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What Happened Last Week and What It Means to You: Week Ending September 13, 2024

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Week Ending in September 13, 2024

Construction Spending down…Total residential spending decreased 0.4% month-over-month while nonresidential spending fell 0.2% month-over-month.

What does it mean – Single family construction was down 1.9%. Multifamily construction was flat. Commercial construction was down 0.7%. Construction along with manufacturing are two of the biggest drivers in our economy.

Manufacturing continues to weaken…ISM New Orders Index dropped to 44.6% from 47.4%.

What does it mean – Anything above 50 signals growth. Unfortunately manufacturing under pressure from rising regulations and a growing government signal more weakness in the private sector.

Keeping up with Uncle Sam…Just like the government. Another case of keeping up with the Jone’s or should I say with “Uncle Sam.”

What does it mean – Last week we discussed the massive “credit card” congress allowed this administration to use to the tune of nearly $500 billion. It turns out keeping up with the Jones is a national past time. Like the government, the consumer hit the “credit card” at record levels and saw its revolving and non-revolving debt increase by $25.5 billion in July. That is a lot of pent-up demand for back-to-school supplies.

Student loan payments have been declining rapidly…When this administration keeps telling you that they are going to forgive your student loans, what do you think is going to happen?

What does it mean – Inflationary and illegal!!! Don’t say we did not warn you. Similar to private healthcare where the government has taken over nearly all aspects, higher education is on the same path of self-destruction.

Like our National Debt, the debt our students owe to the taxpayer has more than doubled under this big government scam. Government took a $700 billion industry in 2010 and turned it into over a $2 trillion industry today that is fraught with waste and fraud. It has led to our greatest universities creating a plethora of degree programs that do nothing for the student or their ability to actually earn a living or create a product or service someone is willing to pay for. It is easy to see why universities are so quick to raise fees and tuition. Heck if you were running a university, why not increase the fees? If the government is going to guarantee the loans and you have no risk in the product you are producing, keep increasing the fees and lower the standards. The more the merrier. Heck let the kids run the place. Did you know that your children can now create their own degree programs, further adding to the dumbing down of our universities and worsening our society. Why the heck would you not accept everyone possible. If there is a seat available, fill it. Don’t worry about the student’s ability to compete or pay back the loan. The university has no accountability to the borrower and is no longer managing a budget or accountable to a third-party lender. All the checks and balances are out the window. It is now guaranteed by you, the taxpayer, overseen by a government agency, with no skin in the game and completely accountable. This is crazy!!

The NFIB Small Business Optimism declines…The NFIB Index registered a sharp decline in August.

What does it mean – Amid increased uncertainty. More firms have been reporting slower sales and lowered sales expectations.

The August PPI report came in slightly stronger than expected…Both headline (excluding energy) and core figures topping forecasts.

What does it mean – Despite the stronger PPI report, the components of PPI that contribute to core PCE inflation remained relatively flat. Should keep the Fed on track.

Let’s roll America!!!

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

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.

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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.