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The Markets Monthly Review (As of 5/31/19)

Stocks fell sharply in May, closing out their worst month since last December. Each of the benchmark indexes posted month-over-month losses exceeding 6.5%. While market performance has largely swung on trade rhetoric, it appears investors have reached their boiling point and are moving away from stocks and floating toward bonds, pushing yields on 10-year Treasuries down (-37 bps in May) as bond prices soared. Oil prices fell sharply on trade tensions and a slowing Chinese economy. For the month, small caps and tech stocks lost almost 8.0%, followed by the large caps of the Dow and the S&P 500. Year-to-date, only the Nasdaq remains more than 10% ahead of its 2018 closing value.

By the close of trading on May 31, the price of crude oil (WTI) was $53.33 per barrel, down from the April 30 price of $63.42 per barrel. The national average retail regular gasoline price was $2.822 per gallon on May 27, up from the April 29 selling price of $2.623, but $0.140 less than a year ago. The price of gold rose by the end of May, climbing to $1,310.30 by close of business on the 31st, up from its $1,285.10 price at the end of April.

did you know?

The tariff wars are gaining the headlines these days and for good reason. While the Mexico battle has taken a pause, for now, the U.S. continues to go toe-to-toe with China. Economists, politicians and think tanks are all weighing in on the economic ramifications of the tariffs. Even White House economics advisor Larry Kudlow has said, “both sides will suffer from this,” but added that China’s GDP will suffer more “with respect to a diminishing export market.” Other interesting tariff predictions:

  • The tariffs will cause the average American family $2,300 in higher costs
  • Tariffs on furniture and travel goods from China would cost Americans $6 billion a year
  • Nearly 2 million jobs could be lost due to the tariffs

Sources: CNBC,, The National Federation of Retailers

bright ideas
Tariff War Raises Market Uncertainty
What Advisors Can Do to Calm Client Concerns

The stock market is jittery right now for a number of reasons, but one primary cause is uncertainty over how tariffs, or the threat of tariffs, between the U.S. and major trading partners, China and Mexico, will play out in the markets.

The Two Front Trade War
In a note to clients on June 3, Lori Calvasina, Head of U.S. Equity Strategy for RBC Capital, said the “two front trade war” could send domestic equity markets into correction territory. For now, President Trump has agreed to suspend the round of tariffs on Mexican goods unless the country did more to limit the flow of immigrants into the U.S. However, the impact of the trade wars has been felt triggering considerable market volatility in recent weeks.

A Clear Path
How the trade wars will end and what the ultimate economic fallout will be is unknown, but what is undeniable is the uncertainty it’s causing both on Wall Street and on Main Street.

At Beacon, we believe this uncertainty over the markets offers a great opportunity for our advisors to help calm investor fears and provide a clear path for investment decisions through Beacon’s portfolios, which are built to handle the kind of volatility that we’re seeing in today’s markets.

Many of your clients are at a phase in their lives where they want to start withdrawing money or at least they’re at a place where they’re no longer putting money into the markets—and market volatility is shaking up their economic viability.

A Safety Net
What investors need is a safety net. They need the security of a scientific approach; one that is not predicated on chasing the latest trend or whatever IPO is leading the headlines on a given day. They need an investment strategy that offers them protection through equal sector allocations to help guard against being too heavily weighted in any single sector.

Your investors also need protection against the possibility of a catastrophic drop in the market. What if, for instance, RBC Capital’s Calvasina is accurate about her prediction of a looming correction? You will want your clients protected with the safety net of a stop-loss trigger that will keep protect from losses before they create irreversible damage.

Tools and Checklists
At Beacon, in addition to the portfolios we’ve designed to handle market volatility and uncertain times, we’ve also developed tools and checklists to help advisors educate their clients about volatility and our investment strategies. If you would like to learn more about the tools and strategies we’ve designed, contact your wholesaler today!

beacon news

Beacon Capital Management is pleased to announce today that it has been named to the 2019 edition of the Financial Times 300 Top Registered Investment Advisers. The list recognizes top independent RIA firms from across the U.S.

Be sure to visit Beacon’s News & Press page for the latest credibility pieces to share with your clients and prospects, and follow Beacon on LinkedIn for the latest updates as they happen.


For Advisor Use Only, Not to Be Used With Clients

The GIPS Compliant Presentations for our Vantage portfolios can be obtained by clicking on the below link.  If you would like the Compliant Presentations to be emailed directly via PDF file or if you would like to receive a copy of Beacon’s Composite Descriptions; please respond to this email or contact Beacon at 937-439-9093.

BCM 2017 Compliant Presentations

Beacon Capital Management, Inc. is a registered investment adviser with the Securities and Exchange Commission. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Past performance is not indicative of future performance.

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, notice filed, or excluded or exempted from registration or notice filing requirements.

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Beacon Capital Management

7777 Washington Village Drive, Suite 280, Dayton, OH 45459

P: 866.439.9093 | F: 937.424.4825