What you will find in this issue:
  • Market Volatility Update from David Dickens
  • Rescheduled: State of the Market has been rescheduled to Tuesday, March 6th. RSVP by Friday, March 2nd by 12pm.
  • KCFA's One Appointment Tax Process (Details Below)
  • Weekly Update: Households Spend More, Remain Optimistic
  • Upcoming In-Office Events: We have a few spots to our Lunch & Learn topic 2018 Financial To-Do List w/David Dickens
  • Local Newsworthy Share this week: 50 Seasons with the Royals
  • Weekly Quote, Tip, Riddle and Recipes from Elizabeth and Melody
Market Volatility Update from David Dickens
Clients, Friends, Family:
Yesterday was quite a day in the markets – and while we’re never sure exactly what tomorrow or the rest of the week will bring, no indicators we look at tell us that this is anything more than a long overdue correction in the context of a longer term uptrend. Here’s what we know and think so far.

We ended the day down about 1175 points on the Dow Jones Industrial Average (DJIA).  It looks like this will go down as the largest total point loss in a single day, but only about the 30th largest in percentage terms . A thousand DJIA points just isn't what it used to be! You likely know that 2017 did not have a single month where the major indexes were down for that month. That had never happened before in recorded market history. January 2018 added one more month to that record. Additionally, until today we had gone 448 days in the market without a full 3% correction (i.e. drop in prices). In fact, the down price action over the past couple of trading days ended - and finalized for the record books - the longest stretch ever without a 3% and 5% correction! 

These types of downturns we are currently experiencing are often painful in the short term, but we were way overdue for a healthy correction. Last week, market sentiment indicators were showing a very unhealthy level of investor optimism. There’s an old saying in the market that the market will do what it has to do to prove the majority wrong. And it’s in the process of doing exactly that. Funny timing too – this is the first day on the job for new Federal Reserve Chair Jerome Powell, Janet Yellen’s replacement. Welcome, Mr. Powell!

Today we had a dramatic mid-afternoon selloff. Further explanations are likely to come out regarding the reasoning, and we will monitor those explanations for further learning points. But the explanation for that quick, steep selloff may just be that most market participants were on the same side of the boat, and when a large volume of sell orders hit the market all at once, that left a large but temporary imbalance in the market. Today’s chart of afternoon trading activity looks very similar to the May 6, 2010 Flash Crash. The 2010 Flash Crash was a dramatic afternoon selloff, with the Dow dropping over 1,000 points before somewhat recovering. No one knew the story at the time, but the market had rallied almost non-stop after the 2009 bottom without taking much of a breath. One major difference between today’s mid-afternoon drop and the 2010 Flash Crash is that the 2010 1,000 point drop was much larger in percent terms. 

And finally, the VIX, commonly known as the market’s “fear gauge,” spiked to well over 30 today. That’s a move up of more than 100% - pretty rare, and a move that actually puts it in the range where it has historically been an excellent buying opportunity. 

So our key takeaways from the last couple of days of downward pressure in the market are these:

  1. This correction – which is likely not over yet - is long overdue
  2. It has been much anticipated, yet still draws dramatic attention from media outlets (e.g. CNBC, etc.)
  3. Today’s large move is nowhere near a record downward move in percentage terms
  4. We have no evidence in hand to tell us that the longer term market uptrend is soon to be over
  5. No early warning signs of the next recession are immediately on the horizon
  6. When we do have evidence in hand of a change in the long-term trend, our strategies will flip over to defensive

If you have any concerns or would benefit from a discussion – either in person or on the phone – please call Melody or Elizabeth (913.317.1414) and lets set up a time. Or just Reply to this email , if that’s more convenient. Thanks for allowing us the privilege of working with you on this important area of your life.
Rescheduled to March 6th
2018 State of the Market Financial Forum at the Ritz Charles
Please note if you have RSVP'd already, you were automatically moved to this NEW date and time.

3 Major Topics will be Discussed:

Top changes in new tax bill.

How to maximize the provisions of the tax code for your benefit.

Roth conversions in a new environment. 

Tuesday, March 6th
3:00 PM for Coffee and Light Snacks
OR
7:00 PM for Wine and Desserts

**Please arrive 30 minutes prior for check in and to get something to eat and drink.

The Ritz Charles
9000 West 137th Street
Overland Park, Kansas 66221

RSVP by Friday, March 2nd by 12:00pm
Contact Elizabeth at 913.317.1414


KCFA's One Appointment Tax Process
For those who are too busy & want simplicity!
We want to invite you to use our streamlined “one appointment tax process”. We know life gets busy and we want to make this as stress-free as possible.

“How does this process work?” It’s really pretty simple. First, call our office and let us know you would like to take advantage of our one appointment tax process .

We will send you a comprehensive package to assist you in gathering your information to allow us to prepare a complete and accurate return. Your personalized packet includes the following:

  • Engagement Letter
  • Tax Checklist for 2017 Returns    
  • Tax Organizer for 2017 Returns

We will prepare your return upon receipt of your packet and necessary documents. These returns are prepared on a first-come, first-served basis, so bring them in as soon as you have your documents ready. Then,

  • We will call you with any questions that we have regarding your return.
  • Upon completion, we will print your return, scan your documents and call you to schedule your “one appointment” tax pickup.
  • After you pick up your return and sign the e-file documents, KC Financial Advisors will electronically file your return with the IRS and the state taxing authorities.

Naturally, if you have a complex return and don’t feel like you can take advantage of this new process, please call our office at 913-317-1414 to schedule an appointment.

Tax time is also a great time to reflect on changes in your financial situation and how these changes may affect both your short and long term planning goals and objectives. We would be happy to meet with you to determine how we can help you with those goals . 
 
Reminder: Checks must be made payable to KC Financial Advisors at the time of drop off. 
January 29th Weekly Financial News
This week's headlines ...
  • Wage growth picks up at last
  • ISM: Factory sector in great shape
  • Households spend more, remain optimistic
  • Stocks slump as February begins

February KCFA In-Office Event
3 Spots Left!

Wednesday, February 21st
w/David Dickens
11:30 AM - 12:30 PM
2018 Financial To Do List
Things you can do for your future as the year unfolds.
Local Newsworthy Shares ...
Royals unveil 50th season campaign ad
“Raised Royal” ad narrated by Paul Rudd. 

Weekly Quote, Tip, Riddle & Recipe
 
WEEKLY QUOTE -  “There are no speed limits on the road to excellence.”    
- David W. Johnson

WEEKLY TIP -  Smart households invest with diversification. They recognize that directing most of their invested assets into one or two investment classes potentially heightens their risk exposure.

WEEKLY RIDDLE -  No matter the time of day, it can open what you can’t. If not for it, on your front porch you would stand. What is it?

Last week’s riddle:
Frank got behind the wheel and traveled from Fort Lauderdale to Norfolk without any tires. How did he pull this off?  
   
Last week’s answer:
He was behind the captain’s wheel of a boat.


WEEKLY RECIPE(S) from Elizabeth and Melody

Elizabeth goes head to head with one of our featured recipes we shared a couple weeks ago. This dish is Marley-approved!
(Elizabeth's daughter and food critic).


Melody shares this recipe with us this week!
This is a beautiful dish that can really shine as a holiday meal, or any time you want to add a little something fancy to the dinner table. 



Do you have a friend or colleague that could benefit from KC Financial Advisors services? 
 
If you know someone who:

  • Would like a second opinion.
  • Doesn't have an income plan.
  • Recent job change - Needs help rolling over 401K
  • Organizing your orphaned 401K's.
  • Is recently widowed or divorced.
  • Still has the same portfolio they did in 2008, but are hoping to find a different result this time.
  • Is looking to reduce their taxes.

Please provide us their contact information or give them our name.

We truly appreciate the opportunity to serve you & those who are important to you! 
Office Information
KC Financial Advisors
Located in Corporate Woods
10975 Grandview Dr. , Ste. 190, 
Overland Park, KS 66210
(913) 317-1414
Disclosures:
Disclosure: Dickens Law and KC Financial Advisors are two separate companies, although they share office space. When Dickens Law renders services or gives advice, it does so only on behalf of the Law Firm, and not on behalf of the Financial Firm. Likewise, when KC Financial Advisors renders services or gives advice, it does so only on behalf of the Financial Firm, and not on behalf of Dickens Law, LLC.

Investment Advisory Services are offered through Brookstone Capital Management, LLC, an SEC Registered Investment Advisor. KC Financial Advisors and Brookstone Capital Management LLC are separate companies. These views should not be construed as investment advice. Neither Brookstone Capital Management LLC nor any named representative gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.

Brookstone Capital Management (BCM) and its Investment Advisor Representatives act as fiduciaries for all of our investment management clients. We have an obligation to act in the best interests of our clients and to disclose any conflicts of interests and all associated fees. Additionally, the recently enacted Department of Labor (DOL) Fiduciary Rule imposes a fiduciary duty upon advice given to any retirement account, including qualified insurance annuity products. Please refer to the BCM firm brochure (Form ADV 2A) for additional information regarding the fiduciary standard.

The Five Star Wealth Manager award, administered by Crescendo Business Services, LLC (dba Five Star Professional), should not be construed as an endorsement of the wealth manager by Crescendo Business Services or any client. The award methodology does not evaluate the quality of services provided. The award is not indicative of the award winners future performance. For more information on the Five Star Award and the research/selection methodology, go to: www.fivestarprofessional.com/wmresearch .