Salutations! Tax season is rapidly approaching and the accounting department here at Wamhoff is beginning to put in considerably longer hours. While most people seem to dread tax season, for firms like ours tax season is the equivalent to playoffs in college or professional sports . . . but perhaps not quite as exciting!
We take great pride in providing our clients with tax and financial planning advice that is seamless. Few firms in our area offer professional financial planning and tax advice under the same roof, and we love that we receive referrals for both operational capacities. I have become fond of boasting that during my career, I have helped my clients keep more of their hard-earned money out of the hands of a consistently wasteful federal government.
Speaking of government, the U.S. presidential campaigns are just beginning and I am already tired of commercials and constant media coverage. Interestingly enough, a lot of clients have been mentioning the impact that the election could have on the stock market later this year. From 1900 through 2008, the average return during a presidential election year for the Dow Jones Industrial Average was 7.60%.
At this point in time, the stock market has some work to do to move back into positive territory in 2016. In January, the Dow Jones Industrial Average lost 958.73 points, or 5.50%. During the same period, West Texas oil futures declined by $4.45 per barrel on average, or a decline of 12.27%.
Energy prices have been weighing on the stock market as 12.70% of the S&P 500 Index is comprised of energy related companies. While 1diversification remains a cornerstone of our long-term retirement plans for clients, we do look for long-term investment opportunities based on equity valuations. Presently, several sectors of the stock market are becoming intriguing to us for potential long-term investment opportunities.
While we do not attempt to time the stock market, we do strongly believe in 1diversification using different investment management styles, alternative investments, and other investment vehicles that help our clients stay invested during turbulent market conditions. However, I would love to see the historical presidential election year performance win out and stocks finish the year in positive territory.
We are only a few months away from our next Just Because We Care fundraising event which will be the Street Party Run on Saturday, March 26th. The event will feature a 1 mile, 5k, and 10k run/walk with refreshments and fun at the after party. For more information, please contact our office if you would like to participate or help sponsor the event. As always, the proceeds will go to our special children in Honduras who continue to thrive based on your support. In closing, I would remind you to stay healthy, wealthy, and wise, and certainly . . . stay tuned.
 Diversification does not does not guarantee a profit or protect against loss