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01 Sep

First Long Island Investors Making Smart Financial Decisions for You

The dedicated team at First Long Island Investors, a Jericho-based wealth management firm, gives affluent investors’ confidence and security when making financial decisions. Since the firm was founded over 30 years ago by Robert D. Rosenthal and Ralph F. Palleschi, the principals have always invested side-by-side with their clients. With their belief that trust is the “foundation of all meaningful relationships,” and by developing an individualized investment approach for each client, the firm has enjoyed a loyal customer base for decades. Their strong service ethic and tailored approach provides every client with the resources, expertise, investment guidance and confidence necessary to achieve a lifetime of wealth.


The firm’s process begins with an analysis of a client’s holdings and an understanding of his or her goals. From there, the team develops customized programs and plans of action regarding the client’s investment plan. These uncertain financial times constantly prove difficult, and the team at First Long Island provides every client with the tools necessary to lessen the uncertainty. The firm builds a prudent asset allocation for clients designed to participate in market appreciation while protecting capital. Though we have seen the Brexit and geopolitical terrorist threats frighten many investors, First Long Island’s team has remained unshaken by both of these situations. The firm reviews every clients’ asset allocation on a quarterly basis to check that it is appropriate based on the individual’s goals and investment horizon, also considering the macro economic factors, the overall markets and company valuations.


Rosenthal and Palleschi weighed in on the financial status of the US and predicted what is to come in the market. Finance is in a conflicted place, as the S&P 500, the Dow and NASDAQ have recently all hit new highs. We are in unchartered waters in terms of market highs which, as Rosenthal believes, are being driven by earnings growth and low interest rates. The upcoming election, frustration with the paralysis in Washington, and geopolitical threats have left many investors feeling uneasy in these times of “financial repression,” as Rosenthal says, and rightfully so. In terms of market sustainability, the firm expects interest rates to stay low, and the markets to make modest gains over the longer term. However, the upcoming election and the direction of the Federal Reserve may increase volatility in the short term. The current GDP growth, around 1%, is not helpful, and should be higher. If financial conditions are to improve, then Washington needs to pass pro-growth initiatives such as repatriation of cash held overseas by US companies, as well as a lower tax on the repatriation than under current law to improve infrastructure. If we are to see any improvement, then any legislation passed should be wary of increasing our nearly $20 trillion debt.

What should comfort us in these financial times, Rosenthal and Palleschi say, is that recently the Federal Reserve released the results of its supervisory stress test of the major banks, which tests the banks under hypothetical economic and financial market conditions, and almost all banks passed with flying colors. The FLI Investment Committee does not predict a recession in the near future. What they did predict, about a year ago, was greater volatility in the market, and indeed the markets went down about 11% to 12%, recovered and then went down again. Because of this prediction, FLI’s clients were prepared and did not make knee-jerk decisions.

The team at First Long Island uses several categories to put together an asset allocation for a client. The categories are as follows: security investments, defensive equities, traditional equities and real estate/private equity.  By using this particular matrix, the team customizes asset allocations so that clients are put in a place where their net worth is expected to appreciate while preserving capital. Another strategy used by the firm, helpful in these volatile times, is investment in companies that pay an above average dividend and grow their dividend each year. This defensive strategy provides a strong dividend yield and the companies in the strategy are expected to continue to pay a cash dividend and grow that cash dividend, generating an income stream for clients. By placing an emphasis on investing side-by-side with their clients, and using conservative investment strategies, the team at FLI helps clients commit their capital to reasonable strategies and prepare for changes in the market both emotionally and financially.

fliinvestors.com

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Last modified on Friday, 09 September 2016 20:34
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