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market spotlight | quartely review

In the world of equities, the second quarter of the year was anything but dull. April saw the large-cap S&P 500 and Dow make marginal gains, with the small-cap Russell 2000 and the Global Dow leading the way for the month. The Fed left interest rates at their 0.25%-0.50% range, noting that economic growth had slowed since the beginning of the year. May ended up being another good month for equities as each of the indexes listed here posted positive monthly returns headed by the tech-heavy Nasdaq (3.62%) and small-cap Russell 2000 (2.12%). June started out with relatively lackluster returns for stocks as labor added only 38,000 new jobs and the Fed, once again, reiterated its reluctance to raise interest rates based on lagging inflationary trends, weakening in the jobs sector, and sluggish exports.

But the month and quarter ended with quite a bang, primarily precipitated by the UK’s referendum vote to withdraw from the European Union, which sent stocks around the world into a dramatic tailspin, felled the British pound by over 10%, and drastically cut some long-term bond yields (see Japan). Nevertheless, by the last day of the quarter, stocks seem to have weathered the storm and regained much of what they had lost. Of the indexes listed here, only the Nasdaq lost value quarter-to-quarter. On the plus side, the Dow and S&P 500 posted quarterly gains of 1.38% and 1.90%, respectively.

Gold continued to increase in value, closing the month and quarter at $1,324.90. Long-term bond yields hit the skids as investors poured money into bonds, raising bond prices and narrowing yields.

did you know?

Market volatility is becoming the new normal with the number of days experiencing more than a 2% drop in the S&P 500 are as follows:

  • Between 1950 – 1999 (49 Years): 160 Days
  • Between 2000 – 2015 (15 Years): 192 Days

Sources: & Standard & Poor’s

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Bring Investor Confidence to Your Community
How to Market Beacon Vantage 2.0 Portfolios

The markets and consumer confidence have been off to a bumpy start to 2016 from instability in the China markets, a negative interest rate introduced in Japan, last month’s Brexit crisis in Europe, and the upcoming presidential election here in the states, many investors are concerned that a short-term blip in today’s global economy could create irreparable damage to their long-term investment goals. According to The Wall Street Journal, while data ultimately points to a stronger economy overall, the University of Michigan’s consumer-sentiment index dropped to 89.5 in July, down 4.3% from the previous month. This market uncertainty was primarily concentrated in high-income households in the wake of the Brexit vote.1

Many of these high-income investors are looking for investment options, but not at the expense of a major loss. This is a perfect opportunity to intervene, and you have a great message with Beacon Vantage 2.0 portfolios.

At Beacon, we are redefining risk with our three pillar investment philosophy: maximize diversification, minimize losses through our signature stop-loss and maintain discipline through our mechanical execution. This next-generation approach is designed to capture market gains while minimizing losses in today’s volatile economy.


So, what can you do to get the word out to your community about Beacon investment portfolios and the problems they can help to solve?

1. Video resources. Take advantage of the consumer-friendly animated videos designed to explain the Beacon investment philosophy and three pillars to redefining risk. A few ideas to leverage these resources in your financial practice include:

  • Web: Add these videos to your website along with a lead capture form for viewers who want to learn more.
  • Social: Share these videos on your social media pages to engage your online community
  • Email: Include in your emails, either as links in your signature or embedded in a mass email to your database through a distribution provider like Constant Contact or similar
  • Live Events: Either in workshops or your appointment process, these videos can provide a dynamic addition to your presentations

*Please note: When sharing these videos in a public forum as described above, be sure to include a disclaimer that these videos do not constitute as an investment recommendation without knowing the client’s specific situation.

2. PR. Concerns regarding market volatility are and will continue to be widespread. Media outlets are interested in knowing what a jittery consumer could consider to help resolve their fears and protect their investments for potentially significant losses. In these scenarios, you can’t talk about the actual portfolio or specific investment recommendations, but you can talk about the principles in play for consideration. So how do you do it?  You would need to craft an email or press release that quickly illustrates the problem:  Investors are concerned about market volatility and the negative impact these market swings could have on their portfolio.  The answer:  Investors should be disciplined and mechanical in their investment approach and follow these three investment pillars to help maximize market gain and minimize market loss…

Ultimately, these PR opportunities creates awareness for you as the expert on the topic, and exposure for you and your business.

3. Educational events. From workshops to client events to guest speaking appearances, you have a strong and timely message to share—create platforms to do just that with the community that you can help to serve! In addition to marketing these events to prospects, inviting current investors to these events helps build and retain their confidence in their strategy and also provides a great referral opportunity. Consider any professional organizations or membership groups in your network that may appreciate an economic update and tips to navigate today’s volatile market conditions.

The Advisor Toolbox on has been created to provide you with the white papers and one-pagers to further you knowledge and ability to communicate the Beacon philosophy. If you have not logged in recently, we encourage you to click over to take a look! For further assistance implementing any of the tips or ideas above, contact your wholesaler today!

1 The Wall Street Journal: U.S. Data Point to Stronger Economy – July 16, 2016

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Performance Half-Time Report

Crossing the midpoint of 2016, Beacon’s Vantage 2.0 models are all in the green at nearly twice the returns of the benchmark.Given the triggering of our stop-loss on January 20, this is a prime example of losses being more powerful than gains. As of close July 11, the Vantage Benchmark Index obtained sufficient enough rebound to trigger  buyback into each model’s normal allocation moving into the second half of the year:

  • Conservative 2.0: 6.7%
  • Balanced 2.0: 6.8%
  • Aggressive 2.0: 7.0%
  • Vanguard S&P 500: 3.8%

* Download the June Vantage 2.0 Performance Report for full information and disclosures



Beacon Capital Management, Inc. is an investment advisory firm registered with the Securities and Exchange Commission. Additional information about Beacon Capital Management is also available on the SEC’s website at under CRD number 120641. Beacon Capital Management only transacts business in states where it is properly registered, or excluded or exempted from registration requirements.

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