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What Happened Last Week and What It Means to You: August 12nd, 2022

Week Ending August 12nd, 2022

White House claims inflation is ZERO Percent…

Annual rate at 8.5% it is nowhere near zero.
What does it mean – Energy surged 7.5% in June and was down 4.6% in July offsetting food prices, rent, and nearly everything you consume to come in at 0% or flat for July. It still means the inflation rate is at 8.5% annualized. Don’t let DC math confuse you.

New York Fed’s Empire State Manufacturing plunges 42.4 points…

NY Fed’s survey index of general business condition plunged 42.4 points to negative 31.3.
What does it mean – This is the second worst reading since the NY Fed has been keeping records. The index for new orders dropped 35.8 points to negative 29.6, the lowest reading for this gauge outside of the lockdown period of March through May 2020. The index for shipments fell 49.4 points to negative 24.1. This indicates a sharp decline in both orders and shipments.

Q2 GDP decreases…

Report indicated that real GDP decreased at an annual rate of 0.9%.
What does it mean – This report will stir the debate as to whether the U.S. economy is in recession. Regardless, it also makes it clear that the economic environment has undoubtedly weakened.

Consumer debt increased by $22.3 billion in May…

As inflation hits consumers, consumers hit their credit cards.
What does it mean – Consumer credit has slowed a bit in the first half of the year but is slowly on the rise again.

CPI unchanged in July…

While many will go out on a limb to say inflation is flattening or slowing, etc.
What does it mean – Don’t fool yourself. Inflation is not transitory, and the Fed only has limited if any control over inflation, but they are now forced to exert their will on the American consumer. The Fed is nowhere near being done with raising rates.

Do not be fooled by the Orwellian ruse…

Inflation Reduction Act (IRA), a degraded version of the failed $4 trillion Build Back Better Act.
What does it mean – IRA is more government, more regulation and will soon become better known as the Build Back Beijing Act. The media has already stopped calling it the Inflation Reduction Act and now refer to it as what it really is – a “$430 billion climate, health care and tax bill”. Most of the spending for this Green New Deal will go to Chinese companies producing equipment made with coal so that we can purchase things we don’t need to save the environment we are allowing China to pollute. All of this is at the expense of the you, the American Taxpayer. You just can’t make this stuff up.

Go East young man…

We may want to change the once famous saying attributed to Horace Greeley, New York Daily Tribune, July 13, 1865. “Washington [D.C.] is not a place to live in. The rents are high, the food is bad, the dust is disgusting, and the morals are deplorable. Go West, young man, go West and grow up with the country.”
What does it mean – New Housing sales in the West were down a whopping 36.7% month-over-month. As higher mortgage rates and higher prices create affordability pressures for prospective buyers, the exodus from the West continues. More businesses and taxpayers are taking their jobs, employees, and money with them. Will CA ever get a clue?

Prop 30…

Nope. That is the answer to the question above.
What does it mean – Prop 30, if passed in November, will add 1.75% in taxes on people earning income of over $2 million and will direct 45% of the revenue to “green” initiatives made in China with (not clean-burning) coal, 35% to charging stations made in China from coal and from natural gas drilled here in America, as well as 20% to wildfire prevention. Lightning strikes are now controllable according to elected officials in Sacramento. With only 560,000 electric vehicles on the roads in CA, this will not benefit or help the 96.1% of drivers and only the wealthy will benefit from the incentives or charging stations.

CA and this administration in DC are well on its way to living up to the awesome example of the Russian auto industry. When was the last time you saw a Lada (Russian made car) on the road. Never. There aren’t a Lada them.

Let’s roll America!!

Doug De Groote, CFP®, MBA, CTC
Managing Director

805.230.0111 Main
818.642.9789 Cell
805.230.0061 Fax
2660 Townsgate Rd Suite 450
Westlake Village, CA 91361
De Groote Financial Group, LLC is a federally registered investment adviser that maintains a principal office in the State of California. The information contained in this message is confidential, protected from disclosure and may be legally privileged. If the reader of this message is not the intended recipient or an employee or agent responsible for delivering this message to the intended recipient, you are hereby notified that any disclosure, distribution, copying, or any action taken or action omitted in reliance on it, is strictly prohibited and may be unlawful. If you have received this communication in error, please notify us immediately by replying to this message and destroy the material in its entirety, whether in electronic or hard copy format.

Jeannie Ewing-Nicholson

Operations Manager

Jeannie started her career in the Financial Services industry in 1994 with Oppenheimer & Company. As part of the De Groote Financial Group, Jeannie is responsible for the operational needs of the firm including cash management and account administration. With her upbeat attitude and attention to detail, Jeannie provides an efficient streamlines experience to ensure clients meet their goals. Jeannie enjoys travel, outdoor activities, Pilates, and is a football and basketball fan. She resides in Westlake Village with her husband, daughter and son.

Mary-Ellen Lykken

Executive Assistant

Mary-Ellen, Executive Assistant at DFG, keeps the office running smoothly by providing administrative support and assisting with scheduling and organization. With a background in human resource and office management, Mary-Ellen comes from the non-profit and services industries.

Outside of the office, Mary-Ellen is committed to the advancement of independence and productivity for those with disabilities. By telling her story of the challenges and joys of raising a child with complicated disabilities, she hopes to help others navigate similar circumstances.

She is happiest when visiting her two grown sons. Otherwise, you can find her competing on the pickleball courts.

Sara Mariniello

Operations Manager

Sara is new to the financial industry only starting in 2022 when she was hired at De Groote Financial. As Operations Manager, Sara is responsible for all the paperwork surrounding opening accounts and investment paperwork and is also responsible for much of the client communication. Sara has her bachelor’s in science and nursing from Concordia University, Texas and worked as nurse for over a year prior to moving back to California. She loves all things sports and church related and is likely spending every free moment with her Husband visiting family in Texas and New Jersey.

Fadi Ahmed

Chief Operations Officer and Chief Compliance Officer

Fadi works with clients to ensure an exceptional experience. He coordinates and assures the planning process and wealth management tools are at your fingertips to provide the clarity you deserve and the transparency and access to all your accounts. Fadi ensures the data and information is reflective in our planning software. All changes and updates flow through his desk and he coordinates those changes with the rest of our team.

Andrew Krout

Wealth Advisor, Co-Chief Investment Officer

Andrew Krout is a Wealth Advisor at De Groote Financial Group, LLC. He also serves as a Co-Chief Investment Officer for the firm, focused on wealth management.

Previously, Andrew served as CIO with Kelly Financial in Boston Massachusetts since 2013. He is a licensed investment advisor representative and insurance producer. He graduated from Saint Francis University with a bachelor’s degree in both finance and accounting. He is a candidate for CERTIFIED FINANCIAL PLANNER™ designation. Andrew holds life insurance licenses in Massachusetts, New Hampshire and Connecticut.

Andrew is passionate about serving his clients and investment management and how to apply news and current events to investment decisions. He played Division 1 golf in college, and still enjoys playing and watching the sport in his free time.

David Darst

Co-Chief Information Officer

David Martin Darst, CFA is an Investment Advisor to DeGroote Financial Group, specializing in asset allocation and product selection. Previously, David served for 17 years as a Managing Director and Chief Investment Strategist at Morgan Stanley Wealth Management, with the responsibility for Asset Allocation and Investment Strategy. He joined Morgan Stanley in 1996 from Goldman Sachs, where he held Senior Management Posts within the Equities Division and earlier, for six years as Resident Manager of their Private Bank in Zurich.

David is the author of 13 books, including bestsellers The Art of Asset Allocation, 2nd Edition (McGraw-Hill), and The Little Book that Still Saves Your Assets (John Wiley & Sons). He also appears as a frequent guest on CNBC, Bloomberg, FOX, PBS, and others, and has contributed articles across a variety of publications.

David graduated with a BA in Economics from Yale University, and earned his MBA from Harvard Business School. He has lectured extensively at Wharton, Columbia, INSEAD, and New York University Business Schools, and for nine years, David served as a visiting member at Yale College, Yale School of Management, and Harvard Business School. He is a CFA Charterholder and a member of the New York Society of Security Analysts and the CFA Institute. 

Doug De Groote

Managing Director

Doug is a Certified Financial Planner™ (CFP®) with an MBA in Financial Planning, and is an active member of the Financial Planning Association (FPA). Before establishing De Groote Financial Group, Doug founded the United Wealth Management division of United Capital. Prior to that, Doug was a partner at Crowell, Weedon and Co. He regularly contributes to a variety of financial and general media.

Doug’s passion, and what he believes, is that everyone deserves the opportunity; they deserve to have the freedom and responsibility to be pro-active in achieving independence and financial success.

Doug’s life is focused around his family, wife and three children, and making sure they get the foundation that is necessary for them to have the awareness of the opportunities that abound in our great country.

Doug helps increase his client’s awareness and success, to identify and take advantage of opportunities that present themselves and help protect them from some of the pitfalls or obstacles that are thrown in our paths. With regards to their financial circumstances, Doug helps his clients identify their goals, plan for various outcomes and manage their assets to help them make their vision a reality.