & Updates

From RFG Advisor, Tommy Williams, Cars That Sound Like Golf Carts

by: Tommy Williams
published: September, 05th 2017


Cars That Sound Like Golf Carts

By: Tommy Williams, President and Founder, Williams Financial Advisors, LLC

North Korea may be a little country, but it can churn up big trouble. The possibility that verbal hostilities between the United States and North Korea could trigger geopolitical conflict had investors on the run in the last couple of weeks. In the United States, the Standard & Poor’s 500 Index fell by 1.4 percent, the Dow Jones Industrial Average lost 1.1 percent, and the NASDAQ Composite finished 1.5 percent lower (all in one week!). 

Financial Times explained: 

“The sell-off came as U.S. President Donald Trump escalated the war of words against the North Korean regime’s accelerated [program] of nuclear testing. Mr. Trump tweeted on Friday, “military solutions are now fully in place, locked and loaded, should North Korea act unwisely.” 

While major U.S. indices headed south, the CBOE Volatility Index (VIX) – also known as Wall Street’s fear gauge – headed north. The VIX, which has been flirting with historic lows for much of the year, rose 44 percent in a single day, reported CNBC. Stock markets in Europe and Asia were also affected by the saber rattling. National indices across Europe suffered weekly losses of 2.2 percent (Sweden) to 3.5 percent (Spain), according to Barron’s. In the Asia-Pacific region, India’s Sensex 30 lost 3.4 percent and South Korea’s Kospi was down 3.2 percent for the week. 

Geopolitical concerns overshadowed some important economic news in the United States. Inflation, as measured by the U.S. Consumer Price Index, rose very little in July. In fact, consumer prices have been soft for five straight months, reported marketwatch. Persistently low inflation could affect the Federal Reserve’s plan to raise interest rates this year. The Fed’s goal is 2 percent inflation. We’ll have to see what the impact of a proposed military buildup in Afghanistan means for the economy and the markets. 

Meanwhile, since the eclipse is over, let’s take a quick look at what might be a factor in the Tesla phenomenon. Are electric engines the tortoise competing with the combustion engine’s hare? In the late 1800s, the Paris-Rouen race for horseless carriages included 102 vehicles fueled by steam, petrol, electricity, compressed air, and hydraulics, reports The Economist. Not a single electric engine made it to the starting blocks. (The internal combustion engine won.) 

My, how times have changed! 

The International Energy Agency’s Global EV Outlook 2017 reported: 

“New registrations of electric cars hit a new record in 2016, with over 750 thousand sales worldwide. With a 29 percent market share, Norway has incontestably achieved the most successful deployment of electric cars in terms of market share, globally. It is followed by the Netherlands, with a 6.4 percent electric car market share, and Sweden with 3.4 percent. The People’s Republic of China (hereafter, “China”), France, and the United Kingdom all have electric car market shares close to 1.5 percent. In 2016, China was by far the largest electric car market, accounting for more than 40 percent of the electric cars sold in the world and more than double the amount sold in the United States.” 

Financial Times reported the UBS analysis suggests the market may be at an inflection point as the total cost of ownership for electric vehicles may become comparable to that of combustion engine vehicles as early as 2018 in Europe, 2023 in China, and 2025 in the United States. 

Even though their popularity is growing, electric cars comprise a small portion of the market today. UBS expects electric cars to account for 14 percent of the global market, and more than one-third of the European auto market, by 2025. I’m still wondering how can a high school guy possibly impress the girls passing in front of school in a car with no revving engine? Maybe a loud stereo? 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. The economic forecasts set forth in the presentation may not develop as predicted and there can be no guarantee that strategies promoted will be successful. This material was prepared in part by Peak Advisor Alliance. 

Visit us at www.williamsfa.com. Tommy Williams is a CERTIFIED FINANCIAL PLANNER™ Professional with Williams Financial Advisors, LLC. Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through RFG Advisory Group, a registered investment advisor.  RFG Advisory Group, Williams Financial Advisors, LLC, and Peak Advisor Alliance are separate entities from LPL Financial. Branch office is located at 6425 Youree Drive, Suite 180, Shreveport, LA 71105.

 


Book Review | The Little Big Things: 163 ways to Pursue Excellence

Growing Alabama investment firm affiliates with RFG Advisory

From RFG Advisor, Tommy Williams | How Expensive is a Hurricane?

From Our CIO | What do Los Alamos, Solitaire, and Your Portfolio have in Common?

From our CIO | Credit Protection

Allen Harris joins RFG Advisory Group

From RFG Advisor, Tommy Williams | The Impact of Government Shutdowns

Eric Clarke keeps FUSE lit by rebalancing deep-suburbia hackathon

From Our President | My first time being a Hack-a-Thon Judge

From RFG Advisor, Tommy Williams, Cars That Sound Like Golf Carts

The "hidden trauma" holding back veteran advisors

From RFG Advisor, Tommy Williams | Is There a Bicycle in Your Future?

From our CIO | Market Update 8.11.17

From RFG Advisor, Tommy Williams | "Baby Boomers - The Sandwich Generation"

Travis Freeman, RFG Advisor, "10 Reasons a Financial Wellness Program is More Important than a 401(k) Plan"

RFG Announces the Successful Acquisition of Williams Financial Advisors

From RFG Advisor, Tommy Williams | Where Are the Happiest People?

Bobby White, Founder, Chairman & CEO named Who's Who In Birmingham Banking & Finance

From RFG Advisor, Tommy Williams | 2017: The Xanax Year

From RFG Advisor, Tommy Williams | Some Thoughts about Work vs. Leisure

From our CIO | Market Update 6.15.17

From our CIO | Market Update 6.12.17

From RFG Advisor, Tommy Williams | The "Bank of Mom and Dad"

From RFG Advisor, Tommy Williams | "Where Have All The Doctors Gone?"

RFG President, Shannon Spotswood | Finding Work Life Balance