Planstrong Financial Forum 12-17-16
Dec 17, 2016|
"Smart investing, simplified"
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Remove plan stroll in the broadcast studios kids could play and strong environmental forum where your host. Kendra are very humbled president Roh plans strong investment minimum. Full portions based on Bruce Morton investing. Symbian phone. And I am Dan Garber at the anchor desk along with Paul Parsons disciplined strong financial form and it's only a week before Christmas pulled it. Boy that happen quickly when we were looking. It sure did and you know what else canning I didn't bring the Christmas here's what we're coming out next week old and for those folks who heard the program before you know that Paul has a very favorite Christmas movie that is true it's a -- odd fit for our shop we must say it's a wonderful life for white Christmas Day or justice not eyes look at it Paul's favorite Islam actually one of the greatest movies of all time would be great news it does have good music to tell it is good music Barry asked and so Paul's polish to play that and around the Christmas season so now actually we don't care for six or seven years and Donna rightly counts and next week on Christmas Eve day it will we're here when Bebo will your home wrapping your gifts. Solid putting the final liberation is up perhaps baking its new data from taking the on Christmas Eve Tilly doing that he's in listening. To this program have a little Christian juniors and tell truly want to. And by the way I have to tie I am sat I I you've gotten the point now where if I have a news program on that's boring me yeah night I flip over to one FM station that's all Christmas Carol straight. And if I you know what. ET start to hum along to you realize how old you are is probably not a good. Realization donor money christmastime is about the only time that those particular FM stations play music from the fifty yes 40000 sometime I was pleased shouting most of what they play is a lot more modern. It's interesting that there are times when we say it's OK to play down these old chestnuts I love I just think it's great so puts you in the mood and the army even nice to people when I drive also don't want really attacked us are so I don't know you sure your bust or not sure how aboard Jack well that's that's probably cause a few accidents by people letting people actually go duck I think all right enough people were so surprised that I thought I. Yeah. Well it has been another crazy week in my mind that crazy month it was good crazy yeah. Really guys you know there's bad praising Gloria crazy this is. Good crazy you know since moving to the show hoops last seven or so years we've seen all the bad crazy I'm sorry you are a little bit of the good cruise right but right at this point coming up will will go to talk specifically about what is happening to stock and bond markets what's happening. On Wall Street in general. Also main street I mean frankly a lot of these measures that we get our you know what consumer confidence that is a mesh from Wall Street that's measuring. You know people outside. Just saying hey how do you feel about your prospects for growth how do you feel about your prospects for jobs how do you feel like you know what do you think you're shopping activities can be like to do telling activities and the like. I gotta time it thing the prospects look you know pretty robust despite looks very very good and certainly what I order a difference a month makes it. You know you think where was opened five weeks since the election not cast his vote via down. And you think about that and I think you know and if you think about where we were even a year ago. We were saying to people look we're hopeful that we'll get you know 2% GDP growth. We're hopeful but we'll see 45%. Type returns in the equity markets. Are you a look to us things get longer and a tool from. Much other stuff and now look at where we are they the Dow Jones Industrial Average which is an average of thirty of that the largest cap well known stocks in the United States. Is almost at 20000. And a fine it's said that to you a year ago I think you would have said you started to enjoy and knew I Canada straight there are a legality rather than a being you know in any way steeped in in you know what's actually happening but that's what's happening we are seeing some really good stuff happening in the marketplace right now. And all as we approach the end of the year and we are getting their very quickly on a couple of weeks ago this year. You mentioned before for folks who grew due to the program you don't sell everything in this program now are not selling us anything but occasionally you do give stuff away we do and right now you have a paper did you have written and it's very important. And this paper talks about the fact that we have. What might be one of the biggest tax cuts coming our way in 20172017. And there are things that we need to do in 2016. To take full advantage of that. And I had to tell at all. Not nobody else is talking about this trend. That's absolutely right I think there're there are some who were talking about 2017. And the idea that. First of all tax cuts and typically almost an aphrodisiac. For the economy goes that's incredibly. Pop it does incredible things to stimulate growth from mom and and so I think many people to recognize that there's a greater probability of GDP growth. In 2017 and there was without a tax cut out okay but what people are talking about is tip to minimize the mark taxes you pay you pay between 2016 and 2017. Actually some moose you need to make this year when he sixteen in the next week or 20 before the year is over because once it's over you can't go back and change yet time and that's what this papers about their 45 things that we strongly believe. That listeners should take a look at their own circumstances and say hey does that apply to me could I do that cassette actually could save me. You know thousands of dollars in taxes if I do this in 2016. Well everyone should call and get a copy of this paper he had been emailed to you if you don't have email they can be snail mailed to you all those are the regimen email because time is running you know the gutter balls toll free number it's eight BB 9727526. That's 888. 97 to plan and just ask for the paper they'll know what you're talking about and taught. Once you read the paper you really need to commend then spend a few minutes with you. We're giving to the end of the year is we're on to do that. Curious what we've gone on if you out what I suggest you do is call for email the paper but also the same time we are setting up office hours on Monday and Tuesday of this week are to be able to handle appointments are first come first served as she'd call us. On and we will try to get UN and try to take a look at York tax situation in your investment situation. To make sure that whatever we recommend for you. Takes into account both of those factors and without that frankly are only getting half a loaf you need to know both attacks circumstances as well as your investment circumstances to actually do this. Right moves to make in 2016 before the biggest tax cut in the generation that's for the paper's called in its. They held Paul's favors easy to read it makes sense there are grass. Nice color so I hit and so which pretty to count but his more importantly ball it's important isn't part of its orbit and literally. You thousands of the harsh it's I think it's incredibly valuable the other thing we're doing is we are a not only we have an office hours on Monday and Tuesday but we're also going to be open on Tuesday night after work hours and the reason we're doing meniscus is there an awful lot of people out there that work normal world person can't breakaway and we're trying to be available on Tuesday night off on a limited basis for some people that that may actually work better for their schedules. Well kicked our kick start the into the years dimming quickly so call for the newspaper now re did also call for deployment with Paul this team. This is some the Hindu again that they did may time Monday and Tuesday even Tuesday evening. To sit with you and just see if there are some things you can do something you should do between now and the end of the year to take full advantage. Of this new tax cut that's coming ADD 9727526888972. Plan. Is balls number well on. Let's start with a bit of both the stock market share it with we've seen some really big. Numbers here records all time record sheets and every time we hit a record. I'm thinking OK that's that is reiterated the next day we another guy and no it's it's actually it's it's been quite an experience and like I said there's a reason I've been smiling a lot and actually as we've been doing our year end reviews with our clients and we meet with our clients at least twice a year in some cases four times a year but we're starting to do an awful lot of urine reviews now on. And not there's there's a lot of smiling going on these meetings because they're very pleased would. You know how the kind of investment choices that we made for them but also. Arm but there were in there are happy because we tell them that it's easier or for Ross to produce better returns when the wind is at our Barack. Sure arm and that's really what we're seeing right now in the the economy. And in the markets if you don't like this before a tax cut is one of the most powerful tools that are out there at that. Our government can do to actually help it's much more powerful and fiscal spending. It's much more powerful in my opinion than monetary. Hop policy it our tax cut. Literally lit it lets people who will earn money keep more of their own money immediately. And then they can make decisions out how. As to how they want to deploy that. And you know it's in incredibly a fact of how quickly it works so. That's one thing that certainly looks good to another thing looks good frankly is the prospect of less regulation and I'm not. You know a first of all I'm not somebody who advocates no regulation what I advocate is regulation that makes cents and the new era that accomplishes that school mom and so there's certainly some worthwhile goals out there that regulations are going after the bad news is there's a lot of collateral damage that happens at the same time. And what I think is gonna happen with president elect trumps soon to be president trump. Is that they will eliminate a lot of the the the extra stuff while still keeping I think in armed some of those the real intent. Are in play. So I think I think that also is gonna make it a lot easier for businesses to do business less costly to do business. And as a result they will also be able to in improve their profitability and I can generate more growth. You know that's good stuff and and finally the infrastructure spent. You know if trump comes through this idea of a real infrastructure spending program that's gonna help some sectors especially. Materials and and they've they've actually performed relatively well more recently but a lot of that's in anticipation. Of a more activity thanks to when economies starting the fire and more cylinders. So we have seen indexes for US stocks at or near all time high dose but is this going up crazed Lee or is this kind of a nice can't gradual. Increase who have seen over the last month yourself. It's been a relic so we are grew somewhat gradual increase but still you know let's put it this way. And yes and 500 which is a broad index of 500 large cap stocks in the United States. Is up about 11%. Year to date including dividends okay. Keeping in mind we're was in January for a group of this year exactly right think about that Kent who you know we started the year down ten or 12% in the S&P 500 the first six weeks. We recovered all of that plus made another 11% it's been truly. It startling turnaround and I think you're seeing some more things in the in the US indexes. In Guerin those who would argue that values are starting to get a little puffy when we come back though I'm gonna talk a little bit more about that and frankly my expectation is that the value shall become less coffee as we start to see actual earnings growth kick back and that's when we return its plans strong financial reform 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 needs to take a look at your investments and retirement plan called my office of EDD 89727526. That's 888972. Plan. Securities and investment advisory services offered through metro metro group member to go as I can see clincher investment management is an affiliate business financial group thinks is located in Washington street domestic food. Hi this is Bobby Nelson. People use different strategies to acquire enough money for retirement. Some try to do it themselves. Others buy insurance for investment products though sometimes will benefit the seller more than the buyer what makes sense is to hire an advisor with first rate credentials and why do investment management experience. Should have a fiduciary obligation to act in your best interest. And be paid the same amount no matter what your invested in if these things matter to you. Call Paul Parsons at planned strong investment management to learn more call 888. 9727526. Hiring the right advisor could be your best investment. That's 888972. Plan or vision plan strong dot com. Securities and investment advisory services offered through next financial group and member and SIPC plans to investment management is not an affiliate of next financial grouping and is located at ninety to wash and. OK. Okay we'll come. Okay. It's. Crumbled and strong broadcast studios and the epicenter of capitalism. This is the plan's strong on national forum with the all portions president of planned stronger investment management. Yeah. I can guard her at the anchor desk along with the ball Parsons and a told the we just remind folks because we only have a couple weeks left so I am and I know that you as the most people driving the car not paying attention. And here but the fact you get this paper the Richard. Giving away you just wrote it. Couple weeks ago. In this might be isn't discussed one of the most important papers and you've been available for listeners and you already implemented these things for your clients out but it's not as real that it doesn't it to be available to cure listeners free of charge. And this paper where you talk a moves to make in 2016. Moves to make now in the next two weeks. To take advantage of the biggest tax cut manager generation which we seek going under the presidency Donald trumps all. If you want that paper and you really should. Once he in the telephone number to call tool free dvds 9727526. EDD 8972. Planned or go online to plan strong dot com but the phone call makes sense because you also need to schedule mean you really should. He read the paper first or do both the same time schedule deployment. Were to sit with Paul whose team he's made some time available this week Monday and Tuesday because again. You don't look at the calendar this is at an even Tuesday night for those people write that can't get away during the war and and that's great that makes a lot of sense. If he don't say I can't get out of the office because polls miss some time on Tuesday evening. Sort of go on then and sit with Paul and his team and and and see what you should do to take advantage and in policy said. This could save thousands. Moore yeah and some good people just don't get I mean it's so funny they talk about haters discrete tax cut kept coming next year can't wait to see it now and and by the way. I will dispel the rumor that it's at that it only impacts the rich that's baloney now on the you know just look I've gone through the the the proposals and are pretty thoroughly with our CPA in our office and I have to tie armed. Everybody is gonna pay less to a great degree there are very few people are and pay more frankly the only people are gonna pay more are venture capitalists private equity guys who's carried interest is gonna get tax and my guess is there are a lot of those guys listen to this program that are worth over billion dollars so the rest of us humanity if Iran you're gonna see bigger standard deductions you're gonna see all kinds of stuff that's gonna happen that's gonna drive down. On the the marginal tax rate for most people. So have his pay percent do you call Paul's office now EDD 89727526. AD indeed 972 class and yelled the other reason I brought that up Canas. Even if you do understand that you understand that there is a tax cut coming and it is gonna power almost everybody now the other thing though a lot of people don't understand is. That there are moves that you may need to make this year and 2016. To maximize. Your the benefits you get from ten days tax code that may be gone next year and so what you need to do is minimize the total taxes you pay between. 2016. And 2017. That's the purpose of this paper to say if you wanna be Smart about this you don't just look at 2017. Actually look at. What you can do the and a 2016 to minimize your total taxes paid between the two years. Oh you're talking about in the next two weeks got a moves that you have to make four and Paul you've discussed before Indian in her earlier programs. What we're talking about financial loops yes that having to do with your portfolio could which are calling it good why folks at what should be sitting with you that's workload and I think I'll just call my tax guy in that run up by M the these may be moves that go beyond ordinary tax move. Without a doubt I mean certainly it's it's not just do I need to make a move but. What investments why won't use to take advantage of that move which wants to make the most sense. And and by the way your strategy should have changed a 180 degrees on which investments to use for this. Based on what happened five weeks ago because you know I don't know about you can but I think you know there are a lot of articles written about. Winners and losers underage trump or Clinton presidency. And you know most of them were wink wink nudge nudge starting would Barron's Joseph Barron had you know. Seven pages on what Hillary wins and you know what little column on if trumpet award winning writer and a yuck yuck. And armed and there were big differences between them and sure enough we see that we see very very significant differences. In the way these two candidates. Would impact certain sectors and in all give an example health care shored up at the top of us I think Hillary Clinton was a vocal. Our supporter of looking into price controls for pharma and Biotech. And and trump is no fan of pharma and Biotech gouging out people but he's not. In our our opinion he's not gonna go after that nearly as rigorously. Or as as broadly for for example as Clinton would another examples financials. You know you'd take a look at what would trump doing a massive tax cut. You know most economists are now projecting significantly higher GDP growth. Which means. Our meal more inflation there's more inflation means interest rates are gonna go up in that impacts a financial sector so guess what the best performing sector spend sensed the trump collection financials right so you know if you don't think that one vs the other makes a difference in what your investment strategy should be and also how we should exit Q some of these tax strategies. I'd argue you're leaving real money on the table. Once again polls to a free number to get this paper free of charge eighty 89727526. And you can also take a time. To set up employment. With Paul and his team for this week Monday Tuesday his entire available future really to your advantage and even Tuesday night Tuesday night makes a lot of sense for those of us who I can get out of the office. 888972. 7526. Or just 888972. Planned well I'll be remember Paul before the break we're talking about OK so the market is going up and up. And I'll tell you hit. Some. To red numbers all right numbers we've never seen before that's correct so Dowell twenty Faust bank and Brett that's a big number yes and he got over 2200 almost when he 300 on the S&P I mean these are these are big numbers and I think a lot of people. Certainly didn't think we're gonna happen union. 2016. So the question arises. Are is are these overpriced are only getting to why she should we be afraid of these numbers. So I think that there short answer is don't forget that the market is anticipating it anticipates what earnings are going to com not what are the earnings today. And what you are what the markets saying as if there's a big and no one. Doubts this there will be a big corporate tax cut if there's a big corporate tax cut oil companies all of a sudden get to keep more of our their money ducks called earnings earnings per share after tax earnings per share. So automatically you know they get to keep 20% more of their earnings that's a pretty big contribution to what your earnings are all the sudden break right not what's gonna happen is if there's more GDP growth. That also means that dolby more earnings and then finally if you look at the things we just talked about a minute ago certain sectors benefit. From on policies that are going to be out there like a set financials if you look at financial stood and you say well. You know do you expect them to earn more. And as a result arm is there or is there are our earnings per share or is there a price earnings multiple too high. The answer is maybe not maybe it is okay based on the fact that they're going to be in if there's more inflation there's a higher interest rates spread. You know all the sudden you get more net interest income and banks start make a lot more money you know that deck could be real good news noble. What ruled the ball inside and are they reacting the way one expects they are now I mean and and a lot of it too was because of the Fed you know the Fed this week right are senator and I view this as nothing but good news go out and push surprising app. Actually we know one mom the Fed this week elected. I to raise the short term borrowing rate from. From point 252. Point 5% up by 25 basis points are now the target rate is point 52 point 75 perception this is only the second increase. Our sense this entire. Financial catastrophe occurred in 2000 on this so it's been almost a decade now that they've had. AE RR a to rate increases. And I and the other thing that was kind of the big news we're just last week was that the Fed indicated that they were not gonna have to be reps three rate increases coming in 2017. I view all of that is good news because it's for the right reason the reason the Fed is gonna raise rates. And three times rather than to now is because they anticipate GDP growth to be higher. Now than they anticipated before and I'd and I view that as in really good reason to wanna raise our rates they're what they're worried about as inflation there's healthy inflation 2% inflation two and a half percent inflation as fine. And a few concede GDP growth you know north of two and a half to 3%. Well that's good news too and that would be a stimulated to a degree by what's gonna happen with a tax cut. Now Paul. Usually able which are the possibility. Of of the Fed bumping the raid you look the use you mentioned well you know they don't wanna slow things down to monitor it would bring things to a screeching halt just. Are the even talking about that comes suffered now and if not why not. Well they are mean as always it's a consideration they don't want to do too much too fast and that is a concern. On and by the way there were also impacts on the dollar which will talk about a second and torture eyes glaze over to send mention that it's important. It was actually the lead story I think on Friday's Wall Street Journal member abducted the strength of the dollar. Again is causing concerns in international markets like him explain that minute but. The short answer is when you look at interest rates are going up in the United States up two or three times a 25 basis points each time. Mean you work 11 and a half percent a year from now is that really going to put a total of bosh in. Our our borrowers. Com. Plants in the answers no you know I mean are you really gonna stop borrowing because sure your rates are as a corporate borrower are four and a half percent instead of three and a half percent I don't think so. I mean it and there's actually and sort of what Parsons thanks take a look at what the empirical data show it's not an awful lot of studies have been done on this you can see when GDP growth starts to slow down and its debt at interest rates significantly higher than where we are today or even where we expected be a year from now. So the US she US you'll obviously increased it did so be very it's not the short term. Or even the intermediate term the tenure US treasury jumped from 2.4 percent to two point 6% this week. And by the way that's almost 1% higher than pre election. Don't forget. The night the trump was elected president. But that the ten year treasury was at one point 7%. So it did the rates have come up almost ninety basis points in five weeks that's a massive increase in rates during that period of time. Paul will look at some of the loop rates around the world when we come back also the dollar and oil prices disciplined strong financial for this just. Paul 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 immediate take a look at your investments and retirement plan called my office of EDD 89727526. That's 888972. Plant. Securities and investment advisory services offered through metro metro group member to go as I can see classroom investment management is an affiliate of mismanagement gripping concluded that any Russian diplomats who threw 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 act 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. Plant or visit planned strong dot com. Securities and investment advisory services offered through next financial group linked member former SIPC plans to investment management is not affiliated Nixon campaign and you can tiny cars our street didn't match. Says financial login to your signing and be informative. At least it's informative it's a plan strong financial forum where bowl portions president's bold plans stronger investment management. I. And I'm Jen Kerr birdie at the anchor desk along with ball Parsons it's a planned strong financial four men who era. You know a lot of information this program is shark pool already only halfway through what do you postal free number ADB's 9727526. That's ADB 972. Plan. Call now and ask for the paper just in the paper the tax paper they are things you need to do before the end of the year you only have two weeks. And that really will probably take advantage of the upcoming tax cut under Donald Trump. EDD 8972. Planned at the same time you can schedule an appointment with Paul and his team his office hours are open on Monday and Tuesday of this week commune run it up because. You know if you look at the calendar year realized. You don't have much time to take advantage of of things before the end of 2016 even including Tuesday night Tuesday night and it's always good to have those evening deployments for the for folks who can't do what we're early but we wanted to do notice that makes sense especially now amid its I I guess at this hour never is so important goddess once again eighty 897275. 26. Are also we were talking about. Yields on Bologna and how how. These treasuries just drawn the yields on two new magic yeah I can't remember two points well and so if you own if you bought a new tenure US treasury debt on November 1. Off for the election while when rates were one point 7%. And now rates are two point 6% of users lost. 6%. The face value went down can you imagine what can rid of the ball you know and you see there's picking yourself have bought the same for safety latest locked into one interior rate for the next nine plus years and OK so that's the brisk. When you buy. You don't intermediate or long term bond and you and interest rates go off well guess what the value that soccer can drop like a stone the F. Interest rates go up significantly and interest rates went up you know ninety basis points almost 1%. On the ten New York in just what five or six weeks' time that's really quite something when we seen around the world well you know yields on other high quality bonds have also come up yields on the ten year German bonds remain. It is around point 4% Africa and on the Japanese ten year in actually increased from zero to point 1% is this the first time in deposited it fifty it's been awhile. It's been awhile and and the good news here is we're getting out of this negative interest rate environment I think it's for the good of the sabres if nothing out how it at all. There is there something with the negative interest rates beyond what it means for the sabres a bank. That's an effect on economies all does that bring people down a little bit when they look at that the favorite thing man I can't even. But my lonely in the back. Absolutely right I mean it it it and do it in some cases people really feel like it becomes a self fulfilling pop per prophecy and it adversely impacts our growth simply because. Even sabres are are being rewarded with nothing but the idea of course is the Porsche neighbors into the market. But market but you know sabres understand that they are being pushed into the markets and there's a reason that they don't want to go into those markets anyway so it kinda hot it has not been as successful. As monetary policy people had hoped it would be did that disk experiment into negative interest rate. Paul Newman was not that long ago that we saw some articles in some respected journal saying the US might actually heading to the negative area well I don't put that was of course. Before and you know the election. Now and I think a lot of it has to do what your expectations soaring growth and GDP growth solves an awful lot of problems if that is an obvious too boring now nothing is 'cause I all I can tell you this is my job. Is so much easier for him when I have GDP growth to work because now. I am selecting industries and it's kind of like selecting which the Ivy League schools by one what tactic is there really a Betty answering your well. You know we could argue that harbored a little better than in oh Cornell or something but. You know as a garment and arguably you do see regularly and you are gonna mention now and I all I can say is. You know you look at and you go OK maybe they're gradations to either way I'm gonna get a heck of a good education right and the same thing's true when GDP growth is out there there are many sectors that really benefit from that and and again durst summit you wanna avoid so it's not perfect analogy but. I will argue it's a lot easier to generate more favorable returns in in a growth environment at what does all this meant for the US dollar loss strength and and and the dollar strengthening. As actually gotten the Euro. Or dollar four or so here we go can. You know you when I talked about this we said DeWitt though the forecast was do you think the year old dropped parity. And you know what we're getting awful close apparently forced horse sense is pretty darn well dollar for when you think about that I just think what was that Europe Kyle we ordered dollar 35 hour right so that's how much the Euro has devalued. In literally one year's time. And at the same time the yen has also devalued immensely it's now at a 114. Yen. Up went from a 114 yen per US dollar all of 218. Yen per US dollars don't forget. Again a year or two ago the yen was at eighty per dollar and it was incredibly stable. Think the devaluation that occurred there because of that so yeah but the dollar is much stronger and and I should probably talk a little bit about what is all that mean you know and without putting our listeners to sleep too fast okay. You know when the dollar rises. Arm that much. It starts to become a concern and it becomes a concern for overseas borrowers that have accumulated literally. Trillions. Of dollars in. Liable notice I didn't say trillions of yen or trillions of of I Deutsche marks running I said trillions. Of dollars and so what happens is when you borrow one dollar you have to repay in dollars and if you're using your local currency to repay those dollars you need more of your local currency to repay it becomes harder and harder to make those repayments from. So it becomes very expensive. And by the way about a herd of all dollar credit to non bought bank borrowers outside the US. Was borrowed in emerging markets. So what this does is it really hurts emerging market growth. And and at you when the dollar strengthens. And interest rate goes up then capital tends to leave those areas because they pay inferior race rate and instead. They say hey I'll take the US higher interest rates and that makes a dollar even stronger becomes almost cyclicals self fulfilling prophecy. Long story short is in some ways it helps because it makes their exports. Less expensive when nick would become the United States so that's a good thing it's stimulates the economy a bit but it hurts them when it comes to dollar denominated debt some other things and and actually slows down their overall growth you know I think the word stronger Paul because it has such positive connotation gas fueling good stronger good. And that's not always true it's yeah I mean anything to extremists not good video right and it is how quickly occurs and how much it occurs is really much more to what would you rather have a stronger currency weaker currency sure because capital will come to. Okay though it'll be in search of the stronger currency. But you know if he gets too strong too fast then it can actually decimate everybody else and that it. Eventually comes home to roost here in the United States but oil prices of course oil oil is bought in dollars. What what a week for oil yeah so early in the week the price of oil. Went up to 54 box for west Texas and 56. For blacks we are getting really close to where Paul Parsons said boo would be an and that was. Because non OPEC countries agreed to scale back their output even more than what was originally anticipated right now. Between OPEC and nonopec countries they come to agreement. To cut output by 2%. Of worldwide output. And as starting on January 1 by an email saying all that doesn't matter that much believe me that matters a tonne. But shares genocide of the point as the dollar got stronger. Then it also hurt demand a bit for oil because now oil becomes more expensive because oil is bought with dollars. And soak the end of the week oil finished around 51 a barrel for west Texas and 54 for Brett. Overall. Are you know should these are strong levels the I we were hoping that oil would finish the around fifty dollars a barrel this year. With a target of -- sixty dollars next year you know I think or or going you know pretty much in line with what our expectations were. And just less than a year ago Paul leader in the 20/20 five box and literally. Well you know we were thirty or 35 at this time last year but by our February of 2016 work on a 25 dollars a barrel. So Paul you sound very positive and bullish on the US economy. With the upcoming trump presidency are most other economists. With huge year or are there some dissenters there are always dishonor some new economists can't you don't. You get three of them were immediate for opinions right idea but having said that I didn't wanna mention nest that that. There is dissent will be a minority. Of our economists around what's gonna happen with the interest rates and and I thought this was worth mentioning to listeners because this is out clear him I actually don't subscribe to this site I believe that we will seek. Reasonable interest rate growth but I do want to mention this because it is on my screen to watch and that's this. You know the Fed. Doesn't believe that the trump tax cut and infrastructure spending plan. Is going to go oops economic growth and interest rates as much as the market dust and the way we know that is because the Fed actually puts out forecasts. For what they think rates are gonna be in the upcoming year and they do that our quarterly basis and they just did that again. There are not alone. The Organisation for Economic Co-operation and Development which is such a fancy word or phrase OECD muse the wealthy developed countries okay okay. They are forecasting GDP growth in the united states of about 2.3 percent in 2017. And 3% in 2018. Those are all well below work trumps Treasury Secretary thinks we're going to be he thinks are going to be. In kind of the three to 4% growth rate at a kind of on average. But the reason that they think that interest rates and growth is gonna be lower is because of several factors let me just go through those were cork and first. Demographics of an aging population. Leads to a higher degree of seeding for a longer life you received. Second thing is there's greater inequality right now income inequality in wealth but concentrates more income in the hands of groups that stand to save more and spend blasts. And finally productivity growth. Has fallen and that's led companies and customers. To expect lower future income again increasing saving all of these factors are reasons why some economists don't believe. That Trump's economist is treasury secretary's forecast will completely come to fruition they do see some headwinds. And certainly these demographic and other factors. Could get in the way of some of this growth. Paul will welcome back we have some new stories that investors really should be paying attention to it's a blast confidential for. This is tall Parsons president of planned strong investment management. And you're listening to the plan strong financial forum on WRKO. Boston's 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. 808897275260. That's 888972. Plan. Securities and investment advisory services offered through metro metro group member to go as I can sequestering mismanagement and billions of mismanagement grouping that is located in Washington street in Massachusetts. Hi this is loving Nelson. People use different strategies to acquire enough money for retirement. Some try to do it themselves. Others buy insurance or investment products though sometimes will benefit the seller more than the buyer what makes sense is to hire an advisor with first rate credentials and why do investment management experience. Should have a fiduciary obligation to acting your best interest. And be paid the same amount the matter watcher invested in if these things matter to you. Call Paul Parsons at plan strong investment management to learn more call 888. 9727526. Hiring the right advisor could be your best investment. That's 888972. Plan or vision plan strong dot com. Securities and investment advisory services offered through next financial group linked member tumor SIPC plans to investment management does not an affiliate of residential real big and is located at nine Washington street Dedham mass. Ground zero for your financial news and economic commentary. This is the plan's strong financial forum where bald portions president of home plans stronger investment management business. And I can Garber at the anchor desk along with the ball Parsons it's the last strong financial reform. And a wrongly we anyway so I'll start off great bread away wishing Bruno a very Merry Christmas most people talk begin before then but to a Merry Christmas and happy comic Chanukah is the same data really Christmas he's associate chair or ironic now it's great that the both holidays. Take place and same type thing. Should do that. You know that I think the two religions should late strike a deal that we need to doctor although you are a problem is you know with Monica being what is it 88 days it didn't give gifts all that stuff. That could be probably be do like eight hour so I think they become the sun so solution the most sure you grilling maybe not GAAP. Compose an idea and you know what another trump does present I yeah I'm just like I'm just thinking about deal are not like what how how do you do the deal. Right the only day this happened exactly and both holidays ago inside so yeah you know great friends of mine. Gary's who's who is in the office next to me he's Jewish seat in he's married to a Christian girl out and so I'm just think you'll see you guys can celebrate your book your holiday episode of the simply. Same as Alex under my office and I were actually he's half Jewish and half Christian so would himself DSCR. So it's perfect now but anyway out I mean I couldn't share and at any more than you just did I'm so does I think is one of the best times where people learn good moods and and rightly so what happened for all the right reasons and I think we have an awful lot to be thankful for especially this year. From an investment perspective when you think about where this year started and kind of where were ending up I don't know about you but I am very very thankful. Absolutely and of course the other problem ball this year is it means it is coming to an end abstruse so we've got just a couple of weeks before Tony sixteen comes to an end and there are things you need to do and not just the usual things you need to do to know why that's right this is really important Paula as a new paper. And it's aimed at moves that you need to make in 2016. Before at the biggest tax cut new generation takes effect. So this you need to do very quickly basically right now and. You know don't. Don't just kind of gloss over that the biggest. Tax cut in each generation. I mean this isn't the George Bush tax cuts in 2001 where they fees the men run over five years this you know they're talking about a tax cut on the order of what JFK and LBJ did in 196364. And what Reagan did in 8182. And again in 86. I mean these are. Big tax cuts and as a result you know I expect to see significant. Economic activity results from the justices. A borrowed as good as it gets when it comes to fiscal policy tapped big tax cuts work. Paul still. Number eighty 8972752680. 8972. Plan. The papers available free of charge will be emailed to you right away a Monday morning and it's also a great time to schedule an appointment with Paul he is me type available Monday Tuesday and Tuesday night. So for those of you can't get out of the office this is a busy time of the year for everyone. But Paul has made some time available to sit with them at his team. And there's more to this than just hey get ready for 2017. There are moves to make in 26 team but if you don't make them and 2016. You could pay more in total taxes between 2016. And 2017. That's why there are 45 moves that are included in this paper that are specifically oriented to doing in 2016. To minimize your total tax burden between the two years. And you wanna make sure you do them with the rate investments now that it looks like the economic landscape has changed quite dramatically. From the prospect of a Clinton presidency. To eight trump presidency and which sector urged. And which areas might thrive better under a trump presidency dance say Clinton presidency. Postal for a number 888972. Plan or for those of you who Justin did read that down now you're driving me Carlin every kid I remember it. You can't remember plans strong dot com. Go there or send email to Paul and his team and they will get right back Q I bought some some interest in stories this week that having nothing to do with the Donald Trump or maybe having less to do with apps are literally right one who is an. Apple Store and actually I've got a couple of Apple's early this week and it wouldn't be me without it being a Christmas gift suggestion out. As wells a story by apple or chancellor cool and I got plenty of them are okay but here's the one. I I bought an iPhone sap users so I was there really are excited at to note that. Part of the reason that the iPhone seven was such a departure from Apple's old approach was they covered the headphone Jack. And the whole point of that was a cigar which are off the worry about that because you're going to be able the use. Wireless ot your butts and our you know wireless headphones cents a and unfortunately. As you know there's the phone came out in September right. And the earbuds haven't been available on the good news was they gave a converter for existing headphones. So that you could use them in in the new iPhone seven or Peter Zamora you could lose that did you lose that betray you lost a convert it you know but I didn't get it down that I will lose yeah I got there are those convert well that's on the yes so anyway I have good news for this and this week the ship date. For the wireless earbuds cold air pots and was finally announced that's gonna be this coming Wednesday the 21 and it's going to be available both. In the stores as well as online Erica and I have no idea how many these they're gonna happen where they're gonna run out really fast which appears only a week before Christmas your thing and now. 159. Dollar X. Birdies or Carrie and and they are I have to tell you I looked at them they looked pretty cool and cure something that's very cool about them they have a new chip. That attacks when there were in eight users. So they know when to turn on or off penis on whether or not they are in your year school and they also. Can detect if only one is in your rear rather than to him only one as interior. Base ship both channels of of whether it's muse air or whatever else. Into that one era plane nothing into the other pot tomorrow so that the chip is really. You know quite something. They can last about five hours on a single charge and guess what. I think demands going to be pretty strong side skirts but it's gonna be interesting to see how they do and and how well they are. Are received I have read some reports already by a reviewers who have seen in advance who I took some shots at them but I don't feeling they may be out may be quite good. But one a bad thing about them that I noticed. If you lose one of them you have to by the minute sat and yeah I am and you know there's no OK it's not like you're remittance when your kid we attach a string to it right in you know. And 160 bucks a throw yup that's real money it is so I can't wait to see how they turn out but at least. Apple finally has them available in night you may see people rushing to the story get the the Swiss it was the other Apple Store well as you know all. On apple is expected to. Changed the I did collapse that's going to be used in their upcoming iPhone the iPhone Guinea which just ten year anniversary. It version of the iPhone. And there are expected to go from LCD or. Liquid quick crystal display name to a thing called OLED. Which is organic light emitting di you know this is the news and it is and it's it's pretty cool it they are really. I'm quite bright but cures the deal and and this was the of the point of what I had read. Was that LCD screens may not be dead he acts and that's because the major supplier of small screen. New technology DO well league east is Samsung. And they will likely supply most of Apple's displays initially. But. There were other producers that are gonna join that market quite quickly including LG display in Japan display and even shark and the are investing. Billions in to make us think about how many Smartphones are gonna be out there with OLED straight. And this was the point of of really why I wanted to bring this up. Was if you're investing in suppliers of this bowl where because existing pricing. Of this glass. May very likely come down quite quickly and that could really impact the financial justification but these firms have had for ingesting. Billions of dollars into this manufacturing capability and so forth. So don't forget commodity pricing has killed the financial justification. Of many a good project concept. And this could be another one so before you get into the oh well we. Think twice about it and make sure that you're comfortable with the returns that the talk much getting from these projects really will materialize. Paul one of our favorite subjects in in in recent years is the self driving car. And it disturb mode and cool and soft drink cart there there was this week you know cool. Lol finally named yourself driving her car project into its own division. And it's called way Emo WA YMO. And it that stands for a new way forward in mobility. I don't know who came up with a I thought Wayne Mo is like Brett better than way last you know way you know or get you are but anyway it's now going to be a standalone business in the alphabet stable of companies think about that way okay. And the reason that they're join us this actually is an indicator that Google expects this business the kind of come out of the lab stage and get more into the commercial stage of the commercialization. Of this technology. Now that the company's goal is to tackle first the huge waste in under utilized vehicles and time spent commuting when they talk about under utilized vehicles Kenny. They're talking what you worsened my car right now sitting in the garage rate while we do to show your right. Instead of cars being much more highly utilized. Time spent commuting is a waste for people's productivity as well they can certainly see that improving through self driving capabilities. And finally self driving should greatly reduce. Robert fatalities just accidents because these machines conceal a lot better and they can make a lot better decisions than a humans overall count. So for a number of reasons this may indicate. But Google is ready to Terry go to market with this and really I start to sell the software that they've been creating. Paul thank you for coming in today and I know early week away from Christmas but you know a lot of stuff to talk about including the paper you you're you're you're offering our listeners EDD 89727526. His balls number call now call for employment you only have two weeks left. And thought I will see you next week or Christmas Eve so I have a great week you tale it's a planned strike financial four. This is Paul 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 media take a look at your investments and retirement plan. Called my office at 80889727526. That's 888972. Plan. Securities and investment advisory services offered through metro metro group member and as I can sequester investment management is an affiliate there that's financial group thinks is located at any Russian diplomats and six and strong 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. 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