In Perspectives
The New Year has begun with a broad-based selloff in global equities. China’s stock market posted heavy losses this week, causing trading activity on the Chinese exchange to be halted two of the past four trading days and spilling over into selloffs in the U.S. markets as well.  The stock market declines came on the heels of a further devaluing of the yuan by China’s central bank in an effort to boost exports, which renewed fears about the slowing Chinese economy.  Energy markets unsurprisingly also reacted negatively to the turmoil in China, leading oil prices to decline to their lowest levels in more than a decade.  A few key points to bear in mind as we weather these events:
1. Investors have been aware of slowing economic conditions in China for some time, and this story is still playing out.  As Chinese authorities continue to navigate the careful transition from an export- to a consumer-driven economy, there will be many further opportunities for close scrutiny.  However, for the near future, the Chinese economy is still expanding at a rate that most analysts believe to be somewhere between 5-6% (compared to 1-2% growth in the developed world).  We do not see this as cause for panic.  The headlines about the Chinese stock market have been dramatic to say the least, but remember that this market is comprised mostly of local investors that are new to stock ownership and are very sensitive to price swings, which has exacerbated the volatility.
2. Economic data in the U.S. continues to show fundamental strength. Weekly jobless claims  released as recently as yesterday point to steady demand for labor, and retail sales continue to show strength as lower energy prices provide a boost to consumers.  This recent data continues to support the positive fundamental picture that the Federal Reserve noted when they chose to raise interest rates in December for the first time since the financial crisis, and points to further support for equities. We do not see indications of a recession on the horizon.

3. The current environment does, however, indicate further market volatility ahead.  The relatively low levels of economic growth in the developed world coupled with diverging central bank policy will likely mean that any new development on the geopolitical or financial front will be heavily scrutinized by the markets (as we have quickly seen already this year) and will drive increased volatility as a result.

Laina joined Fox 17 News to discuss the recent market activity. You can view the news clip here: Fox 17 News Online – January 8, 2016 – Chinese stocks volatile a day after sharp sell-off

Laina also discussed market activity with WZZM 13 News. You can view the news clip here: WZZM 13 News Online – January 8, 2016 – How the Chinese markets impact US investors

Legacy Trust and Your Right to Financial Privacy

At Legacy Trust we have established policies and practices that respect the financial privacy of all individuals who use our trust company. We believe it is critical to comply with the laws and regulations designed to secure your financial privacy. Your relationship with us as our client is very important to us, and we want you to understand our policies and practices about handling your information.

This Policy applies to you – This Policy applies to our relationships with individual clients who inquire about or obtain products or services from us for personal, family and household purposes.

Strict security measures – We take the security of information very seriously. We have established security standards and procedures to prevent access to client information. We maintain physical, electronic and procedural safeguards to guard client information.

Limited employee access – We have established procedures to limit employee access to information to only those employees with a business reason for accessing such information. We educate our employees about the importance of confidentiality and client privacy. We take appropriate disciplinary measures to enforce employee responsibilities regarding client information.

Why we collect information – We collect information about you to:

  • accurately identify you;
  • protect and administer your records, accounts and funds;
  • help us design or improve our products and services;
  • understand your financial needs;
  • save you time when you apply for new products and services; offer you quality products and services; and comply with certain laws and regulations;

We collect information – We collect and maintain your personal information so that we can provide investment management and other services to you. The types and categories of information that we collect and maintain about you include:

  • Information we receive from you to open an account or provide investment advice or other services to you (such as your home address, social security number, telephone, financial information and investment objectives).
  • Information that we generate to service your account or from our transactions with you (such as account statements and other financial information).
  • Information on your transactions with nonaffiliated third parties.

We have established procedures so that the financial information we collect is accurate, current and complete. We are committed to work with you to promptly correct any inaccurate information.

Our selective sharing of information – In order for us to provide investment management and other services to you, we do disclose your personal information in very limited instances, which include:

  • Disclosures to nonaffiliated companies as permitted by law, including those who help us service your account (such as providing account information to brokers and custodians).
  • Other limited disclosures as permitted by law, for example, required reports to government entities.

We do not share your information with third parties for marketing purposes. We do not sell your information.

Former clients – If you end your relationship with us, we will continue to adhere to the privacy policies and practices described in this notice.


Important Information About Procedures For Opening A New Account

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account.

What this means for you: When you open an account, we will ask for your name, address, date of birth and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

We apologize for any inconvenience this may cause; however, federal law prohibits us from waiving these requirements.

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