Covington Investment Advisors, Inc. Blog

News, Tips, Commentary, etc.

Coronavirus Impact on Markets

The recent outbreak of the Wuhan Coronavirus is a topic that is at the forefront of all investors’ minds, particularly since information out of China is spotty and the numbers that are supplied by the Chinese government need to be met with high scrutiny. Many would wonder how the world’s second largest economy seemingly grinding to a halt would not cause a market sell off. The market reaction thus far has been relatively muted for several reasons: The first reason is the derivative effects of the virus that the market is currently pricing in. The market is confident that China will be able to relatively contain the virus before it becomes a full-on Global Pandemic. From what we know now, the mortality rate from Coronavirus is relatively low. Figure 1, located below, plots the Coronavirus mortality statistics against similar outbreaks. As this is being written, only two deaths have been...
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The Economic Headline for 2019 Ought to be "Fed Moves Avoid Recession"

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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The Charles Schwab Corporation to Acquire TD Ameritrade

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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Current Market Observations

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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Hannah Patton Awarded CTFA Professional Certification

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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Covington Investment Advisors, Inc.
301 E. Main Street
Ligonier, PA 15658
Phone: 724-238-0151
Fax: 724-238-0148
Email: covington@covingtoninvestment.com