Tactical investing news, views and resources for financial advisors
CMG CAPITAL MANAGEMENT GROUP By Steve Blumenthal, CIO, CMG Capital Management Group
Investor Sentiment
Technical trend evidence remains positive. Investor sentiment evidence continues to support a short-term recovery uptrend. The market remains expensively priced, the cyclical bull is aged – risk is high.
Michael F. Sciortino, Sr. Executive Vice President, Managing Director, Head of Distribution, CMG
Smiling is the great differentiator that instantly connects you to other people.
Zig Ziglar used to say, “A smile is a little curve that sets a lot of things straight.”Whether you smile as you greet clients or as you simply acknowledge another person passing you on the street, the impact is immediate. A smile happens in a flash but its memory can last a lifetime.
We’ve all heard it said that people do business with people they like and trust. Well, it all begins with a smile. Even though there are hundreds of languages in the world, a smile speaks them all.
According to a study at Penn State University, when we smile we are looked upon as more likable, courteous and competent. That is the impression we all want to make.
By Mike Sciortino, EVP, Managing Director, Head of Distribution, CMG Capital Management Group
Willie Burton
Imagine being born premature with cerebral palsy. Imagine wanting to compete like everyone else in high school sports. Imagine not knowing if you would be able to.
Last night I saw an inspirational story titled, ” Will Power.”
It was the story of Willie Burton, a high school wrestler with the heart of a champion. In spite of his disability, he went out for the wrestling team, literally crawled onto the mat for each match and went 0-23 his Freshman year. When the time came for the next wrestling season, he went out for the team once again. As the team ran around the track for conditioning, he rolled around the track for 2 miles in a wheel chair, hands bleeding.
To him it didn’t matter because he wanted to be part of a team.He would go on to lose every match his Sophomore and Junior year. By the last match of his Senior year, he was 0 – 100 going into his final match. What kept this young man going?
They say that in wrestling the first period goes to the one with the best technique, the second period to the one best conditioned and the final 
period to the one with the biggest heart. When he was interviewed before his last match, he was asked what kept him going. His response was,” I asked myself, what do I want my legacy to be… The boy who never won a match?”
Well, all his persistence and hard work finally paid off in his final match. HE WON!!!
Four days later he was off to regionals. He was pinned 40 seconds into the first period. His career may have been over, but the respect he earned and the people he inspired live on.
As he crawled off the mat, he was greeted by a thunderous standing ovation. The lesson he left in that gym that day was simple… Don’t you dare quit! What a legacy to leave. What will yours be?
Mike Sciortino has more than 30 years experience in the investment management business. Mike speaks at Conferences and writes often about how advisors can differentiate themselves, grow their practice, and improve their lives through time-tested processes. See all of Mike’s stories for CMG Advisor Central. Connect with Mike on LinkedIn.
CMG CAPITAL MANAGEMENT GROUP
MID-WEEK MARKET REVIEW
By Steve Blumenthal, CIO, CMG Capital Management Group
Investor Sentiment
Big Mo and the 13/34-Week EMA remain in cyclical bull market trends. Sentiment is extremely pessimistic (which is also bullish). The Zweig Bond Model continues to signal long-term bond exposure and high yield is back in a buy signal.
Most of the sentiment data I look at each week points to a nice rally in the market. Trend evidence remains bullish as measured by my two favorite trend indicators so the upside continues to hold the benefit of doubt.
Michael F. Sciortino, Sr. Executive Vice President, Managing Director, Head of Distribution, CMG
Aristotle said, “We are what we repeatedly do. Excellence then is not an act, but a habit.”
Yes, habits are formed by repetition.
Today, we will discuss 5 habits that will have a huge impact on your future. Throughout my career, I have learned never to underestimate the power of habits. If you want to grow, flourish and expand your business, then you need to simply develop the right habits.
Take it from J. Paul Getty who said, ” The individual who wants to reach the top in business must appreciate the might of the force of habit. and must understand that practices are what create habits. He must be quick to break those habits that can break him and hasten to adopt those practices that will become the habits that help him achieve the success he deserves.”
Steve Blumenthal‘s latest Forbes article – “Watch Junk Bonds For Early Warnings Of A New Financial Crisis” – sounds the alarm on the alarming level of risky, interlocking debt flooding the market. Volaility is back and there are naturally questions about the underlying stability of the financial markets. In that regard, Steve’s article is prescient and disturbing. Did we learn nothing from 2008? Are we headed for an even bigger fall? Is it a question of when, not if?
The CMG risk meter tilts back slightly.
By Steve Blumenthal, CIO, CMG Capital Management Group
Investor Sentiment
The S&P 500 is down nearly 10% from its September high of 2019. I’m going to tilt back the risk meter just a bit as investor sentiment is now at levels of extreme pessimism and the market is testing some technical support.
On the concern list: QE is ending this month and Europe, Japan and China are in decline (with recession in Europe), commodities are in a steep sell-off (signaling global economic weakness), war risk and add Ebola. We know risk to be elevated – whether a short-term market scare or the beginning of another crisis remains to be seen.
Michael F. Sciortino, Sr. Executive Vice President, Managing Director, Head of Distribution, CMG
Imagine that you are not a financial advisor and you have no clients. Imagine you’re someone with a different job or occupation, with a different perspective on money. You focus only on rate of return, rather the reality of meeting financial goals and helping your clients find financial satisfaction.
Stop right here! The dream is over.
You’re a financial advisor with the awesome ability to positively influence your client’s lives and help them achieve their goals.
With the volatility we’ve experienced in the world markets in the last few years, many clients are beginning to ask, ” Is what I’m doing going to work tomorrow?”
Well, the world is certainly changing and flexibility becomes increasingly important to your client’s future success. This is where your client needs you more than ever before. The magic comes in the relationship that you can nurture with your clients simply by listening to what they want and need, then underpromising and overperforming.
Investor sentiment has become more pessimistic which is short-term bullish for the equity market
Equities The equity market trend remains positive as measured by Big Mo and 13/34-week EMA. There is good technical support at S&P 500 Index 1900 area.
Bonds After a pretty healthy sell-off, our high yield strategy has moved back into a “buy” signal. The Zweig Bond Model is also back in a “buy” signal reflecting a bullish environment for longer-term treasury and corporate bond exposure.
Sentiment Daily sentiment is in the Extreme Pessimism zone (a bullish counter indicator) and weekly sentiment is nearing Extreme Pessimism.
CMG Capital Management Group CEO Stephen Blumenthal discusses ETFs (Exchange Traded Funds) in IBD (Investor’s Business Daily) today. CMG is a leader in structuring ETF managed portfolios for advisors.
Steve was recently on a panel at the Morningstar conference in Chicago to discuss ETF managed portfolios and the markets.
Steve is often contacted by the financial press for comment on the markets and investments. IBD has a readership of 300,000+ monthly, and more than 3 million unique visitors per month.
See the full story in IBD: ETF Experts Cautious Amid U.S. Economic Strength. Excerpt below: