Jun 12, 2016|
"Smart investing, simplified"
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
I. Romo play and stroller and broadcast studios he would still play in strong financial forum where your host. Jim farmer her family friends and little planned strong investment management. Full portions there's still I'm Bruce Morton investing. Simply fall. And I'm Jen Kerr birdied the anchor desk along with Paul Parsons. And Paul would rather just a great week who feel a lot to talk to a want to cover in this program. Cram a lot into it now lower but we have to start off with at least talking about. The conference that was held this week the future of everything boy it was a success. It was reaction to the client conference on Tuesday and then we get a conference for non clients on Thursday and it it we had incredible show. A lot of people came we got a lot of operate positive comments we comic carts of course to get feedback source feedback from room attendant. And a really interest in conversations with people I think probably one of the biggest misnomer that we dispelled. Throughout the conference. Was that this isn't just about investing. I'm a portion of your portfolio. Say in technology or health care this actually pat you know I think people were very surprised that did that did the deed disruption that is coming. Is going to be so pervasive. To so many sectors and and geographies around the world and within our country that it really touches almost all sectors and just to be an idea that we had one slide that we do for people specifically. That had com which showed which sectors would be impacted just by autonomous driving cars. And when we went through a weird week I've added all up and it edit it that's actually represented 80% of the market capitalization. Of the S&P 500 which is you know as an index of 500 large stocks Nat statesman. What's fascinating about that as you say well autonomous driving cars rolled out a parked car companies will impact software companies. Yeah okay but what else will impact. And and the short answer it'll impact insurance company and it'll impact hospitals. It'll pack municipal bonds old pack and you kind of get on the list ago. Oh my goodness this thing really as far reaching that's just one. Of several world. Com disrupt yours that are coming in their coming quickly I mean don't forget Ilan mosque expects to have an autonomous driving car on the road by 22 point oh OK I mean this is calming. And it's coming soon so. Dallas kind of the point I think a lot of people thought cheese you know maybe I should incorporate if you will disrupt or kind of sleeve a technology sleeve a Biotech types leaf. In my. I investment portfolio and not a kind of have me covered for this concept and the answer is known now not even close rouge who got an you don't think about this weekend. The everybody gets a cool on Amazon a pretty good companies they're pretty forward thinking and ya ya you know the working on autonomous driving cars and and now they're working on artificial intelligence most importantly an hour and also they're very supportive of this move I to get compute power you know quicker quicker quicker cheaper cheaper cheaper. All of which both those factors compute power and artificial intelligence those two factors together really are what's creating the disruption or coming to. You know it's not just that I. I also sent OK I get that you know most fuel cell can I I think I know which companies to invest in or at least some of the companies to invest in to participate Matt. I said OK so. Analysts are what the other side of the coin who you're owns Intel. And you know I looked around the roam and nobody raised their hand and I just like everybody in the Ramones and tells. You may not know that you won't Intel. Intel's one of the largest capitalization. Technology stocks. In the United States. And if you own an S&P 500 index on you won't Intel if you own a technology sector front you won't Intel. If you own a technology fund you opponent in Thailand and software source that the only way that somebody in this from doesn't own Intel is if you only own individual stocks. And and those stocks in the technology representation. Don't include itself doesn't only way you'd and so when I possessed it that way I think people say oh why focus I sit you know what you're doing essentially fighting. A chance to do good that you're doing I mean if you believe that for example another chip company on is making the future chips and Intel. Will struggle and and perhaps fail eventually. To be able to make chips that will be able to compete with that. Well not only do you wanna invest in the chip company that you think is gonna make the successor chips from what you don't wanna be in the company that's losing its value because otherwise. You know essentially one hand does well the other handles poorly and overall you do average a bad news story that. Not only do you invest in mr. Ford's new assembly line but you also avoid the buggy whip company exact you'll avoid you you'll void you know the horse meat company you know because there are part of your horses anymore not nearly to the extent that that courses were used and were you pervasive through society the exact same thing here and again I'm not suggesting that that is the case for Intel right now but what I am saying is that you know there there is another company that is making chips right now there being much used much more so. For the kind of worked or talking about and and Intel's frankly struck point for that they've been struggling even with a mobile chips let alone. I mean what's gonna happen with the next round of chips that are being used for artificial intelligence and the super compute. The poll folks were not able to make this conference markedly do you might you do this again or something like that what we're thinking about his short answer we don't have a good answer yet I'm you know we just finished on this week now. Aren't we it we either we may do a webcast. Or we may host one more. I'm depending on what the demand looks like four and so for the best way for us to get a feel for that if you're listening to show right now and your sank. Man I would show was able to go to wet and we did have a few no shows to that it's signed up its that they could go and we're gonna reach out to them and say. Know what to like a studio. But if you're listening to show right now when your sick yourself. Men I would really like to do it to learn more about this and and I wish I had been able to attend those two net date didn't work for me. On the give our office call and tell us you know which you rather are the webcast would you rather do conference because. Part of what we need to do is figure out do we wanna do one more of these into wanna make it available to people on a limited basis so if you do want to do. Interest in attending a conference the future of everything in the future if you want all to do that again is still free number is eighty 8972. 752680. Dig. 972 plant or in Guam and plans strong dot com and shoot them an email and Paula I got some buy her some good things about that virtual reality. Always that fun. While yes so one of the things we did in the conference as we had a demo of a very root out what I would consider to be rudimentary. Virtual reality and it's the Samsung version which cost all of a hundred dollars and I we along with the Samsung phone and we got terrific feedback about it we have five different experiences loaded on and and each one was maybe a minute or two. And I have to tell you that they are really something else say you start to understand. Why Zuckerberg Mark Zuckerberg from FaceBook who bought ocular switch I kill us as a virtual reality company. For two billion that's with a B two billion dollars a year to go on why he thinks that this is the next platform. And you know if you think about platforms. That the desktop and laptop or really the platform of the ninety's and then mobile has become much more the platform of the two thousands. And Zuckerberg really believes that virtual reality will be the next major platform that that's a pretty grandy stocks are comment statement. You know what I can understand it once you see the demonstration of it. And experience it it really is immersive it really is cool and I have to tie it to a person. And and likes or dislikes riding in a model T I'm and then trying to say I want Porsche with the current armed but just the basic experience. Was our eye opening to so many people and you know like I said we different experiences one was a Jurassic Park experience. Or dinosaur wakes up look odd looks down you comes down looks at you and reaches way up from the sky eats and leaves out of a tree way up high and leaves are falling down and you and he goes back to sleep and another one was. A what's the famous so acrobatic group Cirque so Lange right it was a circus so lay. Demonstration. And you're in the middle of the act our backs I mean you literally in the middle of the acrobats and you look up and down or sideways and and you say oh my god I'm like I'm in the middle of this. And what was cool about that can musk. That gives you perspective of what it might be like eventually. To go to sporting event you know why would you go to was stadium and sit far away we can't see anything. When you could actually literally be in the huddle and we could literally you don't see the ball getting caught in the person's hands and all that you and look around and sort of the people are doing it's I mean. It really is stunning. And and and in a sale can relax nice entertainment Paul but that really doesn't impact much how about this ever her Harvard University yeah you what they're doing across a river or expand. I don't marvel how well yes there are dirt spending big time ball checked us out. You know already there are virtual reality. Universities being sent up. And here's what they're doing ticket you put on your virtual reality headset and you are now in the classroom. And you are in the classroom surrounded by your other classmates com. And you'll have a camera on you and and your actions and they will have worn on them and their actions and you literally will be in a coliseum type. I'm on our sap and the professional beat down on the middle. And EU did it and almost avoids the need for bricks and mortar classroom. You still need to value add from the professor. Clearly that's going to be the value add but do you need all the dorms and classrooms and all that other stuff. They need answers may be not and then it comes down to ball. Who would the other students B. Now of our our student doesn't have to travel to Cambridge Massachusetts to be able to attend harbor and well maybe you can truly get the best and the brightest from around the world including. The poor child from India who can't afford a ticket to go across town lol on an airplane ticket to go to Harvard you know thousands and thousands of miles away. And sell it it really made change I think the face of education and how education's ultimately delivered. And could impact certainly impact also the way we do business meetings. You know when you could have an immersive meeting where you literally are in a conference from the people going over things and and how he charts and graphs in the usual stuff you do want a meeting. But instead of having to get on an airplane until it. On now it's it's all gone by virtual reality and again if that's the case cord to disrupt terse okay I get it some virtual reality people to chipset designer is also the people. But for the disrupt debts well how what the airplane caught short out of the airplane manufacturing topic the airlines insult hotel is cool -- exactly and by the way who pays premium prices for all that and business strategy is right or business people and so while you say wait a minute there's a real incentive you know if business people are paying a lot for that airplane ticket and they're paying a lot for that hotel there's a big incentive for them to figure out do we want forty that virtual reality may give them that. And as a result you have to look at it say. While I should be thinking about in the future which of those sectors may actually get hurt by virtual virtual reality. Ball when we come back we'll talk about some of the business in news stories investors should know about this reminder our listeners if you're interested in this subject do you think you'd like to attend another. Conference like this one just call Paul's office to a 38889727526. It's a classroom financial for this just. All Parsons president of planned strong investment management. And you're listening to them planned strong financial forum on WRKO. Boston's talk station. If you like what you hear on our show and what immediate take a look at your investments and retirement plan called my office it. 808897275260. That's 888972. Plan. Securities and investment advisory services opportunity for me to prevent member finger SIPC classroom investment management is an affiliate of mismanagement grouping concluded that any Russian diplomats who threw six. Hi this is Bobby 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 in member former SIPC plans to investment management is not an affiliate of next mentioned grouping and is located at 980 Washington street Dedham and I'm okay. Okay. They. Crumbled on strong broadcast studios of the epicenter of definitions. This is the plan's strong on national forum where all portions president of planned stronger investment management. And I'm concurrent review at the desk along with Paul and Paula. I know a lot of stuff going on this week you know it's it's kind of summertime but there's still a lot of very important news assembly for investors are you shortsighted I'm not quite as well as I said China's summer aren't aren't quite summer. But you know it's where we're getting their regional final. You know I ride my bike every night ran and by the way you know you Howie Carr guys out there who hate bicycles on the road I am one of those people say is way over the right I never ride you know double you know tool grass right around and apples and you don't you don't take go we're doing a little delay I'll I and then get mad when I try to pass through you're not that guy how I try to be incredibly conscientious about Mike you know MySpace and how much space and taking aren't getting out of the way and all that but anyway the point of this is. I was riding my bike this week and more than a couple nights is we kind of were a long sleeved shirt now I consider myself. A look at my watch thinking it's June and don't assume that what warm weather I can't I mean what actually Wear short sleeve shirt while I'm writing my book had a couple of those days but only couple that and I shouldn't complain because I mean it really is very pleasant ride like it was in the sixties by the sixties in June and they're not so anyway I I do hope that summer's coming events because it is my favorite time but it. And probably is my favorite times it lasts all of you know three days and we don't get much 30 my goodness if you do everything he's links and or how little bit a little a little better and looking for to play a little bit more now that we've gotten through a lot of our busy season right now but isn't that there was saying there's still is some news all that ancestors as it you have to pay attention to a lot of stuff going on well and an. And it's funny because and again I don't wanna talk too much more about that the conference other than to say. One of the stories I tell the beginning of this why now why are we doing this conference now on the future of everything and one of the reasons is because. When you take into account what's happening with compute power and artificial intelligence. And you combine that with the news stories that we're seeing every day in the news all sudden new stories that we're seeing every day. Start to make cents and as to why companies are doing what they're doing and actually give a sample in the presentation. Of a week's worth of topics but to most people's eyes and untrained guy. Might say I don't Janet you know why is apple getting and automobiles. Why is Google worried about artificial intelligence are there a search engine. You know and so forth and then when you start to arm understand what's happening with technology and healthcare. All of a sudden it all makes sense and so part of what I'm gonna do when I talk about some of these stories today is also to talk about why they make sense in the in the context of this. Where the future schooling because it does make cents each start to really see it can and let's start off with the with the markets are doing big picture that didn't do much says when I was up it was I'm a note that typical I sound like I you know somebody who doesn't follow the markets a lot. To me in the end. I look at the beginning and the end of the week OK and frankly didn't do much that certainly there was you know some up days and some down days but open net it was essentially flat. We're still by the way within one or 2% of the all time highs. Odd that were reached last day OK so were were still very very close to a very high valuation for the major stock indices in the United States. And there opt in 02 to 3% year to date excluding dividends mom's cell would dividends of say 2% that means total return year to date. Caught halfway through the year. You know 45%. That's not bad for half a year of work right right now so overall I think still pretty good returns for this year and we're about bonds now this is the big story this week the huge story this week was yields on. A government bonds and by far the biggest story was German bonds knocked an American investors might say why don't like her by German bonds you know why you care. Because Germans if they don't get a very good deal on a German bond because they're not they're getting in the prices are so high the yields are so low in what they buy. It by American behind extra and so they compete with us to buy our bonds and you know what that does it speeds up the price of our bonds wins bids down the old Lamar bonds. And so look look at the tenure US treasury it's around one point 6%. That at one point 6% for the next ten years from now mind you our target for inflation that the Fed is targeting is 2%. Okay. So you're essentially saying I am willing to take a return a negative for turn negative real return. 52% inflation and I'm willing to accept a one point 6%. Return on my money yeah okay that's Richard saying rust that's how low the yields are these days on government bonds. And the questions why did you response to announce a low as the German bonds and the German ten year bond dropped almost easier. Okay just amazing it was we'd get in a within a hair's breath that you're on and by the way an all time low and the ten year Japanese treasury below point one negative point 1%. OK so these are historically low rates. Why well one of the biggest reasons is because concern about the pre tax bowed to British exit from the euros. And again I believe still that the probability is not terrifically high. That Britain will leave the Euro zone but the uncertainty associated with a is creating this concern. That on debt that there will be continued problems and as a result. A lot of money's going to German bonds which are considered kind of the ultimate safe haven in Europe. As opposed to you know other. Investments simply because if Britain does I'll leave the Euro zone it could have a negative impact certainly on stocks turn network about the dollar. The dollar weakened. Against closely both the Euro and the yen or euros now around a dollar twelve dollars thirteen. And the yen about a 106 yen per US and and of course. Oil which is always very important yet actually increased again this week. On it remember last week was hovering right around fifty dollars oh well at this week it it's in the kind of a 51 to fifty to arrange for west Texas and brat. On and the reason it jumped up a little bit more than a couple reasons but supply disruptions in Nigeria. Was probably the biggest one. And we've talked about Nigeria before but they continued to have problems renegade groups they are and they're really trying to disrupt the output of Nigeria's oil. And and frankly they're having some success where it. So if they disrupt that output that means there's less soil which means the price goes up and in addition the energy information agency of the United States also reported that US crude production fell another 250000. Barrels per day in May that is the largest one month decline in years. I just to put perspective you know we produce about nine million barrels a day okay. And so 250000. On nine million you know that's that's a big number and that was one month's worth the decline. That also look and says cheese were gonna produce less which means less appliance out there there's less supply drives the price. They'll all we've been paying attention to what the Fed is saying and what they may do who regards to a rate increase. What's new what's happening that. Well this week it became clearer and clearer because of the Fed Chairman I Janet Yellen came out. I and talks more about the likelihood of a fed rate increase and essentially what she said was she is really concerned. About what's happening in the job market in a last Friday's job reports terror right it was Tara I mean there's nowhere have we added 30000 jobs something. And they downgraded. Were they revised the estimates down. Of the prior two months by another fifty or 60000 jobs that was a terrible jobs report. And even the labor participation rate went up went down again not a good thing. All all said she looked at that said you know what I know that we really would like to raise a short term rates. On but I have to tell you are concerned about the labor market is such that we may not raise them as Marines we would have liked to. What that means is there's now a 4% likelihood essentially no chickens right of off of a rate increase in June and there's only about one quarter chance. Offer are a Reeves in the July meeting my okay and all of this is based on. Futures Fed Funds futures which are literally this isn't you know let's let's do poll and ask how many people think they're gonna raise rates are not sure this is actually people buying futures contracts. To Derek their voting with your money in their bedding with their money that this is what's gonna happen so I think again and it's it looks like it's pretty unlikely that you'll see a fed rate increase in either June or July again unless we get better label reports. Well you're giving percentages and probabilities Bloomberg is tracking the brick sit and what they think the probability is what seven. Yes so this is important because this is coming up that but there's actually a referendum on June 23. Probably good idea to keep that speed in mind. You're June 23 could be a big time because if Britain votes to exit the European Union. A that could be problematic and two to even to the extent that I know some managers are talking about protecting their portfolios to some degree. From the possibility if you will this happening having said that Bloomberg has a thing called their Brack sit track or how which is a combination of variables that feed into a probability that they say is the likelihood of Britain leaving the European zone. And right now it's about a 24%. Chance of the British voting to leave the EU in the upcoming referendum. Now the probability is based on holes which is probably the least scientific aspect to it but also the value of the British pounds vs other major currencies because again the British pound would get weaker now on if people thought oh they're gonna leave. And most importantly the corporate bond spread which is now nice and low what's a corporate bond spread. It's the difference between the rate that a big successful. High quality British companies. Have to pay on their debt off to book let people lend them money. Verses a government bond of audit of from the bank of England and the difference between the two is actually quite lower now it's only at say 11 and a half percent for ten year and that's in line. Where if our traditional. On stood stable tight times in other words they don't anticipate a change and they don't anticipate Britain leaving so to me probably the two most important parts of this. Art the polls it's the value of the British pound and the corporate bond spread and both of those are pointing in the right direction which is why. At least according to Bloomberg there's only about a one in four chance to Britain only the year. You can read June 23 date and I think all we come back. And he got a story about Brazil you are dart about and George Soros back in the Snooki is so darn well that when we return to supply a 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. Boston's talk station. If you like what you hear on our show and what need to take a look at your investments and retirement plan called my office of 808897275260. That's 888972. Plan. Securities and investment advisory services offered through metro metro group member to go as IPC clincher investment management is an affiliate business financial group Lincoln is located in Washington street domestically and six. Hi this is on he Nelson if you're fifty or older here's a suggestion. Commit 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. Who 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 plan 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 Dedham mass. Finally your really your show is not trying to show you insurance for a new business. This is the plan's strong partnership for a quick poll portions. President Roh plans strong investment. And champ car buried at the anchor desk along with Paul let me just remind your Paul's toll free number we we government talking ball. Because aren't are you so much about. You conferencing users had the we have wooden reminding folks that this is a good time to get to go in and meet with you noticed I refer no obligation portfolio review. The toll free number eight BB 9727526. Cents ADB 972 plan. The only alternate big days people would say you know sell men go away but boy is not doing the. Past may view you one missed out on quite an opportunity. And and by the way I should also say war. We were on light for those of you that don't are almost the show frequently and we aren't like a lot of the other radio show this week. We are a fee based investment manager in other words we charge percent of assets to manage money and we don't sell annuities are okay and if you listen to it. Almost any other radio show. Part of what they're gonna do part or all of what they're gonna do is try to sell you annuities with nice big fat commissions we don't do any of that just so you know. And because you're you're you are fee based in your fiduciary responsibility to our climb his Carville interest comes first not our not our financial interest or anything that's an important difference out an important are you once again postal free number eighty 8972. 7526. ADB 972 plant hey can I ask you want caution delegate I like your last may question I officials just for parents can get just okay. Sol are you okay emails today usually include drone information. Usually I'm going to say no now say most of the time yoga emails will not include drone information about in Middle East drone yes Joan did I'm gonna say probably not yelled yeah now unless it's some sort of in there somewhere is is there is some sort of a chance that you use all of you know one or maybe that's you know what OK I'm a premium audio video and. By the way I'll take a shot and anybody including Republicans or Democrats anybody is listen to show for awhile you know that's the case that equal opportunity shot takes our guests. And I'll tie it at the latest is just a hollow one half and watch these politicians and and you know I love the holier than now approach of thank god we're here. And then there are sturdier than anybody that they don't criticize is just unbelievable sight anyway. I do think that no matter what happens in this election cycle the media wins a because it's going to be a three rings are it's so true they're really a stroke by. Anyway so back to business and stuff that we actually Kara rightists opposed to our entertained by writing I have and that really you before we started we started talk a little about what's going on Brazil you are right and speaking of graft and corruption Greg Norton how badly busier Brazil I'm not sure I'm not sure OK I think it's it's gonna be a horse for aren't other NATO and just for those of you who have not been paying attention to Purcell lately. Their current president is in the process of being impeached she's been removed from office she still living in the palace but she's not running the country right now. And I think they have it was a three year six months it is to prosecute or the senate has that amount of time to prosecute Jeanne Russa whose that president of of Purcell and armed and and then either she is removed from office permanently or she's reinstated back and office. But some interesting things happen this week first of all from a news perspective I don't know if you saw the scanned but while she's if you will in time high hopes. They have an interim president there will be in dorm president who has always kind of said hey. On the anti corruption guy armed armed clean as a whistle on all the other. The attorney general his attorney general came to him and said that he wanted to arrest. Four of the end date in a warm president's staff senior advisors for graft and corruption and I saw a dozen or go to I don't know where you go this one but why is also important because in the middle of all lists Brazil's recession continues to drag on just not unsurprisingly right I mean listen if your political. Our leaders are mired in controversy there or not. Really doing much to support the country are in Iraq and the timing is incredibly unfortunate given what's going on with the cica for virus as well as you know the 2016 Olympics are coming to one and two months straight eight aug straight this should be a huge time for Brazil and they are really strong today it's almost the perfect storm of bad things happening there and again if you save yourself what. Why Dwight cures an investor because after all this is an investment show that takes political shots I'm. That the short answer is because Brazil is one of the it is it's a huge economy with 300 outlets are 230. Million people in the country it's a big. Country without a populous country with real industry and real improvement had been going on for the last decade or so. Until more recently when the commodity crisis occurred and how they were paying for all their bills was through you know expensive oil they were selling oil in cold that they were selling around the world. And you know they lost their short when it came to that and at the same time they put in these expensive social programs. The running huge deficits as a result inflation's out of control and the story that was out this past week was that Q1 GDP shrunk again. After even bigger declines in the prior fourth quarter seat at five quarters. Of success or a successive. Com declines in the size of their economy that is not good news and compared with a year ago the economy has shrunk more than 5%. And why is this important if you own. On emerging market investment emerging markets fund to re Tia and if you own a brick a PR rice seed Brazil Russia India China type fund. On anything like that will have Brazil and if their economy shrunk by 5% I got some new story that's not good news on their center fund no it's not at all and so and more importantly as you look forward is that someplace that you may want to consider. I would say the jury still out they continue to contract. And it's something as an investor that you should recognize how incredibly speculative that is at this point given the political uncertainty in the country. All right so when you say political uncertainty the name George Soros comes tomorrow for some reason he is back in the markets and you believe that long term asset base in 2007. And it was the last time he really made a big debt in the markets. On and now what he's doing he's reentering the markets. By the way he's got thirty billion. Dollar family fun this manager that's that's a lot of guys to get those of you have struggled number of the accident at number one. So he's got thirty billion dollars of investments. And what he's doing now is he's shorting. Certain areas and specifically he's skeptical. Of the Chinese economy ability to land softly. And so obviously she's not feeling real good about China and the corollary is he's been buying gold and gold miners mom and because he thinks. That om det China's landing will be something other than soft and as a result. On the worldwide growth will not be his greatest thought and he thinks that he's going to safety and that's what he's going to golden gold miners. Always interesting to see what these if you will famous investors who at least in the past me at least one right call on an and he did make at least one right call in the past he's also made some wrong calls. But always fun to watch what they're doing and their rationale associated. Now some news in Britain as well in the bond markets in general explain this front well we talked about abraxis right out and that the probability that Britain would leave the European Union. And obviously there's risk with that. But check this out at the exact same time Britain. Had the government has issued fifteen year old bonds that yield less than 2% a year for fifteen year 50s550. Okay. So that's an at an astoundingly. Low heeled and that's lower again and the Bank of England's inflation target so what you're essentially saying is I'm gonna lock in a return a negative real return for the next fifty years. Yeah what's up with that that is strange so who is investing in those what why would somebody by the while I like you know if you're Japanese investor. And you're in negative. Interest rate plan to know well 2% still sounds better than zero or negative percent brighter enough friends so the short answer is a arm you know our other countries with either even lower interest rates. Van England and the bank of England and by the way on a similar note. The European Central Bank drove down corporate bond yields this past week or 2 on increased Central Bank purchases that they did on the European bonds. And checked us out. High quality tenure corporates. In Europe are now yielding. Between one point one and one point 4%. Per year for the next ten years is that stunning new memoir that is that is stunning and some some other news around the world community Japan and now. So in Japan actually bad news good news the news was bad enough about their economic growth. Armed that. VPro are duck prime minister the air on day and has decided to recommend postponing. The sales tax increase they have a national sales tax or the they've been increasing over the last several years. The first time they did it was a year ago and it and it hurt them hurt their economy bad and it they were in the process of covering. Arm and starting to grow again they put in a national sales tack that what I believe it was from 5% up to 8%. And it just. Can hold the economic expansion. That next step was supposed to be going from 8% I think up to 10% and I was supposed to happen next summer or next us spring. They've decided to postpone that for now for at least a year the reason they're doing that by the way first the most economy's not strong enough to be able to handle but secondly much civil why would they raise a national sales tax because if so much debt already that they have to get rid of this and they are struggling mightily to figure out a formula. To try to. Our first create expansionary economy and the second time reduce their debt because their demo it's just too high. Well we often cover news in Biotech and usually eat. It's good news some not so good news on one loom larger Biotech company as well yeah you know it's. Biotech has had an incredible run the last few years and the reason is because of DNA sequence sang. And some other odd technological. Gains that they've made advances and they've made that really is allowed them to isolate and and target. Com certain diseases and therapies that have been more and more effective for Paris right. Biogen reported but one of its experimental arm multiple sclerosis drugs MS which is one of the big hitters aren't. It failed to improve their hall of recipients in mid stage study OK so you know you bet on these if you got an individual companies frankly may often. You're betting on depending on the company either one or several therapies that they're trying. One of the big ones at Biogen was trying for an amassed. I didn't didn't work out and had the same results as the placebo. And as a result shares of Biogen fell 13%. On the news and not only impact Biogen. But it added a little negative flavor to bio techs overall and bio techs were down overall on the week as well because of business. All we come back some news out of Bloomberg and alphabet that's when we return it's the plan's strong financial four. This is tall Parsons president of planned strong investment management. And you're listening to them plans strong financial forum on WRKO. Boston's talk station. If you like what you hear on our show and what media take a look at your investments and retirement plan called my office. 80889727526. That's 888972. Plant. Securities and investment advisory services offered through metro metro group member to me as I can see classroom investment management and filling in this country grouping is located in Washington street domestically and six. Hi this is loving Nelson. People use different strategies to acquire enough money for retirement some try to do it themselves. Others buy insurance or 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 the matter watcher invested in if these things matter to you. Call Paul Parsons at plan 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 fender SIPC plans to investment management is not an affiliate of residential group think tennis will get you and I need to Washington street Dedham mass. Ground zero for your financial news and economic commentary. This is the plan's strong financial forum when Paul Parsons President Obama plans stronger investment management business. Okay. And I'm getting Carter at the anchor desk along with the ball in Woburn covering some of the new. News stories that investors really should know about and you know we. The beginning of the program we're talking about your conference a few short everything in some of the companies that came up on shore works all the ones we have been talking about now ordered B. Biogen which we just talked about or over which we're going to talk about. And it's definitely itself that people are talking about in this is what's happening for investors so what should investors be paying attention to over now Paula. Well as you said there are couple stories which I'll get to one a minute but you know what a lot of people don't get about autonomous driving cars and it's not just this whiz bang idea that you don't need a driver for cars anymore right that. That you don't need taxi drivers limousine drivers are kind of think it's and and by the way 944. X percent of all accidents are human cost. Human error you are okay so that's a nice by product of removing humans from the equation driving but it's so much more than the big thing is it's a combination. Of but Thomas driving cars and the same time. Ride sharing and if you and we talked about this past programs. Think of it this way Europe Karr sits idle about in between ninety and 95% of the time it's a very big asset to only use 5% of the time if somebody said do you hate can. You know you do what your your biggest asset outside of your investment portfolio. What is at my house is exactly what percent of the time we think he's your house a lot how to play him like what 40% of your time or safety of our aspiration 67 -- right gets a big party your time pressure work but the rest the time your home or or around the hole all week ends and a figure that right so you use that a lot that's a big asset would you use a lot price. OK I think that your car that's one of your. Also another major assets or straight it's it's a five digit. And some cases six digit asset for my case and its leaders trying to look to get the helps I went anyway it's so it's a it's still an expense absolutely I venture let you know. And you say to yourself I'll kill I hope I use it a lot at least if I have that asset write how much of the time used or assets are you re very very little five to 10% of the time you're absolutely right and the rest of time what's a don't it's sitting in my garage land -- my garages are planned it right yes it's sitting there doing nothing he's gathering dust off bright and gathering pollen this town and had my goodness is actually but when you think about it can. If you can share. Automobiles. Then what you do is you reduce congestion dramatically how far fewer cars on the road had the same time. And what it means though is that if there are more efficient when your use of cars. Then the other thing happens you don't need to produce nearly as many cars and and so that's actually if you think about things you wanna be encouraged to go into my maybe the software people make autonomous driving cars. But on the other hand you wanna be a major automobile manufacturer. When you when you think about the fact and indeed fewer cars in the future mirnyi today the answer some knowledge that's why bill Ford Ford Motor Co. said that Ford needs to look into alternative lines of business and recognizing. That this combination of autonomous driving cars and car sharing this clearly where we're going in the future at least in urban areas and by the way almost half of the population of the world will live in urban areas within the next twenty yours okay. That's how much. Of all of the population overall will frankly certainly have an ability to use car sharing type services with a autonomous driving car smaller it. Rumors already of course ahead of the ride sharing curve right so what are we hear from this week while checking out Wilbur announced this week but riders are now going to be able to schedule a rock and anywhere between thirty minutes and thirty days in the future this is something that frankly they have. Really resist it why because the entire premise of who worked is that it's it's a ride on demand and that you don't have to wait you just. Call are you call them children literally you go on your lap you push broom and select them exactly go on your mobile device and some on Iraq I know right electronically up. How would dare act and and nation you know they tell you how quickly you're gonna be there aren't everything else right. Well by scheduling. Things now what they're really doing is they're adding a second level of security if you will to say a business travel. You know and can think if you can if you we're gonna go on vacation. And you know you spent many thousands of dollars to go right in elks it to your present that true. And you have a car coming your house 'cause you're gonna be away for weaker tombs and and so you decide you want over it but you know why. You know if you miss that flight of Yahoo! over can't get there in time that's not a good thing right. And it's a good point my son and we've discussed how old generation release some of these two decisions are made differently my son before his honeymoon. He over to the airport. And I was nervous for him yes yes and maybe Bibi should book a regular car and advance our our call camp because what if the time you needed you can't get the uber and it is later whatever. But he just another little beard and it was to her but you're right I would want to that especially for reassure our yeah I want a book I know the car will be. So isn't the same as Almon the city and have to wait an extra ten minutes that you know credit to get from eight AB because there at its peak time or something there it's you know there's a significant financial consideration. Or business consideration. If you do your unable to do so mover. After having you know avoided this for quite some time said now look to what at its interest in with the solution as you know what the solution really is the best. All they're doing is thirty minutes before you need deride their pre scheduling home care and so they're rescheduling that sort of make for that whoever gets assigned pick you up. I'm knows about about thirty minutes and it even though it could be thirty days out for okay so they're not literally scheduling driver aid to go to your home thirty days from now they are scheduling at about thirty minutes before that person needs to go to get to your house I'm okay and actually stunning but it tells you how good their services. But at the same time it you know frankly what they're doing is they're making sure that they keep the business traveler happy and and the person with you know exceptional on money on the line it's critical that there's a riot gear early or on time and by the way this is just yet another nail in the coffin for traditional. Limousine services and taxis and so forth. Right at -- another story got to move thorough and having to do with with Fiat Chrysler Yasser car sharing and I you know we talked about doubt and and obviously movers great at that but a car sharing combined. With autonomous driving cars and gas swat. -- was looking for her a car companies team up with and it looks like Aaron talks with Fiat Chrysler. In a car slash tacked partnership involving self driving car smell and you know it all makes sense I promised you this at the beginning of the show. All of these stories makes sense when you think about where were going and that's why they're at the conference the future of everything was so important to me because it's not just all we're gonna self driving cars it's self driving cars and car sharing. Both of those are incredibly important and and dot sim by got back. Because they will change the way that we travel and and the way we ask for car and frankly it's gonna change our car ownership model as well insurance and therein lies the disruption I eat it suits both of those things and that's why it's so important over has said that they plan to incorporate self driving cars into their fleet of auto sharing cars. In who kept us in four years by 20/20 kind of they're going to be some self driving Coopers out there is not under it's coming period if anybody says all this is futuristic I get noticed and it's not that futuristic. Now here's something that I really love it alphabet talking about Wi-Fi yeah beaming Wi-Fi explain this may fall this sounds this is fascinating. OK so you know again in the spirit of disrupt yours you might look at why fight today and say. And and you know cell towers and all that say OK you know there's rocket and and you know think about five outs and some of these others at the late miles and miles of cable. Top forty's the Internet service provider bright well. Alphabet which is Google's parent for those of you that still struggle with the pain right through Tom alphabet wants them beam. High speed Internet. Wirelessly. To home school who are using technology. That's cheaper than laying cables and and I also love this idea I was one of the regional. Subscribers. To satellite Internet. I but wire week at you why are we laying cables America are we not passed that at some point to early. You know like didn't guy no more you know originally. Would Morse code everything else was originally cables but eventually went wire and I thought this is a shoot stepped cameras to go back to cable or by Tom grew up. Apparently ghoul an alphabet. A share my concern share their bridal we share each other's concern about. Are you going with a wireless rather than wired and as a result they have couple they are working very hard in this new technology will beam. In high speed Internet wirelessly to homes and check it out. First of all improvements in computer chips. And more accurate targeting of wireless signals have made this it's called point to point wireless interconnect. Opt more possible. And check this out chairman Eric Schmidt. Said Google thinks attack. Can deliver interconnect Internet connections at one gigabyte per second acquittal letter to Google five. Or date what do you think are now what does that incredible now. Think about this for disrupt Ers if you're disrupt or like Google and alphabet. That's good tips now -- the ones that could get hurt by this couple are always people to put down all us incredibly expensive K you sure you know think of the major providers. AT&T Verizon so Mort is this good news Steele and on final word and not some light the stove because otherwise you could get disrupted and a company that appears to be incredibly conservative from actually. Made beast so conservative that it's not business longer term it just depends. Does this technology takeoff. Does it scale are their problems with that and so forth this is why it's so important to understand. Where technology is going in the future and by the way. All of this is possible as I said earlier because of a couple things in this particular case its because of again. The more slaw and the computer chip. The increase computer power and so forth it's all coming changes are coming. If you like to give Paul a call to schedule a no obligation portfolio review you can do that here's a toll free number eighty 89727526. That's eighty Dade 972 planned and if you happen to miss this conference a future of everything and you would like to attend one in the future. Let Paul know they're they're measuring the response right now endeavor with enough response to a hold another conference in the near future. The future of everything and was well attended and or was it out people learned a lot. Once again eighty Dade 9727526. That's ADB 972 plan or go online to play a strong dot com. Paul thanks again for all this information. Have a great weekend and you Tokai and we'll see you next week it's a plus strong financial form. This is tall Parsons president of planned strong investment management. And you're listening to them planned strong financial forum on WRKO. Boston's talk station. If you like what you hear on our show and what media take a look at your investments and retirement plan called my office of 808897275260. That's 888972. Plan. Securities and investment advisory services offered through an extra to prevent members and as I can see classroom investment management and filling them a special briefing this look at this any Russian diplomats of the six -- 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 -- SIPC classroom investment management has not affiliate of net financial grouping. 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 meter next financial groupings nor represented of provides talked about.