Apr 27, 2015|
"Smart investing, simplified"
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Yeah. Good afternoon welcome to the cholesterol financial forum and host Ken carver is the anchor desk and with the today. This whole Parsons and president to play as strong investment management went back to program fault free to be here. It's just another great weekend here and doing that as we're slowly slowly slowly getting warmer I mean by one degree at a time. So you know what I was driving. Two Pino long one I'm in data on the other day pretty close to our office and and there was still. Had to be a fifteen foot high snow and there's one of my arm still threw you can't tell what's smokers it's all star RS like exactly it looks like like a lot of of the church into what is still a snow bank and I'm like. You know what not for nothing but this is you know Lee equals may now this is losing its facilities yes. Yeah and you're right it's been chilly it's actually this past week that you know we it'll taste of the warm weather and today it'll come. Not wanting I have to do you know I like to tell people once in awhile a couple things are interest thing in my life sometimes good sometimes less good okay and you don't we talked about my hole in one which was yeah he talked about a good day hours of the day but. I'm leaving for Hawaii. Bong now I'm just gonna go for week and not so Alex is going to be your next week or during the show I will be off but you know what I'm doing there I'm working. You working why I am not conceal my job as you know a lot of the Thabeet acutely mr. Oh really it's true that's is that it's gonna hurt so much you know my life on this it works for bank and she in the CEO post. An event in line for their top producers camera called the president's club. And I'm so when Joan post that I go along and help co host so my job is to be arm candy. And I am so ready for that oh no job might ordinarily would see you in fall but hey if the ball hopefully you'll hear this hopefully their vision isn't so good but I've noticed the last four or five years. And can I tell you. As as part of a couple has worked our entire lives you know professionally. On this is one were unwilling to take one for the team and I want everybody out there to know that that on this kind of altruistic type spell is will. Boon to work a few hours one night for weaken one's action there's no work all my work I mean drink and eat can interest that's there are just I. I think Castro I don't know what cannot pay us but yes I definitely noted drink senate I will be helping out the ago excellent so let's stick next week while you're in Hawaii Alex will be here on the on the radio with us talking about it investments and to remind the listeners all lower here. He if you think you might need some help the viewer investment portfolio. We remind you all still be number 889727526888. 972 plan. And at the same time you can ask where the plans are 2015 outlook if you don't already have viewers know many of our listeners do. But if you knew the program we haven't got around to asking for viewers there's still time to do it. We still a few companies left Paulo's sending those out to you via email or just via snail mail if you'd rather so called that number eighty days. 9727526. To request your free copy of the plan's strong 2015. Outlook. Our poll and they've got a lot of news you wanna share of this investor should know about. Well not only to live news I have some very interesting news stories look at and one of my favorite ones I'm gonna teach you it has to do with Tesla but did you know. Tesla is not. This story. Has nothing to do with automobiles snow okay that's moved so is not good app so I liked our whole hold that thought perfect let's talk what markets first loss actually pretty good week for markets and okay. Aren't worth. So US large cap stocks are very close to their all time highs you know as far as levels are concerned they were up 11 and a half percent this past week. Earnings were released so far have topped expectations and that's probably a a big reason why. You know the market has rebounded the way it has and and kind of pushed up against the ceiling of where we've been. For good part of the year. I'm not as and 2015 but what's interesting about earnings is that there are still forecast to actually be lower. In Q1 from them they were last year but the reason the market is still positive is because. Even though Q1 and maybe even Q2 earnings. A 2015. Are lower than what the earnings were in 2014. They still think that for the overall year earnings overall will increase OK okay and that's why the market continues to you know kind of pushed these highs right. The other thing you should know is that. You know Greece continues to be a concern for the market and so I mean you know we talk about this. Almost every week three week reasonably well the news and you know what though for a long time over the last few years we said nothing about Greece and now is because there was very little. Real news about it but a the reason I keep bringing this up as we are getting very close to ground zero now here we are. On Greece is going to either have to decide to participate. On in the austerity and in that there are other cuts that they said they were gonna do. And really make structural changes or. On the European Central Bank is not gonna continue to lend them money and we've kind of hit the twelfth hour we're we're we're there. And it it's possible that on the next couple weeks. Greece will not default they will not be able to meet their debt payments on their government debt. And you could see that could lead to Greece exiting year. And I think that is a real overhang on the market these days and and like I said we haven't really gotten this point before but you sure we are you know with a Greek government that was elected on the premise that hey weren't doing any of this austerity star you know are real we don't let those German people and forget it we're not doing. And you know now the ECB the European Central Bank is saying hey either you do what we're telling you to do or. You know this is gonna go so well so this is a very important couple weeks and I'd encourage people to keep the Orion that. There are the same time. The ten year out and by the way if you're investor why do you care to to some you know happy person like you when I army United States what you care about Greece. Greece is economies mine nuked. But the answer wrist. There is concerned first of all that it would create a problem within. Odd European zone and don't forget the Europeans on is one of the best performing markets in the world right now. And so you know if you you know take some of the air out of that loan. Mean all them werder investor's goal and you know it becomes a problem so believe me this impacts a lot of people even those weren't directly invested in Europe market compared. Okay not the same time the tenure US treasury yield on its red around you know one point 91 point 95%. Right in there. And the reason for that is because if them the stock market goes up many times. The yield on bonds will also go up because the prices of those bonds went down people sold bonds they bought stocks break. On and so you know we saw that if the stock the stock market did go up this past week and as a result the prices of government bonds went out game. The other thing that centrist thing is German on bond yields increased from point 0% a point 08% last week clearer that a to point 16%. This year on a ten year. And you know that those are still just incredibly miniscule amounts that are you wait a minute they doubled their race through Oklahoma Clearwater should scoot out the for a ten year bond paid less than point 2% a year or so really stunning Jeanette. And then the last thing I just wanted to mention was that crude oil prices. In a good way continued to increase modestly this week. We have west Texas crude now in other words United States crude you know Brit around 58 bucks a barrel and Brent crude which is essentially delivered to the rest of the world out of Europe. I'm is it about 65. Dollars a barrel now. For those of you who who have listen to the show for awhile you know that this is something that we suggested would happen right we didn't know what timeframe would be but what we said was we thought that. In a forty dollar west Texas crude was. Relatively unsustainable. And and and I'm Brent crude in the low in a low fifties high forties was also. Unsustainable over the longer term and in fact we have seen that but no thanks to the saudis. I'm the only reason you consent thanked the saudis is because the saudis. Continued to Bologna and Yemen right and so have the saudis take out the year Manny. On assets are in other words their production well then you know that means instability in the Middle East which means the price of oil goes up there and so that's why it's up at this point. Okay as far as the economic data as concern dole tries glaze over right now. I look at this stuff specifically. And you don't by the way our clients pay us to look at this because. We look at these as either leading indicators concurrent indicators are trailing indicators of what's going on in the economy and therefore what could happen. With different businesses and ultimately to the earnings at different stocks and ultimately to the prices stocks right. So. What we found out this past week was that existing home sales for march came in actually at a good number I'm and not was really welcome given him pour readings in the whether or impacted months. Of January and February receiver remember January and February I was much older white hey guys yes and it never step outside we under the under fire your snowblower nobody was buying houses yeah I assure you there was a lot of showing going to persuade have to dig through rural estate now imagine a house over there that's what's for sale just imagine if you had to try to sell my cousins are you just couldn't do not know that would have been pretty well so anyway existing home sales for march came in and an annual level of five point two million that's actually pretty robust level I was I was pleased with them but of course. As with anything in this economic recovery there's always a but Google book but and the but on this case was that new home sales shall we talk to an existing home sales. New home sales. Really disappointed and relish they were down 11%. Vs fed York seal like. Wedeman new or existing homes were up a lot but new homes were down why now and you know frankly that's kind of the story of this whole economic recovery. Durable good it'll goods orders you know think of things for everything from caterpillar tractors to airplanes to cars. All of though they came and very good in the month of march. But at the same time initial jobless claims came in pretty close to 300000 which really wasn't that Geithner so. To hear every step forward we take at least have a step back yeah I sit I think that's actually fair analogy I think for at least a full step forward it's about a half a step back because. Even though initial jobless claims which essentially is the first time initial from that somebody goes and and and claims unemployment claims that their unemployed they need unemployment benefits. I was around 300000 to go for this. Past week and the good news is for the months average it's actually down compared to the prior month and it actually made even portend. A good April employment report that's expected to be released on May eight. So you know all eyes will be on May eighth because we all remember. On the the prior among the the month of some of marches and report was you know terrible right. So will watch a knack to see if for an gets some good news may. Follow combat we have some more stories your cover I know you only get to some things like long term care insurance coming up later in the program right and other news that investor should know about it's by a strong financial form. This is Paul Parsons president of planned strong investment management. And you're listening to them plans strong financial forum on WRKO. Costs talk stations. If you like what you hear on our show and what needs to take a look at your investments and retirement plan called my office. 889727526. That's 888972. Plant securities and investment advisory services opportunity for an intra group member to go as I can see Clinton this time is and who isn't who he believes different strategies to require them. Others buy insurance for investment products though sometimes will benefit the seller more than the buyer what makes sense is to hire an advisor with first rate credentials and why do investment management experience. Should have a fiduciary obligation to act in your best interest. And be paid the same amount no matter what your invested in if these things matter to you. Call Paul Parsons at planned strong investment management to learn more call 888. 9727526. Hiring the right advisor could be your best investment that's 888972. Plan or vision plan strong dot com. Securities and investment advisory services offered through next financial group and member former SIPC plans to investment management is not an affiliate of next mentioned grouping and is located at ninety to Washington street Dedham mass. It's there. Okay. This place struck financial core by the host Ken carver is the anchor desk involved Parsons joins me Paul is president of planned strong investment management. We just remind you postal. Free number if you like some help with your investment portfolio you can call Paul's office Renault total free. 8889727526. Cents eighty. 972. Plan driving in the dark can write that down you're someplace we chemical or no just remember plans strong dot com. He go to the website and shouldn't email out to Paul and be happy give documents and time. To a two over here investment portfolio Paul while we're talking about some news items that investors should know about guys put you to sleep but the latest data it's all good stuff that it really is especially because it gives you -- always show how it affects investors and you don't you might not know it but you've got money and in the count the could be affected. And I know some news out of Brazil this for. Yeah this is one again you know I can't are on the show obviously recommend buying or selling any specific security and why no what are individual's circumstances aren't or else but. You know it is fun to be able to report on new was about different areas that you for example Brazil. In a week it's suggested that Brazil wasn't in trouble right now you'll Purcell is such an interest thing. Very good country non. You know it's got almost 300 million people in the 250 million people and it. Which is not that much smaller. You know population wise and the United States right it's in emerging economy you know that people are are really elevating the standard of living in many parts of this Mott throughout but in many parts of him. And you know there certainly was a lot of interest over the last say four to six years in investing in Brazil because. They're growth rates were so fantastic. But an instinct thing happened on the way to the party they elect themselves and this happens by the way with wealth. On as they got wealthier and wealthier are armed they all they do they elected themselves. Believer. Who decided that you know socialism or something awfully close to social alone made made a lot of sense for them. And you know really if you will to quote one of our two senators spreading the wow I'm on and so. If you know what happened unfortunately is that the economy and results slowed quite dramatically. Analysts further compounded by the fact that you don't results of big exporting countries to export you know oil and gap some stuff and in addition to coal that goes in the making steel. On and Tibetans as China at the same time was slowing down their demand for those things so you could blame certainly part of it. On kind of that the slowdown. Of the other major consuming countries but you also could blame it certainly on the political circumstances that have happened in Brazil and you know this week out more bad news came out of Brazil and formed a pack of petrol brought switches. No big peace state it's the biggest oil company in Brazil and it turns a massive company. On and by the way the current president of Brazil. Used to be the CEO. Petrobras affairs so if you think you know people had a problem with Dick Cheney and Halliburton right. They have nothing Juan Cheney compared to. A that the of the citizens of Brazil looking that I deem a Roos shaft. Who used to be the CEO of Petrobras and now here's what's happening with him on the air royalty in the middle. A big. Big problem and where that the company is alleged to a overcharge suppliers for work and then funneled the excess profit to either former executives in the company war to politicians. While this guy actually threw fills both categories nice. Well as a former executive Eric garbled version that that's true except it's a woman. Yes you got to Russa at this moment but she was the CEO yeah it's not fast and thank you Becky get ugly in that could get ugly quick inning and the question is how close to the top is at an all loud and certainly not helping no okay another big story this week had to do with Comcast and and that potential and our position. Of Time Warner Cable is gonna be. Huge merger and you've mentioned it before the program to carry Cuban I don't know I happy and in fact it's not your only in jeopardy I think on Friday actually this week time sorry. Comcast announced that they were probably not move forward with the odd the merger acquisition that it was just not gonna be good and if you. If you get into why they were backing away from it it was because the FCC the Federal Communications Commission came out and said. That they were gonna have an administrative law judge deem if the deal was in the public interest and any time you get. An announcement like that. It means this is not going to be a good situation right and so they just decided forget it we're not gonna go through the fight and and so it looks like they're gonna drop the deals today it was a little bit like Coke buying Pepsi and it's it's picnic it but it was done on purpose it would and it frankly there were some very positive aspects to what I you know for if you were com cash Geraldine look at currency this makes sense for us from a business respect room but. It looks like it's not gonna happen okay. On the good news size you know they're an awful lot of people that you know their cult stocks out there really caused stocks apple would be wanna another one as Amazon. Right oh gosh I hope people love in Amazon stock to the point of almost being irrational brighter red opportunities to sell before long before their browsers are lots start what exactly right arm -- And tennis and it's a huge company capitalization Watson actually massive. But here's the deal this past week I think it was actually Friday again. Amazon's stock was up 15%. And one day on much stronger earnings earnings forecasts. Announced. On a for the subsequent quarters not for this quarter but Merom subsequent quarters they're predicting. That their profitability is gonna go up pretty dramatically as you may remember that Amazon and then knock on Amazon has always spin. That the CEO Jeff pesos. Has always said I don't care about profitability I care about when the right thing for this business and growing a strategically. And investing investing investing in the business right. Well what they came out with a though was for the first time. This guy. Ever reported that Amazon one of their major investments is this business called Amazon Web Services which is cloud computing are hot what have we been talking about now there are a couple of years cloud computing. Well for the first time Amazon. Actually disclosed not only the revenues associated with that business but the profits associated with that does. And while revenues met expectations. Earnings greatly exceeded them and their profit margin not gross margin for the literally. What do they bring home at the end. They expect on five billion dollars of sales. They expect to make a billion dollars. Okay that's real money via an especially for companies that hadn't been showing a lot of earnings lately because they were investing so much. That was a really pleasant surprise so for those if you cult. Cultists and by the way I have to say with full disclosure. We do own Amazon in many of our client portfolios but like I'm not recommending buyer seller Amazon stock because I don't know. You Melissa are you when your personal circumstances are. I have to tie it was a good day for our debt and we enjoyed it really glad to see Amazon Web Services really step up and really deliver well. 15% well again as mentioned before that's the kind of stuff you do you look at it. And obviously you have been doing that researching who Wear it that's where their next big chunk of change change of becoming from for the cloud services yup that's stirred outrage right now. The eurozone. Seems to be getting into its growth skier now with some good news from this week as well. Thanks to a whole bunch of things you know they've that they've had this austerity and you know I'm program going on were governments have been you know essentially told look. He got a knock off some of the benefits that you paying people who got actually get people to work something more than. You know thirty hours a week right he can't let people retire when their forty you know couple things like that. And so. But and that. Had a good impact on the structure of the company of the countries in Europe. But you know if you do too much too fast. Then I can really cut into the growth rate of those countries well. There's been less or austerity. Lately and as a result. There's been more growth mom in European countries also you know as we've been talking about huge monetary stimulus there right they've done quantitative easing their right. And another thing is that their banks have been healing this whole time and shoring up their balance sheets they've been getting the bad debt off the ballot sheets and so forth. And by the way don't forget. Cheap oil helps Europe and the European economy and why you know why cause very huge net. Import a boil if you're exporter of oil. And the price will go sound a lot you're economy gets hurt Russia but Russia Venezuela. Iran would pick one you know what if you are net import like China. Japan Europe and even the United States and then you benefit your economy benefits when the price of oil goes down so Europe. Has certainly benefited from that. And another thing the kind of correlated with that is the Euro has gotten cheaper and if the Euro isn't worth this much that means that when they sell products overseas select if they sell BMW. In the United States and they built it in Germany's paying. -- a big influx of tourist dollars from America a new law after the catch dangerous a lot of happy tours yeah exactly right. And here's what's interest thing the International Monetary Fund is forecasting that growth is expected to continue and that's. Really important because you don't wanna just be there at the end of something you wanna be there you know at the beginning and while it's still evolves well that's what the IMF for saying this is going on in Europe at this point and finally you might say well what could go wrong. Well one word Greece right there's that word their annual out Greece in increased blowing up won't help I don't know how much it'll hurt but it certainly won't help. And so you know you certainly have to keep eyes on that over the next couple weeks. And you know by the way kitty while we're talking about Europe let's talk about negative yields on sovereign debt so what I mean by there. If you wanna buy treasury. In pick a country you know a ten year treasury. Say in Germany from a loss seven year treasury in Germany pays minus point 007%. Really source of paid them. Correct to hold my money curl her injured and you know if you wanna buy a five year in Belgium you get paid minus point 011%. And what's interesting and I'm just showing you this chart which with all the red on it you know what's the red connotes here Kenny is nuts all the countries European countries down the side. And this is the term of the debt that they've got you can see it's just by leading. Into all of these countries at this point all the way up certainly through five year Ers. Of you know so any debt less than five years in many of the European countries now is paying a negative yield and that is if anything. With more quantitative easing. Pat could even continue to bleed out more. So when we come back. And Paul aren't clouds brown why that's lands on investor finish up on the they're slowly lingo and play in Toronto financial performance and that's OK okay update until we start acting class drugs and like when you're on our show and what he'd take a look at your investments and retirement plan called my office. EDD 897275. June 6 that's 888972. Plant securities and investment advisory services opportunity for an intra group member to me as I concede Clinton mismanagement and billions of misinterpreting the New England when his suggestion from. Related to getting your financial house in order over the years you worked hard took chances made sacrifices. And built up as much wealth as possible so you'd never run out of money in retirement. Well now. Now it's time to get organized and to make sure you have a financial plan will protect your retirement. If your financial life together. Call Paul Parsons at planned strong investment management. A schedule financial checkup call 8889727526. That's 888972. Plan commit to getting your financial house in order call 888972. Plan or vision had planned strong dot com. Securities and investment advisory services offered through next financial group in member camera SIPC plans to investment management is not an affiliate of next financial grouping and is located at 980 Washington street data. Plus plus. So yeah. It's quite strong financial forum and host and Carter to create the desk with his ball Parsons. Gladstone investment management Ballmer. Talking about. The trip to Hawaii you know governor I know you're going to be we had a streak like you know just thinking actually Alex and I will be here joins programming. And also many of our new guys in via it will be a nice weekend deliberately we might get sixty degrees next Saturday who knows I'll say this and will be out saleable per week do you view and Hawaii's. And he he armed hand out. So you're going. For a week yes it is really you have no responsibilities other than to just hang out why it. Response okay okay are very important OK right here while so Wednesday night we have to host cocktail party. OK I suppose in some responsibility a little by posting your not. You don't have to set the table mountain for the drill hole we have deal well then they're going to have to be nice to lament for in your case that the big trying to rush it but you wouldn't put on a tie no I don't your note known don't know time nothing like that I cannot. So I think Wednesday night that we host cocktail party right. Now check this out for hard work and there Thursday and Friday and Saturday at three days or so of the what are you doing those days I have to play golf okay. Yeah basket and I know it gets worse okay annoy you Thursday night the arm we are hosting the awards dinner. Only dinner yeah so I actually have to be nice again if you're Garcia and then Friday you know what I have to do a review work a little bit Nona and I'm going I have to go snorkel. Okay yeah in Hawaii and historically in its own town like this this this sacrifice I don't think I am no good husband I keep telling you that it you know you're right there you're noted this is Jones a very low ya lucky lady to have you as arm candy we're gonna say well. I classless I just hope everybody's eyes seeing eye dog to make sure safely ethically and have fun and I'll miss everybody but are you this every year John hostess saying for their top performers and it's really a lot of fun you know and I enjoyed meeting all that the people's right and we have some stores until tomorrow Hawaii stories when you don't back him a couple of weeks are it's we're talking about. Negative yields this whole idea that you have to give you giving money to a for a bond and then you're you're preparing them to hold onto your money for. 510 years which is ridiculous so why would anybody do why even state that interest rate want to keep it in cash. That might Clark got. Right and by the way if you don't think this applies to Americans it's time. Jessica because I've already seen articles about our negative interest rates coming to the US and isn't that fascinating you know. And so you know I'm sorry I I think I just heard a couple people jumped out of buildings just that especially retirees are used to buying treasuries. Can you imagine if you were buying US treasury and you couldn't literally make anything like zero or war first it was a negative deal well. First your questions really well taken which is why would anybody you know invest Assad and where you're guaranteed to lose mind. Yeah it's okay. And the short answer is it's not necessarily individuals who carry its institutions and specifically its banks OK so think about it this way. If banks have banks have certain capital requirements in other words they are responsible have keep a certain amount of assets in their vaults. Okay I'm two back any of the deposits that have come in a short time okay well if there were required by law. To have those on those are reserves. On sovereign debt and then whatever the price of the sovereign debt whatever the yield of the sovereign data as. That's what they have to buy I think that's what they have to put in their fault not Ankara well here's the deal if the Central Bank European Central Bank. Is buying all those bonds and literally bidding them up so high. But they're paying more for the bond than the sum of all the interest payments are there's actually a negative yield some point right and you know from a bank and I have to satisfy might capital requirements while I have to do the same thing. And so it's not individuals some individuals who would never know likely wouldn't do that except for currency play which I'm not going to hear but instead. It's I think it it is financial institutions bear the ones that are you know as a result of the Central Bank going in and doing their quantitative easing. And then the banks have to going on top of that that the commercial banks have to went on top of that and they also have to buy them and they're buying amid increasingly negative yield sank all the quantitative easing that's going. Okay Bob that's that's amazing doesn't sound really appeal no they're really doesn't mean so there yeah I'm with you okay. So so that's and that's why somebody would do that is there any old book in the future how this might change actually if anything it's looking like it's gonna get worse because of these do you eat European Central Bank has said the air committed. To going on with quantitative eating and at easing until it's laid it finish a September of 2016 and they said we're not backing down America so that's why this chart showed you with all the red penny ever is gonna have more red yeah you know because they're still are some countries and especially some longer term bonds and aren't a negative yield Contra territory but eventually you'll this you'd by the way this chart used to have far few or the far less ran on a pennant has now it's gonna be even more red on it. By 2060 good they were on color radio so that's true in any questions don't hesitate to call can look at the are it's what else we have to an awful well here you gotta talk about Japan and the like get some good news from Japan and you know what against him for the post if you weren't used to hearing those words. Because Japan has been in the doldrums for twenty year -- lost decades and we lost to get candy and there's a lot of law school and Margaret. Then the Nikkei stock average closed above 20000. For the first time since 2000. So that's fifteen years ago okay. The result of a rally this year driven by international exports and broad based strength in local consumer products of this is really interest. What's happened you know historically. Our first all they've done quantitative easing Cameron again OK and so if you know and they make a lot of stuff think Gil televisions lap right televisions and cars well if bear. Currency has lost value. Then it's it you know then when they export those goods and services overseas the less expensive sure and so guess what their demand goes up and people say great out you know by two of those instead of one of those and it really helps theory economy and they're saying that because of the weakened currency but the other thing that they're saying is actually consumers within their country are buying. Consumer products and that has not happened for quite some time and that actually bodes well for potentially Japan finally breaking out of this fifteen or twenty year period. Of a very very low or negative growth. Are stagnant stagnant economies and that's kind of good news is well on this up again you'll roll call us talking about this quite some time and it's also included in my paper that I wrote last month. And now was that we looked at Europe and Japan as the back as potentially two really good beneficiaries. Of quantitative easing in their respective regions or countries. And in fact we are seeing that now both from an economic perspective and a market perspective so it feels pretty good right now policy. Of the Financial Times there you know I'm always I'm always excited just the Financial Times that pink paper it's paying it just makes it look so Smart I don't think that's Hank by the hour -- an honor to call and a guy like salads salmon I think you're salmon I think that boy he's due to decorating also I think they'll I don't editor you're very you're in -- I eat is what I do almost kill a total looks like he also lighter not help but anyway. I'm as you're right a last week I talked about a Financial Times article you were so taken without you asked me for another writer and I actually have another one. And you know what's funny about the Financial Times and for those of you out there that don't know what the Financial Times as. It's that I kind of the Wall Street Journal Europe run a man and you know although it's. It's a very very liberal paper and and you know they those are the Wall Street Journal that respect all the germs don't get this could go to paper for for economic news in your it is put it really reflects kind of the socialistic mentality right are it's really quite something I. Aren't just for grins and giggles I read the the opinion page from all the time and I just sit there and shake my head go are we on the same planet while I mean it's really exciting but anyway. Is a very good. Resource for us certainly information about. Whether it's stocks or bonds or other kinds of securities that are issued in you know Europe and so obviously we stay up without as well and you know last week we talked about the fact that the Financial Times said that US junk bonds awaited challenging times. Well this week the Financial Times I had an article that said that emerging market corporate bonds also. A could have real challenging times in front element. Again without going into too many specifics let me just say this you don't. A lot of money used to born to emerging markets and Wes has been going into Utley market right yeah so if extinct but dissuade you don't have as much money grown men and there isn't as much demand for structure including meeting to borrow because you're building more capacity and all that some demand for these bonds are down. The other thing that's happening. Is that you know the price that your charged for these bonds today is still very high compared to alternatives in the United States let me give an example. Opt for on emerging market dollar denominated corporate bond. The average yield is about four point 9% to become sick of it this way. It was just under 5% ticket this way they eat junk bond US issued junk bond on an average is paying about 6%. And so what pat says to you is that. Does yield that you get. On a Europe. US chunk on mom and that's in spite of core fundamentals and more political risk. Doesn't make a lot of sent her children and so you know gas watt light US strong bonds the Financial Times advise caution when investing. In this. Potentially overpriced as well so emerging market bonds. Really could be up pretty pricey at this point of those health care murder merger proposals for your value of dimension that you have this kind of the last new story of the week other than my Tesla story which I'm saving for the under the program because I am that is Tony's effort on but there was another health care merger of the proposed it's not been drill. Happened yet. And it actually was made public it was that Teva pharmaceuticals which is a very large is really dictionary work drug manufacturer. They made public the or offer to purchase mighty land. For forty billion dollars to create the biggest generic drug company in the world and by the way if you don't know mile in his. And you know this kind of acquisition is expected to generate economies of scale. And what I mean by that is you need put these two companies together. Well maybe they can close factories and save some manpower and save some expenses they do a lot of the same kind of work they do they do when they have frankly duplicate infrastructure to some degree so. Overall though it's going to be interesting to see if this thing plays out but again good news for the health care sector because. Any time there's merger activity tends to drive up the price of the sector overall. Market will keep that in mind we can back long term care insurance and of course that Tesla story. It's a plan strong financial form this is all Parsons president of planned strong investment management. And you're listening to them plans strong financial forum on WRKO. Costs talk stations. If you like what you hear on our show and what needs to take a look at your investments and retirement plan called my office. EDD 89727526. That's 888972. Plant securities and investment advisory services opportunity for an intra group member to me as I can see Clinton mismanagement and billions of mismanagement grouping to include him in Washington street dimension to. Hi this is Avi Nelson people use different strategies to acquire enough money for retirement. Some try to do it themselves others buy insurance for investment products though sometimes will benefit the seller more than the buyer what makes sense is to hire an advisor with first rate credentials and why do investment management experience. Should have a fiduciary obligation to act in your best interest. And be paid the same amount no matter watcher invested in if these things matter to you. Call Paul Parsons at planned strong investment management to learn more call 888. 9727526. Hiring the right advisor could be your best investment. That's 888972. Plan or vision plan strong dot com. Securities and investment advisory services offered through next financial group and member tumor SIPC plans to investment management is not an affiliate of next financial grouping and is located at 980 Washington street Dedham mass oh. Yeah. You. Yeah. About hey yeah. It's let's start financial forum I'm your host can armory at the introduced to Paul Parsons would make. College president of planned strong investment management and recovering a lot of the news and information. That that you as an investor should really go out and also shows that the difference resource of all his team. Bring to bear when they when they look at your investment portfolio if you like to contact ball to have him take a look at your portfolio. Two free numbers eighty 89727526. ABB 897 to play and of course it's in no obligation free portfolio review the Paul this team and happy to do for you. 8889727526. Or online at plans strong dot com. Right up all you mentioned the beginning of the show when I talked about Hawaii aren't known. I'd like to start tomorrow wide tourist I tell you what it was not color chastised. You leave it mentioned Tesla which we we we like to talk about alliance is that it's a fun subject that's on the car. Otherwise those cults odds are you know Tesla apple Amazon you know they're they're definitely cult stocks sure and part of it is because of the leadership this cult right good point look at each of those three companies you know Tesla with the Ilan mosque and an apple least formally would Steve Jobs and and not. And now you know Amazon which are based social straw very very famous people and you don't Tim Cook at apple now has become much more famous as a result of you know kind of making his own way so they are cult has stocks but anyway Tesla promised you that Tesla was gonna make a big announcement coming up. And the fact that they were getting out of just being surely an automobile manufacturer. And on what they're doing is they're signing up big customers like Wal-Mart and I've kargil. On to become a leader in energy storage in other words a battery storage Paramount provider. And Derek and I'm really try to put in batteries. Four homes and electric utilities group OK okay and you know it makes sense when you think about it because they're gonna do this whole battery factory out and Nevada but. You know Moscow is a Smart guy if there's one in the sky knows how to do it's how might take advantage of free money in other words and a government money which is another way of saying our tax money right OK okay and you know I always chuckle because here's a guy who's worth an awful lot of money into you know people rail against the 1% yet our taxes are going towards our subsidizing what this man has worked hard anyway we were walking down that path. Anyway he figured out to guess what states have all kinds of incentives out there for people to use renewable energy as it relates to electricity. In their homes sold in a California kind of leads the charge there and so. He is in the process of figuring out ways to take advantage of California's self generation incentive program SG IP eight. And you know by the way the 65 million boxes of you know rebates there were actually saying how we get my little piece of that. You know and so ultimately what they're doing is they are a hooking up with. I eased her on you know company like solar city and putting panels on houses and then storing. That electricity in batteries. Or they're actually talking my using batteries we have a big time electric utilities don't. Without going into too much the DH opposite big announcements coming out the next couple weeks right what I did one essay was Tesla is not just a car company. And they are really you know I will say one thing that the differentiator with Kessler. As a as a car company isn't the automobile although they make it very fine automobile market differentiator is the battery technology are and that is the cornerstone that is the engine if you will of their business sure and what they're trying to do is find other applications to both diversify that. Get additional subsidies fork but also it really is differentiator because you know they're planning of companies out there that make fine automobiles when they don't deal with. Battery power ride and and of course she's been you that battery is different from any other you can get electric capsule that much better than anything else that's out there don't interest so you know Kenny I didn't talk about long term care insurance and the reason I did was because you know for the next to the last part of the show today. The reason as we get a lot of people who come into us stick to see zero and they ask us about you know how can I protect. My assets from you know medical care lead Iran and one I'm worried that. It either I or my spouse or both of us are gonna get sick and we're gonna deplete our assets and and unfortunately this also becomes kind of a scare camp at tactic for. People out there that are in the in the quarter record investment business but actually there in the insurance business on and they're trying to sell all different kinds of products and what they do a six and oh wouldn't be terrible left. You know you've worked your whole life and saved a million dollars but then you wanted when nursing home and it took you know is five years later you finally pass on and teach you spent 600000 of your million dollars all your spouse has left live on as 400000 dollars a she's gonna live and and in in poverty because if you are homeless I mean it's like it's god guilt it's it's salacious they're not at all got a good story gray area and so you know one way to address set of courses long term care insurance and and by the way you know of full disclosure on a very rare occasion I will. Sell long term care insurance to somebody who needs it for circumstance but I make it incredibly clear. But the benefits and and that doesn't vote no on benefits are so she would long term care. And the reason this really came up this week was because the list of the ten most expensive states for nursing home care. Was published this week in financial planning magazine. Based on the study done by Genworth Genworth just for those of you that don't know was the calm that DI health insurance the insurance. Company associated subsidiary associate would General Electric and they spun out he became known as Genworth so let me tell you what the average Kostis. On and for some odd states that are certainly within listening distance of a blustery run for a New Hampshire came in at number seven Massachusetts came in at number three Connecticut came in at number two north surprise and this is a ratio one and a okay the average cost per year in Massachusetts as a 140000. Dollars a year from almost 121000 dollars a month. And a long term care event can really and adversely impact client's portfolio through depending on how big the portfolio. From okay. So it's and another big statistics statistically. 70% of today's 65 Urals will need long term care at some point now that may be for very short period of time at the end your life more may be for a very extended period of time rhino and and so. You know again you have to look at the statistic and say well that's fine but you know how many of those are really need care for you know an extended period of time that's probably the better thing to look at. Now there are three choices to pay for long term care expenses you can pay out of pocket or pay as you go thank you don't ensure rate. On a second one is you can rely on Medicaid you can say I have no assets and I'm gonna be you know Medicaid it's gonna pay for Maine or the third one is spewed by insurance okay and now people little or no assets can easily rely on Medicaid break up OPEC. On and the very wealthy can simply pay for care themselves if they need it and think of it this way. Even if it's a 150000. Dollars a year for nursing home. It's not gonna seriously debt up. A person with five million dollars in assets is going right right you know and whether they leave four million dollars or four point four million dollars either their spouse or to their children. It's just knocked enemy that big a deal right so it doesn't impact the wealthy either it's really it's the people in the middle say someone. With 500005. Million dollars is kind of typical profile of a long term care insurance. A buyer know okay. Now not surprisingly. The insurance and legal industries have addressed the fear of you know I'm gonna deplete my assets at fire between half a million and five million dollars on. By a combination of insurance products and legal case okay. Now legal entities include things like trust suit you probably heard on radio shows people talk about all wave got a legal solution and an investment solution. All the legal solution typically has to do with trust both radical bland irrevocable primarily you're rebel Opel in the case of long term care. And then. As it relates to investments frankly a lot of times they're talking about annuities from time and you know also flicked out that you know may not be particularly interesting too many of us okay. So on the legal side what you do is you up put together what's called Medicaid qualified in com only irrevocable trust a mock and repeated I thought oh what it is is. It's a kind of trust. That protects assets from Medicaid and once you've made it through a five year look back window and it's something that we can talk about. On if you wanted to commit talking about this of a less expensive way to protect your successor a few drawbacks. But mold you know there are many more positives to offset the panic considering. Are on the insurance side long term care insurance has been written for many years and it's payout is triggered. When an individual can't perform. Who of the six basic activities of daily living and stuff like eating and evening and dress saying and no being able to move from one shared your bad or are you Aussie essentially demonstrating mobility. Our toil adding of course and then finally any kind of severe cognitive issues right if you just can't. Understand as well and I'm okay. Now how much it cost to insure on the risk depends on each from health. Level of benefits chosen and gender now the sweet spot to purchase long term care insurance is probably in your late fifties. When the price is still more affordable and people are still healthy. Because if you're unhealthy you can't get long term carriage OK except to Tom. It's a just to give you an example a two year policy at 300 dollars a day runs around 2000 dollars a year. For help the mid fifties individuals sorts you know it's not a huge amount of money but it's it's you know it's still there and hang. Now it's really important to shop around for the best price because. Companies offer policies with the various combinations of benefits at different. Prices and this is totally different. From the term life market for example which is really commodity market this point now if you know people are bidding within you very very small increments from a dare that is not the case in the long term care insurance market so I would strongly suggest that. You know you you take a look at that Dmitry shop around at least get several quotes. Another thing is when you buy long term care insurance you have to decide a number of benefits including. What's a maximum monetary benefit you want how long the policy pays out benefits. You know if you want the monetary benefit to be indexed to inflation and a bunch of other stuff so. Without covering too much in this what I wanted to say it was. If long term care insurance is something that you're contemplating if you have between half a million and five million dollars in assets. And you're not sure how you would protect those assets from we can talk to about both the legal side and the insurance side and by the way I'm not an attorney but we will obviously work closely would a state attorneys that do exactly this kind of work and I can walk you through what the pros and cons are each of these. Our circumstances decide what may be the best solution for you so can call us and we'll talk about it Paul soulful numbers. Easy for me and my sister in Mexico and Canada to zero listening dvd lands on Sunnis unflappable when mark you know yeah I talked to have a great time and a widening a low hard so we're doing exactly what has troubled financial poor investments and retirement plan called my office. EDD 89727526. That's 888972. Planes. Securities and investment advisory services opportunity financial group member finger as I think sequestering investment management and filling them essential for thinking is located at any Russian diplomats of the sixth and struck investment management is located at nine media Washington street Dedham mass or to go to six and to be reached at 889727526. Securities and investment advisory services offered through next financial group ranked number fender SIPC plaster investment management has not affiliate in its financial group think. This radio show is for informational purposes only and is not a solicitation recommendation that any particular investor should purchase or sell any particular security information contained herein is obtained from sources believed to be reliable but its accuracy and completeness or not guaranteed neater next financial groupings nor represented of provides talked about.