Investment Update - June 12, 2020Submitted by Affinity Capital on June 15th, 2020
For our clients who are also members of USAA:
“USAA Exits Investment Business and Moves ALL Accounts to Charles Schwab”
My wife and I are proud members of USAA. I am a Navy veteran and my wife’s father is an Army veteran. We have insured our cars and home through them for many years and while we are loyal to the great service they provide to our active-duty military and veterans, their investment division has not been as strong. We are grateful to the many USAA members who, over many years, have chosen Affinity Capital as their Investment Advisor.
For those of you that had investment accounts with USAA, you are aware by now that they have exited the investment business and moved all accounts to Charles Schwab Retail. Affinity Capital has custodied our client assets at Charles Schwab Institutional since 1995.
Please call us to discuss placing management of your new Schwab account from USAA with Affinity Capital. Some benefits of this are:
- Ease of Administration
- Coordinated Portfolio Management
- Two Simple Forms to Sign
Please contact us to receive the Schwab form necessary to complete and sign – it is quite easy. Once received, we will send an Affinity Capital form for your signature. Please call us with any questions about the forms.
This Weeks Market Activity
The Dow Jones Industrial Average had a volatile end to the week. Following Wednesday’s Federal Reserve Board meeting, the Dow lost over 1,800 points on Thursday but recovered almost 500 points today. The Fed had little news for the markets as the Federal Funds Rate is expected to stay at or near zero through 2021. They will maintain asset purchases of Treasury Bonds and Mortgage Backed Bonds to assist in maintaining liquidity within those markets.
Much of yesterday’s market activity was a concern over a second wave of COVID business interruptions. As mentioned in our previous Investment Updates, this second wave has been a continuing concern. Overall, the market has advanced significantly in the last month and we view the sell-off as both a reaction to future COVID uncertainty but also a normal pullback within this volatile market period. The markets did rebound some today and with good volume, yet continued volatility is a certainty.
As always, please feel free to call with any questions.
Thank you for the opportunity to serve you and your family!