Week in Review

Week-in-Review: Week ending in 04.16.21

The Bottom Line

● For the third week and a row the S&P 500 and Dow Jones Industrial Average both closed at new record highs. Earnings and economic data continues to come in stronger‐than‐expected.
● After being relatively flat for the last two weeks, the yield on the 10‐year U.S. Treasury bond fell 8 basis points, its largest weekly decline since June 2020, partly due to renewed buying from overseas, particularly Asia.
● After subpar economic activity in February, which was negatively impacted by severe winter weather, the U.S. economy has clearly shifted into high gear in March and April. Retail sales, manufacturing, and housing all jumped.

Better than expected… all around

First quarter earnings season kicked of this week and so far companies are reporting numbers way above what Wall Street expected. With 9% of the S&P 500 reporting earnings so far, according to FactSet about 81% of companies have beaten estimates – and with an earnings growth rate of 30.2% so far. Its still very early, but if that holds up, it would mark the best earnings season since Q3‐2010. It was a busy week for economic reports and they too were much stronger than expected. Retail sales boomed in March, new jobless claims plunged, and April Empire State and Philly Fed manufacturing surged. Heck, even state revenues fared better than expected in a pair of studies, one by The Pew Charitable Trusts’ state fiscal health initiative and one by the Federal Reserve Board of St. Louis. It’s no wonder that the S&P 500 is at a record high and up +11.4% YTD through Friday 4/16/21. The index has set 23 record closing highs this year and is up for four straight weeks now. The Dow Jones Industrial Average also set a record high on Friday after crossing 34,000 for the first time on Thursday. After pausing the past two weeks the yield on the 10‐year U.S. Treasury fell 8 basis points, its largest weekly decline since last June.

Digits & Did You Knows

APRIL 14th IN HISTORY —On April 14th in 1865 President Lincoln was assassinated. In 1912 the Titanic hit an iceberg and sank. In 2021, cryptocurrency exchange Coinbase Global made its stock market debut, exceeding a market cap of$100 billion before falling back to a first‐day closing valuation of $86 billion (source: Crossing Wall Street, CNBC).
CLOSE THE DOOR? — 32% of Americans believe that foreign imports shipped into the U.S. represent a “threat” to the U.S. economy. The Port of Los Angeles and the Port of Long Beach, just 3 miles apart on the West Coast, are the 2 busiest American ports by total container trade (source: Gallup’s 2021 World Affairs survey, iContainers.com, BTN Research).

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Source: Bloomberg. Asset‐class performance is presented by using market returns from an exchange‐traded fund (ETF) proxy that best represents its respective broad asset class. Returns shown are net of fund fees for and do not necessarily represent performance of specific mutual funds and/or exchange‐traded funds recommended by the Prime Capital Investment Advisors. The performance of those funds may be substantially different than the performance of the broad asset classes and to proxy ETFs represented here. U.S. Bonds (iShares Core U.S. Aggregate Bond ETF); High‐YieldBond(iShares iBoxx $ High Yield Corporate Bond ETF); Intl Bonds (SPDR® Bloomberg Barclays International Corporate Bond ETF); Large Growth (iShares Russell 1000 Growth ETF); Large Value (iShares Russell 1000 ValueETF);MidGrowth(iSharesRussell Mid‐CapGrowthETF);MidValue (iSharesRussell Mid‐Cap Value ETF); Small Growth (iShares Russell 2000 Growth ETF); Small Value (iShares Russell 2000 Value ETF); Intl Equity (iShares MSCI EAFE ETF); Emg Markets (iShares MSCI Emerging Markets ETF); and Real Estate (iShares U.S. Real Estate ETF). The return displayed as “Allocation” is a weighted average of the ETF proxies shown as represented by: 30% U.S. Bonds, 5% International Bonds, 5% High Yield Bonds, 10% Large Growth, 10% Large Value, 4% Mid Growth, 4%Mid Value, 2% Small Growth, 2% Small Value, 18% International Stock, 7% Emerging Markets, 3% Real Estate.

Advisory services offered through Prime Capital Investment Advisors, LLC. (“PCIA”), a
Registered Investment Adviser. PCIA doing business as Prime Capital Wealth Management
(“PCWM”) and Qualified Plan Advisors (“QPA”).
© 2021 Prime Capital Investment Advisors, 6201 College Blvd., 7th Floor, Overland Park, KS 66211.



Week in Review

Is Your Current Budget Working For You?

With the tax filing deadline around the corner, many individuals might be wondering what they are going to spend their refund on. A more important question might be, “How much can I save?” With the COVID-19 pandemic continuing on, many companies have had to lay off or furlough employees with countless more experiencing reduced hours. While it might seem like a good time to splurge, we learned in 2020 that you can never be too prepared for the future.

As you’re preparing for your potential refund or if you’ve already received it, here are a few items you should also be evaluating:

  • Nonessential recurring expenses: Write a list of all nonessentials and decide which ones are important enough for you to keep and which items you can cancel. You can also see if you can pay off the ones that you want to keep. If you want to keep that gym membership see if you can pay for the entire year and potentially get a better deal!
  • Credit card balances: Look at what credit cards have the lowest balances and see if there is an opportunity to get some paid off with your refund.
  • Student loan payments: Do you have lingering student loans? Take a look at what you owe and plan to use your refund to make a dent in your debt.
  • Restrict online shopping: Unsubscribe from all retail emails, don’t save your card information online, and delete shopping apps off your phone to make it harder for yourself to shop online.
  • Prep for grocery shopping: Before you go shopping or place your delivery order, set aside a little time to create a grocery list. Not only will it help you stay on track to purchase only what you need, but it’ll also stop you from eating out as much.

The most important step is to have a plan. As soon as you know if you will be getting a refund, you should decide what to do with it. Setting time aside to prepare and plan will ultimately pay off in the long run. For help with determining how much you need to set aside in savings and how to build up that account, reach out to our advisors at https://pciawealth.com/contact-us/.

*Prime Capital Investment Advisors, LLC (“PCIA”) and its associates do not render any legal, tax or accounting advice nor prepare any legal documents.
Week in Review

Building a Lasting Client-Advisor Relationship

Valentine’s Day is around the corner, and celebrations will look extremely different this year. Instead of a romantic getaway, you may be taking a virtual vacation! Instead of going to a favorite restaurant, you’re making dinner at home or ordering takeout to share with the kids. In any relationship, flexibility and understanding are essential when you encounter new situations, and the pandemic has reinforced the importance of working with those you trust most.

Professional financial advice is important for one’s financial future, and advisor selection – like a life partner – is just as important, because you typically invest in the person for the long-haul. Defining goals, understanding your economic situation, and hiring a financial advisor that you trust will allow you to stay committed to your investment processes, and can make a stark difference in portfolio returns and objectives. This latter point is especially true when there’s increased market volatility, as we’ve seen throughout the pandemic, specifically in March of last year.

Fear can be a big deterrent as clients watch volatile price swings diminish their savings and investments. An old adage and one conveyed by many of the world’s most renowned investors is, “Time in the market beats timing the market.” Fear and panic-selling and/or buying can change the course of one’s long-term financial well-being. Recent fads like the masses joining the ‘Reddit Revolution’ also pose issues for long-term objectives, where in typical short squeeze fashion, GameStop among other securities like AMC saw vicious price swings that were profitable for some, while others wanting a piece of the action, suffered dearly. During times of extreme volatility and uncertainty, investors should stay the course. They also need to be reassured and communicated to, that everything they’ve worked so hard for will be okay. Advisors should be in their clients’ corner to explain complex issues, which is why communication is crucial to every lasting long-term relationship.


Constant flow of communication in any relationship is necessary, particularly when it involves finances. In marriage, and dating, and any relationship, large purchases should typically be discussed. I wouldn’t bring home a new car any more than my wife would without discussing the matter, and in the same respect, clients expect purchases aka trades to be in line with their objectives and/or some discussion to take place prior to a large purchase and/or new investment. When the pandemic first hit and stay-at-home orders were given, some advisors entered dark mode and weren’t communicating with their clients. Fear set in, and whether advisor or client-driven, fear-based investing can be one’s worst enemy. No matter how the market is performing, advisors must have open and transparent communication to reassure their clients, and that what’s happening in the market now, is unlikely to alter their long-term goals if you stay the course.

Be Accessible and Proactive

It’s said that absence makes the heart grow fonder. That sentiment was certainly tested in 2020! Because of the advancements in technology – particularly in the Fintech space – there’s little excuse for clients to have to go weeks or months without talking to their advisor. Like dating, it’s okay to make the first move. We all have insecurities and want reassurances from our significant others. The same holds true to the relationship investors have with their advisors, and advisors need to be proactive for their clients; they have to understand what keeps their clients up at night and tailor communications to make sure clients feel comfortable and protected, especially as the desire for an urgent response was accelerated during the pandemic. Even though there was no safe way to meet with clients at the beginning of the pandemic when market volatility and fears were at all-time highs, we still had the ability to communicate via text message, phone and video calls. Many client fears and insecurities can be alleviated, when advisors are preemptive.

This proactive approach extends beyond communication and can even be applied to investment management. Prime Capital Investment Advisors strives to take an active approach to investment management so we can be proactive in positioning portfolios appropriately, rather than simply being reactive due to market volatility, or simply incorporating a buy and ignore approach, also referred to as set-it-and-forget-it. Like our personal relationships, we want to know our partner is thinking about us and taking appropriate measures to protect our well-being, rather than merely acting when something is wrong, or not giving the relationship the effort it deserves.


I mentioned it in my blog post from February of 2020, and I’m mentioning it again here. “The bedrock of any relationship is trust. The same premise should be applied to investments because clients entrust their capital to investment professionals in the same way we entrust our hearts to loved ones. Many advisors study and work hard to perfect their craft, and while schooling and certifications do wonders in teaching practical application, it is a combination of real-life, on-the-job-experience combined with practical knowledge that allows us to make optimal decisions and build trust. As an investment manager, I have to trust my analysis and thesis and remove bias and emotion from the decision-making process. But advisors are still human, and while removing emotion is easy in theory, it is often harder to practice, especially when the market is acting irrational and selling off for unexplainable reasons. Conviction to our process and trust in our analysis is necessary to avoid giving into emotions, overreacting, and panic selling. Like personal relationships, cool heads prevail. Take a step back, relax, and ask yourself, what has changed?”

Trust is key. In the short term, there are a variety of things that can happen in life, causing investors to second-guess their long-term saving strategies and goals. In the end, if a solid relationship is forged with transparent communication, the client and advisor work as a team, continuing to monitor financial positions as compared to the overall goals, everything should work out as planned.


Securities offered through Private Client Services, Member FINRA/SIPC. Advisory services offered through Prime Capital Investment Advisors, LLC. (“PCIA”), a Registered Investment Adviser. PCIA: 6201 College Blvd., 7th Floor, Overland Park, KS 66211. PCIA doing business as Qualified Plan Advisors (“QPA”) and Prime Capital Wealth Management (“PCWM”). PCIA and Private Client Services are not affiliated.

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