Investment Insights

Are Valuation Discounts Almost a Thing of the Past?

October 11th, 2016

Ideas and Considerations for Passing Wealth to the Next Generation Before the IRS Makes a Change

One of the biggest questions that our clients frequently ask us is “How can we pass on our family’s wealth to our children, and minimize the portion that is lost to estate and gift taxes?”  At First Long Island Investors, we have worked with many clients and their outside professionals to answer that question, and we have developed different and creative ways to reduce the estate tax burden so that more wealth is passed on to the next generation.  Valuation discounts, one of many estate planning strategies that we have successfully implemented for clients are being threatened by proposed new government regulations.  Now is the time to consider if this strategy is right for you and to take action before year-end.

Continue Article

2nd Quarter 2016 Report to Investors

June 30th, 2016

The second quarter ended with significant volatility (both down and up) after an even more volatile start to the first quarter.  However, even after absorbing such volatility, year to date results for the major domestic indices through June 30, 2016 were quite reasonable.  This quarter’s investment perspective covers what caused this latest wave of volatility and how we recommend investors position their portfolios going forward.

Download Investment Insight

From the FLI Investment Committee – Initial Reaction to Brexit

June 24th, 2016

Friday, June 24, 2016, 5pm:  Yesterday, the people of Great Britain voted to exit the European Union.  That historic vote has triggered a significant amount of global volatility in bond, currency, commodity, and equity markets.  However, the declines were less steep in most domestic markets (the S&P 500 fell by 3.6% today).  Thus far, the declines in the U.S. stock market have been orderly.  The potential for the Brexit vote had been contemplated by Central Banks around the world and Central Banks have indicated they are prepared to provide liquidity if necessary.  This is somewhat reassuring to us.

1st Quarter 2016 Report to Investors

March 31st, 2016

The result was a tumultuous start to this first quarter with equity markets declining by 10% through the middle of February. It was the worst January for common stocks in the history of the S&P 500. This required our steady hand in providing guidance to our clients that this market downturn was overdone and not justified by fundamentals.

Download Investment Insight

4th Quarter 2015 Report to Investors

January 29th, 2016

This critique of the Fourth Quarter will be brief as by now you hopefully have read our annual thought piece: “Welcome Back Volatility.” It describes how volatility became more pronounced in both the third and fourth quarters of 2015. The contributors to that volatility were investor uncertainty as to when the Federal Reserve would finally raise interest rates (they finally did in December), the continued plummeting of commodities led by oil, geopolitical tension around the world including terrorist attacks in Paris and San Bernardino, California, and the slowing of the Chinese economy as well as the devaluation of its currency.

Download Investment Insight