Planstrong Financial Forum 12-10-16
Dec 10, 2016|
"Smart investing, simplified"
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
From the plan stroll in the broadcast studios it's good plans from financial forum for your host. Ken carver and the president Roh plans strong investment minimum. Full portions there's two I'm Bruce Morton investing. Simply thought. And I can Garber at the anchor desk along with Paul Parsons is supply and strong financial form and a Jean Paul anything happened this week now as quiet action let's talk surely know is a terrific week just an amazing week we've actually had an amazing few weeks the pound in the markets we are a lot to talk about we do when you've brought with few your new paper and we have to talk about that gap and this is a paper that people need to get ready to do they do what Roger tells why the why that's important and we need to start of the program to learn about the paper. Of course so this paper is all about. Moves to meet in 2016. In anticipation. A what's gonna happen and 2017. And this century normal hero and oh you're a few things you need to do to tidy up and make sure you get the last bit out of Europe are taxes and so forth. What we're anticipating is in the trump presidency a significant. Tax cut in fact the first major tax cut. Since 1986. Which by most people's count thirty years is a generation or ignore it and the only by the way they're always been to presidents in the last nine years until now. That of Don major tax cuts the first analyst John Kennedy and unfortunately never lived to see it enacted but he had it fully ready to go Johnson put it in place in 1964. And on the other one was Reagan now he did one in 198182. In the other one in 1980 sex. So who presidents in nine years of cut taxes but. The importance to that is from an economic perspective the economy. Goes. Accelerates. And it accelerates because people not have more money. Tea to spend on things to reinvest in their own whether it's in stocks or. Buying additional products and services or whatever it literally. Fuels the economy and what we saw for GDP growth. After those two presidents did that was very very strong you know I think of you know 456%. Are. Yeah some of those numbers have been in some of the papers are TV and it is amazing what happened and in mid sixties and mid to late eighty's that's right GDP. That's correct and and so that's why you yelled I view this as horrific. From an investment management perspective because. You know I'm saying torque clients hate guys all bets are Roth you know a year ago we were saying we hope to squeeze six or 7% out of this market in the coming year and now I'm not using the squeeze word anymore frankly I see. Significantly more growth still left in this thing because. Don't think that this will your company opinion 35% tax rate also mayor paying a 15% tax rate you know you got a lot more money available to either or plow back in your business. Hey as additional dividends. By Iran's stock back in a figure something out but it's it it's just stunning how much it can help the economy the point basis. From a tax perspective a lot of people look at and say OK so next year things going to be really good for me so when I can't wait for next year to come murdered but. What they're missing is do you actually need to take some actions this year to maximize. The tax benefits you're gonna get under reap high year. Tax structure this year and that's what this papers about his moves to make this year 2016. The next couple weeks in order to be able looked paid the least amount of tax in both 2016. And 2017. Max the key. We'll talk later in the program some specifics of what we think might be happening with the with the new tax plan but. The thing to do right now for folks is to call your office and request. The paper to say I want the tax paper did you name email. And phone number and do get the debris Mildred down to you on Monday morning and a at a phone call back the back because it's also time Paul. Ended the year beginning of the new administration that really quite frankly changes everything. It dies it's it was a complete surprise Jenny but I mean. I guess there are handful of people but that thought that that trump was gonna win and that the Republicans were gonna win both the house and the senate how our car has learned aren't. Probably is a short list straight up and I mean all you have to do is look at what the probabilities were ascribe to the different combinations. Of who would take the president what party would take the presidency the senate and the house and I think you know the three yards Republican senate Republican house Republican presidency the probability that was incredibly low and sell what it means is most people. Have structured. Dare investment portfolio in anticipating for example a Clinton presidency I think in I was very highly likely in most people's minds that Clinton was gonna win the presidency. And if that was going to be the case then think about the things that she favored it and think of some of her policy. Our comments. Of things or out of favor with her you know for example if you're an alternative energy company. On you probably thought things are gonna go pretty well for you when you're probably reassessing back right now based on the fact that. You know trump this is tired any PA guy that is. Is not exactly sympathetic to everything that the EPA's been doing so you look at that and you look at the profitability of a company like Tesla the gets a lot of their profits truly from the east. Tax credit seized. These sound on incentives that the government is essentially created out of thin air and is paying to the company won't those things may go away so if that doesn't change and by the way I'm not suggesting you buy or sell tassel amusing as example of change in how the environment has changed pretty dramatically in just three weeks for a three weeks ago people were thinking while. You know Collins going to be the next president. Probably wanna stay clear health care to a degree simply because she's talked about all of you know prices are too high and maybe some price controls on health care and and so forth and the same thing with a alternative energy and other side boy alternative energy might be a good place to be because. You know she's she's very supporter Robert very supporter of the green and a whole movement and and you know what a difference. A few weeks Sharon said this would be the time to call your office they basketball's number 80889727526. Ask for the paper and ask for employment to sit down with pop before year end. To look to see if your portfolio is properly allowing for what's to come and there are things that you need to do is balls mention this year the paper will explain them. Paul was be happy to sit down and talk to about the this year than you can do to not leave money on the table as process and the reason you need an investment person for this is because some of these moves. Involve your investment. And some of them involve selling or not selling investments and Dick Dick next question is which ones to sell. So it's not just OK I get it I should do some things this year may wanna the first mother things till next year armed but then the question is which ones and that's why you need an investment person to make sure that what you're doing on the tax side is consistent with your outlook for the economic outlook for what you're doing on the market side. Pulls the murder and eighty date nights have been 27526. ADB 972 plan or you can go online to plan strong dot com. And just simple and email well all here we started the program out to argue about G anything going on one week in our in in the markets and soc harshest critics have even smiling kids yet. I can highlight just laughter I I actually clients are coming and in my office and they're smiling and they're saying you know this is terrific and they and they look at me and they say you don't seem that concerned and on my reaction is I'm not move on because. Here's the key thing what as it relates to stocks and stock valuations and so forth you are a question that people could ask is. Hey do you think the the market's getting frosty do you think it's getting too pricey. On and the short answer risk. There though the price earnings multiple right now for the yes and 500 which is an index of 500 largest up publicly traded stocks in the United States. I'm is you know around eighteen times earnings and you might Sewell geez that's higher than the normal sixteen times our necks for a or fifteen times earnings but cures the difference what your swamping IC. I think earnings are gonna recover pretty substantially. In the next year and so that quotient is gonna come down mom and and that's I think part of what the market is anticipating that if you pay less in taxes you're allowed to keep more drone earnings for example. On and then you know the other thing it's anticipating is. By doing that there's gonna be more economic growth and as a result earnings will increase as a result of that so you look at both sides of that and I think that's why I am significantly less concerned that I would be otherwise would have a multiple in that neighborhood and we did see some record highs this week what he'd hit you know US stocks this week were up two to 3% a pretty good week criticize him very yeah and they're now op at. Think about this can't they're now up somewhere between eight and 12%. Year to date not including Democrats from eight and twelve. Person sink back into January early February right sheer mark. Was down ten or 11% now it's recovered all of that and another eight to 12%. As astonishing rate is not and at the same time even international stocks have finally kicked in to the positive side of the ledger. Where for as you know for quite some time they've been flat at best I tougher year to date they are now up about 3% year to date. And even European stocks are up 1% year to date in dollar terms are up 4% in local currency terms so. Overall this past week I think you saw a lot more optimism around the globe again as it relates to wealth the United States economy's doing well could that be good for example other countries' exports stuff. To the United States. The other thing that makes other international countries. I feel better and wider markets might be doing better. Price of oil price of energy price of energy now what's the price of world this past week it's around 51 bucks a barrel for west Texas almost 54. Barrel. For a brat so think about that again we're where we infect your route 25. And sag on exactly think about it. And so you know the the prices doubled and it's not even close to where I think it's gonna be. Are in the next tour three years I really do believe that the price of world will. It's longer term equilibrium price is much closer to in the east room and that what you're seeing is the depletion of access inventory. As we work our way back up from 25 up to the low fifties eventually to back to eighty dollars a barrel. And this all have and as you say you're in less than a year rear BB ten months or so from the low and I know you want pat yourself on your back but I'm a little bit because you wrote a paper last spring when things were looking grim yeah oil. Structure those are under and you tell people they don't panic yup is this why we are not panic he laid it out very clearly eyes O'Donnell win them. Oh no no this was actually gave you supply curve and and both on a marginal cost basis as well as the total cost basis and and really explain why there over time and how to recover. And so sews some folks who perhaps are using you as a running out of your maybe samples were more pen making our folks who don't have money manager may have set a time to get out of oil. If they did so long time then that's mr. Robert doubling of the prize. Absolutely right you know when we come back we'll talk a little bit more about oil Kenny but then I have a bunch of very important stories to covers well for this week old stories coming up its plans strong financial reform this is Paul Parsons president of planned strong investment management. And you're listening to them plans strong financial forum on WRKO. Costs talk stations. If you like what you hear on our show and what they need to take a look at your investments and retirement plan called my office. 889727526. That's 888972. Plan to. Hi this is Bobby Nelson. People use different strategies to acquire enough money for retirement. Some try to do it themselves. Others buy insurance or investment products though sometimes will benefit the seller more than the buyer what makes sense is to hire an advisor with first rate credentials and why do investment management experience. Should have a fiduciary obligation to act in your best interest. And be paid the same amount no matter watcher invested in if these things matter to you. Call Paul Parsons at plan 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 and member farmer SIPC plans to investment management is not an affiliate of next financial grouping and is located at nine Washington. There. Okay. Okay. It's. It's. Crumbled when strong broadcast studios at the epicenter of capitalism. This is no plans strong financial forum a group called portions president of planned stronger investment management. An agenda Gerber is the anchor desk along with all of and we're talking about one great week what a great three weeks we've had in the stock market and Paula guess the next push will be one vote on the bond. Side was gonna so as you'd expect Kent bonds haven't done as well Aaron you know given the fact that people are interested in taking on more risk by going to stock market. Then you know the price of bonds is likely you're gonna drop a little bit you you expect to see yields up yields on the ten year US treasury right around 2.4 percent this this week. Yields on the German bond right now our about point 4% so positive better than zero where they were three weeks ago and even the Japanese ten year is around 0% so frankly it's interesting while stocks have had a pretty good week bonds haven't lost that much you value this week goes yields should sound familiar because that's exactly what we talked about last week's sell stocks continue to look pretty good. Our bonds not not as good but at least not going completely down on the train at this point now is the dollar continued to be strung it hashes and it didn't move much this week you know again you're you're looking at armed it's a dollar six per Euro and it's a 114. Yen per dollar that should sound very familiar to again where we were last week the Euro and actually improved a little bit this week but then dropped. On one of the new stores I'm gonna talk about which is the European Central Bank came I said they're gonna actually stretch out their bond buying program more longer than they originally had anticipated doing so that weaken the year. There we talked the first segment bit about oil but let's look a little deeper into that any movement on the on the you'll -- story yeah so I'm OPEC has an important meeting on this week you know this weekend great now on where they're getting to gather with non OPEC. Major producers including Russia and what they're really doing is making sure that those countries also agreed output cuts much like OPEC did in their meeting in Vienna a week or two ago. And all of that is essentially good news because if they are able to hold those output cuts that's what's gonna continue to keep the price of oil above fifty and hopefully approach beat the target price that OPEC Castro well which is closer sixty dollars a barrel. Nor vote crude inventories. Inventories actually came down this week that was another good reason for the price of world come up little ball we always address government dated this been released what came out this week we should Norma well let me just start with one that came out the prior week that I didn't talk about and and then I wanna go this week there was very little data that came opposite shorting a church but last week that the big report was the employment situation report the jobs report November and it was okay it wasn't terrific it wasn't terrible and I think that's something I I didn't talk about last week show I just wanna make sure covered this week. I'm because last week to a great degree almost all the other data was robust and I think probably in the most robust of all the data last week was act consumer confidence number a 107. I mean that it was the highest since 20062007. On it is really a very strong indication up post election that the consumer feels good and and if you're an investor out there that's really important it's stinks because when you go over to the mall you can't find apartments faster but as an investor it's good news because if consumers are confident. About their outlook for the economy for the outlook for jobs heard the outlook for wages. And what it means is they go only spend their money in the stimulate the economy this is exactly the opposite. Of what's happening in Japan right now it's very very good for our economy so that was probably the best piece of news last week on the the jobs report was OK we added about a 178000. Nonfarm payroll jobs but even twenty you're 25000 of those jobs were government Johnson so was he was sacked good and number -- anything over 200 would be a robust number. A learning how was they revised the October numbered down from a 160 down to about a 140000. Jobs so overall not a terrific. Our number that did the best thing I can say. Is that wages were up 21 half percent from a year earlier that's not great but and and especially the last month they were only barely opera. Tom though good unemployment rate. She clearly came down from four point nine down four point 6% that's pretty darn close to full employment of the river was one the bad news is labor participation continues to be quite. Quite low but. Overall I would give it ought it'll be. I mean I'll be right around to be. As far as how good report was a was a robust it certainly wasn't bad and and certainly isn't bad enough for the Fed not to raise rates in the coming week bullets as he hit that is well that's that's coming of this we it is on the forty jinx yellow so -- what does that look like they're going to do what might that mean well you know after this election and after cracks that nobody believes any forecasts sending out but if there's a 97%. Probability based on Fed Funds future and so this is people betting with your money. Okay I'm there's a 97%. Probability that the Fed is gonna raise rates by 25 basis points or point 25%. A lot in the meeting on the fourteenth. And do we think that any change is to the economy's already built in at this point or do we think that might have some effect I think it's clearly anticipating I mean what when you have that higher probability there's very little that isn't priced in at this point. If you did have a little bit of data that was released this week would we learn. Yeah I was actually good news it'll last week we talked about how the manufacturing sector had finally really started the show more robust growth and expansion that's really important the services sector was we had both reports on the service sector which is actually bigger than a manufacturing sector in the United States at this point. And we saw which are strong expansion in both of those readings are that was very good news again underlying. A the overall state of the US economy the other thing was initial jobless claims came man. Very very low again we'd we are not laying off people on there at any kind of a degree on at this point what were doing is seeing modest are actually better than modest growth in hiring armed but weren't seeing on the other side we're seeing very few people laid off. And policy guy do we target wrote earlier but it's important because the tick tock the clock is ticking down there is is coming to an end and you have the new paper which pushed really should call and ask for now. Post over number 8089727526. That's ADB 972 plan. This is a paper really that sit about the changes in the tax and what you need to do this year. Right this is that your typical I year around you know this is that your dad's Oldsmobile this is not your typical year and this is the third time in nine years 909. Years three generations. That you're gonna actually see a major tax cut from coming up and it's not just oh great boy I can't wait for that to happen. Happen not I wonder how much I'm gonna save for actually things you need to do this year in 26 team. In order to minimize the taxes you pay and both when he sixteen and 2017. And so I strongly encourage you call for the paper reduces the time where if if you get past when he sixteen you can't go back and take advantage of moves you have to call us now get a copy of the paper and take a look at the moves that were suggesting that you make in order to minimize taxes paid both this year. And next year recognizing that you've got a big tax decrease coming next year. Also free number again he needed 9727526. Newspaper of course is free of charge be emailed rent out to U eighty 8972. Plant or in long lines plans strong dot com and just send an email. Poet has some news stories this week a huge story I mean we talked about this Rubin talking about a for several weeks there are DL Europe remember to cure it'll. Yes yes so. There are a lot of people looking for wore these days and Lauren Pollock tell us who were looking pretty good six or nine months ago amazing how you think about David Cameron and in Britain right. You think about you you know all Lon the president of France right now and socialist president. He's announced he's not even gonna run again Mays okay is that stunning it is and now our friends either the prime minister of Italy and the darling of the media guy Omar and word they've seen so many specials and up until the election gassed about how this man was going to save the world what you know what's interesting about he's in his early forties he's handsome handsome as far as Matt absolutely and and all of that I think really lends itself to me then and now -- out of work and now he's looking for work. And and what's even more interest thing is he's kinda guy as a leader. He was not your typical politician he was actually going India Italy and trying to make some real reforms he was trying to. For example we get people to work more hours per week in improve their productivity. Was trying to knock down for champ coach some things or making our Italian workers less competitive. Whether it was option a or holidays are all kinds of things so he was kind of hard liner were already. On but. Nothing really has happened in Italy that would show that that there were there economy's improving. And so on the Italians said. We're not seeing good results here so we're done with -- and that was an out and and it was another if you will populist. On expulsion. Of somebody who at least the media considered to be relatively popular and what's really fascinating about this is a key was. Offset by this group called the five star movement and the five star movement up. It stinks that big changes are needed in Italy and and one of the biggest ones the five star movement would like to seek. Is you know certainly much less immigration and even doing a referendum as to whether or not Italians would like to leave the European Union now so you know that and they have by the way now the biggest block. In Italy as far as ace one solid voting block they own about thirty or 35% of the voting bloc in Italy at this point. So ran Aziz Al. On the five star movement has some power it could get more power for can put together arm a coalition government. That could promote what its interest in and including like I said kind of anti immigration and on you know and and potentially even going back to some sort of a currency that is no longer European new Europe the Euro currency welcome back poll talk. More about this from what it might mean for the EU if another nation believes and am a big ones such as Italy will discuss that when we return is the glass front and natural form. This is tall Parsons president of planned strong investment management. And you're listening to them plans strong financial forum on WRKO. Boston's talk station. If you like what you hear on our show and what you need to take a look at your investments and retirement plan called my office of 808897275260. That's 888972. Plan. Securities and investment advisory services offered through metro metro group member to go as I can see classroom investment management is an affiliate of this financial grouping that is located in Washington street domestically and six. Hi this is on he Nelson if you're fifty or older here's a suggestion. Commit to getting your financial house in order over the years you worked hard took chances made sacrifices. And built up as much wealth as possible so you'd never run out of money in retirement. Well now. Who protect your retirement. Rich your financial life together. Call Paul Parsons a plan 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 linked member humor SIPC plans to investment management is now an affiliate of an accident pumping and OK and I needed Washington street Dedham mass. Says financial talking revered signing and being informative. At least it's informative its plans to own financial forum where cold portions president's bold plans stronger investment management. And I gender are very happy anchor desk along with the ball Parsons is the plan stronger financial Foreman we're we're talking about Italy and some of the news from the news stories that investors really need to know about a one of them is coming out of Europe and talked about the fact that mr. frenzy is will be looking for work very shortly has a lot of extra time can answer that's exactly right what might it mean if Italy pulls out of the you know. Well think of it this way on EE this is going to be an incredible year for Europe and European Union right now you've got. But the top three economies and European Union are Germany number one France number two Italy number three all three of them. Have either referendums. Or. Elections. In this year. So I mean think about the potential turn over and then you look at how each of them are going. On let's talk about France first. Are actually do Germany first om Merkel is announce that she's gonna run for fourth term she runs for election this spring. By all accounts. Our she's got to work cut out for this is not a lay up this is enough ol' everybody loves me N and I'm gonna do great kind of situation. I I don't know how she's gonna do there are many people were saying that she will not survive and that's one rough the next one. And who fills that avoid an on what basis. I don't know but if it's something other than what. What she's been promoting and armed and it's likely that there would be a change in immigration and potentially. I'm even how the European Union functions she's been the de facto. Leader running the European Union via did drew Decatur everything is strongest voice. But he. It seems to view the EU really base itself primarily on this idea of hey you can cross borders open and without a doubt if it's or not exactly right if for. Core principles all of which involve the free flow of something whether S capitol or people are bunch of other things and so if people are continue it in fact if they insist on people being able to move on fatter and without it. Any kind of delay or chance to assimilate them and you know what you're seeing is a real populist backlash against that that's what you saw with the cracks at the last Joan and David Cameron who we would ask me you know who were the big players in the European Union where then although don't get that a second month in a Briton was clearly one of a major player in the in the European Union and you know what happened was David Cameron barely Dirk went to Merkel may be a month before the referendum and said hey listen. On we'd really. You need a chance to just assimilate these people and can hit the pause button just for a little while. Well we assimilate these people into our communities and then we're happy to restart again. She said no. Know either you're in or you're out eater your part of European Union and you believe in the free flow of capital and money is in labor and everything else or you don't. And or four weeks later David Cameron was looking for work okay. Arm and now you look at Germany she's gonna actually have to face herself with the wrong people and then you look at France. The lead or France right now alarmed that art is not even gonna run for reelection. And the reason isn't because he just had a stroke of humility it's because. He looked at the tea leaves and saw that he had under almost no circumstances could he when his own primary and let alone. I'll win a general election so I he's es side declaring victory in and walking off into the sunset. And it's clear what's happening in France's it's either going to be feel all or who was kind of a center right person. Or it's gonna be Le pen who is a far right person who's very much any immigration and hey let's put the year old European Union membership as a referendum question in front of the French people. So you know it's likely that there's going to be some change in France and the question is how much changed. And then you go to Italy we just you know hit that recently where it now ramseys lost on the you've got a five star movement who has the biggest. Are functioning at our party now within Italy and they are anti immigration they wanna put European Union on. A referendum question and you know it's gonna come down I don't know if that's gonna happen or not but it certainly unsettling and so what you're seeing is the probability. Of the European Union continuing to function. In 2017 in the way it has in the in 2016 and and prior I think the probability is gone down it's gone down pretty significantly in the last few few are months starting with the wrecks it. Then having trump when believe it or not that helped the populist tide in Europe because people looked at the United States they were told for months and months and months and Hillary Clinton was commute next president there's no way around it and ash did not and trump said don't believe it I'm gonna win and I'm here for you on the populist. And he won. And if anything that's added fuel little farther people believe that our populace can win elsewhere in Europe if that happens it's likely the European Union falls apart if the European Union disintegrates in one way or another it's gonna mean slower economic growth for Europe for awhile because it's gonna mean a whole bunch of changes of rules. People are gonna have to relocate. On its gonna slow economic growth and act that would slow overall worldwide. Growth as well now. Austria it was one country that that held out of bed they did not go anti immigration as a as everyone else has been doing the right thing. That's actually true Austria had their presidential elections on Sunday as well just like on Italy did. Arm and the the president of Austria's actually more titular role than anything else they don't really have a lot nearly as much power ceremonial rather than really ought. A powerful position the parliament really runs Austria and so. Even though that the guy who was running as the populace lost. On. It's actually interesting because there's a real chance that this party the Freedom Party. Could remain the strongest party in Austria and eventually kind of wrestle control. Of their parliament so even Austria where that your right and he did vote offer different person be president it doesn't necessarily mean. The the Freedom Party the Populist Party in Austria will not really govern Austria in the coming year. Know you mentioned the fact there are some changes in the bond purchases of Europe to enhance nutrition store while this is here which I mean and the other thing that happened last week was Mario drive he came out. And he announcing your idea or European Central Bank announced that they're gonna slow all monthly bond purchases from eighty million euros to sixty million euros. A month and by the way that's a lot of money OK but. What what are and the market first interpreted that to mean all while they're actually going to slow down their quantitative easing so actually that means there are economy must be in better shape than we thought. So it meant that the Euro actually got stronger for a little while. But then as drug he continued to speak what he also said was he said but listen I'm gonna prolong the program it's no longer and get going to end in March Unger to prolong it by another nine months through the end of the year and so by the end of his speech actually Euro dropped in value from a dollar rate Don what dollar six. And what it really were flax. Is a continuing desire by the the European Central Bank to support. A Jiri European economy date thinks they're still play any of risk to dare growth not being substantial enough and so this is up a really important factor because. There are going in the opposite direction of the US run the Fed is clearly very likely gonna tighten. You know next week in the US and the exact same time if anything. What you're seeing as the Europeans saying hey listen we're gonna decrease the amount of bond buy and we buy but. Even though we're decreasing a little bit or really didn't do was extend the program longer that's a step in the other direction and it really shows a disparity between the two economies European economy and the outlook for European economy vs the outlook for the US economy at this point. Paul we're talking about so. Of the changes that have occurred since he election and our drug prices drug stocks that's one area we thought we knew how that would react but were we wrong. Well this is gonna be the fun part of dealing with a Donald Trump presidency is yen average. I thought I agree we are look I thought the certainty. Of health care stocks and specifically pharma and bio attack getting hurt. By the Clinton presidency was probably pretty high and the reason I base that was because she had been pretty vocal. And even gone to policy statement saying hey guys I think you know there's there's price gouging you know these are -- and you know talk or those aren't dog whistles o.s are just whistle Wes right yeah there's price gouging going on we need control. You know that the company should control these are or maybe day needs assistance controlling them. Is your phrases like that you know the price controls could be coming or certainly on an awful lot of pressure coming off from the government and and so we expected that would date clintons are presidency put. Here's what happened. In you know trump won the man of the year a four time magazine or. On and as part of that interview he was quoted as saying I'm gonna bring down drug crisis. And so people are looking at that. And and they said at first they thought well armed you know he's not gonna be as active as Clinton. But this this time magazine interview is a little trouble and so what we've seen is that drugs and Biotech. And recovered very well after trump was initially elected to the first 45 days they were up substantially. But they've lost about half of that value that that op since then because of this interview and this expression in time magazine that perhaps you'll be a lot take a closer look than people thought at drug prices might personal take. Is he's looking at drug prices as something as the populist ideas. He's gonna make sure that people don't do stupid things yeah but I don't think he's gonna be nearly as as hawkish. And as as Clinton would have been in the same odd circumstances. Ample once again we should remind folks about your paper the paper that talks are things that have to be done this year before the end of 2016. You can call Paul and ask for the paper eighty 89727526. That's AD Dade 972. Planned or go online to plan strong dot com. And in all of this it has to do with what we assume will be the biggest tax cut in a generation. One and you know part of thing that's happening to right now candy is some people are recognizing that OK there is tax cut Conning coming that's great but there's nothing you can really do until you know exactly what it's going to be I don't share that view I think there are some moves that you can make now. That under almost any circumstance can meek and still benefit on pay less tax both this year. And next year if you make those moves now let me just give you one example there are people out there who many people were subject to the alternative minimum tax and many of them are not super wealthy. And do you know that the AMT is actually gonna go way under a trump presidency and under any of the proposals the AMT goes away all that happens then there are certain things you may wanna do. From an investment perspective that you may not be aware were you may wanna delays some of those moves. Until next year on the other hand. There may be some things that you wanna do this year in order to maximize. The benefit you get from some of the higher tax rates that we have this year finally one last thing the air is a very good likelihood that there will be a cap. On deductions. So if you're somebody who earns a lot of money and as charitable and gives a lot of gifts away to people then you actually may see you were our ability to gift. I'm reduced. After a trump presidency takes impact seem action may wanna do something this year before it's too late. Once again 889727526. And asked for the paper moves to make this year before the tax code generation it's a glass front 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 immediate take a look at your investments and retirement plan called my office at 808897275260. That's 888972. Plan. Securities and investment advisory services offered through metro metro group member finger as I can see classroom investment management is an affiliate business financial group thinks is located in Washington street domestically and six. Hi this is Bobby Nelson. People use different strategies to acquire enough money for retirement. Some try to do it themselves. Others buy insurance 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. That's 888972. Plan or vision plan strong dot com. Securities and investment advisory services offered through next financial group and member former SIPC plans to investment management does not an affiliate of residential roofing and is located at ninety to Washington street Dedham mass. Ground zero for your financial news and economic commentary. This is the plan's strong financial forum where bowl Parsons president of home plan stronger investment management. It's the. And I didn't carver is the anchor desk along with all Parsons is less strong financial reform and we have had a busy week while talking about a lot of the news stories of people need to know about what's going hungry the stock market post election. And of course from talking about your paper because it's it's just boy would only get three weeks left and the years coming very fast. And a lot of people don't know that beat that there are things you have to do now all before the new tax cut comes at a time and it's not just your typical year and stuff that we're talking about here there are specific moves to make now in anticipation. Of changes that are going to be coming in 2017. With the biggest tax cut in a generation we haven't had a tax cut like this since 1986. Think of that. I know you outlined a lot of those tax cuts in the paper folks should give call now EDD 89727526. ADD 972 planned or go online to plan strong dot com. And just say. I want to fax paper at being mile Cuba on Monday but give us a couple specifics faulty might have referred to because. People might be thingy what do you mean why should I have to do something this year you know my taxes next year. Right below me just give you couple first of all the papers all about individual income taxes and how individual income taxes are changing. I didn't even address the fact that corporate income taxes will likely change under a trump tax plan. A bank and by the way let me just give you one example of what could benefit from a corporate. Our income tax reduction. Are you knew from an investment strategy perspective perhaps look at companies that are out there that are literally paying. 3435%. As they're effective tax rate you know a lot of the big companies don't pay that they don't pay it because they actually. Huge amounts of deductions and exemptions and frankly right costs and allow them to keep their earnings weighed weighed down protect. But there are companies don't just give me an example like Costco and I'm not recommending buyer soul Costco but. CommScope has a 3435%. Corporate tax rate. OK so if that tax rate comes down took fifteen or 20%. What's gonna happen to the earnings of Costco they just got a really really nice spoke straight short and so you look at that and say are there are other companies like that. That not only will only see an immediate positive impact to their retained earnings but also world they have better economic growth has now they can redeploy the Rhone capital in ways that they couldn't otherwise because they paid in this tax to the government ran it so that's just one example of what to do or from a corporate tax perspective one idea of an angle play but on an individual income tax perspective. You know trumps our proposals have you say a couple things first of all he's gonna simplify and lower income taxes being paid by most Americans he wants to eliminate the estate tax day so that's nice. And he's also committed to repealing and replacing. The affordable care care Obama character that's important consumer taxes associated with that. If people were also paying as well OK so let me just give an example of a couple things are gonna happen let's talk what income tax rates because this is something that a lot of people look I make sure were to go from seven brackets down to three brackets. I. So it's going to be greatly simplified and the highest bracket is going to be 33%. Let's market to be 39 point six it's gonna be 33 so if you make over 400000 dollar Syria taxable income in excess of 400000 dollars year or so. The everything I say by the way in this conversation is just generalities cause I don't we get into specific numbers but. Over that amount your received a significant decline. In your affect you you're you're a marginal tax rate but. The wind that other people are gonna see a significant. Mom decrease in the taxes that they pay is because. The Tom deductions and exemptions that are going to be happening are also going to be changing let me just give you one example right now of this standard deduction for families about 121000 box it's gonna grow. 230000. Dollars okay your family make a 100000 bucks a year are. I've G if you don't itemize your deductions. Then all you Gaddis 121000 dollars deductions to to take off before you start calculating your taxable income for a blood numbers went to 30000 box OK so instead of 90000 need to actually done a 70000 taxable so just think of what this is gonna do as far as knocking you down into lower tax brackets so it's not just that the brackets have been simplified and are lower but also of the deductions and exemptions are gonna be higher especially for middle America the middle America's going to be able to keep more of their money and what's are gonna do well that should stimulate the economy unlike almost anything else -- you and I talked about at the beginning of the show. You know we've had two of these major tax cuts in the last nine years each time whether it was Iraq Kennedy Johnson in the early to mid sixties. Or Regan in the early to mid eighties we sought to horrific GDP growth after them why people had more of their own money. What do they do would that either invested it where they spent it all of that's good for GDP growth soap. The deck gives you one example a lot of things that are gonna happen the other thing it's kinda interest and it's gonna happen is the marriage penalties gonna go away and many people know this that you know if you're two individuals each to make 70000 dollars or let me say keep it simple keep it a 100000 dollars a year here too individuals. They make a 100000 dollars a year. Pay less in total income tax down one couple that makes 200000 dollars a year that's going away so. You know the disadvantage. Of being married but one of the dissident how fast how I never said that I want you to know that I'm in trouble John I I couldn't disagree with Ken Moore that's all I have to say. I anyway that the marriage penalty is going to be eliminated as a result of this. And even capital gains taxes could come down. On certainly they could come down because the three point 8% Medicare surtax on net investment income with the repeal of the ACA is gonna happen so. I can see some really good stuff happening here as well there there are whole budget changes coming on but here's the important thing. He actually have to make changes. In 26 teen. To minimize. Your taxes paid combined between 2016. And 2017. That's what I think a lot of people don't understand they say. Okay this is grade on their pay less taxes next year that's awesome but we actually have four or five moves that I put in place in this paper that say you're moves that you can make this year that if you do a lease this year it could actually decrease the total amount of taxes you pay between. This year and next year and once it goes into next year you can't take advantage of the strap. Sorry tomorrow's yeah postal remembered to find out what those are you can. Get that paper Sandra do you emailed personnel melded you don't have email some people sometimes say to. Yeah I don't have email that's okay like my dad he says some of the paper up to my house ultimate gamble no no problem that you do that as well. 8889727526. EDD 8972 planned. And by the way you might say well why is an investment guy talking about this one up over tax guy talking about us the answer is because. These changes don't Justin's got it to don't just involve. I tax they also involves selecting investments. Two are used to actually deploy the strategy. And you have to protect the I think it's mix in incredible Mon sense depict the investments. There are consistent with your investment strategy to either sell or hold on to based on what you're trying to do here so you need an investment person. To make sure that your your tax moves are consistent we you're investment strategy in your investment outlook. You can also get the papers and you by doing it planned strung dot com and sending an email to Paul and his team Paul courses is that it's a work in progress still and it sure is I mean that's the other thing that's out there and like I said don't get stock. By saying well we don't know what's gonna happen there are definitely some things that haven't been worked out yet for example you will these changes be retroactive. Historically they have been on will these changes are going and 2017 or 2018. You know treat TBG you know it depends who you believe. I actually believe we will see these things go one place I think they're gonna 12017. And I think they will be retroactive I've been wrong before but that's all based on what I'm hearing and seeing from president elect trump and his advisors. Might some of these. Brought in step by step through and I absolutely they could be in fact you know when George Bush up put in place some tax cuts they were actually rolled out over five year period I certainly hope that isn't the case here. Once or what do you do to for the into the program has to do Warren Buffett who was who is telling everybody to vote for Hillary Clinton. And yet it appears says he's he must be happy with the election results thus far. You're actually right I mean it it's I call us the irony department here's a guy who he was clearly a supporter of Hillary Clinton and he was a real critic of Donald Trump bright but now he's one of the biggest beneficiaries. Some. Of this market rally. And it's boosted everything from banks to railroads which by the way Berkshire Hathaway which is Warren Buffett's company moans. Or invest in banks to railroad. And so it's interesting because at dug the broader markets are up three to 5% since the election trop. Berkshire is up almost 8% in the same period. OK if all that definitely. Qualifies for the irony department the Aaron award of the week but just remind our listeners before the Wii and the program call now for balls paper. It's it's free of charge and really can help you it's stuffy need to do this year before the end of the year and that it's coming fast. Eighty 897275268. DD 972 plant are going to plant strung dot com. Paul thanks for all the information we'll see you next week have a great weekend to supply as strong financial form this just. All Parsons president of planned strong investment management. And you're listening to them planned strong financial forum on WRKO. Boston's talk station if you like what you hear on our show and what you need to take a look at your investments and retirement plan called my office at 80889727526. That's 888972. Plan. Securities and investment advisory services opportunity for me to prevent member Tim as I can sequester investment management is an affiliate business financial group thinks is located in Washington street diplomats who threw six. And strung investment management is located 980 Washington street Dedham mass 0226. And can be reached at eighty to 89727526. Political views may not reflect the views or opinions of next financial group. Securities and investment advisory services offered through next financial group ranked number fender SIPC plaster investment management has not affiliate next financial grouping this radio show is for informational purposes only and is not a solicitation recommendation that any particular investor should purchase or sell any particular security. 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