Dec 14, 2015|
Full Show 12-14-15 by The Financial Exchange
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
The I. This is the financial exchange we've Barry Armstrong. Screens to Murray street stayed on top of breaking business news and learn how to manage your money to help you towards a more secure future and now broadcasting live from the insurer mentioned John John studios it's the financial exchange with your host. Barry Armstrong. I've made an executive decision we're now gonna call it merger Monday because. Heck every Monday we coming in there's an announcement made of the major merger and acquisition. Today is no different of course you just have to expect that you know the in the old days used to get a whiff of these on Sunday night. But I guess nobody could compete with that patriots game last night instead we had to wait till today. Chuck is not a Newell Rubbermaid buying jarred. Yet said the deal that is going to resulting Jarden being bought four but thirteen billion dollars when it's all said and done here. Not really a substantial premium over where the shares had traded previously stock when it closed on Friday was in the low fifties around fifty to seventy. Bumping up into the high fifty fours now suits about a 5% premium over the previous close. It really suggests and then you'll go down. Knew all went down typically you do see those acquiring companies. Have a little bit harder road in the short term just because they're all been. Buying a company added elevated price and you look at Jarden in particular it's still being ball with a PE of near fifty. At this point you know. The only Yankee candle member Yankee candle from when your in school do I know Yankee candle from when I was at school my girlfriend keeps them in business single handedly I think are great company. They're great company you know. And it women love but anyway so that's the big M and a deal and the deja. And who Keegan of the you can still see some more and I think the record setting year witnesses 2015 will go down in the books. As a record setting year unlike anything we've seen since when he was six I hope it's we don't the scene after effect. No you you hope that you don't see something similar and and to be honest even though there are issues in both the US and global economy at this point. There's nothing that suggest that you have anything along the lines of the housing crisis in scale and scope and there's definitely a novel Q and you heard about it look there's definitely bubbles you have to be worried about. But the question is are they that be and you look at the size of things we talked about energy and how you're gonna see a wave of defaults there and we talked about some of the things that are going on internationally and places like China markets are scooped up there near down 3% last week. The look there's and as I said there are causes for concern but you look at the size of the housing market prepared to the size of say the high yield debt market for energy. It's it's not comparable in terms of the size weight when you look at the amounts of debt that are out there. And go to go back to the new rule deal they're buying the symbol for Newell Rubbermaid is NWL a symbol for Jarden is. And here's a nasty word that I heard this morning as a relates to this deal. That nasty word chuck is synergy. You know they're looking at its energies on the steal their bidding 500 million dollars a lot of bodies. Set synergies is pretty much a nice way of saying job cuts and usually those job cuts happening in places like eight HR Merry Christmas you're fired its you know. That's how you end up making money off these deals you have to cut out those duplicate groups and unfortunately. It's it's we see it time and time again we've seen in just about every single merger that happens. You don't often see companies that are able to operate independently because they want to take on some debt due to deal clean things up and move on that's that's how can the working mostly. Well the and that's the downside. To synergies and they a lot of these deals are being done because of the low interest rate environment I know we're going to be joined later. We we will be joined by Carl record Donna. From Bloomberg he's the chief economist at Bloomberg not just any economist chief economist over there. In order to talk about interest rates it's a foregone conclusion that interest rates are going up on Wednesday. I think they're gonna have some explaining to do I mean inflation over the last year's less than 1% even if you count inflation the way they liked counted at one point 3%. I I I I've read so much material on this rate hike over the weekend. I know they have to go I know they're going to go but. It's very difficult for me to forecast that there's going to be any rate hikes beyond the one we're gonna get this month. Known and I've said that the most likely path forward. Is you have this rate hike here. And maybe wandered to the next you know I can see Goldman Sachs has come out with their five next year and saying that they Indy for the air for an order by the way you know what and we'll save that because that Karl will be of the weigh in on that but. Here's a stat that's not very pleasant. Factory activity is the lowest that it's been since the Great Recession of 2009. And you've got oil prices now there are over 35 dollar right now but they are under 35 dollars so you've got two sectors of our economy chuck. That are just. In turmoil right now factories. And minding minding NIC mining up talking about the energy sector and knows those are two big employers. A lot of our growth over the last ten years has come from the energy sector and that sector is on the verge any major correction. Yeah you look at a lot of the economic activity that really was generated. From 2006 up through two point fourteen gal and a lot of it was because you had these fracking companies he's horizontal drillers coming out. And they were taking out a significant amount of debt to go and drill wells thinking that oil is gonna be at a hundred dollars a barrel forever. What happened. Price fell they're producing it at sixty and all of a sudden you're seeing this wave of defaults that's it's not quite cascading over yet. But it probably about six months away from a lot of these leopard companies. All these crackers are in. In really deep trouble when you look at the ones that have a lever up for this exploration and production here now. Made major issues that you're seeing and the problem is those jobs you look at the places that had been you know really growing quickly North Dakota parts of Texas in the Permian Basin. You go down to lie to the appalachians where you get the shale deposits there. All those areas now he's trying to suffering from job losses you go even a candidate talk about the oil sands and gone in there. It on top job on. The jobs are gone. In 0603 asking the question if oil is trading at 34 dollars a barrel how much does it cost the saudis to get it out and that's the problem. Varian lies the entire equation. In the entire problem saudis can get out of the ground I'm here in 310 bucks a gallon and you're ten bucks a barrel the most your. You're in single digits you're in single digits there so I you know I have I have serious concerns about you know anyone who says energy gonna bounce back tomorrow. It's that the whereabouts of acts of OPEC comes out and says OK now or cutting production again why are they gonna do that this. We've got Jackie. CNBC she's in the way in. With her analysis as to energy that natural gas prices plummeting as well so there's just a tremendous amount of volatility in the energy sector right now. Creating the right insurance plan can provide as much peace of mind for you and your family as a sound investment strategy. You need to make sure that you're getting real value and coverage for the dollars your spending on insurance. And that's why you should call insure a match and 877. 3245024. The Massachusetts division of insurance says that four of the State's top ten. Property insurance providers have asked for price increases so before you renew your current policy. Give insurer match a call and let one of their trained experts review your situation it help you understand if there is in fact a better package out there for you. Last winter was a killer and depending on which expert you listen to this winter might be just as bad. Calling sure match today. At 87732450. To four to make sure that you are prepared for the long winter ahead that number again is 877. 3245024. Or visit them online and insure a match dot com. Chuck and ask you very. Blunt question toga Marissa Mayer. Field on booty at any nine over the weekend. The the big hedge fund investors seemed to be looked into. You know two or out of office it's it's getting the CEO of Yahoo! if you forgot it is it's getting to that point and I don't think it's necessarily entirely fair because I think that Yahoo! was dead stick when she walked in to that company. And I certainly don't listen she brought in it who when she wanted to tell you my recollection. Of her being recruited to Yahoo!. She's coming out of Google she was an innovator Hughes a bright young mind and good communicators. I can't think of one thing she has done Yahoo! that struck me I mean she hired Katie cork who cares. She just hired some big news director from Huffington Post fabulous. Who cares I mean and the money he's doled out and he she's made. In my estimation and I am this is it I'm not a tech guy I'm an outsider right. But and I don't own shares in the stocks I don't really have a vote but I have not been impressed by her her her governance over at that company. I look at that from the perspective of should try to bunch of different things and look none of them have worked I'll be the first to admit that but this is a company that was dead in the water. And the only reason that they had value to begin with was becoming a colleague Bob. And trying to turn around a dead Internet company is not really a proposition that most people win it's generally once you get to a certain point. You lose out on some of the top talent that doesn't wanna go there she brought over a lot of talent from Google's she brought it is too much you brought over some but the problem is. From oh look look at the perspective of when she took over Yahoo!. What properties today on the had any value little. While it hears that my what I thought they could've you know maybe improve their search engine. Maybe improve their advertising platform may be in need further improvements to Yahoo! finance or Yahoo! Sports I mean I I still use it. But it they're not gaining share we'll hear it let's let's go through a couple those things to talk to me about improving search what would make search better for you what would make you switch to using Yahoo! Search if he had left. Promoted items on EE the thing I dislike about Google news. You have to go down five or six to really find that's not true you have that one top box and that's it everything else on promoted on Google. You'll once top boxes three across looks up at the top everything else on promoted. Now I use Google I use Google but it seems the be reports I've read about Google's ad a lot of it is EU it's pay to play. No you're you're top three. And it's been is it the Abbot is at the algorithms fixed. No they're not we'll be here if I heard I had my understanding was that Google's algorithms. Favored their sponsors meaning that you don't indeed number five if he didn't spend as much money is no no fix it's not true though it's not in any way true well that's like Google AdWords I think mr. Clinton but it was yeah pay which is that top box right ankle or the side box on the right said he talked about some of the other things you mentioned. Yahoo! finance finance is not in a drive multibillion dollar program so there's. I look at the properties they own they had nothing of value and you can certainly say she didn't contribute any value. But that company was dead in the water and book she hasn't done anything to help it. I certainly wouldn't say I wouldn't be vouching forcing OSHA should definitely keep her job but. I don't think anyone could have done a better job there. And that anyone put that aren't coming up we've got trivia and we've got an update on drafting rolled in a report in on how we did this weekend. That's next on the financial exchange from the insurer match dot com studio. Well you'll work. Yeah. Keeping you up to date on all the latest market trends it's a financial exchange on the financial exchange radio network. Creating the right insurance plan can provide as much peace of mind for you when your family as a sound investment strategy you need to make sure you're giving real value and coverage for the dollars you're spending on insurance and that's why you should call insure a match at 877324. Or 50 to four that's 877324502. 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There are strong here and it's time for your leader bank quick tip of the day we are joined by Jake tool from leader bank and let's talk about zero this is something you invented it's fascinating. Yet thanks very so we created a product to leader bank called zebra and and what we created it for is really to help landlords. Convert the paper process of collecting rain checks that make it electronic so we'd notice a lot of landlords are still getting checks in the mail. They're waiting for postal delays are always there their traveling abroad in the Jackson sitting in their mailbox at home in. 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That's 87769179. Users here. Imagine you never have to wait for rent check to come in the mail it's automatically in your count on the first of the month. Does he rent dot net or 8776917900. Call 8776917900. That Z rent. Exclusively available. From leader bank. Securities operas or securities America income member in re SIPC advisory services conference in securities America advisors think Barry Armstrong representative Armstrong advisory group in the securities American companies are unaffiliated. It's a financial exchange at your fingertips well. XXX 86 debut it's a financial exchange on the financial exchange radio network. Time for trivia here on the financial exchange. First question is who is George Washington's. Vice president when he served in office you know the answer to that question. Texas tech's number 68680. Who served as George Washington's. Vice president. Again the text number 608680. Let's talk a little draft kings last week we announced that they lost in court. However they went to a appellate court jock in a at least one a stay of execution. Yet they did have an appellate court judge announced that contrary to the earlier ruling by state supreme court judge Manuel Mendez. They are actually now going to be allowed players are going to be allowed to continue to play while this hearing is. Still in process which is great news for drafting is because. New York is their biggest state in which they do business. And it gives them time to rally their troops I mean they have thousands of users in New York State in those thousands of users are going to start. Appealing to their legislators. To be allowed to play drafting it's like wind died mayor to Bosnia tried to. Outlaw Lowber in New York City to heat up the heat and eat and you try to outlaw he tried to restricted just a little bit yeah. And he got toasted don't do you think this draft kings has the same type of opportunities. So. When when we first started talking about this way and win this thing was first considering what to do with draft king's I said there was one critical difference between draft kings and Cooper. And that is that you look at and I'm someone who plays trappings but will provide a valuable service that people of New York City and in other cities are now widely adopted. Adoption is one thing but but in any in any case it's it's eight provides a meaningful service helped people get to and from one place. Drafting intend to look I have fun playing playing them but if they went away tomorrow. Well no would really know what really impacted negative I am. I am. I'd be very bored very is actually impacted positively I'm impacted positively could went up funneling money into this region anymore lose less money but. So detail for from my idol under three dollars last week and just one point from from my perspective and again I'm someone who I like drafting as I play. But it doesn't have the same value that something like and over does because it doesn't provide aid meaning. Surfaced recently read where the year New York State Legislature was gonna craft some kind of legislation to allow them stay. That's I thought that was being worked on and it's being worked on I don't know what's going on behind the scenes what kind of negotiations are happening at this point. Obviously we had the Massachusetts legislation that came out about a month ago that was proposed and that I think a lot of people said could actually be a model for what could roll out in other states because it was actually pretty fashionable yet you're they're putting a cap on how much he can play a certain age limits can advertise. On college campuses things like that exactly the recognition you know able you have to make clear who's you know an expert player compared to someone who's a beginner. Those types of things and most of that aside from the the cap on what you can wager was generally viewed as being pretty moderate and pretty near down the middle in terms of it's a balance that I think most people agreed on. New York is taking a different approach at this point. I don't know it's gonna work for them because as much as you can. You know you can go out and try to make the case and look. Probably is gambling when adults and on but there's a reason why the same people all the Oscars as as the game scale I do to do I do too but they poker games Gilbert it's still considered gamble but the same people win every year there's a reason for the and so I look at it. I I think it should still be allowed to operate there but again if if they want to say look you have to shut this guy. If they don't really have it's not a service that does anything meaningful for people like they have to understand that the same time. 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Yeah this time he is pushing out the CEO of Cheniere energy and this is a company. That has been involved in the construction of a number of terminals to export would would local five natural gas LNG. From the US the main reason being much cheaper to produce in the US than in other places actually natural gas if you go over to Europe and a lot of other place in the world. Very expensive actually. So this is a terminal the main one is down in Louisiana. And the goal for this is to begin exploring. LNG in the next year then. But. There's this sense and I think that's what mr. Icahn was it was really getting out was. That the the person who is in charge of it at this point one without charge of founder to founder of the company Shareef soupy. Isn't necessarily the most experienced. In terms of his operational. Spear in this perhaps I read it more as being compensation issue I mean the guy was the one of the most highly compensated CEOs in the country the last few years. And I thought that that was Carl's objections if if that's what his objection is that I think he's out of line there because you look at the stock stuck his ups almost 700% in the last five years that was the only 14% of the company he can be found at the company if nodal Karl like a local. Carl like al-Qaeda. He took a major position in this company and this is what he does this is what Carl like condos that's corporate governance comes in. He kicks rear end. And he fires people and gets things back in line and look if if it's really over compensation I think he's got a lot of the guys that a great job in the company. Federal Reserve talk with Carl or have gone up from Bloomberg is next on the financial exchange from the insurer match. Dot com studio. Making your Smartphone even smarter come logo mobile lab by surging financial exchange joke in nineteen Jordan who. Who played Stewart this who's the financial questions radio network. 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Jury suffered through securities America incorporated member can recipe see an advisory services over the securities America advisors incorporated Barry Armstrong represented if Armstrong advisory group in the securities America companies are on affiliated representatives of securities America do not offer legal or tax advice always seek the advice of the professionals familiar with the laws in your state. Interest rates remain stubbornly low and I'm not sure when they're going up on top of that not everybody wants to invest in the stock market hi this is very Armstrong and just talking to my friend how we about the stock market and he refuses to consider buying stocks how he's conservative and he only wants investments are safe and guaranteed that got me thinking and I found a three year guaranteed annuity that yields one point 95%. 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Carl Rick and Donna from Bloomberg and he's the chief economist at Bloomberg he's gonna help us. Better understand the Federal Reserve and their actions that'll occur later this week I Carl welcomed the show. Good morning edition we're glad to have you in maybe you can help us understand. What the lying said he is over at the Federal Reserve and you have an opportunity to talk to these folks periodically. Would what's going on. Well after nine years that's that is that's finally great ready to raise interest rates says they have been. You know very focused on getting off of these zero bound. For the overnight deficit on the straight for much of this year. They yeah initially were. Optimistic that maybe this could happen in March and then they delayed to June and then they delayed to September. The timber didn't materialize until December was really the at the last option. And finally. That people say that economic data are cooperating. To such a degree that that they are ready to start raising interest rates so this is only one very small steps. I don't raise interest rates by 25 basis points over a quarter percentage point. And then they will take a long policy before the the next moved a lot of that that what one small step for monetary policy. Are they making a mistake in light of the factory activity in a factory activity at its lowest level. Since the recession this according to Bloomberg. What they are very concerned about what's happening to factory. Tell what's happened to factories is a result of the a couple of factors silver ball we have to slow global growth. But we'll have a strong dollar so strong dollar sound like a good thing but that makes exports very expensive in other market. And so what US industry is having trouble competing abroad due to the strength of the dollar in its head is raising interest rates Dulles illegally to get stronger. It's so that it is very sensitive to dead will publish that back channel this feedback mechanisms. I'm into the economy and and that's and an important reason why they're going to moves so slowly. Now Karl again I am just I'm looking for data that. Dissuade me from raising rates and one of the data points used to be the biggest thing that they look that was inflation data. And date for all the way along we said we're not gonna raise rates until we hit our inflation target of 2%. Well they haven't hit their inflation target of 2% as a matter fact it's less than 1% if they're still raising rates. Right so that it has pretty good tool mandate to basically they watched to gauge is predominantly a one contemplation of the highlights. I in the second that the unemployment rate. Now inflation tends to be a lagging economic indicators we look at the inflation numbers those little figures you just highlighted. That's really a function of what happened in the economy about poor tennis six quarters ago that the considerable lag. So it's it's akin to driving down the road and in watching where you going by looking through the rearview mirror that's a dangerous. Planned to follow its habitat has. To work that they've responded to inflation but it has to be there for camp of inflation more so in the reported data which had such a significant way it. It's what they're doing they're looking at the unemployment rate in this thing when a word about. 5% unemployment that's pretty much full employment. How once we start to get into 4% territory we're going to start seeing more wage pressures in the economy at wage pressures very quickly turn into more consumer spending. And therefore consumer price pressures. Hi it's so they're they're they're basically moving. In anticipation of what they expect to be happening over the course of 2016 and 27 teams focused on Wednesday when they. When they take an action first shall see what they did with interest rates and they'll also published a sport cas. That's the way they think interest rates are going also what it thinks the economy is going they're likely to see growth accelerating in 2016 and inflation continuing to drift time. Our guest is Carl wreckage Donna he's the chief economist at Bloomberg Karl. What impact do demographics have in inflate in calculating of inflation because. You look at inflation Japan over the last when he is thirty years they would love to have some inflation. In our demographics are starting to look very similar to those of Japan in terms of population growth and an aging population. Right that would have to do with C a patient population growth now fortunately in the US we do have a higher growth rate. How were course it's about 1% per year for population growth but the other factor is that you have these retirees. Increasing number of retirees they tend to spend less than retirement and they did when they were working. And also let more people retired than we have you were workers available as well so at could have. The larger and larger imbalances of retirees. They caught us strains of systems like Social Security it also tends to slow down on the overall pace of economic growth. I in the big question for monetary policy makers because they're watching something called. The labor force participation rate which is the number of people whether have a job or are looking for a job. As a share of the total population. And that share has been coming down until people are effectively dropping out of the labor force. And economists don't quite understand why now pictured gently Ellen thinks that potentially. This is due to lay out our economic outlook and as we see the economy pushed through 5% unemployment and we expect to see more wage pressures. Those fence sitters will be lured back into the labor forces so potentially weaken down. Stem that decline in participation. Other economists take these are baby boomers they're out of the picture they're not coming back. Carl based on the information you have access to today. How many rate hikes do you think we're going to get in 2016 is an. Yes I think we will have rate increases in 2016. Last time that had published their interest rate projections they said we're going to raise rates by about one percentage point. Between sixteen so that's the port 25 basis point rate hikes. I think that we will be half that number so I think that goes on Wednesday. And they follow up put two more rate increases next year or so this is. Extremely slow much slower than we've seen in previous economic cycle. In a recent court that is his speed economy has. Good but not great. And the Fed is very sensitive to this strong dollar which we talked about earlier and I think they're raising rates aggressively you'll see the dollar rip higher. Is apple really. Pose a significant negative impulse onto the economy the Fed does not want that they would just gradually. Speculate from zero. Karl is there any sense out there that the Fed has in in some ways. Being complicit in building bubbles this time around they're very similar to what we saw during the last credit cycle not the same areas necessarily. But the same types of Mal investment where you have low rates they give companies the ability to expand operations very cheaply. And then you end up with a lot of money flowing into places it it really shouldn't have at the beginning. This is a concern that absolutely of this that it wasn't concerned system late ninety's stock bubble. Highly doubt repeated in the housing bubble by 20062007. Incidents that is very carefully watching the markets in and saying well you know what we're doing. The same thing over again should we expect a different outcome. Until you know if you have a great perennially looked very low. They do a risk moving from bubble to bubble to bubble so they're they're scouring the market right out trying to determine. Style or is there route artificially high pricing of some part of the financial sector. In their assessment is that do well some things are bit prop beat here and there either doesn't seem to be eight. A big dislocation like we saw on those prior cycles and that's part of the reason out why they wouldn't start moving now even though the economy feels kind of lukewarm. I at least start taking your medicine so you'll be you know robustly prepared when the time just come. Very good Karl thank you very much for your time we certainly pursche my pleasure. That's Karl Rick and Donna from Bloomberg he's the chief economist there and what's great about having access to an economist like car market on a trapeze. He has no ax to grind I mean there Bloomberg is not an investment bank to. They have no agenda as to what should happen with ray he's just telling he's analyzing the information he has access to. And then giving a projection. Interestingly though when you look at what happened last week with the interest rates stocks sold off about 3% during the course of the week then who. Long term rates came down 116 18. Of the point iPad that the ten year treasury to eighteen. Yea so those come down a little bit as some money moved into long term bonds. When you look at the short term though. And this is interesting the three month treasury right now on this again I typically used this as a gauge for what the market is expecting out there. Three month treasury now is above point 25. So what that tells you that's not a lot it's it's a point 27 OK but again two years he grabbed a two year two years right now as a point 94. So if the two years a point nine ports telling you they expect the average rate over that time to be about 1% so you figure if you get up to somewhere in the range maybe point 75 next year and then one and a quarter of the year after. That's that's kind of what it's telling you some may be too likes next year you worry about it after. You worry about inversion. In version being folks where you're short term rates are darn near tie if not higher than your long term rates. It because that's at the ten years telling the ten years saying to us. Guys the Fed has it wrong the economy sucks and that's why we're to meet Tina and 101 of the ten years necessarily telling you that there's inversion there that keep in mind and voted telling you that the economy's bad because people are willing to type their money for ten years it to a team. Correct but that's the. What an inversion as it went longer term rates are lower than shorter terrorist. Now in versions people zevil that often eats it that's that's a formula for recession what's keeping mind that. Interest rates are indicative of what other parts of the economy are doing they're not themselves the cause Susan. Of a bad you know something bad happening if you go back to 2008 for example in the beginning of the year. You saw an inverted yield curve where that the nine month and and one year treasurys were lower than the three and six month and the reason for that. Is because there's an expectation. That rates will have to be lower in the future ignored to spur on economic activity. And its expectations the economy and the stock markets indeed correct or are coming up we will be joined by Laura Lyles from Morningstar we have it appears to mutual funds to discuss. Grab a pencil paper because that's next on the financial exchange from the insurer match dot com studios. Savings and Stan and generating income. Listen and learn about the economic realities that face you in your family is a financial exchange on the financial exchange radio network. Smart retirement planning is hard enough without having to keep track of what the iris is doing from the thirty year did you note that if you are self employed you can contribute up to 53000. Dollars in 26 -- towards your retirement did you know that if you're single and you make more than 71000. Dollars or Mary making more than a 1181000. Dollars you can no longer deduct your traditional IRA contributions were you aware that there are income limits as it pertains to your ability to fund a Roth IRA this is very Armstrong and I made available a guide that details all of those 2016. Key retirement numbers and it's free to those of you call now 803934001. That phone number is 8039340012. He suffered through securities America incorporated member can rest IBC an advisory services or the securities America advisors incorporated Barry Armstrong represented if Armstrong advisory group the securities America companies are unaffiliated representatives of securities America do not offer legal or tax advice always seek the advice of the professionals familiar with the laws in your state. Jurors in the right insurance claim is critical to your overall health and wellbeing and incomplete play and can affect your financial stability if you have questions about the current state of your insurance policies you need to call insure a match insure a match is an experienced independent insurance agency that represents a variety of insurance companies and is dedicated to your personal financial protection the best -- they can handle all of your means under one roof making it easy for you to create the right plane that meets all of your needs call insure a match today -- 87732450. To four that's 87732450241. Of their experts who periodically review your property assets and lifestyle to make sure you have an appropriate protection plan that adapts to you call them today and 8773245024. And received -- -- no obligation quotes from multiple insurance companies that once they get a plan in place to protect your wealth that's 8773245024. Or check them out online and ensure a mansion dot com. Pair are strong here and we're joined by G-8 to ease the vice president at leader banks and were talking about Small Business Administration well this is a very important topic because of lending season is here you want to be ready want to expand your business leader bank has capital to lend out. And we're gonna talk about what they're doing and what they're making available to consumers I do reject. Great Barry thanks for having me absolutely SBA loans and small business lending is certainly it optic. About discussion right now right what can use the money for you can use really for any business need dad will help your business expand new trucks improve new products view about kitchen equipment remodeling re model mean you know expanding. Into new law computers computers servers whenever may be -- and he uses a line of credit sure as -- and rainy -- but it could -- -- credit yeah absolutely and we spent a lot of professional services firm it would have a line of credit because maybe -- -- sure. Managed cash flow payroll etc. so. Well we're properties a special right now that three point 99%. Fixed rate for warriors there's no closing costs with loans a 150000. Dollars you minimum credit score of 700 from an application process it very quake we will give you a response within ten days complete. And and we've had a lot of success with it and most importantly we've got a lot of small businesses in way more people grow their business good deal. Folks if you're interested leader bank has ESP a term loan and it has an interest rate on three point 99% it fixed or four years in its four year amortization beat minimum credit score is 700 in order to call I call leader bank at 8776917900. That's 8776917900. You can go to their website which is meter Banca cop. But it's easier just call and talk to a human being 8776917900. The market updates come your way right here it's the financial exchange in the financial exchange radio network. On Mondays we talk about mutual funds with Laura Lyles from Morningstar. Yeah and war is joining us now on the line here and Laura I appreciate you coming on with us. It well let's talk first about the what's called the Diamond Hill small cap on and and is this pretty much a run of the mill small cap under the they have something that makes them a little bit more unique here. We think it's a fantastic. They are they are at Atlanta and value oriented strategy. Very cautious and these aren't you know deep value pleased that could blow up there looking at intrinsic value that very carefully. Investing in companies that meet their strict criteria they're careful to spell it is valuation gets too high and it's proven very successful and very popular. We've noted we realized the fund is. Related to close at the end of 2015 and and thought it was worth mentioning we love small cap fund a closed to new investors to protect shareholders that are already there. It will keep the fund at a nice small manageable size that it can stick to its strategy. And so for people might have be in interest and small value and an opportunity to get in now would now would be good time to invest in the fund. The revenue breakdown in terms of from a geographic perspective is this mostly upon that is in the US today do international investing where's their focus. This is entirely. In the US. Maybe. A mid may be ask our expert or bad but virtually all of that and a in the last. What about expenses how much does it cost for investors to hold us. Isn't reasonably priced fund. Them depending on the share class they range from I'm below average average expenses. Okay and now another fund that we have here is. I'm guessing a pretty close competitor here this the Perkins kept small cap value fund what makes them different. From the first one we discussed. They are is this approach is extremely focused on down side of Brett. The first thing they look at that as is the potential for loss. And that's something they really want to control. Now that's something that makes the funds look. Not as great as its peers in it in a rally like in 2013 and in fact the fund was lacking during that time and it just sparked them out let. And be confident that slows but fund this year reopened to new investors is that also a shop that has been careful about closing on to protect its strategy. It reopened there's an opportunity to get in now I mentioned at lag in. Bull market is also hold them very well. In more volatile market and down market and and that's the attraction is not apt to return their risk adjusted return at one of the more. These volatile more moderate. Small value. Offerings you can don't. In this fund is also a little bit cheaper than a lot of other competitors in this space to correct. That's right yet. It has little right low expenses. Relative to its Beers that and I spoke up. Laura these two funds that investors could use together in a portfolio or is it it is it more kind of a one or the other sixtieth. Stay that this one or the other unless you're really into Canada's small value investing one of these that probably due for a diversified portfolio. Very good what war I appreciate you coming on. Oral allos from morning star and if you do want to check those out and take a look at them for yourself. The Perkins small cap value fund has that ticker at JS CV. Axed the diamond hills small cap fund has the ticker. DH SCX and remember that that is going to be closing. At the end of the year as well no so I get prospectus electronically that they'll send that to redo it you can go through it and then again do your research before you buy anything. But if your interest in Czech news that you do have the ticker right there for. Tucker who's the number one entertainment entertainer in the world. Senior right now choppy I was so it tells up there Adele about Taylor Swift she's up there too he's got to be up there mean Justin Timberlake still open that in that category that has that CD recently. I'd probably put in those the reader you're looking at the top we're gonna like single not not groups or anything correct and it just entertainers like I it reason I ask is Justin Bieber. Beyoncé has got to be up there bill now you know that in in the same categories Taylor Swift autism and down at his she just struck did a deal. With apple. And today it's an exclusive streaming deal. For for apple which is Smart I beat I don't know how much Apple's pain it's not disclose. But if you wanna watch her next concert. You have that an apple yet if you remember that flight tracker is that a stroke like he's about to beat him you know not bluffing about every thirteen year old girl. Right what are they going to be doing and what they want for Christmas what do they want for Christmas apple TV and his kids again be miserable. Very easily imagine being those kids parents now know and it's got have to get me and I vote. He got out yesterday. Carrie Underwood somebody's not she's not care Underwood put him putting poisons my son and a football ground that's that. Pretty good she's good but should not in the top five that just listed on our panel thinks of like that it leak leak category in this what do you think of the steel firm Bradford bird. With the name. I like it a couple more now like if Taylor left. Coach what doesn't need to deal to make money tell us what's gonna make tens of millions of dollars this year been like this she may get you know a few million from an office she got more Nat. I I don't know how much he guy you think you'll ever find out. At that they leaked it's a stroke of genius on the part Tim Cook I mean you you've got the must have artist right among. Energy in the entertainment we've agreed that she's in top five I think she's number one. But the EG they just tied her up and if you wanna watch her concert you have to have an apple device that we also genius Nelson don't know how long this contractors. It's just the one time deal so there's one cubs those over this. I don't know if I'd go so far as genius I like it but now it's. I thought this was a bigger deal access all of it is going to be all exclusive. With her it's for her beauty it's the video stream her murderer her concerts. Which I just think it's. Well we'll see you will see that moves the needle in terms of sales. Yeah I I I think it's it's not a bad deal there I I don't spend enough time with fifteen year old girls. Well it's it's one concert now it's there's no there's no replay ability they're not gonna watch the same concert over and over and over if it was the whole catalog law that that are. I want to thank you for tuning in to this hour of the financial exchange don't forget to check us out on FaceBook where we are the financial exchange. Producing this program from the insurer match dot constant. Are you thinking about giving your home or vacation property to your children this is a common sentiment that can be full of problems for instance did you know that if you give your home to your children but you'll also given -- your cost basis and that property this can create huge capital gains tax problem if they ever choose to sell the home they can also create a nightmare scenario in the event of one of your adult children has creditor problems or goes through divorce -- feel -- -- is that you can't take it with you and that inspires wealthy people the start giving assets away as gifts they can be a good strategy but the devil is in the details pushing him Dolan has written a brand new guide that explains gifting strategies call now to reserve your free guide at 8668485699. That's 8668485699. You worked a lifetime accumulating wealth now you should spend a few hours to make sure it stays in your family the right -- called today 8668485699. That's 86684856998668485699. 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What are the risks associated in giving your assets to a child as opposed to giving them to an irrevocable trust that now we all know that durable global trust. Are the preferred mechanism for protecting assets from the cost of long term care. You and your right in the spirit of giving I think it makes sense to discuss this because people tend to think that it's a much easier. Just to give it right then spend time and money setting up a trust our. Folks while giving it away will ultimately protected from the cost of long term care so the trust. But when I give it away what have you done to yourself and that's who I worry about too we were out there is protecting the moms and dads of the world. From the children first priority and if you give it to the children you now as a parent have lost complete control over that that break. You may not be able to even live there at your home you can't sell it as easily as you want to whom. You can't control it really and anyway and more importantly. When you put it in the hands of the children any one of them can have a financial problem or divorced and thought that was put somebody the other day. Who said you know my child can't service trustee because they're going through bankruptcy. Now folks putting things in a trust that trust owns it. Not the children they can have a bankruptcy it doesn't affect the athletes giving it away is not good for you or them. Do yourself a favor and get this free guide from Cushing and dole and it's all about the implication of gifting your assets away. Request this guy from Cushing and Dolan by calling 866. 8485699. That's 8668485699. I suggest you read this guide before you make a gift to your children. 8668485699. That's toll free 8668485699. Hi I'm Joan Lunden and appear worried about your parent Carol Loveland living alone like I was. And you want reliable senior care information and call a place for mom. 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This program will automatically deposit your rent checks into your account and we'll help you avoid the hassle of waiting to get a check many landlords are suggesting that -- sign up for zero and upon the execution of their -- and why wouldn't wanna do that once it's set up you never have to make another change during the lease period that he rent is a free service if you have an account with -- bank and if not it will simply cost too small monthly -- -- -- bank right now at 8776917900. That's 8776917900. Or go to -- red dot com for more information member FDIC. Find your favorite news photos and sports updates on your phone when HP mobile from the Associated Press AP mobile where the news gets its news. This is the financial exchange we've Barry Armstrong. Wall Street and third street stay on top of breaking business news and learn how to manage your money to help you George. A more secure future and now broadcasting live from the insurer mentions I've come studios it's the financial exchange with your host. Valerie Armstrong. We'll start. About this hour with a question. Where in the heck is Santa Claus. I mean. The market was down 3% lastly he's got rally it's down again today now. In all fairness the Santa Claus rally if you are east student of the market you know this. The Santa Claus rally occurs in the days after Christmas but before New Year's well so. It's you know he just be that the big name and me just be warmed up a lot of work to. I also want to point out that the twelve days of Christmas just started yesterday actually so we're really only now getting into the holiday swing in the holiday cheer so. Maybe it's just sad is just a little slow getting up this year you know. If he's definitely slow because the Dow's down 57 points and ten year treasury I'm fascinated by this because what you got going on here news. The worst chance kept secret in America is that the Fed is gonna raise rates on Wednesday and yet long term rates are coming down. The Euro traded at 110 gold straighten it a 1069. Oil. Last night track in the middle of the night I. Little weird that it was ending a little is in the 34 dollar range of 3:30 in the morning. So. Oil right now trading at 35 dollars per barrel. It's a good thing we're gonna be joined by Jackie. CNBC. She is a student of the energy sector and she'll be able to tell us more specifically what we should anticipate. As a relates to oil prices but. Everybody's love and it in terms of their home heating there's also been very warm. We'll look at this is this something else that we had talked about back in October was that if you get a mild winter this year. Look out because you then you have not natural gas not being used up that you have this huge surplus of you have oil being not being used up that you have this surplus of you you get a warm winter here. Look out on the on both those commodities because they already have these glut will use a little oil though would get used up the gasoline. Right because of people drive more some of all you love a little bit of an office at their natural gas you won't have that right natural gas fuel oil oil you have a little bit more used up because people go to work instead of staying at home and you know not shoveling out from the snow. But natural gas. But there's no real offset for that mean there's no real offs at their so you could continue to see natural gas prices falling really through the winter if if you end up with a model under two dollar for an. Yeah I think the last time I checked it was. Wanna say they get dollars 89 or somewhere in that ballpark. That Walgreen deal still gonna happen the one where their bye and rated. Think it is I think it's going to happen this is just after Walgreens received notice that they are. Were having more information requested by the FTC the Federal Trade Commission I do think this is going to be a deal. Where the combined companies going to have to sell off some assets in order to make it a palatable deal for regulators. Because otherwise he talked about some pretty significant content consolidation. In that industry. With really that new combined Walgreens and Rite Aid. Pretty much with CBS being the only two games in town that I'm on a large scale there you still some other smaller players that. You know and maybe have a regional presence well that's what made me wonder if the lot. I think you end up seeing it all out but I think that they will have to sell off some assets to via some type of third party whether it's a private equity firm that we are rebrand this something else or whoever may be. But I think you're going to have to end up seeing you know and we've we've seen rumors of you know anywhere. Between you know a thousand stores or somewhere in that ballpark potentially being sold off. I would imagine you're gonna have something fairly substantial like that that has to get done in order this deal go through to completion. Here's a trivia question for you. George Washington did not live in Washington DC because at the time. The United States had a different capital what was the capital of the United States during George Washington's presidency. If you know the answer to that question just text that's 68680. Is our text number first listener with the correct answer wins a prize. What was the capital of the United States during George Washington's. Presidency again text number is 68680. Lilly has a cancer drug that costs 111430. Dollars a month it's a lung cancer drug. And I've got to tell you Jack if I had lung cancer I'm not sure I would take the drug at any cost. In this something that we discussed going back couple weeks now where we've been talking about. Why medical cost in the US rise much more quickly than they do and other countries and we used an example Norway or any drug that makes it through the regulatory process has to go through a cost effectiveness review as well. In order to make sure that look if you can be paying five times what an earlier treatment is now you have to be getting no not necessarily five times the results but more just a 5% bump. Well let me let me re if I made and read directly from the Wall Street Journal and today in its in today's journal. Cancer experts describe the survival gain as modest the drug is called pork trots. Known generically as something I can't pronounce it extends at the map. Wow well that's impressive about for Monday or math major. Not in extended the median patient life by six to seven weeks in a clinical trial vs chemotherapy. Six weeks for eleven grand a month. And to about eleven months Levin and half months from the start treatment half of the patients though lived longer and have lived less meaning. I I isn't that mean that the drug had no net gain at all if half of the patients who took the drug lived longer and it killed earlier the other half of the patients. I don't see where I'd like if if you're like if it was you would you take that. 5050 shot. Here here's the problem is it does increase the median survival time. By about you know seven or 8% okay. But the question is it. Is it worth paying. Or five times more for the stroke compared to earlier ones and the problem not in my opinion but books but here's the problem I am forgetting the cost I mean just. I just you you can't forget the cost the cost is really the only thing that matters I know that chuck just think about this logically you go to the doctor. Yup got cancer you've got. You know terminal lung cancer yep and he says Q what is a 5050 shot the drug is for. Here's a 5050 shot. That you're gonna. Live any longer as a result of taking this drug you also might die sooner as a result take if I'm patient. Tucker would you take it. It 5050s. Or not bear bear all that saying that that's that's what's called immediately that's that's how any drug works is half the people live longer after people don't like not everyone gets the exact same results. My point while that other drug we talked about he Trudeau from Merck that was a miracle like peep that the numbers were a lot better on key Trudeau which is about the same cost per. But it was it was a lot better and here here here's why getting the cost being important OK the average person OK if they go to their doctor if they find out they have lung cancer. And they hear if you take the older version of this drug. You're gonna live for ten months but this one you could potentially be averages eleven and a half to twelve most people are gonna say give me the one that takes me to eleven and a half to twelve. Even though the cost may be significantly higher and that's the problem is when you get into this. You have to deal with these cost benefits because most people. We're not doctors we rely on doctors to be able to tell us what we should be doing and the problem is that you you just don't. Have all this information available to you and that's part of the reason why our health care costs have gone up so. Pitchers after last year's record snowfall here in the northeast are you prepared for another long winter. If you're not in you need to call insurer match so they can help make sure. That you are. They're offering a free winter preparation guide that'll help you take the necessary steps to lower your risk of damage during winter storms. The only way to get this guy is to log on to winter insurance guide dot com. That's winter insurance guide dot com. You'll learn about tips to help manage your risk and lower your chances of having to file a claim against her homeowners insurance which could in fact. Increase your premiums or potentially have you dropped by your insurance company. This free guide will include important reminders of protections to consider for your home and your car. Including changes you may need to make your policy in order to be best prepared. Winter weather will be here before you know it so don't delay visit winter insurance guide dot com and download your free guide today. Let your friends at insure a match help prepare you for the winter ahead go to winter insurance guide dot com that's winter insurance guide. Dot com. See number talk about those hover boards yes that if I were that are not a recoverable in one engulf in flames of something not just one while the top five. That worse the top five sellers on Amazon.com. Got taken off the list awhile. Guys. It's pretty funny because these things keep essentially. Spontaneously bursting into flames. And the reason is the salaries. It's it's pretty great actually remember back when that's the 7871 game and all the problem yet lithium ion batteries like lighting a fire in the cargo hold. He's he's the same type of batteries in the problem is that. A lot of these companies or try to compete with the big manufacturers out there have gone to cheaper batteries in order to cut costs and try to undercut competition. Problem is that cheap batteries can be a little bit unstable and all of a sudden you have a little bit hot foot situation going on your right and on the and it's not good for anyway it's not good to Amazon pulled some of the top selling models actually because things keep exploding. Which. It got one this kid brought it home raped her put it on to pick it up after taxes on fire burns down the entire kitchen. She stepped. Like you look at the pictures you better check like a lot of I almost bought one at least for one of my kids in college I would I didn't buy one but I was thinking about it her and it's like a 300 dollar at 3400 guests and the what you put this in college there's a part alcohol there that'll. The entire school well I just via if you bought one check and see if it's one catches fire. Are coming up we're gonna find out what is going on with the price of oil Jacqui do you Angeles from CNBC fuel also. Give us an update on the price of natural gas this is important stuff. Coming up next on the financial exchange from the insurer match dot com stadium. Hero of the latest financial trends a racy. The financial exchange on the financial exchange radio that. Work. Interest rates remain stubbornly low and I'm not sure when they're going up on top of that not everybody wants to invest in the stock market hi this is very Armstrong and just talking to my friend how we about the stock market and he refuses to consider buying stocks how he's conservative and he only wants investments are safe and guaranteed that got mead thinking and I found a three year guaranteed annuity that yields one point 95%. Per year for three years there are many types of annuities and some people think you have to type your money for ten years not true in this instance three years at one point 95% and then you're out with no surrender charges if you'd like to earn one point 95%. Per year guaranteed for three years call our office at. 803934001. That number is 80393400. What this is the best rate that I've been able to find so called now told free 803934001. Principal and interest guaranteed as long as you all your contract troubling for the guarantee period guarantees are backed by the claims paying ability of the insurance company. Wouldn't it be great if you had a crystal ball and you knew what 2016. Holds for the economy and the stock market unfortunately you can't rely on predictions but you can rely on education we've put together our 2016. Economic and stock market preview guide in it we discussed many topics including how the strengthening dollar an exchange rates can adversely affect US stocks international events impacting our stock markets. And the extended decline in oil prices and much more call now for your free copy 803934001. That's 803934001. Educate yourself for the new year 2016 it's upon us 803934001. Securities offered for securities America incorporated member can rest IPC and advisory services over the securities America advisors incorporated Barry Armstrong represented if Armstrong advisory group the securities America companies are on affiliated representatives of securities America do not offer legal or tax advice always seek the advice of the professionals familiar with the laws in your state. Mortgage rates are still at an all time low makes sense to take advantage of these rates when you're refinancing or buying in the world leader bank is a local but it is one of the largest mortgage lenders in New England with very competitive -- -- experienced about mortgage financing options and get a very competitive long term fixed rate your home whether refinancing or buying a new home work with leader bank calling 776917900. Or visit leader betting dot com leader bank went over one billion dollars last year homeowners in the Commonwealth of Massachusetts they're the true experts in mortgage financing deal was a local bank today and call 8776917900. Or email Ed loans at leader bank dot com visit leader banks were all your home buying a refinancing needs. 8776917908776917908776917900. Or visit leader bank dye our member equal housing lender. Are you thinking about giving your home or vacation property to your children this is a common sentiment that can be full of problems for instance did you know that if you give your home to your children but you'll also given them your cost basis and their property this can create huge capital gains tax problem if they ever choose to sell the home -- can also create a nightmare scenario in the event that one of your adult children has -- problems or goes through divorce then the old adage is that you can't take it with you and that inspires wealthy people the start giving -- away as gifts they can be a good strategy but the devil is in the details pushing him Dolan has written a brand new guide that explains gifting strategies call now to reserve your free guide at 8668485699. That's 8668485699. You worked a lifetime accumulating wealth now you should spend a few hours to make sure it stays in your family though right away call today 8668485699866848569986684856. 99. Get your thoughts and questions seem instantly. Takes the financial exchange at 68680. This is the financial exchange on the financial exchange radio network. By the way chuck. The capital of the United States with Philadelphia, Pennsylvania during the Washington administration. Yeah and Thomas from Burlington Connecticut had the right answer on that one and for his knowledge today he gets smaller good good. Our guest is Jackie G Angeles from CNBC and and a pepper her with questions about the price of oil and natural gas Jacqui thanks so much for joining us appreciate your time. Short. Good morning so. Jackie this morning very early. That oil was trading under 35 dollars a barrel it's in that's come back up a little bit over 35 dollars a barrel but. From an analyst perspective how does one know when oil has bottomed out is there any indication does a bell go off. A bell got an app I eloped it certainly typical of well you. The pattern we've seen a lot in the car and that the but I think man situation out there meaning act OPEC is content they record level and US production it's flat lining but not declining and near record lap all. We have a situation where the world right now is washed and oil app but it's caught and downward pressure oil price and what happened trading day and the technical standpoint that we keep acting these new lows below the below the morning. Up 3450. Green went back in February 2009. We kept it low and rebound the these a thirty dollar mark you'll. You'd get at load. Let break old. And let me impression news at the bike and we will start without. There's nothing out there in the marketplace indicating that that's happened at that point that I crude oil going down. And it in components as well and it's variable. That what you on when and whether or not we are going to get at this rate. We do at a rate I intolerant strain which typically about being there recruit because. And the dollar's strength and traders are using other current it to purchase crude. I'm mark and that app and they'll be less likely to do there's a ditch on out there. Going on here I do it at the national union. Now OPEC is saying that demand growth is going to be about one point 25 million barrels per day next year. Is that consistent with what you might get out of the TIAA or other analysts. Pretty much in the same range when it comes and that only the diet a little bit lower. I think back it's not really neck and not demand growth. Al balance out a way what we're seeing from the but I grow and that's really a problem. It demand growing you know at levels that we've seen over the last few years lecture relatively anemic but the bike and you need a much later they Wear it. That's where you get equilibrium I. What about Nat gas what are we seeing there. Okay and after the completely different story that would not Patriot Act enacted by the dollar. It's not really impacted by other factors I was looking out all the crude oil. Out a better tree. I'm an eight patterned top and I'm at the New York City out the week and seeing people shopping for Christmas trees in short. That I'll be mild temperature and on the East Coast in other parts of the country. That's why packed app and where is currently at 180 app and that it pretty much and cracked that and it. Thirty year allow how what are they out I know where you know the benefit consumers in debt. Contracts are negotiated long term we may not and at that pretty well right there but it'll benefit certainly temperatures remain mild actually turn their parent. So lower prices let in and out right now is where the pressure is an and final act. Yeah the Boone and we're being a world war also. The critters coming back you read out out in a play at that should of won the national average for a gallon of regular. We think that I dropped under Q box back there in. Where you're probably seeing pretty low prices in New Jersey I'm guessing but 18190. Yeah I mean and that 189. At the Asian you need and the journey been enjoying Christ is under two dollars and act out. Here in New York City I was 38 where they averaged. You know definitely you're gonna eat they pick up a country great and very happy fortieth and what I'm that they that the I cat. But that national average good barometer. One match or what's happening op but I'm. Right ray and Jacki thank you so much for your publisher appreciated. I Jackie CNBC joining us today on the financial exchange and you know truck when I look at those prices for natural gas I can't help but thinking we should be building. Natural gas utility plants as fast as we can. Well and you you really short and in particular we've also talked about how. In New England just the flow of natural gas you don't have to pay. Ask you to get it to where it needs to be in a lot of cases where he had to bring it in on a tanker and where maybe you want to build one of those plants that you just can't get there effectively in the problem is when we talk about bringing in on the attacker that's often much more expensive to do than simply pumping it through a pundit on dangerous right and you talk about LNG and it's you know that's you come in and they of the four helicopters circling the thing just to make sure that nothing happens to it. Because it is a ton of energy packed into a you know still it's it's a big you've seen the our physiology tanker when it comes and that's a massive ship. And it's just killed. With that natural gas so. I just wonder if these low prices. You rightly you'd hate to do is build all these natural gas. You know utility plants in the and you have the price go back up to ten doctors. Well. Keep in mind if you do build them and if you start to use up that are plus the supply and demand is gonna come back and equal -- equilibrium at some point there so. If you do start to take advantage that the price is gonna rise somewhat you know that like when they close that on the placement rate. Reasonable to assume it's gonna have to be replaced act passed that you will be your place with that gas if that's gonna take a long time to get them replacement you know that's not something decommissioning that plant and that's that's that's something happens overnight you're talking four more years before it even started to believe that that's what they say I I still question I did back then whether or not that's actually gonna happen on schedule there and I think you're gonna see that pushed off even further beyond. Me it's it's fascinating to watch energy because of the impact this had so many aspects of her life you know you think about. I filled up my truck this weekend. And it used to be an eighty dollar fill rate to film my knee and went fifty. This weekend it was forty bucks is that right it was a completely empty but it was it was forty bucks to fill that brighter and that. You know used to be a wallet draining event when you had to fill up the track oh yeah and you'd you'd really curtail your use of the track. Because of the price of gas were now connected award even just when I thought it used to be fifty dollar hostile thing up now 2527. Dollars ticket tax cut. About opera and I with my slot just for awards against under par 68 is right park's 6820 bucks to fill my tank. No ladder now I'm hearing reports of gas prices throughout New England under two and I'll tell you what if oil holds 35. After New Year's sometime I'd say January 15 to January 31 track you're looking gasoline trading at 179 when he depth. Yeah I mean to set the date in price yeah that's that's what you're looking and so it's it's a boon to the vast majority of US consumers it's good for the problem is if you're one of those people that's in Texas and North Dakota. You've been caterpillar reported you know you think about the is the other side of the trade to as if you're winning that means somebody else's Lou exactly. RA coming up we will be talking about the fastest growing GM in America. The Dow is down 93 points and you're listening to the financial exchange from the insurer match dot com speaking. You gun barrier and strongest financial exchange. Shall look financial exchange radio network. Mortgage rates are still at an all time low makes sense to take advantage of these rates when you're refinancing or buying in the world leader bank is a local bank that is one of the largest mortgage lenders in New England with very competitive ray asked they're experienced about mortgage financing options and get a very competitive low term fixed rate your home whether refinancing or buying a new home work with the leader bank calling 776917. B 900 or visit leader bank dot com leader -- went over one billion dollars last year to homeowners in the commonwealth of message you if they're the true experts and mortgage finance deal with a local bank today and call 8776917900. Or email Ed loans at leader bank dot com visit leader thanks for all your home buying or refinancing needs 8776917. B 908776917908776917900. Orders in leader bank dot com member IC equal housing lender. Very are strong here and we're joined by G two he's the vice president and leader bank and we're talking about Small Business Administration holds this is a very important topic because the lending season is here you wanna be ready you want to expand your business leader bank has capital to lend out and we're gonna talk about what they're doing and what they're making available to consumers hate OJ. Great very absolutely SBA loans and small business -- is certainly a topic of our discussion right now right what can use the money for you can use really for any business need dad will help your business expand new trucks and approve new trucks view kitchen equipment remodeling re modeling you know expanding into new office computers computer servers whatever it may be Kenya uses a safety net for line of credit sure just fourth and those rainy day but you know you could do like credit yeah absolutely so you know we find a lot of professional services firms. They won't have a line of credit because maybe tools or during the winter sure. Managed cash flow payroll etc. so. While we're offering is a special right now it's at three point 99%. Fixed rate for four years yup there's no closing costs with loans of 250000. Dollars could you minimum credit score of 700 from an application process is very quake we will give you a response within ten days from complete Apple's outstanding and we've had a lot of success with dated. Most importantly we've helped a lot of small businesses employ more people and grow their business. Good deal folks if you're interested leader bank has a SBA term loan and it has an interest rate on a three point 99%. Its fixed for four years and it's for your monetization the minimum credit score is 700 in order to qualify called leader bank at 8776917900. That's 8776917900. You can go to their website which is leader Banca cop. But it's easier just to call and talk to a human being. 8776917900. Interest rates remain stubbornly low and I'm not sure when they're going up on top of that not everybody wants to invest in the stock mark hi this is very Armstrong and is talking to my friend how we about the stock market and he refuses to consider buying stocks how he's conservative and he only wants investments are safe and guaranteed that got -- thinking and I found a three year guaranteed annuity that yields one point 95%. Per year for three years there are many types of annuities and some people think you have to type your money for ten years not true in this instance three years at one point 95% in May in Europe with no surrender charges if you'd like to earn one point 95%. Per year guaranteed for three years all our office at 803934001. That number is 80393400. What this is the best -- that I've been able -- so called now toll free eight. 803934001. Principal and interest guaranteed as long as you all your contract troubling to guarantee period guarantees are backed by the claims paying ability of the insurance company. Hi this is very are on -- if you own rental property you're gonna wanna hear about this inclusive program offered by -- bank it's called -- rent and it's designed specifically to help landlords receipt and deposit their rent checks electronically as opposed to having to wait for the mail call leader bank rate now -- interstate in -- rent the number is 8776917900. That's 8776917900. This program will automatically deposit your rent checks into your account and will help you avoid the hassle of waiting to get a check many landlords are suggesting that -- sign up for Z -- upon the execution of their -- and why wouldn't you wanna do that once it's set up you never have to make another change during the -- period he ran does that free service if you have an account with leader bank and if not -- simply cost too small monthly -- leader bank right now at 8776917900. That's 8776917900. Or go to red dot com for more information member FDIC. Breaking business news in the financial exchange on the financial exchange radio network. The trivia questions have been difficult so far today here's your third trivia question of the day. Who is the only president of the United States to serve to non consecutive terms. Chuck you're not allowed to play along with us okay let our text number 68681. Listener with the correct answer wins surprise who is the only. President of the United States to surf to non consecutive terms in office again our text number is 68680. And we're gonna talk about a local company here planet fitness is the fastest growing Jim in America. Yeah and this is the Jim Tucker your plan fitness number I am was us and we went last. Wednesday you are there model cost of what month. No I went twice last realized what is that area as of November right now another Kelly classic is a high wire act Leslie we Oregon twice. But that's I didn't realize this but. Planet fitness is really kind of the play she'd go if you don't wanna be intimidated when you go to the gym. Yeah what what what of their motto is that correct me if I'm wrong Tucker note Jim timid nation exactly is that right now and a long X now I could go. Well Barry now keep in mind that planet fitness and I don't know if you looked over to the second page this article I did with the woman sitting on the squat rack cursing and squat machine. Reading the paper. I see a lot of that there the idea that people just like dressed in Jim outfits but they're not doing anything that is not that's okay. No I don't think that would kill you still win it's still count though that would drive you do not come to the gym and take up equipment space. And not work who do it all happens all the time there that that's neck. It in my book I am allowed to push you off the equipment then. Venture ten dollars a month to be a member of planet fitness and brought out you can get the you give it the gym tanning beds. Yeah. I avoid those tell you Tucker it is looking the way does it ready for twenty bucks you can join in Quetta tanning bed access and you can go to as you can only go with your membership like. Stalker could give the ten dollar membership break I don't have the black membership is aren't you can only go to that one Jim right UK coronal ones like say your work and you wanna go to one near working blatant. Now I can't do that. Now planet fitness is starting to come under some pressure from some other genes that are cutting there he's now then in order to compete with them and this has been the fear of a number of analysts is that. There is really significant barrier to entry. For planet fitness now and because of that there's some concern there newsreader compress it it's. The gym equipment is not exactly the most expensive thing to buy in the world. It's not exactly an area that requires. A ton of knowledge to set up a gym and and to build one out. I think that they could be pressured by some local companies now I do. I think they do run a good business there's no doubt about that that clean talker. Very claimed in a diplomat their customers seem happy my point is just it's not hard to go out and buy a bunch of machines put him in a room and start charging people ten dollars to go hard to get the economies of scale. And it's hard to get the advertising budget I mean advertise pretty aggressive wanted to thwart amount they'll. Lot of short amount you know he's your people start talking out your ten dollars to go here and you know eight dollars to go there. Lot of that sport amount that they give someone comes in and start competing in I'll give you an example. We've seen a lot of growth in the high end Jim recently where you talk about things that crossed it were a couple hundred bucks a month a lot of these what's been classes where. I know some people that in this gonna blow your mind when a typist I know some people those spin class by school courses some people spent upwards of 800 dollars a month. He did that and saying I'm not I'm not making just stay home and watch a theory note how her high by a bicycle ride or you know so. If you can get people into those areas without massive advertising campaigns. If you start building in other competing services at this price point. That's what I get worried about planet fitness that's what a lot of analysts have have mentioned as concise stock they have done much since the IPO stock is is gone pretty much it spiked up to around nineteen at one point it since then has come back down into the fifteen range. So has moved around a time it's trading at a steep valuations almost 400 times earnings right now. I I have question that I would the company I don't know file of the bit. A lot of people texting in that are members you know U 774 says I get my ten dollars a month back in showers alone. 97 he works at planet fitness says it's a judgment free zone exe. BEU get to a certain stage in life for certain level of appearance which I've attained. And that all the sudden becomes more relevant to you see here eerie you're underestimating. The the importance to my generation which is the most important generation because we're the largest generation. We have all the money it's an eye on the entitled one yet but we we have all the money and and we vote we choose the leaders so. Good job with that and present well I've only got a great so far. But my point is okay what if someone comes out with a nine dollar and this is this like the guy like you I think you're underestimating the barriers to entry to something I may I may be yeah. But we'll see you know in gyms come and go I mean during my lifetime how many times have you seen Jim go bankrupt rate it happens pretty Reagan. You know they're going banker here's a sign that they're going bankrupt talker but when they stadium talker will sell you lifetime membership. For hundred dollars a right that means they're on bank. That that's that they do it that's the the telltale sign for Jim. Because the pages taking in cash anyway and knowing that they're not going to be fulfilled there for and it's a red flag definite. News hey you know I wanna talk to you a little bit on behalf of Cushing handle Cushing handle the law firm. And they asked me to make available this guide regarding. Gifting of assets. Have you ever thought. About the attacks in implications of giving away highly appreciated assets let's say. You wanna give your kids some stock that you bought and company tenor twenty years ago work let's more common occurrences when you give your kids that the house on the lakers house on the cape wherever might be the vacation home right where they've spent Summers and your grandchildren spent Summers now he think all I wanna make sure it stays and how families and give it to my kids' Christmas. Before you do that I would ask that you call your feet Cushing and Dolan. And educate yourself about the implications. Of gifting your assets away. Request this brand new guide from Cushing handle. The following numbers 866. 8485699. It's the income tax state tax and Medicaid implications. Of gifting assets away. 8668485699. Do what you want. But my gosh read the guide before you start giving stuff away 8668485699. Men's Wearhouse founder member George Zimmer I do. Did the guy I guarantee attack on digital like no way you look you're gonna like the way you look from heat and came out. And said that the Joseph bank acquisition. Was an idiotic what her. You like him back then and his big problem and I quote Zimmer he said they had a problem. Joseph A bank had really damaged their brand over a number of years by running incessant promotions and no one wanted to go there and pay irregular price. Well that's pretty much spot on because lo and behold they take away those incentives and no one wants to go infinitely. People were going. You know like under the old bottle. George people would go to the store Eden he's complaining that particular model but now the Euro gold somewhere else I'm goes nobody. We sure oxygen and. And he said he saw this if you want to be involved in the company that just had to rely on coupons all the time discount. In order to move product and and I respect that because I think look at the value product properly people are gonna pay for. The problem is people know not to pay 800 dollars for Joseph A bank suit I used to don't pay 200 dollars for one all the time but he's got four I got I got four of them for 200 dollars it was outstanding they lasted me. You know in general I was wearing them every day they'd last me somewhere around four years total so it's been 800 dollars for four years oops that's not bad. If I have to pay 3200 dollars from warriors and I need to get another job. What's the what's the Stockton announcement. On its quite poor. Me as a company that guest has gone down and down and down. In and it's not the type of retailer of the gets replaced by analysts doubted. If this. Companies in deep trouble it's down another 9% today I was fired the CEO if I was if I it was a hedge fund that owned a lot of company it's a you're out here you know you screwed up you're done what else you gonna do to fix it right so in the restart with clean. This and we told them when they bought it they said all the sewer gonna do to fix it and we said. Bad move mistake I won't go there if you do this and you know aren't they didn't. This company in the last six months is down 78 point 38% right now. They are still somehow paying out eight dividend even though they don't really have earnings I would expect that dividend is going to get cut pretty soon as well. Right now it's technically yielding five point 3% but I can't really see them continuing that when they're not making money. Its image this a company that is is. On the verge of being run into the ground right now. Not hates it it. And he didn't need to be fiscally because. When you shop for men's clothing. You'd generally go to the story you might. Chuck I know you're the ultimate online shopper is there you're not gonna buy a you're suits I wouldn't think. On on it you can prove to me I can do well well now. And is that the issue though Billy liked to try them on and I got elect trial on a jacket usually meets at the tail ladies need the wasteland with a with the suit I'm calm on the ups and it Yemen I get a year's chest here also Tony something there. That's not that's yet you look at when your 55 and you had five kids you know. I'm not going to be having the kid you know still leave you treat. Trust me your idea if I mean I'm not eating for two I gained about ten pounds with the each kid never lost sympathy way. But in fact what people do that now a lot of the I the man decently well I do I do a big on the sympathy. Yeah but you're still don't get it now a supposed to stop. Supposed to stop pay up next we're it'd be joined by Geoffrey Fowler from the Wall Street Journal were talking about. Gadget warranties many of you are buying gadgets this time a year should you buy the extended warranty. Jeffrey dollar Wall Street Journal joins us next on the financial exchange from the insurer match dot com studio. It's I'm learning. From this Krueger's. It's the financial exchange on the financial exchange radio network. Hi folks this is very Armstrong from the financial exchange it's never too early to start thinking about filing your income taxes do you know your personal exemption amount or what the standard deduction amount is these figures change each year and I made available a guide the deet tails all the 2016. As well as the 2015 he income tax numbers that you need to know in order to file your taxes includes information on the income tax rates the long term capital gains rates and the standard mileage rates that have changed yet once again it also includes critical retirement and estate planning numbers this guide is free to those of you who call now 803934001. That number again is 8039340. 01 securities offers you securities America incorporated member of the rest IBC an advisory services or the securities America advisors incorporated Barry Armstrong represented if Armstrong advisory group in the securities America companies are unaffiliated representatives of securities America do not offer legal or tax advice always seek the advice of the professionals familiar with the laws in your state. This is very Armstrong and I like to talk to you today about SBA loan if you're small business looking to expand or improve your infrastructure you need to take advantage of this great deal from leader bank for a limited time your business can get an SBA loan a three point 99% annual percentage rate with no closing costs on loans up to a 150000. Dollars and that rate is locked in for four years you need to have a credit rating of 700 and they'll give you an answer within ten days of receiving your completed application lending season is here and leader bank has the capital to lend out so if you've got a small business this is the number you need to call 8776917900. That's 8776917900. Take advantage of this great opera from leader bank -- four year fixed rate loan at three point 99%. Annual percentage rate with no closing cost our lawns 250000. Dollars and you'll hear from them within ten days of receiving your application. 8776917900. Call right now. 8776917900. Member FDIC. Jurors in the right insurance -- is critical to your overall health and wellbeing and incomplete play and can affect your financial stability if you have questions about the current state of your insurance policies you need to call insure a match insure a match is an experienced independent insurance agency that represents a variety of insurance companies and is dedicated to your personal financial protection the best -- they can handle all of your means under one roof making it easy for you to create the right plane that meets all of your needs call insure a match today at 87732450. To four that's 87732450241. Of their experts will periodically review your property assets and lifestyle to make sure you have an appropriate protection plan that adapts to you call them today and 8773245024. And received fast -- no obligation quotes from multiple insurance companies that wants the get a plan in place to protect your wealth that's 8773245024. Or check them out all moaning and insurer mansion dot com. Mortgage rates are still at an all time low makes sense to take advantage of these rates when you're refinancing or buying in the world leader bank is a local bank that is one of the largest mortgage lenders in New England with very competitive rate their experience about mortgage financing options and get a very competitive little term fixed rate for your home whether refinancing or buying a new home work with leader bank calling 776917900. Or visit leader bank dot com leader bank -- over one billion dollars last year to homeowners in the Commonwealth of Massachusetts there's a true experts and mortgage finance deal with the local bank today and call 8776917900. Or email Ed loans as a leader bank dot com visit leader bidding for all your home buying a refinancing needs 8776917. B 908776917908776917900. Or visible leader bank dot com member equal housing lender. Start kids. Stocked with Barry Armstrong. The financial exchange on the financial exchange radio network. The only president to serve to non consecutive terms was Grover Cleveland. Anthony from Manchester, New Hampshire had the right answer there is taking over more of those guys have fun off the shelves today and did our guest is Geoffrey Fowler from the Wall Street Journal. And we're joined by Jeffrey just talked about gadget warranties hi Jeffrey. So what are the biggest sellers this year for gadgets electronics that are being sold for Christmas. Well I mean you name it ever went out there Brian do you own I found in televisions are always a big seller. Tablet. I kind of stuck at it even little robot toys not Baylor have Star Wars the. I got to drill does a drone count as a gadget. Nag Allen so if you get registered. I am. You're kidding it doesn't go over guy. While while well so. Tees and in that now that epithet for. All right let's talk about war in tees it should. Like under what circumstances Geoffrey should we'd buy warranties for our phones for our computers firm drones are robots all the stuff that by. Almost never lose and yes and it it turns out that there actually really bad deal. Because. We kind of tend to do the wrong mental accounting when it comes to figuring out of course would buy insurance or are. Things are alive that are really big in our house or health. If you know anything went wrong with them it becoming catastrophic. Able. But on the gadgets and a pretty pricey television Allah. Fixing or replacing them. It's actually not probably going to entirely break the back then and it turns out that the deal that these companies are giving you on extended warranties. It achieved does that one actually breaking having using it. And then having to pay more or air that you would. Eat pizza stone at a when it talks to get noted. Behavioral economist. The directors of Carter Richard Taylor he he basically recommended this. Every time somebody offered to you and extended warranty yup I'm in it big saying you know. It got money put into everyday account and then you will. You will happen when you needing a YouTube app in the. So why are they so heavily marketed and mean if you turn on television or if you listen to the radio. You know the you'd everybody's trying to sell you an extended warranty. Because they're bakery business to be here. Because basically these on these companies not something that we can't know ask a coaching carts we can do about well Michael and I and you're there check out at him. How much we can have. Gonna cost me text sustain or replace it but we can't figure out there as what are the chances that actually break. The company called note right they don't know that. You know there is it maybe 15% chance you're gonna crack and I expected that against them and make sure that. Given the numbers that they you know that they make a lot more money. And AM give up having your credit. Need to be done very well we appreciate the advice because I know a lot of people are out there buying these devices and you know even when you're checking out I don't know if you've never noticed Jeffrey but if you're checking out of a Lowe's or Home Depot. They try to sell you award T Wal-Mart tries to says yeah about a vacuum at Wal-Mart they tried to sell me an extended war. Now now now I guess we're in the wrong business are Jeffrey thank you very much for your time. Do you eat do you guys ever buy them no never it's now I understand why don't buy them I never bought them is I disfigured his cousin was cheap and turned. I'm bill what is because cheap but it's a good decision. Yes I've looked at companies are still new warranties because they think it's nice thing to do when they want you'd be happy and everything these silly warranties because it. What sets it shuts up that your response and can charge you more for it in and that's why they do it because they say OK you'll pay for peace of mind and you probably pay. More than it's actually work that's why they do itself. I typically stay away from warranties and you know what break a lot of stuff yeah I think you're the one guy figured it would buy one I just I operate with broken stuff my laptop that I use all right now is seven years old had a cracked screen for the last four years and that's just how it is. I. You mean. Making it very Smart move University of Maine is lowering their instate tuition for all the northeastern out of state. They're out of state tuition excuse me but actually there are lowering their instate tuition as well. But they're making it so. That a kid from. Connecticut or kid from Massachusetts. Can go to University of Maine for the same price as they could go to UConn or you masks. CA and I get why they're doing it in a competition that they're gonna get more students coming in there which. Make sense for my get the end they'll get better students to be able to raise their academic reform the University of Maine it was established to serve means students. If you're gonna do this. I really think unit for the money. I look I get that but look if you're going to be cut tuition for people out of state make it more affordable for them to come in polite and you're saying you're making it more expensive are you making it harder for being kid. Who wants to go to did it look up I'm saying I'd I'd like to see a deeper tuition cuts remain kid because. I'd rather say okay adult they did both they they gave the main kids a break and they gave the out of state kids break I don't know they gave the main kids a small break into it and I looked as if if you're cut tuition for everyone else coming in from New England they're not doing this for everywhere else. But just for the other New England states. I'd like to see you significantly cut in state tuition there because. It's it's for the students that are from Maine that's that's really why these state universities exist I do like the program though it's gonna try to broaden the applicant pool. But I would have liked to seal a little bit more. For instate students that it's because that's who these universities. Really have to target that's who they who they have to go after thirteen 1200 dollars. Outlets and in other states they're cutting the to which now about. In not so for example you go to masks if your from Massachusetts. And you wanna go do you mean you're gonna pay that in state tuition for UMass team to Maine new instead of having to pay. Out of state to which what that means is that your tuition humane appear from Massachusetts. Would be about 141000. Instead of 29 out huge savings. You have to qualify in order to qualify for the it's called the flagship match humane you have to have a high school GPA of at least three point oh. And you have to have SAT scores of at least 1050. Yes they're gonna do this just to try to get a little bit stronger talent coming to you think you've seen. I think it'll work it'll it'll be slow to see if people start to pick up on it but I do think it will work in the long run. Thanks everybody for tuning into the financial exchange today we sure appreciate your participation. In the program we've been producing the show from the insurer match. Dot com studios. Security suffered through securities America into member finreg SIPC and advisory service offering to securities America advisors are challenged congress senate I'm trying to advisory group and the securities America companies are unaffiliated.