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What Happened Last Week and What It Means to You: July 22nd, 2022

Week Ending July 22nd, 2022

Weaker economic conditions elevated investor fears…

Last week we saw a rally in the treasury market.
What does it mean – Investors are fearful as signs of a recession are starting to confirm we may already be there and coupled with rising inflation the Fed may push us over the edge as they continue to try to fight inflation with higher rates? Some are now expecting a full 1–point increase on July 27th.

Initial jobless claims increase above 250,000…

For the week ending July 16, jobless claims increased by 7,000 to 251,000.
What does it mean – This is the first time we have gone over 250,000 since mid–November 2021. The job market continues to be quite tight even as we see our economy continue to stumble from self–inflicted wounds.

Oil off its recent highs…

Due to elevated recession fears, oil prices have backed off since peaking in June.
What does it mean – Regardless of what you hear from the state-run media, the government has done nothing to bring prices down. National gas prices are down roughly $.40 in the month of July. Gas prices have more than doubled since the end of 2020.

Real disposable personal income…

Down 3.3% year-over-year marking the sixth straight decline.
What does it mean – Inflation is not transitory, and the pain may accelerate as the Fed continues to step in with higher interest rates as they continue to fight out of the very corner they put themselves in to.

Existing home sales across regions…

Northeast (unchanged); Midwest (-1.6%); South (-6.2%); and West (-11.1%).
What does it mean – Total sales in June were down 14.2% from a year ago. With rising interest rates and continued inflation, there are fewer potential buyers. The housing market will continue to struggle.

Supply Chain is about to get messy out west…

California passes new law prohibiting independent truckers in the state.
What does that mean – There are over 70,000 independent truckers in CA that are protesting by shutting down the ports and protesting against big government overreach. These truckers are business owners and yet, our state is doing the bidding for big business and unions. This will drive up costs of everything you purchase, ship, or consume.

In the meantime, if these truckers want to work, they can expect their costs to go up by nearly $20,000 per year according to the Independent Trucking Association. This is inflationary and will only add to the pain all of us feel at the stores. Cost of goods will go up as shipping costs will increase by roughly $1.4 billion dollars a year. You must ask yourself, “what else can the CA governor and Sacramento due to make it harder on our small business owners and citizens?”

Strategic Petroleum Reserve at lowest level since 1985…

And this administration sells our oil to China.
What does this mean – Folks, you can’t make this stuff up. In a partisan vote, every Democrat in congress voted on Wednesday July 20th to continue to supply China with oil form our Strategic Petroleum Reserve. On that same day, it was released that nearly 1 billion barrels have been sold to an American subsidiary of Sinopec, a Chinese company in which Hunter Biden is heavily invested in and has worked with.

Our government is choosing China over our citizens and treating you like subjects. We are redistributing our wealth and treasure to a country that violates everything a moral society believes in and stands for. You should be asking yourself, “why are we supplying China with everything they need but denying the American citizen the benefits of their tax dollars?”

Our citizens struggle with gas near $5.00 gallon on a national average and just across the border in Mexico it is roughly $1.00 cheaper than in the U.S. All of this is happening at the same time Congress votes to supply China with precious resources that belong to you, the American Citizen.

Follow the money. The current administration insists that the world will implode if we do not solve the climate crisis and rid ourselves of fossil fuels. Unfortunately, without oil, gas, and coal to fuel the factories that build and produce windmills, solar panels, electric cars, and transport these newly minted experts on climate would be unable to fly all over the world in their private jets. The Green New Deal is a pipe dream and has truly become a trojan horse for more government regulation and expense.

Reliable and cheap energy is the foundation for a thriving economy. One day technology may be ready to help ween us off of traditional energy, but it is nowhere close to being able to run the factories that actually build the electric cars, wind mills and solar panels.

If this administration really cared about the U.S. Citizen, they would release the drillers and reverse the closure of refineries in the U.S. We are about to be down 9 refineries by year end.

Winston Churchill famously said, “I am an optimist, it does not seem to much use being anything else.”

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.