Planstrong Financial Forum 11-12-16
Nov 12, 2016|
"Smart investing, simplified"
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Now. From the plan stroll in the broadcast studios he would still play in strong financial forum where your host. Kendra are very humbled president Clinton's strong investment minimum. Cold portions of star Bruce Morton investing you simply fall. Hello again career the anchor desk it is the restaurant financial form Paul forces is not with me today usually used for joining us today is Alex vendors CFA and Alex is an analyst at planned strong movement the program Alex thanks for Adam and you've -- general Paul increase somewhere he hasn't been seen for days. Ice you have trade after the elation and as a there. You know it's really because it re doing a lot to go over since is our first program since since the election. But. But Paul did before they you know last week unit or just argument. Paul did lay out of a distinct possibility of this happening not just that trump would win the White House after the he still said do you know at the time that Hillary was most likely to win. But he did. Say there was a chance that trump could win and if that happened. Take both the house and senate and though. None older folks we're talking about that because those seem. Likely that if the polling. On Trump's numbers wrong there were probably a little bit wrong on the Republican side as well around her refrigerant down ticket so. On that seemed to be eaten this theory on out are trump wouldn't which still wasn't well predict that runs around you know it's most sites peg does a 30%. Probability if not less. Then now on the trump victory. You know one person in particular just gone like who we like to follow back in January said that he thought that. The polling was really underestimating Trump's support. I'm and he thought you know there is a plus or minus 5% error on that and so he's looking like a hero right now not that he. Thought after. You know some of you know the major trump things came mountain and you lost a lot of support that that was still gonna hold up but he certainly. You know did set the bar for a big surprise as did the Briggs and as did some other more populist votes or it happens. Us this fifth biggest step back and look at tomorrow that I know the folks out here it is Saturday folks room listening to it election news could for the whole week. But I don't so let's look at not just just a fact that we know who won but what does that mean. For us in terms of our investments what does that mean in terms of the markets. Both net US and international what does that mean for folks portfolios. What you would be looking out for. Well there's been a very big shift in the markets. My I think now is a very good time to speak to professional because. What we've seen has been a lot of things that people have been piling into. Have really gotten punished and and you know whether it's people on their 401K is saying oh you know this is really not done particularly well for me let me switch over to this other investment that's that's done better recently well. You know a lot of that has been in favor of kind of the dividend dividend sector of the dividend growth sector and a lot of these sectors. Really got slams and it wasn't just calm you know that the interest rates search we saw after trump. On its relieved and since the since July the PC there's been a really big rotation and trump just accelerated that rotation so. You know if if you're one of these investors who has. You know. Really stretched for yield has chased returns to some extent media worked out for a little while but you really need to be careful. And we're happy to help me just give us a call will will certainly discuss some of the risk factors of your portfolio. That's a good point because folks did assume the markets assumed that Hillary Clinton would win and so another we have this news is definitely definitely means. He may need to take a second look get a second opinion access to our your portfolio is being managed. What we give you up the toll free number for planned strike it's 8889727526. 888972. Plan and that when you sit down with Alex and Paul. The be more than happy celebrated with you in doing you know you look also here today he will be at the meeting when you go to see them and Alex will be there as well. And turn the team wanting a look at your portfolio and get offers second opinion as to whether or not your position correctly going forward. Yeah it took some crazy things happen the election night not just relieved the fact that we didn't expect Donald Trump to win. But there were some of the futures were going months. What. Happened and why you know I was watching the the the election coverage on Tuesday night. And more importantly keeping an eye on my phone and what the futures were doing the futures tend to. Predict based on all the numbers what's really gonna happened so despite the fact that trump was leading in several key states. You know or is definitely to get closer election than people anticipated in the markets were still up. You know early polling suggested that Hillary was gonna have a slight edge in North Carolina even Florida and then as the polls got later in leader in more than votes were counted. That became less likely in as the odds increase of a trump victory. The market started going nuts right on and this is what people predicted. They didn't predict the sharp recovery which I'll get to on the they did. It expects that the market would not like a trump win short term because it meant uncertainty it meant a a big shift. And the question of whether people we're gonna be believing believing some of the campaign trump rhetoric or. You know what what president trump might end up being a little bit more moderate. You know that the the market certainly didn't like initially you saw Dow futures plunged. You know it hundred points at the low. Which if that's stocks into the trading session that would have been that the single biggest drop in history on of of the Dow Jones and not percentage wise mode but dollar point wise on the Dow. On the S&P 500. I'm an index of butler's 500 companies in the US. And the NASDAQ Composite both down 5% at that point it triggered an off. And so frankly they would have been in down even more if there wasn't that women and in the in the training function. And then you know trump had his his speech. I was definitely much more conciliatory than people anticipated he didn't you know take a victory lap he didn't come trash is opponents he's he's talked more about infrastructure spending. Didn't bring up more some of the more controversial issues of his campaign trail. He actually set some relatively nice things about Hillary Clinton. And you know people saw him as more presidential and that was a big surprise the markets and that's probably what. Tipped the scales. Two people starting to see the upside of a trump presidency to the downside of current president's what happened next when we see them on on Wednesday and through the rest of the week so as I said the market was down 800 points or so around midnight on Trump's concession speech is around 3 am in the market really started to rally off of that. But still down it was the Dow still down you don't tour and if you. Or so points when the market opened rec. And then. You know really started to recover throughout the day and actually ended the day up to earn fifty points on to a new record close for the Dow. Which is just astonishes hence you know NASA considering. All of the Wall Street pundits and experts were saying you know almost unanimously that the market was gonna be down anywhere from 3% to 15% on a trump victory mind. And we see the market rally. It's it's really just astonishing that might be just as astonishing as the election results. To confront euros. Soon so going forward though there are still some things is that you're looking out for rent it. What are we to get in terms of our trump presidency in terms of as the next couple of months yeah all right we'll let you start. I saying come you know I did talk about Trump's speech is being you know a sigh of relief to the markets. Tom what else would have caused the markets to recover so quickly moved from these. You know initial figures and another. Pro he has to do with the Briggs. And people were called to brags that where the market was down five or 6% in two trading days after the surprise Briggs it vote. People came to their senses and pushed the markets back. Frankly within ten trading days and then rallied off of those is welcome so. I think people were looking at that as a buying opportunity and because of the Briggs it. Result market reaction I think guided it certainly caused the US market to be chief. Even quicker. Does because once people start to sense a trend they tend to not jump on a much quicker and unfortunately for most investors. All of this training opportunities happen before the market opened and in. Known the after hours Smart read write a lot of it was international traders international investors who who tended to view of trump presidency a bit more. Negative lead in the US investor and once the US markets opened. I think the US investor prove that they think trump is better for growth short term. And there are still a lot of unanswered answer questions. You know think that trump end. You know other protectionist policies and calm and you know potential trade worse. But they're also seeing around the potential for tax decreases. Tom corporate tax rate cuts personal tax rate cuts. The state tax rate cuts and and they're seeing their potential benefits to that that policy short term. So the markets responded wells who's some of our trumps early speeches. And what about. Hillary Clinton's speech President Obama the things we heard the meeting between Obama and and and a trump yeah what does that mean. No I think it it. Really set the tone for a more united front. A an easier transition working together in and really giving trumpet chants and we've started to see daddy you know some of it is probably just. You know politics at its finest. I'm you know putting on a good game face. It's it's harder to say whether that's gonna continue we we really have soared to see that from you know a lot of the the U key members in and in none in the democratic group right. Now this was a GOP sweep but is is it's a little different from a typical lawn parties we've business. Yet people tend to think that come you know a sweep of one. You know sweep of the presidency end of the congress. Typically means that more controversial legislation gonna get past. The reality is there's still a lot of the divide. Between trump and kind of that you know that the conservatives within the congress sends a lot of what he believes in his it necessarily supported by that so a lot of his more extreme positions. Aren't necessarily going to be that easy to get through. I'm even in a GOP control congress house since her soon to you look then at the week overall but when we see. You know when when you add in the rally. The early week rally from Hillary. And the FBI investigation saying they didn't find anything to. You know to bring a British forever so that was a market Monday clearly rallied on that front. You know the market before the election tended to rally on anything that if Hillary better odds of winning. Annan and one of the best signs of that was the Mexican peso which. I'm you know on any sign of Hillary winning you know for example on Monday. You know the peso was up 2% on Tuesday people started to prepare for the likely Clinton win and they started took took buy stocks and and you know sell bonds to some extent. And obviously some of that reversed once it became clear she didn't win but they're really started to continue on again. Armed international stocks unlike US stocks didn't have a particularly good week. They were up early in the week for the same reasons I mentioned but later in the week it's it's viewed as more negative internationally. Trump presidency. Just based on you know potential trade wars and so forth and terrorists that might really impact countries that depend on exports to US is. This is tall Parsons president of planned strong investment management and you're listening to them planned strong financial forum on WRKO. Boston's talk station. If you like what you hear on our show and what I need to take a look at your investments and retirement plan called my office it. 808897275260. That's 888972. Plan. Securities and investment advisory services offered through metro metro group member to go as I can sequester investment management is an affiliate business financial grouping that is located in Washington street in Massachusetts. Hi this is Avi Nelson. Others buy insurance or investment products though sometimes will benefit the seller more than the buyer what makes sense is to hire an advisor with first rate credentials and why do investment management experience. Should have a fiduciary obligation to act in your best interest. And be paid the same amount no matter watcher invested in if these things matter to you. Call Paul Parsons at planned strong investment management to learn more call 888. 9727526. Hiring the right advisor could be your best investment. Or visit planned strong dot com. Securities and investment advisory services offered through next financial group linked member humor SIPC plans to investment management is not an affiliate of next financial grouping and is located at ninety to Washington street Dedham mass. OK. Okay. Okay. Okay. It's. OK okay. Crumbled plans from broadcast studios and the epicenter of definition yeah. This is the plan's strong financial forum when all portions president of planned stronger investment management. That I can car period the end her desk ball is not with me today it's Alice Bender CFA who is an analyst at plans strong women's discussing what the election means for you work portfolio. And don't what you should do about it and quite frankly one of the things you should do about it just give classroom calling. They. For the trump presidency 8889727526. Is a phone number 888972. Plan. Or you just go online to plan strong dot com and send an email to Alex Paul Margaret backed you on. On Monday a little bit but holly Becker on Monday you will feel Scioscia you to read ninety thinks she's little tiny vacations you do man works a lot worst pretty red and I know he makes you work hard do well or solicit this is a great week to be on the show has to talk about a boy there is good luck to turn Iraq. Well Jim let's drugs number 8889727526. Or plans strong dot com. For the break we're talk about some of the things that did fairly well though so how the stock market ended up even though we didn't think you would tell you this. Okay we're broadly yeah you know I think broadly speaking US stocks. Really rallied this week I international stocks which are you know less optimistic on trump presidency. Were were flat to down now on certainly down once once it became clear that trump was president. On the special leave the future you don't potential trade partners that are going to be impacted Murano. Mexico for example the the peso lost. No offers of 12% the stock market dropped fifteen or 16% plus. Com on on the news. Turn you know China didn't do so well and Japan also didn't do so well these are role that the the the countries that trump is really singled out regarding treat trade policy. Right and lived in previous programs Paula discussed it if you felt Donald Trump who's going to win now you could've done our currency play on the peso right. And then fairly successful Italian women rescue would have heard Chris Hughes if you could have been frozen there and do that you might as well just go to Vegas got on the front presidency would suggest the one honest and I might have been EEU to better pale excellent excellent point so I wouldn't want to talk about stocks are darker are Stark's devoted. Bonds the bonds were crushed. You know and and trust is is really a relative term because it bonds go bonds were crushed you know when you hear about stocks in crushed you know you think 10% plus bonds being crushed for the week they were down one and a half percent times doesn't sound like a lot but considering that they're paying an annual yield up 2% in May be a little bit more. One and one and a half percent and a week really eats into that pretty quickly current so you know I I think this win and the prospects for. I'm rising inflation based on you know trumps fiscal spending and fiscal stimulus. And in addition to some of this protectionist policies. Are seen as inflationary. It means traces are likely to go up here growth should remain relatively strong if not you know. New improved from current. Current weak global snow on about the prospects for interest rates with inflation has really caused investors to flee especially the longest duration. Bonds sort urinate. In our an aggregate bond fund it tends to have some long term treasuries of short term treasuries there are funds that tend to have even more exposure to long term. And especially municipal bond funds usable bond funds tend to be longer duration than most other bonds so if you've been loading up and municipal bonds. No I think that that's something you need to pay attention to is well it's not just barbs its other interest rate sensitive areas that we've talked about at length. On and and we frankly been underway these for for for quite awhile not just because. You know interest rates are going up and and we didn't do this because we thought crop was gonna win and we did it because we thought they were overpriced and we thought interest rates were gonna rise to some extent. And all the trump presidency did was really. Increased odds of future interest rate increase is maybe not necessarily December. And I think that the Fed's gonna wait to see how the market reacts intermediate term tort trump presidency before. Are raising rates in December but I do think that as of now what still very likely that they will it's I think the thought. Futures are pricing in an 80% probability in December right for a rate hikes older that's consistent with what it was before a truck was elected but if you look at utility stocks or real estate stocks consumer staples stocks. No we've been on the market was up this week they were all down significantly. When I say significantly in some cases utility stocks were down 6% or more over the you know a couple days following the you know the the the election. And same with consumer staples stocks may be done more muted three to 4%. I'm real estate stocks were down even more and I'm not just talking about this week these stocks have really been under pressure since rates bottomed in in July. Know that ten year treasuries up from you know one point 32. You know two point one it doesn't sound like a major increase but that that shift. Has causing very dramatic movement movement in the market and if you've been. You know following the old. Oh dividend stocks should should do not appear my dividend is graceful moves too much. Think you're you're in for a pretty harsh realization you're just starting get a preview of what that might be. That's why our new ad campaign. There that we've been running as an and frankly a lot of the topics of of our show. Over the last you know almost the entire year and have been about the the relative. Expensive. Nature of the stocks and how sensitive they are to changes in interest. It starts editor usually considered conservative right you know I'm married to are turning out to be so conservative at this point all right. So let's talk about some of the good just to listen what what some some specifics what did happen there was some good news I noticed some good news there. Well obviously health care stocks and specifically pharmaceutical. And Biotech stocks have been under a lot of pressure. Ever since Hillary's tweet. In September 2015. About drug prices and and really singling out companies that were. Raising drug prices without really improving. You know that the product is you're getting to the consumers. And that's led to a huge cloud over health care esta what does this mean if Clinton wins is she gonna bring price controls she can go to a single Payer system. And and that's really gonna impact the pricing. Policies of these helter. While trump when really erases a lot of those fears I'm trumped himself has. Certainly said that pricing is an issue and inflation in health care is an issue that needs to be on controlled so it's it's not completely gone. But I think Hillary was seen as a much bigger on proponent of of you know. Health care cuts then that truck bomb at the same time California voted against. I'm drug price controls. In prop 61 which is it was another Lee short term relief. To the health care companies that was you know while a campaign that was funded you know hundred million dollars plus. I'm by some of the big health care companies and they were. Obviously I'm happy to see that go their way I imagine those are big farmer was funding in the other direction little bit yeah exactly exactly so you know big pharma stocks were up. Ninth for sun some some more some last Biotech stocks were up almost 11% are now. Armed you know these these stocks still remain relatively depressed and this was really just a jump off of of relatively low valuations and we think. There could be some room for these stocks and I'd wait for things to settle down a little bit because there was a big jump mom but I do think that it it gives you the green light to at least look. With a little more optimism that the sector going for one area that's been under a lot of pressure to the last eight years is Cole yeah admired trump presidency mean for that. Well trump has promised to bring back coal. And a lot of the policies of the Obama administration led to the slow decline you know environmental standards and so forth. And you know coal stocks row anywhere from five to 50% on the election which was a pretty astonishing. I'm move for stocks have been sold repressed and certainly a category to keep an eye on going forward. And rolled steel we its moves Steele is chairman you know with with with Trump's rhetoric on. US buying foreign goods US importing foreign goods and so forth. I'm misty the steel industry was was frankly a big loser in that scenario. But with the trump win. You know he's he's essentially promised to. Improve domestic pricing power because he's gonna be you know reducing imports. And and frankly the infrastructure spending that he is you alluded to a trillion dollars worth and we'll get to that later. That would clearly benefit. You know steel products that go into that construction mirror so the thinking is that you know that it to domestic steel companies are gonna have more pricing pressure. We'll bring in more revenue and frankly they'll be more projects for them that will boost demand is at the same time. Now true no stocks were up you know again anywhere from fifteen to 20% they move. Trump is also talked quite a bit about it. Defense spending and sequester six point sequester it was a new territory in the program you know it sequester was without was a method to. Essentially tap it took it to some extent capped. Spending on defense. And trump wants to. Two to cancel that round wants to start spending again on the military. He wants to arm you know spend on cyber where warfare both offensive and defensive. An and he's frankly vowed to me. You know the US military stronger than ever sort of the defense starts doing this they're up anywhere from seven to 10%. You know they they obviously. You don't want more defense spending. And no trump has promised not just military but he's also promised no infrastructure spending which has benefited a lot of that the construction firms. You know which were up. You know anywhere from from ten to 15% as well. And that's that's stocks that are related to fixing roads bridges airports. On you know transportation water utilities has really been an underfunded area and you know our spending in those areas is below levels seen in 2003. So it's clear that Tom do you US needs to invest in some of these areas. And trump is about to do that. Which is why these stocks are beating so so positively to news and becoming president Brian what do we seen from bank speakers also they've been under pressure as well quite a bit they have I mean it's it's been. It's in fines it's been regulation it's been low interest rates. They're really kept banks. You know frankly their profitability is is much lower than it was Tom. Before Dodd-Frank time com. You know a lot of their their activities were limited based on Dodd-Frank and they've spent billions of dollars in fines and frankly on compliance cost. Just to get there their operation up and running in and frankly a trump. When is seen as positive. On its I think the main thing here is is interest rates. Interest rates are going out to yield curve is steeper. Meaning short term interest rates are still low but we're starting to see long term interest rates really go up to ten years the thirty year. And that is good for banks because they tend to borrow money short term hey you know pay very low interest rate inland money long term. That's what's called the benefit of steepening yield curve they're profit should go up. In that kind of environment the same time trump this is probably gonna be doing stinks just does to limit regulation. You know not necessarily repeal Dodd-Frank but certainly the consumer on the protection bureau is is that at risk here. On end no compliance cost to go down and profits could go could go up based on on these new museums. That's Alex vendors CFA who actually just said the phrase steepening of the yield curve and don't push your baby the first remember on this program but Jane were a learning something when we come back we'll talk a little bit more about some some really good stocks but also will get into. The bad ones with what went down and why when we return is a class strong financial form this is. All Parsons president of planned strong investment management. And you're listening to them planned strong financial forum on WRKO. Boston's talk stations. If you like what you hear on our show and what media take a look at your investments and retirement plan called my office. 808897275260. That's 888972. Plant. Securities and investment advisory services offered through an extra two group member to go as I can see classroom investment management is an affiliate business financial group think is located in Washington street in Massachusetts. Hi this is on he Nelson if you're fifty or older here's a suggestion. Commit to getting your financial house in order over the years you worked hard took chances made sacrifices. And built up as much wolf as possible so you'd never run out of money in retirement. Well. Now it's time to get organized and to make sure you have a financial plan. Who protect your retirement. If your financial lack together. Call Paul Parsons at play and strong investment management. A schedule financial checkup call 8889727526. That's 888972. Plan commit to getting your financial house in order. Call 888972. Plan or vision plan strong dot com. Securities and investment advisory services offered through next financial group each member humor SIPC plans to invest and manage our affiliate. OK I mean I'm expecting an hour. Says financial dogs and veered signing and informative. Ground at least is informative it's Glenn strong financial forum where bold portions president's bold plans stronger investment management. And I'm in curry at the anchor desk in the fall Parsons is not with us today it's Alex vendors CFA was an analyst at plans strong you were talking about. The election not not just when everybody else is talking about the election we're talking about how this affects your Parker what basically how to fix your portfolio. I don't think she you're investments and why and this from we're discussing right now which an and the we just are must use a perfect time for you do give plans strong call. Because it as Alex mentioned this is a time when that when you need to talk to a professional agent just asked what is happening in. Why wonders. A great rotation and great trump rotation now and it's really leading to some massive class is being sold and other classes and bought and it really does have huge implications for your. And if your portfolio was put together assuming there's some other people in charge. That this is the time to start to somebody about the about changing your going forward. Once again their toll free number 8889727526. EDD 8972. Plan or you online to plan Strom dot com. And sends an email to Alex or to Paul and they want to read back due on Monday and and set up employment and when you sit down and you sit down with Paul with Alex. Not just some nameless person who's who's gonna show you some new information. But you'll sit down with them and you can ask questions and they'll ask questions and let you know whether or not they think you're on the right. It's basically second opinion and this is the time to do it's we before the break we're talking about that's some things it did OK good good good good news yeah the good start better than OK Miller did some good early well proposed. Election. And so what else at another colleges. In which is strange for profit colleges really reacted and why is that. Well you know that. Obama administration and and Democrats in general have have really not been in favor of for profit colleges because. They found that it hasn't really been a good investment for the students who've been in gold and they've taken away some federal grant money and frankly they've that if for some out of business like trump university. Pray for guidance district court exactly. And and I think that their stance especially trump because of his familiarity with the area now will be much kinder to for profit colleges and and so they were some of the biggest winners. You know they were up up. Upwards of a fifteen to 20% on the trump went really big surprise for them and and they're definitely breathing a sigh of relief. I'm private prisons may be the biggest Gainer. An under trump because Clinton really wanted to put them out of business and doesn't think that they should be handling that's sort of in a business software profit basis trump thinks that private prisons were better. The public prisons and then thinks they do more which we had better cost succeeds taxpayer long term. So that. Clearly is is good for private prisons at least in the short term and see what he's he's able to do there. But but I think overall. A very big. Positive for them. And then rip refiners we will we'll talk about oil and gas a little bit. Later I think you know trump obviously is is much. A more positive for oil and gas companies you know he wants increased drilling he wants to meet US energy independent. He approves the you know the keystone XL pipeline and in wants to expand. You know US production to bring more jobs and frankly to. I'm two to improve our our budget deficit. And I think that that. Mean some good things it doesn't necessarily mean that crude oil prices are in arise mum it means that you know you might see some local. US companies and in a slightly better environment without having to worry about as many environmental regulations and the costs associated with the ten so that's you know a little bit on the edge oil stocks didn't do a whole lot refiners did relatively well because refiners didn't have a big. Assad some quite a bit of legislature that was that was hurting their profitability and truck is seen as is more friendly to them and they were up anywhere from four to 6%. In you know during the so. Again an energy overall up in the air but probably a leading to more positive for production in the US. So that's some good in the areas where some some stalks and did well. Following the election but not everything did well and there were some definitely does some stocks in some areas that went down. We set on the positive side that big pharma and and Biotech stocks were some of the big winners Mauna trump when. That's mainly because he's he's talked about repealing and replacing obamacare which probably gives. The the pharmaceutical companies a little bit more leverage on price I'm not as much concern over price controls but there were some losers within health care some big losers. And so it's not abroad by health care you know you wanna be careful there as well. Because some of the hospitals and insurers that really rely on. More insured Americans and you know hospitals in particular were a big beneficiary of obamacare because. You know millions of more insured under America's meant more patience for the more hospitals and I'm for people who probably wouldn't of gone hospitals were the types of illnesses that they went to for peace. So they those hostile stocks were down anywhere from ten to 30% morrow. You know big moves and that's certainly something to keep an eye on. Guns stocks. Were down twenty by OK no that makes no sense of yours or whatever please explain why Gunn starts were down. Well gone stocks did phenomenally well over under an Obama administration they were thought to do well under Clinton administration as well because people were so concerned that something was gonna change that day. You know they decided to run to the stores and buy guns lawless fiscal oh okay so it since it is you know he. Think about it on on any of these deep you know mass shooting days gone stocks did well obviously terrible terrible thing to follow but. The reality is you know on these days you start to see a lot more political rhetoric on gun control and people are really concerned that something's gonna come sooner than later. And they run to make sure they can still get a gun and they hoard their guns. And that's been a bit of a big boost for you know Smith in west and that Smith & Wesson and another dog gone stocks as well. Interest and so that was good so good stocks were down. On the on the I guess because folks think they will be able to buy more guns in the future. Does this and other slowly there's not such a rush to took my guards under a trump administration shows why you needed professional for some regarding this because it's an amateur myself would say oh gun structural do better until April they might have longer term but short if it's this is a short term trade in rare and I'm not saying go out. And so least in front of them are poorly on some cases I expect more downside in some cases I think it was probably oversold mom and they're assuming Trump's gonna be able to do more than he and you know it is now you mentioned energy will talk a bit more about that coming up but. There was movement in the solar area solar stocks and you know another doesn't do it yet you know I can see that says if you could hit the. So obviously solar solar stocks have been held up by subsidies him you know I think. Some would argue subsidies are important because you know allows them to survive the early stage when costs are still high. Still incentivize people to install solar panels which is what what they did men in fact this was this with subsidies were first started bomb under the Bush Administration. So it is an. Directly along party lines that this is this is a big issue and it's certainly something that that you think trump who opposes regulation opposes subsidies. Doesn't really believe in alternative energy wouldn't really support the subsidies mine and so obviously solar stocks took it on the nose they were down anywhere from five to 15%. Trump along with many Republicans think global warming a hoax. A common wants to cut spending there is a limit to what he can do a lot of that's the state level which I'll get to later so. You know I certainly don't wanna see all of that go way I'm in favor of you know things to limit emissions and so Morton and I'd love to see. You know the the that the progress still move forward on for tonight I don't think it's it it spells an end to the Sox momma talk about Tesla a little bit later also seen as a relative. Loser to Trump's administration because of all the subsidies to buying the vehicles. I'm in now. Tesla is more sort company because of the recent acquisitions so certainly it's it's something that there you know watching closely as well Brent. Now we talked a little bit about bonds before birthday you'd Kuhn also moving down where bonds and and interest rate sensitive stocks up. And and what did we learn from well I think Jeff good luck put it best you know he's he's from double on capitol the guy is has been. Write many many times including predicting a trump victory back in January and he thinks trump is very bad for long term interest rates meeting. He thinks interest rates are gonna rise under trump administration because it is pro growth policies. Because it is not trade policies he thinks that it's gonna be higher prices in the US. A higher growth nonetheless but higher prices moved higher interest rates and if if the US sees inflation in the Fed's gonna have to raise rates faster. Ticked helped calm things down so that means that you that you might see a boost of growth. But it might mean some prop problems longer term but in the meantime people are expecting higher inflation higher interest rates. Which is a very very bad thing for bonds and anything that's interest rate sensitive. So far we've been talking about what's happened here in the United States blood above overseas to emerging markets what's happening there. Know a US stock market did relatively well on this at the hope that. Trump administration would be bring more growth to the US. But international markets saw trump as a negative. Thinking that his policies would mean slower growth for especially. The export heavy our economies like China. Like Mexico and like other parts of Asia. I'm in the emerging market stocks were down you know 6% plus. On a trump when mom Mexico was down even more it was down you know foot off fourteen or 15%. On China was down South Korea was down these are all you know considered to be that the boot boot demean losers from any big trade overhaul. If Trump's trump you know follows up almost campaign rhetoric which is still yet to these. What about tech's star challenge to evade gone up down as seems a little movie true now. You know the jury's still out there on the markets reacted relatively negatively so far. Big tech companies had a very good relationship. And the riots frankly under the Obama administration and they have a bad relationship with trump. Many of the top executives openly criticize trump. You know calling him hit her making I'm making fun of them making card games about him he had to kind of bad move how do you respect. And then that many of them frankly actively raise money for Hillary and and some of the big names in tech in silicon in the Silicon Valley are you know we've been talking. About California secede from the union which it yeah we won't go there and it but but clearly they they see trump is is more negative. Relatively speaking then Hillary would have been. I'm in the tech industry. And you know some of that is is look let's talk about with some of the big tech stocks that really propel the market last year what are called defending stocks FaceBook. Amazon cool and Netflix from these are the companies that were up anywhere from fifty to a hundred plus percent last year. I'm in a year were very little worked those stocks did particularly well. And there are there down up an average of 6% since since the trumpeter ma. You know he has some some personal Mendez against some of the leaders of each of these companies. He's previously criticizing Amazon for have a monopoly in online retailing. Violating antitrust laws and he thinks are getting away with murder tax wise as he quote Lindsay says. He's also criticized around that. The founder and and CEO these hosts for using the Washington Post which is a zones as a tool for political power. And also to. You know frankly promoting Amazon and you thinks that and we we don't know how trump feels about the media. And he singled out apple he called he called for a boycott of apple products when they we're unwilling to on helped the FBI unlock the phone in San Bernardino. He's also. Pledge for them to start making their products in the US rather than in China Mac which if that were the case or keep impose tariffs on on Chinese imported goods. That that would greatly increased production costs for apple. Probably increase the cost of apple products and not just apple but you know technology products hole is so many of them get. Products and and manufacturing from from China and other areas and Ainge. Welcome back George will will wrap up to tech news and them move into some other stories when we return at supplies strong financial form this just. All Parsons president of planned strong investment management. And you're listening to the planned strong financial forum on WRKO. Boston's talk station. If you like what you hear on our show and what I mean to take a look at your investments and retirement plan called my office. 808897275260. That's 888972. Plan. Securities and investment advisory services offered through an extra two group member to go as I can sequester investment management is an affiliate of mismanagement grouping concluded that any Russian diplomats who threw six. This is Bobby Nelson. People use different strategies to acquire enough money for retirement. Some try to do it themselves. Others buy insurance for investment products though sometimes will benefit the seller more than the buyer what makes sense is to hire an advisor with first rate credentials and why do investment management experience. Should have a fiduciary obligation to act in your best interest. And be paid the same amount no matter watcher invested in it these things matter to you. Call Paul Parsons at planned strong investment management to learn more. Call 8889727526. Hiring the right advisor could be your best investment. That's 888972. Plan or vision plan strong dot com. Securities and investment advisory services offered through next financial group in member Fulmer SIPC plans to investment management does not an affiliate of next mention grouping and is located at 980 Washington street Dedham mass. Ground zero for your financial news and economic commentary. This is the plan's strong financial forum where Paul portions president of home plans stronger investment management business. I had. Hello again courier at your desk calendar follows up with a today he's on vacation and it is well loser do you shoot him a lot of working on the this fall so wasting a couple of days. And so with me through is Alex Bender Alex is a CFA and analyst at planned strong. Investment management and we're talking about Alex and the election what's happened since elections just in the few short days and things are happening pretty quickly. And it in his specifically relations tech stocks on a roll out. Overall he reacted negatively so far and untoward grow some specifics what else to widows will be learned about tech stocks is last week. Well let me start by saying we know we've talked about the stocks that got a big boost we've talked about the stocks that have gotten. May have seen big losses seem none of those were particularly surprising a lot of those could have been predicted as beneficiaries under. You know beneficiaries are losers on Eric trump presidency vs clippers right. Tech is really the wild card because tech was viewed as something that could do well in either environment. But so far the reaction that we've seen from some of the biggest tech companies. You know the apples to Google's fees books the Amazon's and so forth have been relatively negative to stocks are down on average 6%. And there are a lot of you know questions as to what we know what the recent us and I think John some of it has been. The U silicon valley's support of Democrats. Obama. Annan and Hillary and on many of them coming out harshly against trump my. You know a lot of it has to do with his. Is is some support of the American workers. Common thinking that a lot of these companies view these mega profit profitable companies because company is the world who employee almost no one owns them to some of the smaller. More manufacturing heavy companies Mariah. If you know which is why they're concerned that he's not gonna be is open to artificial intelligence and robotics which a lot of these big tech companies are are. Relying on as their next big growth push Bryan on and if he's not as receptive to that idea than some of the optimism nuts was surrounding these names and valuations. Are gonna necessarily be supportive. I think the positive side to trump presidency for these stocks has to do with taxes. And if a lot of these companies in other US companies hold move over trillion dollars of cash overseas they refuse it refused to repatriate. Because of high corporate tax rates rise trump has proposed a tax holiday of 10% to repatriate those funds. And with those funds these companies could increase share buybacks can increase dividends they could invest in and other companies increase mergers and acquisition activity. And emanate activity is is a big driver of stock market valuations does if you're scooping up companies at a big premium. That really changes the valuation landscape for the entire sector so you know it's it's it'd big question as to whether his policies are gonna be pro or con. Some of these dec big tech firms don't other stance is immigration because a lot of these big tech companies. Relied on. You know. You know. Skilled immigrants music common work for the companies. And if if she's gonna limit visas if he's gonna put in policies that promote hiring US workers over international workers. You know that that might mean that they're not meant necessarily get singing talent pool that they've been accustomed to getting this. Let's let's take bad does say way to move into immigration a little bit Alex you were talking about it because it wasn't a huge part of Donald Trump's. It is platform to argue about immigration thought he bombed building a wall. A Mexican border. What does all of that mean what could that mean for our portfolios from investors. You know that the jury's out on if he could do something like that how they pay for and he's he's of course said that Mexico is going to be Ford Mexico said capsule would not. On it and in fact we do the way that he's gonna try to get Mexico to pay for his by threatening to not allow. Immigrants who don't have visas to send money back to Mexico which is 25 billion dollar a year. Transaction ma according to it to. An article I read. And you know he's thinking that bill shell out the five to ten billion to build this wall just deceived that right. And the even despite that they've they've states it's clearly come out negative and say saying apps now we're not gonna do that. I see doesn't necessarily have the sport especially if he doesn't have a way to pay for the wall. On because you know his his senate is is is not going to approve the spending required for such an undertaken these claims it's all gonna take ten billion. Other estimates have come and 25 billion money we just don't have on the amount of concrete it would take. Would would be three times the amount that you know the Hoover Dam talk. And I don't know he's talking about 2000 mile wall it's not all that simple mosque there there is a bit of a wall there are ready there are some lands that they have to buy from native American tribes and what they're. You know a lot of Edwards here and frankly the Hoover Dam took five years to build trumps presidencies for years who knows how much you can get done how quickly you get it done and I wouldn't bank on this happening there are many other things that could you know increasing Border Patrol. On increasing deportation especially of people with with criminal records that's probably more. Short term on Trump's agenda then when something like something is massive undertaking this'll. But nonetheless it probably should increase. You know spending. On infrastructure based on his overall plan and probably in increased cost on on economic immigration control. Arm's gonna cut funding for. You know some. Ministries in reverse some of Obama's on policies including that the DC program. That Obama created it pretty much keep protection from deportation. And work permits and Social Security numbers to anybody who entered illegally as a child Mac on trumped certainly will look to derail that as soon as possible. And then you know the other big gun. Thing on Trump's agenda frankly during his campaign was to repeal and replace obamacare. Again it be difficult for him to do that entirely because Tom he doesn't have the votes you know even though Republicans voted unanimously against. I'm obamacare in the Affordable Care Act. They don't have the votes to. To turn it took to get around a filibuster from the senate Democrats. And it's unlikely that he be able do that but there are some ways that he could. Certainly restrict indoor changed aspects of the affordable health care on their more what you're from the you know he's he's talking about not allowing insurance. Companies to sell across state. Hoping that'll increase competition lower prices. He's also talking about in improving the use of tax tax free savings accounts so Americans have a way to contribute to. You know some other health care costs and tax free basis. He's talking about allowing the purchase of prescription drugs from overseas stuff generally sound like trump all. And I learned is that we're just as a way to bring he he understands health care costs are major concern over and he's gonna be looking to and that in any weekend. Mom and he's also talking about some changes in Medicaid where they you know give grants to states in the and they can handle that and then distribute the funds as they see that. He's still in favor of supporting people with preexisting conditions from getting health care coverage. And still about you he still wants people to get overall health cures covered but the reality is if if many of his policies go to go into place. Onion you might seek costs come down but you will likely see the cost are you know the amount of uninsured Americans go. With all this information now is this really does seem like now more than ever it's the perfect time to contact a professional to have a a look at your portfolio. You know other there are a lot of changes going on. Another going to be a lot of knee jerk reactions that are caused people probably. Chase returns which might might not Nestle would be the best thing to do here and I think it's really good time to reevaluate. Not just the stocks are your portfolio but the bonds like the onside is is what might change even more under this administration. So affirm the Susan would you for a second opinion to have some Lucio look at their portfolio the deep dive to the folks of classroom will do Alex and Paul ball soup with you. Give them called brutal for number eighty 97275268. BB 972 plan. Or go online to plans strong dot com and just send them an email. You know an industry leads us really Alex to to the commercials you're running now talking about. Duke defensive stocks when we're usually considered conservative stocks a lot of folks I think well this is a crazy time. So time for meeting go conservative. But oh how does this. This latest market reaction is has really exposed the safety. Brown were suppose it safety of these stocks and and down. You know we've been talking about this for a while I think people really need to pay attention. And and come to speak to us but I also wanted to talk a little bit about. Commercial were to be running next week mean kind of a new. And campaign for us and it's really against these insurance products you hear so much room that you know you see these you know commercials and people really. Capitalizing on fear market volatility in the stock market recessions and so forth. To get you buy products that frankly are probably not in your best interest in these are products that. Tend to pay than the commission's. Pay the insurance companies and lots of fees and you know after all that when you get as frankly as does an. A return that's far inferior to what you could probably get it he's just invested in a normal. Diversified portfolio. And you know you'll you'll hear us talk about investments that are guaranteed. Investments are not gonna lose money in a down market but can still participate in the upside down right here on an early sound too good to be true and and in many cases they are. And all we're trying to do was to educate the investors on what they're not telling you. My and so if you have. Fixed indexed annuity if you have a variable annuities that are considering buying. Or any other insurance product. I can't speak strongly about them. On the show but if you'd like us to that kind of give you an idea of from someone independent not making commission here on what they're really buying and what they can expect in return from this sort of a policy and give us a call we're happy to do an analysis for. Don't remember once again eighty 89727526888972. Plant or you can go online to plant strong dot com. Alex thanks for being here this week old view I actually still has a lot to talk about on the election absolutely disciplined strong financial form. This is all Parsons president of planned strong investment management. And you're listening to them plans strong financial forum on WRKO. Boston's talk stations. If you like what you hear on our show and what need to take a look at your investments and retirement plan called my office of EDD 89727526. That's 888972. Plan to.