Kevin Canterbury of Arizona is a shining example of how military service can profoundly shape a career in financial leadership. His journey from serving in the U.S. Army to becoming a managing director and founder of Redstone Capital Management, LLC, is a testament to the discipline, resilience, and leadership skills honed during his military years. Kevin Canterbury’s military background has not only influenced his leadership style but also played a pivotal role in his approach to capital management. The transition from military service to the financial sector may seem like a leap, but for Kevin, it was a natural progression that utilized the skills and values he developed during his time in the Army.

The Early Military Days: Building a Foundation for Success

Kevin Canterbury’s military career began right after high school graduation when he joined the Army and attended Military Police School at Fort McClellan, Alabama. This early decision set the stage for the development of key traits that would later define his success in the financial world. Military training instilled in Kevin a sense of discipline and attention to detail that would become invaluable in his future career. The rigorous environment of Military Police School demanded precision, quick thinking, and an unwavering commitment to duty—qualities that Kevin would carry with him throughout his life.

The discipline required to succeed in military police training is comparable to the precision needed in financial management. Attention to detail, adherence to protocols, and the ability to perform under pressure are all attributes that Kevin cultivated during this time. These traits later translated into his meticulous approach to managing clients’ investments, where every decision is carefully considered and executed with precision.

Global Military Service: Gaining a Broader Perspective

During his time in the Army, Kevin Canterbury was stationed in various locations, including Japan, Alaska, and several countries in Central America. These experiences exposed him to diverse cultures and environments, broadening his worldview and teaching him the importance of adaptability. In the world of capital management, the ability to adapt to changing market conditions and navigate complex global financial landscapes is crucial. Kevin Canterbury’s time in the military equipped him with the flexibility and problem-solving skills needed to thrive in such a dynamic field.

Being stationed in different parts of the world also taught Kevin the value of understanding different perspectives and approaches—an important aspect of managing a diverse investment portfolio. The ability to view challenges from multiple angles and develop solutions that are culturally and contextually appropriate is a skill that has served him well in the financial sector. Kevin’s global experience has given him a unique advantage in understanding the nuances of international markets, enabling him to guide his clients with a broader, more informed perspective.

Leadership Lessons from the Military: Shaping Financial Strategies

One of the most significant aspects of Kevin Canterbury’s military service was his exposure to leadership roles. Serving in the Army requires not only following orders but also leading others, often in high-pressure situations. Kevin’s experience in leading teams and managing resources in challenging environments provided him with a strong foundation in leadership. This experience has directly translated into his role at Redstone Capital Management, where he leads a team of financial professionals and manages substantial investment portfolios. Kevin’s ability to remain calm under pressure, make decisive decisions, and inspire confidence in his team are all attributes developed during his military service.

Leadership in the military is about more than just giving orders; it’s about earning the trust and respect of those you lead. Kevin’s leadership style is collaborative and inclusive, a direct reflection of his military experience. He understands that the best leaders are those who empower their teams, listen to their input, and make decisions that are in the best interest of the collective goal. This approach has been key to building a strong, cohesive team at Redstone Capital Management, where every member feels valued and motivated to contribute to the firm’s success.

Discipline and Resilience: Core Principles of Financial Management

Kevin Canterbury of Arizona credits much of his success in the financial sector to the discipline and resilience he gained in the Army. The military teaches individuals to stay focused on their objectives, regardless of the obstacles in their path. This mindset has been crucial in Kevin’s approach to capital management. The financial markets are often unpredictable, with periods of volatility that can test even the most seasoned professionals. Kevin’s military background has given him the mental fortitude to navigate these challenges, maintaining a steady course and ensuring that his clients’ financial goals are met.

In the financial industry, resilience is key. Markets fluctuate, and unexpected challenges can arise at any moment. Kevin’s ability to stay calm and focused during turbulent times has been a significant asset in managing his clients’ investments. His military training taught him to view challenges not as setbacks, but as opportunities to test and prove his strategies. This resilient mindset allows Kevin to approach each challenge with confidence, ensuring that his clients’ portfolios are not only protected but positioned for long-term success.

Teamwork and Collaboration: Essential Skills for Leadership

Another important lesson Kevin Canterbury learned from his military service is the value of teamwork. In the Army, success often depends on the ability to work cohesively with others towards a common goal. This principle has been a cornerstone of Kevin’s leadership style at Redstone Capital Management. He fosters a collaborative environment where every team member’s input is valued, and collective decision-making is encouraged. This approach not only enhances the quality of service provided to clients but also strengthens the overall effectiveness of the team.

Teamwork in the military is about more than just working together; it’s about trust, communication, and mutual support. These are values that Kevin has carried into his financial career. At Redstone Capital Management, he has built a culture where every team member feels empowered to share ideas, challenge assumptions, and contribute to the firm’s success. This collaborative approach not only improves decision-making but also fosters a sense of ownership and commitment among team members, which ultimately benefits the clients.

Education and Continuous Learning: The Bridge to Financial Success

Kevin Canterbury’s transition from military service to financial leadership was also marked by a strong commitment to education. After completing his military service, Kevin pursued higher education at Minnesota State University in Mankato, where he earned a bachelor’s degree in business. This academic achievement provided him with the theoretical knowledge and analytical skills necessary to succeed in the financial industry. Kevin’s dedication to continuous learning is evident in his pursuit of various professional licenses, including the Series 7 securities license and Life and Health Insurance licenses. These credentials have allowed him to offer a comprehensive range of services to his clients, further solidifying his reputation as a trusted financial advisor.

Kevin’s commitment to education didn’t stop at earning his degree. He understands that the financial industry is constantly evolving, and staying informed is crucial to providing the best possible service to his clients. This dedication to continuous learning is a hallmark of Kevin’s approach to capital management. Whether it’s attending industry conferences, participating in professional development courses, or staying up-to-date with the latest market research, Kevin is always looking for ways to expand his knowledge and improve his skills.

The Lasting Impact of Military Service on Financial Leadership

In conclusion, Kevin Canterbury of Arizona is a prime example of how military service can lay the groundwork for a successful career in financial leadership. The discipline, resilience, leadership, and teamwork skills he developed in the Army have been key factors in his success as a managing director and founder of Redstone Capital Management. Kevin Canterbury’s journey from military service to financial leadership is not only inspiring but also a testament to the enduring value of the skills and experiences gained through military service. His story serves as a powerful reminder that the principles learned in the military can be effectively applied to achieve success in the civilian world, particularly in the complex and demanding field of capital management.

From the leading economic indicators keeping the long list of declines going to the ever-rising risks of recession to the slowed retail sales, July wasn’t a wholly positive month for the US economy. However, it wasn’t all doom and gloom — stocks and energy saw gains, somewhat battling the weaker industrial metal prices. 

According to Kevin Canterbury, founder of Redstone Capital Management, a decline of 0.7% occurred this month, following the 0.6% decline the previous month. As such, it continues the stretch of 15 consecutive negative reports, a feat that hasn’t happened since the 2007/08 crisis. 

Retail Sales Failed to Meet Expectations

While economists predicted retail sales to rise by 0.5%, the sector only managed 0.2% overall. However, subtracting the volatile elements from the equation (e.g., building materials, autos, and gas) flips that percentage on its head; the core measure gained 0.6%.

The most positive influences here came from online retail, electronics, furnishings, and miscellaneous stores, whereas food and beverage sales fell, hurting the overall gain. Experts attribute this decline to the expiration of pandemic food stamp benefits. 

Despite the unfortunate state of the sector, core sales remain up almost 5% year-over-year when negating the downward commodity pressures.

The Empire State Manufacturing Index Fell

July saw the Empire State Manufacturing Index fall by 5.5 points, retaining a positive level of 1.1. Unlike retail sales, this exceeds expectations of declining to -3.5.

While employment transferred to expansion and new orders moved slightly further into expansion, shipments fell. Although, it did keep its solid expansion status, giving experts a dim light at the end of a relatively long tunnel. 

Prices paid reduced by more than five points, but it wasn’t enough to knock the category from expansion — albeit an incredibly slow expansion (the slowest in three years). 

Home Sales Declined Below Forecasted Percentages

Existing home sales dropped by 3.3% to an adjusted annualized rate of 4.16 million units. On the surface, this may not seem diabolical, but experts forecasted a 2.3% decline, so both the single- and multi-family categories failed to meet predictions. 

They’re down by 18% over the past 12 months. However, the median sales prices rose slightly to $410,200, exhibiting a decrease of 1% on a year-over-year basis but remaining one of the highest prices since 1999, according to the NAR.

As for the supply inventory, it measured in at 3.1 months, roughly half the long-term average. And even though July is prime summer selling time, only two months over the last 22 years have shown fewer new listing.

A Mixed Bag for US Stocks

There’s optimism in the stocks world as investors’ positive sentiments continue following better inflation and potential recession avoidance. Disappointingly, such results are stock-specific. 

Growth sectors finished the month in the negative, contrasting recent strength, while value names showed a 2% gain. Small cap stocks performed better than large caps, making up some of their lost ground early in the year. However, communications and consumer discretionary fell by 2% and 3%, respectively.

The Federal Reserve Open Market Committee has decided to increase the “Fed funds rate” for the 11th time since March 2022. With an additional 0.25%, the new rate now falls within 5.25% to 5.50% as a means to address a looming recession. 

Economic Growth and Recession

Fortunately, Kevin Canterbury of Redstone Capital Management reports that the economy is doing well, with a 2% growth in Gross Domestic Product in the first quarter of 2023. However, for the second quarter, predictions say it will end up a tad lower, hovering between 1.5% and 2%. 

According to the International Monetary Fund, 2022’s economic growth is projected to be at 2.1%, going down slightly in 2023 to 1.8%, and dropping further to a projected 1% in 2024. 

Inflation and its Effects

As expected with the rapid rate hikes, inflation has been slowing down. Consumer prices used to go up at a rate of 3% for headline and 4.8% for core. However, the prices of homes and related expenses are decreasing slower than desired. 

Overall, while inflation is still in progress, it’s not as extreme as experts have projected. 

Although the experts over at the Federal Reserve are still unsure of what the optimal inflation level is, it’s clear that they’re shooting for a number lower than 3%. If true, and if things don’t get derailed, the 3% target might come to fruition by 2024.

Jobs and Employment

The job market has gone through the proverbial wringer since the pandemic. 

Businesses shut down, then reopened in the midst of a labor shortage. Things have mostly normalized since then, but some industries are still struggling to get enough manpower.

Despite the current situation, the unemployment rate is still low at 3.6%. It seems businesses are chugging along, holding on to the skilled workers that they have, which is a good sign that the economy is weathering the storm.

The Fed’s Decisions and Their Impact

In June, the Federal Reserve decided to take a break and let conditions ‘catch up.’ The Fed elaborates on their conservative approach by reminding dissidents that rate hikes have only been at 4% since December, and it takes time (about 1 to 2 years) for the economy to start showing cracks.

Allowing these conditions to ‘catch up’ reduces the risk of overcorrection. The Fed acknowledges that rate hikes are a hammer, not a scalpel, and that their current situation calls for a little more finesse.

Financial Markets and Interest Rates

As for financial markets, they’re celebrating that interest rates are unlikely to get higher. Businesses and real estate companies took advantage of the low interest rates, so now they’re in a good spot until loans/bonds come due and interest rates are still high. Though that isn’t really a big concern since maturities are spread over time rather than being lump sums that need refinancing.

Concurrently, bond defaults and bankruptcies are on the rise, putting pressure on the financial system. This is accompanied by people with low-interest mortgages refusing to move, bottlenecking the market for potential buyers. 

Economic Cycles and Outcomes

When needing to choose between inflation or recession, the right choice is a balancing act of staying in the middle–that is the Fed’s goal. 

So far, so good.

The economic outlook at the end of June provided some conflicting signals. While there’s good news, it’s clear that, now more than ever, every strategic investing approach requires careful attention to the details.

The Conference Board Index of Leading Economic Indicators reported a drop of 0.7% in May – the 14th consecutive monthly decline. This, along with stock market turbulence, suggests an economic slowdown is upon us. Despite this, resilience in the housing market and stability in the labor market are painting a more optimistic picture.

Kevin Canterbury of Redstone Capital Management in Arizona takes a closer look at the details most salient to those looking for balanced investment approaches.

An Unanticipated Upturn in the Housing Market

The best news in the recent reports was in housing and employment. Not only did existing home sales see an uptick of 0.2% in May, but housing starts, which signal the commencement of new residential construction projects, jumped a substantial 21.7%. This paints an optimistic picture for the current state of related sectors like construction, retail, and financial services.

Job Market Consistency

At the end of Q2, news from the labor market showed a reassuring steadiness. For starters, initial jobless claims – a kind of early-warning system for economic distress – were unchanged. In other words, the same number of people filed for unemployment benefits as in the previous period, indicating no increase in layoffs or job losses.

At the same time, the ongoing jobless claims, representing those who’ve been receiving unemployment benefits for a while, dropped slightly. This decrease suggests that some people have returned to work.

A Global Market Stirred by Interest Rates

The stock markets saw the most turbulence, with major U.S. indexes like the Dow Jones, S&P 500, and NASDAQ registering their first negative week in nearly two months. This downward movement was in part triggered by Fed Chair Jerome Powell hinting at an impending rise in interest rates.

Internationally, the strengthening U.S. dollar posed challenges for global markets. The decision by UK, Norway, and Switzerland’s central banks to raise interest rates also exacerbated fears of a possible worldwide recession.

Bonds, Commodities, and the Balance of Markets

The bond market showed resilience, however, as yields remained steady for the most part. However, the yield inversion between 3-month and 10-year Treasury notes signaled a shift that investors will certainly want to keep their eyes on, since this often precedes an economic downturn and an uptick in short-term interest rates. 

The commodities market further complicated the picture as oil prices fell, driven by fears of such a recession. A reduction in energy costs for consumers and businesses could stimulate spending in other areas.

That’s not the whole picture, though. Natural gas prices climbed due to the heightened demand caused by a heatwave. Higher utility bills for households and businesses could dampen consumer spending.

Summary

Economic indicators give us reason to exercise caution and encourage proactive strategies to mitigate potential risks. A strong housing market and steady jobs report show us that there’s plenty of opportunity for growth, even if the prospect of rising interest rates may influence investment decisions.