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What Happened Last Week and What It Means to You: May 27th, 2022

Week Ending May 27th, 2022

New Zealand hands out money to fight inflation…

Did the leaders of New Zealand ever wonder what caused inflation?
What does it mean – When career politicians and government bureacrats who so desperately want to keep power and yet have never run anything in their life but their mouths are in control of the treasury’s printing press, you can expect greater government spending, the urge to print more money, and more government programs all resulting in higher inflation and more expensive government.

Gas prices soar…

National average hits $4.62 per gallon and over $6 per gallon in California for the first time in its history. That is up $.44 per gallon over the last month and up over 50% over the last year, well before the Russian invasion of Ukraine.
What does it mean – According to AAA, 18 states are already over $5.00 per gallon and many more on the rise. Expect transportation costs to continue climb. This administration is set on devaluing and diminishing your income through higher gas prices which will translate into higher food and neceisities. Totally fixable.

Biden has no intention to relieve oil production…

On Monday President Biden doubled down on his decision to freeze new federal oil and gas drilling leases to tackle climate change.
What does it mean – Fuel prices are going higher and just wait until global demand spikes once China fully re-opens. Yet President Biden himself said that “when it comes to the gas prices, we’re going through an incredible transition” callously praising high fuel prices.

Our President and this administration are very happy to continue to shut down production, freeze leases, drilling permits, and any new pipelines here in America while begging OPEC and our enemies to drill more. Meanwhile, nations like Russian and Venezuela, and enemies of the free world enrich themselves in the process. This is a global wealth transfer that is funding the very people who hate our freedom, not to mention do so with far less environmental regulation and thus turning the climate change argument on its head. You should demand your congressman and senator to vote to end this immediately.

Some good news…

The U.S. $ is on par with the Euro and is also strong against the Yuan.
What does it mean – Good news for the consumer. This will make imports a bit cheaper. Not so good for domestic production.

Fed Banks of Richmond, Philly and NY…

In May all three fed banks showed major decline in factory output activity.
What does it mean – New orders and shipments all are down significantly from the prior month.

New home sales drop 16.6% in April…

Housing is key to economic growth.
What does it mean – Expect the housing market to continue to slow and prices to start coming down as interest rates go up, and all that “free” money continues to create inflation.

Nationwide home listings increased by 9%…

More people are rushing to sell in order to beat a downturn in the housing market.
What does it mean – Sales under contract declined by 3.9% last month and down over 9% from a year ago. This is the slowest we have seen it in over a decade (remember 2009-2011). We are now seeing more sellers in certain parts of the country as they flee poorly run states for vibrant growing states. HMMMMM?

Department of Labor releases data highlighting every states employment numbers…

Not so good for States that favored the shutdown of schools, businesses, and increased government spending.
What does it mean – The numbers are glaring. 100% of states run by Govenors and legislatures that protected individual liberty, limited government, and left decision-making to individuals and private business have more than recovered. Meanwhile all other states run by “big government” beuracrats and Govenors that favor more control and less personal liberty are only back to 87% of pre-pandemic numbers. You can guess which states are run by wich types of governments.

States like FL, TN, AZ, UT, KS, SD, TX and others prospered and are now far ahead of where they where before the pandemic. Ask yourself, not where you want to live, but under what type of leadership and do you want for your state?

Inflation is not going away anytime soon…

Inflation rose 9.57% since April.
What does it mean – You must be getting tired of hearing it from me. But here goes – Policy matters!! Until we change the policy, we will continue down this path.

Predictor-in-Chief Ronald Reagan was not just right but may be the best fortune teller of all time. Just read a few of his predicitons. Trully amazing. Reagan knew that too much government spending and printing of money leads to too much money chasing to few goods. Maufacturers and businesses will not produce more if they are dependent on the government for the supply of buyers. This is why a command-and-control economy like Russia, China, Cuba, and every other marxist country continues to fail over and over again.

Here is Reagan on Johny Carson. It is worth the watch and it is almost as if he is speaking about todays issues.

Lets 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.