Archives for February 2020
Senate Pushes Back Against Sound Monetary Policy
President Trump has nominated Judy Shelton for a position on the Federal Reserve Board of Governors. The White House described Shelton's experience: Dr. Judy Shelton most recently served as United States Executive Director of the European Bank for Reconstruction and Development. The United States Senate confirmed her by voice vote in 2018. Dr. Shelton previously served as Chairman of the National Endowment for Democracy in 2017, having served as Vice Chairman from 2010 to 2014 and on the board from 2005 to 2014. She was also a founding member of Empower America and a staff economist for the … [Read more...]
Here’s Why Most Americans Don’t Even Know They Got a Tax Cut
In every income category surveyed recently by the New York Times collaborating with the Tax Policy Center, a majority of Americans thought they had not received a tax cut from the Tax Cuts and Jobs Act of 2017. The reality is, the majority of Americans in nearly every category received a tax cut. Bill Bischoff at MarketWatch explains why so many Americans haven't noticed their tax cuts. He writes: An online survey conducted for The New York Times and published in April of 2019 (after most returns for the 2018 tax year had been filed) found that only 40% of Americans believed they had received … [Read more...]
“Mr. Smart Guy’s” Bullish Signal for Stocks
This is the time of year when you start figuring out how much you support Uncle Sam, literally. As you tally up the numbers, it’s hard not to wonder if you’re paying too much in taxes. Be careful, though, because going down this road leads to thoughts like: “Well, if I just invest in stocks, I’ll avoid taxes, and, if I need to sell, I’ll pay the more palatable capital gains rate.” Don’t get distracted and let “tax planning” ruin your portfolio. Take a deep breath. Look around you and consider your environment and how it relates to your situation. Don’t Let the Wise “Guys” Get in Your … [Read more...]
Small Deals by Big Tech Coming Under Increasing Scrutiny from FTC
Federal Trade Commission regulators are taking a closer look at small deals by big tech companies that may have harmed competition. John D. McKinnon and Deepa Seetharaman report for The Wall Street Journal: Federal regulators opened a new front in their investigation of big tech companies, seeking to determine whether the industry’s giants acquired smaller rivals in ways that harmed competition, hurt consumers and evaded regulatory scrutiny. The Federal Trade Commission on Tuesday ordered Amazon.com Inc., Apple Inc., Facebook Inc., Microsoft Corp. and Google owner Alphabet Inc. to provide … [Read more...]
The Big Winners When You Faithfully Give to a Cause (Retirement)
If you didn’t read about the massive fund controlled by the Mormon Church, you will. With 16,000 plus members tithing 10% of their earnings, the fund has amassed a $100 billion fortune—a cash-generating behemoth that would make Warren Buffett blush. Roger Clarke, the head of the investment fund Ensign Peak that controls the church’s money, used to be a professor at Brigham Young University, reports Ian Lovett and Rachael Levy for the WSJ. He was running an investment firm in Los Angeles when he got the call. “It certainly wasn’t the most attractive financial office,” Mr. Clarke said. “But … [Read more...]
Investor Exuberance Soars
The signs of investor exuberance are too many to list, but here Bloomberg points out soaring option volume as a sign of excessive optimism. The volume of options has soared to levels where the underlying shares each option contract controls are now almost equal to the total shares traded in the market. Bloomberg's Joanna Ossinger reports: A frenzy of bullish bets on the biggest U.S. tech names is captivating Wall Street and powering equities to all-time highs. It’s also sending waves through options markets. Volumes for contracts tied to single stocks have surged by 77% in the past six … [Read more...]
You Must Defend Your Wealth with a Tactical Battle Plan
There’s nothing more important to your investment success than protecting your principal. Capital gains will come and go, but losing the money you worked hard to earn is like taking a direct hit from a Scud missile. You need to build a tactical battle plan to kill the enemy—in this case, risk—and to win. Here’s the battle plan I laid out for readers shortly after Operation Desert Storm, and I remain committed to it today. You’ll Be The Big Winner! General Norman Schwarzkopf built the allied forces military victory in the Middle East on diversity. Schwarzkopf did not go into battle … [Read more...]
RAGE Gauge: Booming Gun Sales Are A Sign of Trump’s Strong Economy
You know I have clients in the gun business. They tell me the last couple of months were record-breakers for their business. Typically booming gun sales are a sign gun control supporters are making another push to ban Americans’ firearms. This time though, it’s a sign that more Americans have jobs and have more money in their pockets to spend on hobbies. The quality of jobs is getting better as well. U6 unemployment, the measure of unemployment that includes temporary and part-time workers, is near all-time lows at 6.9%. If Americans want full-time work, they are having a much easier … [Read more...]
Remembering Bob Marley: Natural Mystic
It’s not every day you get to go to Jamaica. I remember going for Spring Break one year while studying at Babson. When you’re in Jamaica, you hear Bob Marley songs in the wind as if he’s playing somewhere off in the distance. A special surprise at the end of our trip was hearing his songs performed live by his son Ziggy to a huge crowd on the cliffs of Negril. Last week Bob Marley would have turned 75, and in a way, he will always be with us thanks to the reggae sound he created. In an interview with NPR, Ziggy explains that his father kept things light even when they visited him on … [Read more...]