Covington Investment Advisors, Inc. Blog
News, Tips, Commentary, etc.
Jul
20
Covington Investment Advisors, Inc. is pleased to announce that MaKenzie Maust has joined its full-time staff effective July 1, 2020. MaKenzie will be the Operations Associate responsible for Office Management including accounts payable and accounts receivable and will also train and assist with Compliance and Client Services. She is a 2020 graduate of Indiana University of Pennsylvania with a Bachelor of Science degree in Accounting.
We feel MaKenzie will be a great asset to our company.
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Jun
09

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Jun
09
Recent market action has many investors scratching their head. The seemingly increasing disconnect between the “real economy” and stock market has many wondering how strong of a foundation we are currently on.
Click the link below to view a copy of our most recent analysis illustrating the current positioning of the market, some of the key metrics moving markets right now, and what uncertainties we believe lie ahead. We have also linked the most recent Schwab Insight explaining how some of the “real economy” developments are being factored in by investors.
June-2020-Market-Positioning.pdf
SchwabMarketperspective.pdf
Commentary Disclosures: Covington Investment Advisors, Inc. prepared this material for informational purposes only and is not an offer or solicitation to buy or sell. The information provided is for general guidance and is not a personal recommendation for any particular investor or client and does not take into account the financial, investment or other objectives or...
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Jun
02
Covington Investment Advisors is pleased to announce we have hired Ms. MaKenzie Maust to work as an intern effective June 1, 2020. MaKenzie will be training with our Office Manager to learn the business processes of the Company and with our Compliance Officer on compliance projects. In addition, she will assist our Client Services Manager as needed on client-related projects.
MaKenzie is a 2020 graduate of Indiana University of Pennsylvania where she earned a Bachelor of Science degree majoring in accounting. She was a Student Accounting Association member at IUP and has experience working part time in the banking industry throughout the last two years.
We feel MaKenzie will be a great asset to our company.
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Apr
23
I have attached our most recent update to the Coronavirus response and economic outlook. Find the update here>>04082020-Q2-2020-COVID-19-Impact-Update.pdf
Disclaimer: The information contained in this commentary has been compiled by Covington Investment Advisors, Inc. from sources believed to be reliable, but no representation or warranty, express or implied, is made by Covington Investment Advisors, Inc., its affiliates or any other person as to its accuracy, completeness or correctness.
Under no circumstance is the information contained within this correspondence to be used or considered as an offer to buy or sell or a solicitation of an offer to buy or sell any particular security. Nothing in this correspondence constitutes legal, accounting, or tax advice or individually tailored investment advice, or research. This material is prepared for general circulation to clients, and does not have regard to the particular circumstances or needs of any specific person who may read it. ...
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Dec
24
Attached is our latest observations on the markets and the economy. I trust you will find the information insightful.
2019-Economic-and-Investment-Update.pdf
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Nov
26
The Charles Schwab Corporation and TD Ameritrade Holding Corporation announced yesterday that they have entered into a definitive agreement for Schwab to acquire TD Ameritrade in an all-stock transaction valued at approximately $26 billion. The combination brings together two leading firms with proud and similar histories of making investing more accessible to all. Please see below some important highlights of the press release. Click here to see the full press release.
This transaction creates strategic benefits for the combined organization and will further improve the investing and trading experience to both Schwab and TD Ameritrade clients. It allows Schwab to continue to add further scale on top of its organic growth, helping to drive sustainable, profitable growth and long-term value creation. Clients of both firms should benefit from the broader and deeper array of services. The resulting combined firm is expected to serve 24 million client accounts with more than...
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Nov
18
Recently Federal Reserve Chairman, Jerome Powell, said he sees the economy as being “in a good place”.
So, what’s good about the economy? The Bull Market Powers On!
October Jobs report came in at 128,000 new jobs created vs 85,000 expected according to a Bloomberg survey.
GDP rose 1.9% in the 3rd Quarter compared to 2% in the 2nd quarter, stronger than expected with economists forecasting 1.6%.
Consumer sentiment has remained strong with the unemployment rate at a half a century low of 3.6% and wages now growing at a 3% inflation rate.
Consumer spending while moderating to a 2.9% annual rate in the 3rd quarter off from a 4.6% rate in the 2nd quarter still compares favorably to last year’s 3rd quarter rate of 2.5%.
The US housing sector has improved with lower interest rates and according to the US Census Bureau and US Department of Housing and Urban...
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Nov
11
I am pleased to announce that Hannah Patton, Client Services Administrator at Covington Investment Advisors, was recently awarded the Certified Trust & Financial Advisor (CTFA) certification from the American Bankers Association (ABA).
The CTFA certification is awarded to individuals who demonstrate excellence in the field of wealth management and trust. To qualify for the CTFA certification, individuals must have certain levels of experience and education in the trust profession, pass an exam, and agree to abide by a code of ethics.
The CTFA exam covers many areas, including fiduciary and trust activities, financial planning, tax law and planning, investment management and ethics. In addition to the CTFA designation, Hannah has also received Certificate in Trusts for her completion of the ABA Trust Schools in the Foundational, Intermediate, and Advanced levels over the past three years. This expansion of Hannah’s knowledge base will be a great asset to Covington and our...
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Aug
16
The Dow posted its largest decline of 2019 Wednesday as the bond market signaled a warning of a potential pending recession. With weak economic data coming out of China and Germany, the second and fourth largest economies, respectively, there are worries that we are in the midst of a broad global economic slowdown. As stated in the Wall Street Journal, the good news is that unlike the 1990’s with the Tech boom or the mid 2000’s with a housing boom, the US is not confronted with severe excesses to unwind. As such, any downturn might be mild.
When market volatility picks up, it is reasonable for investors to get antsy about their investments and lose confidence in the market. We believe volatility provides a perfect opportunity to calibrate our investment philosophy and not get sucked into media headlines or brash reactions. Although we identify where we are in economic and...
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Dec
26
There is a lot of noise in the markets in recent days. It is important to understand and stick to sound investment fundamentals under such circumstances. The market is currently adjusting to slowing earnings going into 2019, slowing global GDP growth, higher inflation and higher interest rates. You have probably heard me say: “What earnings do, the market does”. Moving from an earnings growth rate of 26.32% in 2018 to what is expected to be a 7% earnings growth rate in 2019 is a big change. We still have positive economic growth but we also have new policies that need to be absorbed into the economy. Additionally, all bull market cycles are killed by the Fed raising rates. The longest economic expansion in US history is coming to an end thanks to the Fed. When the Fed stops talking about raising rates the market will settle down.
Today’s activities in...
739 Hits
Dec
19
Covington recently presented their observations on the market and economy at our annual shooting event held at Pike Run Country Club. Please find our presentation commentary below.
Economic Update
Looking at the business cycle framework, global expansion remains solid but many major economies have progressed toward more advanced stages of the business cycle where growth is moderating, credit tightens, and earnings start to come under pressure. Emerging markets face headwinds from China's industrial slowdown, looming trade uncertainties, and global monetary tightening. Europe has experienced the most significant slowdown among developed regions.
2017 was the first year since 2007 in which all major economies have growing/expansionary economies as measured by GDP growth. The trend is expected to be the same for 2018 with the exception of Argentina which is on pace to decline -2.83%. Note that Argentina has 40% interest rates, is highly dependent on commodities, plagued with corruption, and in...
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May
15
I am pleased to announce that we have hired Mr. Nick Allen to work as an intern this summer. He will be assigned a number of projects for the company including various analyses, research projects and technology studies.
Nick is a finance major at Indiana University of Pennsylvania (IUP) and is on track to graduate in December of this year. His courses of study include finance, investment, economics and management. Nick also serves as the Sector Leader of the Consumer Staples Section of the Student Managed Investment Portfolio organization at the college. This student organization is quite successful as it currently has $1.7 million in assets under management and has outperformed the S&P 500 over the last five quarters.
In addition to his financial studies and experiences, Nick has worked in the computer labs for the IUP Libraries. In this capacity he assists library employees and patrons with computer hardware...
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May
10
Fifteen years ago today Covington Investment Advisors was incorporated. The success we have had with and for our clients has allowed us to grow, hire more talent, continually enhance our technology, purchase our building, contribute to our communities’ societal needs, and expand our overall processes to customize your financial plans providing best in class investment management services and results.
I do not hesitate to say we have formulated the best in class advisory firm as we are not a broker-dealer, nor are we affiliated with one. As an independent advisor, we have an open architectural structure to find the best financial solutions for you. We cut out all the unnecessary middlemen and their fees and we refuse any form of commissions. We are an advisory fee-based only firm. We do not sell products; we provide customized financial plans structured and managed on a separate account basis driven to address your...
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May
07
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Feb
08
Volatility is Back
The past couple days have tested investors’ appetite for risk with a spike in market volatility which we haven’t seen since June 2016. The Chicago Board Options Exchange Volatility Index (VIX), a measure of market downside volatility, has spiked gaining 28.51% on Friday, February 2nd and 115.60% on Monday February 5th. Making the headlines are what’s on the other side of volatility; VelocityShares Daily Inverse VIX ETN (XIV) and the ProShares Short VIX ETF (SVXY), trading strategies that bet on rising but calm markets. Both trading strategies lost more than 80% of their value as volatility surged. These headlines create an opportunity for us to once again highlight the differences between these shorter-term trading products versus what Covington does, which is to invest long-term in proven enterprises. Our strategy has created attractive returns for our clients by owning good companies over long periods of time. A...
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