Covington Investment Advisors, Inc. Blog

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. ...

I thought you might find this update helpful to understand the government’s actions to stabilize the economy. Lawmakers finally came together on a bipartisan stimulus package that was signed into law on Friday, March 27th. The $2 trillion dollar stimulus package known as the CARES Act will act as a lifeline for businesses and employees while the government shutdown persists. The graphic below breaks down the different buckets of the package and how funds are being distributed.  On top of support for large and small businesses, the bill also provides support for hospitals and drug makers that are working to fight and contain the virus. Details are still being provided on the logistics and timing of payments and programs, but officials have been adamant about rolling these out as soon as possible. The CARES Act is just one aspect of the measures currently being taken to minimize the damage from the...

Now is the time to look forward and stick to a plan of action. Virus pandemics have a lifecycle that they go through and just like every life cycle they are not exact but can be useful as a timing tool. This framework is important for us as we navigate this volatility and make tactical investment decisions. Our timing will never be exact but what is important is that we are not basing our investment decisions on panic rather than sticking to realities and our core investment philosophy. The current coronavirus cycle is broken down into 5 stages. Right now, we are crossing over from stage 2 to 3. After the initial spotty cases across the country now we are seeing person to person transmission and the number of total cases to expand dramatically. Our transmission rates have been on par with other countries, but our mortality rate is significantly...

Peak in Global Infection Rate Worldwide infection numbers continue to grow as most of the world remains in shutdown.  The service sector has been especially badly affected, with consumer facing industries bearing the brunt of the social distancing measurements. Although domestic health centers are strained, they have not been overrun such as those in Italy or Wuhan, China. It’s not all doom and gloom, positive signs are popping up in pockets across the world. In an encouraging sign, Italy has reported three straight days of new cases below the peak of 6,557 which occurred on March 21st. Saturday was 16 days since Italy took more drastic measures of social distancing such as shutting schools, universities, and non-essential businesses. China reached peak reported numbers 12 days after taking such measures. This would mean that we can use this 12-16 day window as a rough guide for a peak in the United...

Day to day the media is reminding you to wash your hands and avoid large crowds as new coronavirus cases pop up across the world. What they should also be discussing is what else you should be concerned about; your cybersecurity.  Global disasters such as the coronavirus creates a golden opportunity for fraudsters because the whole world is informed and constantly trying to learn more about said disaster. This causes a greater potential for impulse clicking on suspicious emails or attachments. The fraudsters know this.  Starting in February 2020, a new coronavirus phishing scam has popped up in the United States. So, not only do you have to worry about the coronavirus outbreak hitting your area but now you must be on the lookout for the latest e-mail scam! These scam artists are trying to prey on the fear of the outbreak, hoping that you’ll impulse click on their seemingly...

Peak in Global Infection Rate Cases from around the globe continue to grow as widespread testing is being rolled out. To track the trajectory of the virus we are watching how fast the infection grows in a country after the number of cases exceed 100. China began to stabilize after roughly 36 days. When excluding Hubei, the epicenter of the Virus outbreak, this stabilization came even earlier at around 26 days. Although we try using other countries that are further along in their timeline as precedents it is important to keep in mind that not all countries are following the same trajectory. Italy, for example is experiencing rapid spread of the virus stemming from cultural norms such as tight living conditions and an aging population. South Korea has already flattened their curve by extensive testing and quarantine measures.  Coordinated Stimulus Over the weekend the senate failed to come together on...

A Peak in Global Infection Rates This is the most important factor for sensing a market bottom but also the most difficult to predict because of the uncertain nature of viruses. Using available data and models we can estimate the timeframe that it takes for a country to reach its peak infection rate and then flatten out. Many governments around the world believe the virus will peak in June or July but using China as an example we believe that peak could occur even earlier as long as countries take the necessary precautions to curb the spread of the virus. Every country has different circumstances. Italy for example has not been effective at stopping the virus and an aging population has made the mortality rate especially high. On the other hand, South Korea has shown the ability to stem the spread of the virus in an outstandingly quick timeframe through...

How do we navigate this unprecedented market environment? While the circumstances of the Coronavirus/Oil War are extraordinary we are in the midst of a major crisis. Simply put, in a crisis there are certain actions we must adhere to as long-term investors until this crisis passes. We use historical precedents as a guideline, but every crisis is different. What isn’t different is how we approach them.  This is not a time to be frequently trading long term positions locking in losses under irrational circumstances. Once the virus hysteria passes, events and gatherings return to normal, and fiscal stimulus is launched by the government the market will stabilize. The stock market rewards investors who are long term oriented. While others are selling their shares out of panic, it creates an opportunity for those who want to buy a stake in those companies with the mindset of a long-term part-owner. Stocks of...

I’d like to share with you yesterday’s insights from Schwab Chief Investment Strategist Liz Ann Sonders in response to the economic implications of the COVID-19 and the recent crash in oil prices.       Covington Investment Advisor Disclosures: 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...

The current scene of volatility in the markets is one that we do not take lightly or underestimate the degree to which financial markets can work themselves into a panic. We understand that the current selloff this past week is difficult to endure. Based on our financial planning and investment management approach our client portfolios have been designed for every possible environment, good or bad. Fortunately, our portfolios are designed to prepare for such circumstances as we are currently experiencing. You have a financial plan that has incorporated an emergency fund of cash representing 6-12 months of cash needs so that you would not be forced to sell assets at the wrong time. Our yield bias of dividend paying stocks provides ongoing cash flow support and our focus on large capitalized proven enterprises has proved to be protective in these environments as well. Our total avoidance of international and emerging...

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...

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    

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...

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...

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...

One part of the financial industry that has eaten up a disproportionate amount of headlines in the last few years are IPOs and private equity. Seemingly every week a new, fast growing company makes its debut on the public markets with some having eye-popping share price movements in the market. It’s important to be aware of these companies and the private equity industry as a whole because they do have a ripple effect across the business landscape.                                   A term that may be heard in tandem with IPOs or venture capital is “Unicorn”. A Unicorn is a private company that is valued at over $1 Billion. A common theme amongst most of these high flying “Unicorns” is that they are fueled by debt and low interest rates. Interest rates are near their historical lows with the ten year government bond yielding sub 2%. Historically, interest rates tend to mean...

Who doesn’t love FREE? Let’s face it, we all love a good bargain or free item. “Discount Chuck” is looking out for individual investors again, slashing online equity and ETF trading commissions from $4.95 to ZERO, making it even more affordable to invest. Schwab will continue to charge a commission for trading of foreign stocks, fixed-income investments, transaction-fee mutual funds, options, and large block trades that require special handling. Since 2006, Charles Schwab has been disrupting the brokerage industry by periodically reducing their trading commissions. Revenue will be derived from Schwab’s other business lines like its US Bank (Schwab Bank) and from net interest income. Charles Schwab continues to be a leading provider of financial services with more than $3.72 trillion in client assets as of August 31, 2019. Covington has utilized Charles Schwab as our Custodian of client assets since our inception. We continue to choose Schwab because they...

    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.  ...

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...

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...

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...

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...

  We all know how music impacts us individually.  It comforts us, inspires us and connects us to one another. But music is so much more; there is something about its impact on us physically, emotionally and mentally.  In fact, it helps to develop the left side of the brain which fosters creativity that drives our innovativeness that allows us to solve problems.  In essence it is a facilitator for the betterment of the human experience. Recognizing the diminishing arts programs in our schools and the many societal challenges that we face we have felt compelled to do something about that and so we have been underwriting music and art programs in our community through our business and family foundations.  Additionally, each year we sponsor the Independent Music Teacher Award facilitated through the Westmoreland Symphony Orchestra.  This year at the Carmina Burana concert we announced the 2019 honoree as Jacqueline...

The Westmoreland Symphony Orchestra is celebrating its 50th Anniversary Season. On Saturday April 27, 2019, Covington Investment Advisors will be the presenting sponsor for the Westmoreland Symphony Orchestra (WSO) Concert, titled Carl Orff’s “Carmina Burana”. Orff’s epic Carmina Burana is one of the most recognizable and popular works in the classical repertoire. I hope to see you there this Saturday night. The performance starts at 7:30 PM. More information can be found on the Westmoreland Symphony Orchestra's website: https://www.westmorelandsymphony.org/.

Covington Investment Advisors is continuing to expand in order to best serve the needs of our clients. Our office expansion efforts are underway and are nearing completion in the next few months. The expansion will provide us with more office space upstairs. You can see some pictures of the progress below. With our expanding space and client base, you may see some new faces at Covington soon. We would like to now introduce our newest hire, Nick Allen, an upcoming graduate of Indiana University of Pennsylvania. Nick will be joining us as a Research Analyst and has been interning at Covington since May.

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...

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...

           October is recognized as National Cyber Security Awareness Month, and I’m happy to promote some best practices to help you stay safe online. At Covington, we are vigilant in addressing cyber security risks at all times. It is an ongoing topic of concern for us, our clients, and our regulators. We hope you find this topic informative and helpful in protecting yourself online.             You’ve heard it before—regularly change your passwords. Who has time for that? Do you also use the same or similar password for multiple login accounts? To be honest, I’m guilty of some of this practice. Ultimately, I am not keeping my private data secure, and what’s worse is that I only use my one personal e-mail address for everything. Sound familiar to you?             Receiving sensitive information to your one e-mail address is all too common for many. I have my personal correspondence, vacation information (flights,...

The S&P 500 telecommunication sector is getting a new look. For years, the telecom sector has been one of the smallest sectors in the S&P and dominated by two names; Verizon and AT&T. This fall, the telecom sector will be replaced with a new sector labeled as the ‘Communication Services Sector’. As the name implies, the new sector will be more geared towards the way that media is now delivered to customers such as streaming and downloads. Morgan Stanley Capital International, typically abbreviated MSCI, summarized the new sector on their website: “The last several years have seen an evolution in the way we communicate and access entertainment content and other information. This evolution is a result of integration between telecommunications, media, and internet companies. Companies have further moved in this direction by consolidating through mergers and acquisitions and many now offer bundled services such as cable, internet services, and telephone...

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...

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...

On April 28, 2018, Covington Investment Advisors sponsored the Westmoreland Symphony Orchestra (WSO) Concert titled “Fauré Requiem”. At Covington, not only do we strive to meet our clients’ financial goals, we also focus on making a difference in our community.  Fostering creativity in our schools is the key to continued growth and success for children and Covington is passionate about helping our children. Recognizing the diminishing arts programs in our schools and the many societal challenges that we face, we have felt compelled to do something about that. And so, we have been underwriting music and art programs in our community through our business and family foundations, some of which are facilitated through the Westmoreland Symphony Orchestra. This year Covington Investment Advisors, Inc., through the WSO, has established an award to recognize the private music teachers in our community to give long overlooked recognition for their impact on our children...

  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...

  Covington Investment Advisors, Inc. is pleased to announce that Sarah E. Rovedatti has joined our firm as Chief Compliance Officer. Sarah has over nine years’ experience working in the financial services industry holding various positions in client service and compliance. She is a graduate of Lycoming College with a B.A. in Business Administration and earned her MBA at Villanova University. Sarah will be responsible for maintaining, developing and monitoring the firm’s compliance program, ensuring that all activities of the firm meet regulatory requirements. She will also be acting as a liaison with legal and regulatory bodies on compliance-related issues.    

    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. The economy’s recent performance is real and is supported by sound economic fundamentals.  GDP growth is shifting from Obama’s anemic growth rate of 1.8% to 3+% in the last two quarters. This growth rate of 3+% back to back quarters has not happened for over ten years. While GDP for 2016 will come in around 2.2% this year, 2018 is looking good as well with a projected growth rate of 2.6%.  Global GDP is at 3.6%.  The economy is continuing to expand and by definition a recession is declared when we experience three negative quarters of GDP so this bull market cycle continues. The roll back of regulations by President Trump has business confidence soaring.  Companies are spending again on capital...

High Intensity Drug Trafficking Area (HIDTA) designation is key to providing a Multi-Jurisdictional Task Force in Western Pennsylvania to curb the source of drugs supplying the Opioid Epidemic. As an ongoing effort to have our congressional representative apply for a Federal High Intensity Drug Trafficking Area (HIDTA) designation for Westmoreland County, I recently met with the Acting United States Attorney for the Western District of Pennsylvania, Soo. C. Song, Retired Chancellor of the University of Pittsburgh and Chair of the Institute of Politics, Mark A. Nordenberg, and Director of the University of Pittsburgh School of Pharmacy, Janice L. Pringle. If we are to have any impact on the overdose death rate in our area we must stop the supply of illicit drugs. Attorney Song assured me that the application for a multi county “HIDTA” designation for our area is clearly justified and continues to be developed. I told her there is...

At Covington, we are continuously trying to not only ensure we keep your information safe, but also educate you on how to keep your personal information and assets secure. With the help of our Custodian, Charles Schwab, we wanted to provide you with additional information about protecting your assets/identity and how to respond to a data breach in the future. Please review the attachment descriptions below and click on the links to view the informational slides: Protecting_Your_Identity_Data_and_AssetsPOWERPOINT.ppt–This is a slide deck that covers common cybersecurity threats, how Covington protects client information and assets, and best practices clients can implement to protect themselves from cyberattacks. How_To_Respond_To_A_Data_Breach.pdf –This is a flyer to help educate clients who either know, or suspect they have been, victims of a cyberattack, including Social Security fraud and identity theft. The handout covers actions clients should consider taking if their personal information has been compromised. To add an extra layer of security...

Some important and timely items to remember.  As thoughts and prayers go out to the people affected by Hurricane Harvey, the scammers will not be far behind.  Please do not give money and or credit card information to anyone who calls you soliciting donations for flood and hurricane relief.  If you wish to help out choose a known charity and contact them directly.  If you do get a call, inform the caller that you already gave, or hang up on them, but do not give them your credit card or other information.   Along the same lines, there is a new and improved scam dealing with how you owe money where you are demanded to contact either the IRS or FBI.  This latest scam is pretty good in that the fraudsters are using the IRS or FBI logo in the email to you.  Neither the IRS nor the FBI will email...