Covington Investment Advisors, Inc. Blog

News, Tips, Commentary, etc.

Trick or Treat? Don’t be tricked by these new emerging threats

    In the spirit of Cyber Security Awareness Month, I wanted to highlight two growing trends and share some tips to help you stay safe when using your cell phone and home phone. Beware of a new variation of phishing called SMiShing and the other tactics which spoof local phone numbers to entice you to answer the call.      SMiShing uses SMS (for “short message service”) to commit fraud by texting your phone. Text messages are very popular and usually opened and responded to immediately making it a successful practice used by fraudsters. SMiShing attempts are also popping up on messaging apps such as Facebook Messenger and WhatsApp. The text message may include a link to click on or a message urging you to respond quickly similar to the way phishing e-mails are handled. The fraudster’s goal is to steal your money by getting your personal information.  ...
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A Compliance Note on Conflicts of Interest

Last year, the Securities and Exchange Commission (“SEC”) identified a trend in their examinations that investment advisory firms were not adequately disclosing that a conflict of interest existed. In general, the investment advisors may have had compensation related incentives to place clients in the higher-cost mutual fund share classes when lower-cost share classes of the same fund were available. Investment advisors have a fiduciary duty to place your interests ahead of theirs and disclose conflicts of interest. In an effort to correct the situation, the SEC launched the “Mutual Fund Share Class Initiative” which allowed investment advisory firms to voluntarily report a violation of the Investment Advisors Act of 1940 resulting in 79 firms returning $125 million to harmed investors. The SEC is dedicated to protecting main street investors, but investors must also take steps to protect themselves. I think it’s safe to assume that we are very resourceful when...
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Covington's Market & Strategy Update

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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Covington Office Expansion-Completed!

It’s official, Nick is out of the living room! Construction is over at Covington! If you have visited our office in the past year you may have noticed a few out of the ordinary things; our Research Analyst, Nick Allen, working in the living room, loud noises, ladders, construction workers, etc. Well, this was all a part of our expansion, adding more office space upstairs to keep up with the growing needs of our company. I am happy to announce the addition at Covington has now been completed. I would like to take you on a virtual tour of our new office space, starting with the outside of the building. New view from the front of the building New view of the back of the building Next, we will go inside and upstairs to the new office space.  First, you will see Alma's newly renovated office. Alma Johnson is Covington's...
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Trade War Impact

Tariffs have been at the forefront of economic headlines over the past year. If the market headlines do not include “United States Threatens to Impose New Tariffs” then it most likely includes “Markets rise on the hope of a Trade Deal”. This has been the never ending cycle for the last year. On May 10th, 2019 the Trump Administration announced that a 25% tariff would be placed on an additional $250 Billion worth of Chinese goods being imported to the US. This tariff levying once again shocked markets and sent them trading lower the following week. Although we follow these developments daily it is important to understand the impact that this political risk has on your investments. Measuring The Effects Of The Trade War Trade tensions, specifically tariffs, affect the economy and market in a number of different ways. Certain aspects of a ‘Trade War’ are relatively easy to quantify...
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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