Planstrong Financial Forum 01-28-17
Jan 28, 2017|
"Smart investing, simplified"
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Romo plan stroll in the broadcast studios he would still play and strong environmental forum where your host. Ken carver and the president Clinton's role you're best about a month. Full portions there's still I'm Bruce Morton investing. Symbian phone. And I had incorporated the anchor desk along with a ballpark since it's the plan's strong financial forum and Paul welcome back to the program. It's terrific to be here and especially where you know we actually stolen decent weather and no snow on the grounds has been crazy for various and winter but before we get to X I don't care to remember two years ago. Hopefully I'll remember no snow until. Mid February. There and then we got six weeks from hack you remember that area itself in big basically you're just saying things can get lower like just before I coded SE terrific winter I'm just saying. That dig color my mood a little bit because you remember that we have only just six weeks and each week we had at least like of a foot of snow or more worsen wares and never melted no. You have to remember that there was one snow pile up that they used SE melting facility in Boston and I it was after the July 4 weekend in the last that it was gone a he had a highly of that cool well so far so far though OK it's really we are we're a week away from the Super Bowl yeah and we what's mid forties or low forties and what's not delight great you don't got we've got a little puppy at our house and we didn't think would be able to take the poppy how much this winter -- but we had around two spun every day a loss she's finally cleared its 45 degrees let's go for a lark you know we have a puppy to who's how old is Rex now Rex is sleek seminary months old now. He's taken to bringing in. Tom sticks from outside and through the dog door into the mud Graham and chewing on them in the Maghreb. Which that's gonna be asked it's not it's not that good but anyway yeah Brooke published a fund that not all is the winter especially if you have to mean two years ago we we have to shovel snow over our guard right now we've got good that we don't have -- they bring us Dixon and she doesn't like him at least fun around the house race he except you know and that person in the morning or yeah. I just called my wife how things she said. I'll talk to later it's all aren't Joshi the dogleg left some presence also did ya don't convict all your fault of course that this project of the dollar is good ball yet which speaking of my fault if things did that I should be changing now good discussing over the last couple weeks fall over the last several weeks actually. How here we are at the beginning of the year it's January sell cokes and got their year end statements of Marty got a million beginning and in now and you're looking at them. And boy. It is to me he is very complicated stuff that they give you a list of numbers the show you would you've done in the league you listen numbers I guess to compare with. It makes good lord no sense to me down there on the back they may have the next explanation. Which may see new life. Sense does it often doesn't add a lot of value satisfies the attorneys are super and the regulators that it doesn't do much for you know an investor and that's a big part of what we try to do on this radio show is. You know Smart investing simplify and tried to explain. How things are different by some of that actually is in the business who hopefully understands quite a bit about investing at this point so. You're actually right and what are companies have gotten better and better rat is actually describing what your actual performances you know the old days as in five or ten years ago there wasn't to compute power out there to be able to. Calculate you work personal rate of return for particular period and that actually took a lot of compute power and and companies literally didn't have the compute power to be able to manufacture the numbers that all happens now so if you're looking your fidelity statement your Schwab state or something you can actually input a period and it'll tell you which actual rate of return was for that period so that's terrific that's a big improvement on what used to be available but here's the bad news. The obvious question that debt just is baking for answers while. That's how why did but how should I have done right and no one can answer that question capable he ought to date unless you work was width and advise or somebody who understands now the investment world knows how to do you appropriate benchmark new corporate calculations that benchmark because frankly it's fraught with calculations. And if you don't do the calculations right we'll guess what. The regulators and others aren't that big on giving out misinformation. To people and so as a result. A lot of providers have just decided hey I'm not gonna get into that Imus can tell you how we did I'm not gonna tell you how you should have done or how a weighted average and index is it your level of risk should have done or any I'm not even gonna get into it because I don't wanna get sue. And then there were read more worse there by this other indexes. Do it just so you'd that's their futile look at the stock really helping me a lot to know what dead index did if I don't know. How Long Will he did in the index how much I mean in that index. And in should I be and also of course the amount of risk there and should be there does it even relevant Tia red army. I'll give you an example on mice statement alone. For. And for my own account at my broker dealer that's and by the way the statement is produced by pershing which is it one of the biggest clearing broker dealers in the world outside a subsidiary Bank of New York Mellon again one of the very largest banks in the world on. They give. Life. I indexes as benchmarks against which you can compare your actual performance. Four of the five are stock index S one as abundant ax and OK and you know if you have a portfolio. And it's made up of a bunch of different things how we expose the weak those different returns because for example. The S&P 500 which is genetic index of 500 the largest publicly traded stocks in the United States. That may 12% last year but did you know that the stocks of everything bought the United States last year made 4% to. Welsh Egypt should be used at 4% as representative of your international holdings or should use another one instead. And then on bonds what should G news. On it in many cases people use the US in the park police are Erica US bond index. Which is are primarily. US our government bonds. It's corporate bonds and its agencies are and hos I'm mortgage backed securities. As part of that index if if your eyes are already glow clout lazy and over there. You should they should be because I don't know how somebody should know that that's what's in the aggregate bond index. But for example in. DR Barkley he's our US government and credit index that doesn't have any mortgage backed securities and which 1 am I supposed to use and why and and so forth and so on. So that's why I think it's so important for for you to work with somebody that can say here's how you did. And here's an appropriate benchmark will explain you how we define the benchmark why we defined the benchmark that way and what the calculation worked out to be at your level of risk at this is what. Would've been an appropriate level of risky if you just invested in index funds with a similar level for us. And while I assume this is something that you do regularly for your car deal. But I know you're also offering to our listeners you opportunity to come in and sit with you and your team. To spend half an hour an hour or so and that and you can look at what they're doing what they're portfolio looks like and you can explain these numbers them in the them know what the benchmark but binge. Are they should be used you know something we talked about last week I think resonated well that quite a few people because I'll give an example one gentleman who came and SES this week and he came and great guy. Engineer. And he said you know all I've got I haven't looked at I haven't changed this portfolio or or change it once in awhile but. I really don't know what I'm too mean. And when we looked at the portfolio he was very concentrated. In a part of the market that we wouldn't be nearly as concentrated. And and further. Heat he really wasn't sure why he was there are other than he had heard that it might be a good place to be but he put 70% of us holdings and ma and and you sit there and you say while that I mean that's 70% is one concentrated that aren't. And certainly not gonna get the benefits of diversification in that kind of a situation. Long story short was she's essentially said you know what I've kind of outgrown my own capabilities. And by the way this has grown into much bigger number than it used to be Mike I actually need professional help now because if I screw this up I'm no longer screwing up fifty or 100000 dollars on screwing up half a million or three quarters of a million dollars and screwing up the possibility of his retirement or dumber funding his kids education and all kinds of really important I guess exactly so I it's funny I do think this has resonated with people that it's very important to know not only how did you do what how should jewels Don and then literally. What level of risk is appropriate for your circumstances again I'll say about this gentleman came and cius. One of things we realized pretty early on was used taking quite a bit of risk in this portfolio. And yet he didn't need to in it because of his portfolio he already almost won the game and he was still. Taking a lot of risk and and that's where you know reminds me of the old Boston Red Sox who. Used to snatch defeat out of the jaws of victory right right if you look at somebody like that don't you realize how close you are actually winning the game here are achieving your goal being financially secure for retirement. And you've got to all risk right now is that really your intent and he said no and and but further we went down that path of how much risk really should you be taking right now. Now and we talked about that answer is if you're this close to victory this is not the time to take lots of risk you've got plenty of time to get this thing over the goal line and and SI said not risk the possibility of snatching defeat out of the jaws evict. Also please give push your phone number down because I know this is something you'll do. For at no cost no obligation you're happy disciplines listeners spent some time with them and let them know where Emerson main horse issue of Madoff. And if there and by the way if the amount of risk that their take right now is appropriate and suitable for their circumstance spend and that is important certainly as as we get older. That that do you may be feeling like you're in the right place when your forty but perhaps when you're sixty you may look at that little differently. Toll free number for Paul and he'd be happy to sit down with you know obligation he needed 9727526. ADD 8972. Plan find out how much you made. How much you should have made eight BB 9727526. Or go online to plan strong dot com and send an email to Paul. Boeing get back let's look at some of the number. What a week. What do we can you believe that I mean really that the Dow Jones Industrial Average it all worked twenties now it's the big number first time ever and you know what else even the S&P 500 yet an index of 500 large publicly traded stocks in understates cleared 2300. For the first time ever source time we'll talk a little bit more bold those numbers and what they mean to you as an investor when we return to supply and strong financial for this has. All Parsons president of planned strong investment management. And you're listening to them plans strong financial forum on WRKO. Boston's talk station if you like what you hear on our show and what you need to take a look at your investments and retirement plan called my office at 80889727526. That's 8088972. Plan. Securities and investment advisory services opportunity for them to prevent the opportunity SIPC classroom investment management is an affiliate of mismanagement grouping is located in Washington street diplomats who threw six. Hi this is Bobby Nelson people use different strategies to acquire enough money for retirement. Some try to do it themselves. Others buy insurance for investment products though sometimes will benefit the seller more than the buyer what makes sense is to hire an advisor with first rate credentials and why do investment management experience. Should have a fiduciary obligation to act in your best interest. And be paid the same amount no matter 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 in member tumor SIPC plans to investment management is not an affiliate of next mention grouping and is located at ninety to Washington street denim. Okay. It's. Okay. Oh yeah. Okay. It's. It's. But I'm strong broadcast studios of the epicenter of capitalism this is the plan's strong financial forum with the whole portions president of planned stronger investment management. And I'm Ken carver at the anchor desk along with Paula and it if he knew the program. He probably learned something already just throws that first segment by any out you know it's how important it is for you to know how you did you do you're unstable and. Let me apologize to listeners you know sometimes I know it sounds like from I'm doing a commercial sang it's a really good idea protocols but I have to tell at the end of the year. You get your statement is CIA did what I said two people before is look not only at last year's performance but look at at 201520142014. Was a good year 2015 missed essentially breakeven here in the US stock market and and 2060 was a very good year again after all was said and done I mean in the US stock market so essentially had two good years and one bad year in the last three years. I think it's a really good idea to look back over those three years and say hey how'd I do. And how should I have Don and whether you did it or someone else did it for you I think it's really important to assess that because. And you when I talked about example last week Kenny you know you might say well hey listen the S&P 500 may 12% last year writing for a hey I made 10% that's good not fright ten close to twelve Barack. Well if you've got half a million bucks that's 2%. 2%. A lot difference on half a million dollar just 101000. Dollars and all and ask you assess. If you sign 101000 dollars sitting on the sidewalk which you reached down and economic might I certainly our rookie and so that the point is pretty straightforward I know ten sons close to twelve yeah but. If he if you're leaving money on the table and it can be a lot of money and and it's something that ordinarily would never leave that kind of money all on the table for. And it's really important pay attention to this. If you're an investor if peace somebody else's managing money for you or your managing yourself into some of the times you know people say to me geez I. You know I I finally realized I'm not that good at this arsenal you know. I'm not a very good singer I mean you know I heard it and so I don't try to sing that much I could not let other people good singer sang and I do stuff Armin investment key I love this stuff. And so might point to our listeners as. On take a look at your actual performance how did you do how should juve Don if you if you don't know how to answer that question will answer for you and let me tell you something what looks like it may be just a little bit difference. Actually translates into a lot of money that in any other circumstance you would say are you kidding I'm happy to address the current postal. Remember again 888972. 7526. Well always like to go over good numbers and see you how the stock market in the bonds or did you have last week and now does this this was in his first week got this so let's as zealously big picture. Now we saw over the week. Well you know we saw a US stocks were up it around 1% for the week and international stocks were even up a little bit more they are about 2%. Now a year to date the S&P 500 and by the way don't forget your date means to four weeks OK only down year to date. We've made are all about 2%. In the S&P 500 which is an index of 500 largest publicly traded stocks in the states. Think about that 2% in less than 112 of a year multiply it by twelve and you get 24% would you take a 24% are sure yes okay. I would call that a very very good start to the year race but also interest thing it was funny people asked me to assess several times this last week is -- -- shoot no story. The Wall Street Journal that a special pullout on an about the Dow Jones Industrial Average and that the fact that -- for the first time ever cleared 20000 and that that was a number that doesn't index it pushed up against quite for several times but never could quite eclipse that. Well this past week not only did it clips it but it close and finished the day several days this past week over 20000 so it's in the books as having closed. Pot at a value over 20000 fact I think on Thursday closed at 20100. Are so even up a little bit more but. I wanted to talk about why this was or wasn't that important to bomb let's talk about first what it what the Dow Jones industrial averages and why it got so much press. What are it is it's a price weighted index of thirty leading US large cap stocks. When we say it another way if you have a stock that's price 600 dollars a share. And you compare that to a stock that's also in the same index priced at thirty dollars a share well they count the same so whatever has a high you're. A price yet we did a lot more in that index that's the first thing you really need to understand the art secondly it's only thirty stocks. On and so. It doesn't have all nearly all of the sectors. That make up our overall stock market and our economy to think of it this way the S&P 500 has ten or eleven sectors to. Non in the case of the Dow Jones Industrial Average I think he has 45 or six sectors it just doesn't cover all of the brat. And depth of the market like the S&P 500 does. So you might say it will why does everybody talk about that you why is that such a big deal the answers could see oldest it's the second oldest index in the country has actually created in 1896. By the people that started the Wall Street Journal doubt jokes are OK but. Duck and by the way the oldest index in the country was the Dow Jones transportation. Index why because guess what the biggest then come companies were. At the turn of the century trains exactly rail knew exactly so those were the big companies that really matter if I'm at the turn of the last century and now of course you know and by the way there was no even thought of technology now technologies a huge part of our economy s.'s health care and some other things but literally didn't exist back then so the long story short is it something that can people can track. From the very first indexes in the United States and 1896. And it has the panache associated with that but frankly to meet. It isn't nearly as relevant after represented by US a large cap stock performance as something like PS and. Which is why we and we talked about bulls than you do spend departing board a lot more time strangled the S&P 500. So what also have we learned was the stocks were often do you talk to dump European and the European Sox were also very good. On the bond side have the US treasury I'm traded I would yields up a little bit this week endorsed the prices went down stocks one up that makes sense. The the ten year US treasure was trading around two and a half percent. And you know that German bonds experienced about the same kind of increase in bond yields there are up to about point 45%. For on a ten year. While the Japanese ten year still remain around point 1%. And then one last thing whenever I talk about bonds and bond yields I was like to talk about the probability the Fed raising rates short run that plays right into what's gonna happen what could happen to the price of bonds based on any action the Fed takes and and it's interesting this past week is dumped probability of the Fed raising rates in May actually went down. So last week remember said geez for the first time it's more than 50% likely that the Fed will raise rates in May not June that flipped this week and now went back to June so whether it's may or June it's a very very likely that you are gonna see an interest rate increase probably two or are somewhere between two and three interest rate increases. In the United States by the Federal Reserve Bank in 27 team. Now we've been following the dollar and we've seen a lot of strengthening your the last several months but that slowdown of nick did it's it's down to about I don't beat the dollar weakened a little bit against the Euro to about a dollar seven per Euro. And it weakened against the yen and now it's a 114. Yen per US dollar so weakened a little bit. But and and by the way even weakened for a while against the Mexican peso which is really telling especially after what happened this week we read in the new stories. On the pick the pace so eventually after that story weakened more against the US dollar. Because as as you know in my personal talk about it now prompt president trump and the president of Mexico. I came to an agreement that they would not be conducting a meeting next week. And part of the reason again that each one tells a slightly different story as to who canceled the meeting but. The net now out of it was president trump continues to insist that the Mexicans are going to pay for the border wall. And the president Mexico said we're not paying for the wall one way or another I assume it was for it. Mexico is gonna pay for the wall ash and it's kind of funny when you look at something like this because. Mexico's economic growth has been incredibly. A dependent on the United States over the last ever ever since NAFTA was put in place okay. And the date very export. 30%. Of their GDP is exports. And 80% of their exports go to the US. OK so were very big customer tourist and T and when Donald Trump says to them you do need to treat us a little bit more respect. Armed you know. Good the way that this has been handled I do think he has a point I do think he has an economic point to be able to say you know why aunt annie's negotiate the guy knows how to negotiate business deals. I think he's thinking a little bit of knowing you guys actually have this relationship back or you seek out there on the customer and you were the supplier. And suppliers don't threaten customers it at actually works the other way around especially when we're you're biggest customer and so yo this gonna get interest thing I will tell you I do believe are that they will pay for the wall one way or another whether to tariffs somewhere else. One way or another I do believe that trample orchestrate such that the economic effect will be that Mexico one way or another. Pace from the law. What about oil Lucy oil prices a movie a little bit they looked up this week they were there up you know I two or three barks this week arm up to about 53 dollars a barrel for west Texas around 55 for Brent crude at this point it was funny because crude oil inventories actually rose again. This past week and yet the price of oil went up a bit. Only come back door to our GDP because that's a big story of the week but just when we cover so the other day that the government release this week. Shore on the January manufacturing. Index there's a flash that they do when the middle of the month. And that actually looked pretty good and show some expansion in manufacturing that's a very good news hopefully it was forced. The bad news was home sales weren't very good. Existing home sales were down to about five point five million on an annualized basis a one of the reasons for that is because of lack of supply of them frankly. And then also new home sales were down quite a bit in December to an annualized rate of about 536000. And again that points to a slowing. In the housing sector at this time of the year. Initial jobless claims continued to be a very low they came in at 259000. Another indicator that the employment market continues to be pretty strong United States. Point ball when we come back we'll talk about it the first estimate of the Q4 GDP and what that means it will also cover what Donald Trump did in his first week in office when we return to support a strong financial four. This is tall Parsons president of planned strong investment management. And you're listening to them plans strong financial forum on WRKO. Boston's talk 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 at 80889727526. That's 888972. Plant. Securities and investment advisory services offered through an extra two groove and remembered today as I can see Clinton mismanagement and filling in this country grouping 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 wolf as possible so you'd never run out of money in retirement. Well now. Now it's time to get organized and to make sure you have a financial plan will protect your retirement. If your financial life together. Call Paul Parsons had planned strong investment management to schedule financial checkup call 888. 9727526. That's 888972. Planned commit to getting your financial house in order call 888972. Plan or vision plans strong dot com. Securities and investment advisory services offered through next financial group pink member tumor SIPC plans to investment management does not an affiliate of next and it's a group think and hoping that I need to Washington street Dedham mass. Says financial talk appeared 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. Duncan Currie at the anchor desk along with Paul Parsons is the plan's strong financial forum and just reminder calls toll free number eight BB 9727526. ABB 8972. Planned this is the time when you're getting your statement she year and Stevenson. And though all those numbers of the book animal those indexes were talking about. Chances are I don't know what they mean and or huddled fly them even if you do know it Damian how do you do you apply them to your circumstance. That's the kind of stuff that Paul can do he's very good at it policy and be happy to sit with you and tell you what that means. And you know how to make sure that you know put the proper benchmark is going forward forward to when you look at your monthly quarterly and yearly statements. Was temples toll free number eighty 89727526. Or go online to plan strong dot com just send them an email. Also we talk a little bit about the GDP in the initial estimate of Q4 GDP growth came in at one point 9% so at slightly under the consensus estimate of 2.2 percent. And of the one point 9% growth and value of goods and services produced 1% was attributed to inventory build so. Well don't really appear to indicate a strong economic expansion what do you think. Well let's put it in the context of what it has been in in the Latin in the first three quarters. Of 2016. When we consider what happened in Q4 or are okay don't forget. Q1 was point 8%. Q2 was one point 4%. Q3 was 3.5 percent. And you know frankly this latest number all it is is more of almost the same kind of spectacularly. Unspectacular. It it really means that the economy overall grew for the year around 2%. Which many people would consider at this point of an expansion sub par. And I just the way to look at it is. I think there's a lot of hope now we have our dump the ball prospect of a tax cut the prospect of reduced regulations. The prospect of a congress and a president all of whom seem to be cooperating with each other to get stuff done. That there's really chance to really get this thing going better than it has been going to date. Emboldened leads us right into talking and Gload to Donald Trump's first week in office it's it's strings all right this doesn't sound like his first week of school or something yeah it was are going to grade him but it also feels so he's been around a lot longer than a week Yahoo! and it's only been it's only been two weeks right so what happened and what can you tell us about it's almost like what didn't how it's yeah I mean they're good news you know what didn't happen nuclear war K okay but almost everything else did happen that I mean the guy really. I got a lot done in this first week or certainly woke people up that he was the president he still tweeting oh ya I wasn't sure that would continue but it has Judea yeah. And you know why does that Dolly if he does that because. He wants to have the last word with the people and it's a way that he can communicate directly with the people and frankly it's very little different than what FDR did with fireside chat slide you know FDR when he didn't think the press was supporting him he just went straight to the people list fireside chats and said look this is what we're doing this is why we're doing and in a way. The tweets are there 21 century equivalent of what radio had been to families back. You know in the 1930s when FDR was doing what he used to practice this a good points or so what what do we learn to what direction is he going in and what is he working on now. Well let's like I said he's on doing you know a whole bunch of years worth the work in a week or so our first thing he did was he. I signed an order to withdraw the US from the trans Pacific partnership the TPP if that those of you would start to know what that acronym stood for it's a twelve nation trade deal. That could've cost the US jobs she was absolutely against this thing from the beginning. And by the way so for many Democrats and in fact it was funny Chuck Schumer that the senate our head of the Democrats he set. The democratic head. Of our. The minority. Head. The leader the minority. The democratic leader in the senate said that actually we were gonna do this anyways so it doesn't didn't really matter that much OK but. On the the agreement had never been implement it. On body was concerning because it could have cost US jobs. To our countries overseas and and specifically in Asia and the next thing he did was he said hey listen guys. I'm cutting taxes for business in the middle class and he isn't a team working on that great now. And frankly expect to see something of that coming out very very shortly. On he also talked about cutting regulations spice 75%. That are boy wanting job growth and so he mentioned nine and one of his speeches or or right interviews. On he also implemented a hiring freeze. Across the federal government picked the last time that ever had a okay. But he did it and he did it for every group except the military. And by the way if you work it EPA. Probably good time to get the order does go to the old resonate bread because rumor has it I was listen this sometime during the weekend. They're talking about cutting the budget he EPA and half for some are great it's really quite some yup. He also. Implode at talked about imposing a quote on quote. Very major talk about what's the greens are tasks like so we're data right a very major border tax. On companies that move some operations overseas he is gonna really do everything he can't keep jobs here in the United States he understands that many of these jobs are gonna evaporate eventually anyway due to automation and artificial intelligence. But he is really sticking on you know all of drawing a line in the sand here saying look if you go outside of our country in your RUS firm. You're gonna pay for exporting jobs elsewhere for goods and services that are ultimately consumed here in the United States. He also met with the auto makers what happened there it actually went well there you know because they had a few fences to mend can you said some relatively unkind things about the Big Three automakers but they got together and he said to them look I'm gonna support you guys. Under ease environmental regulations for one Dick Dick you've been asked to comply to not ask they are regulations. And the biggest one of course our fuel economy once a because that ultimately is the stick that the US government has been using courtesy of the EPA and others to say hey you have to get the fleet MPG up to X amount by this year and if you don't command you know they're gonna be consequences for you he's gonna ease a bunch of those things and by the way Americans don't want abide those things through don't wanna buy. Higher and higher mileage I MPG things if you know what people have been buying with the price of energy where it is today and now they're buying light trucks and suvs. Is that the auto show here in Boston last week in hand there were a lot. A larger vehicles suvs trucks there were some and some goods the smaller cars and some of the electric vehicles. But there were a loss of the suvs and crossovers more far more than standard sedans or small sedans. And you know what that does of those car companies if they're selling high priced accessory rich M cars and light trucks. That cost more than say a stripped down little electric number right. The profits of those customers got the price goes up the profits go up you know what that does. That creates more value for shareholders and by the way it allows those auto companies to be able to pay American workers higher wages and it's good for everybody. And so on he actually said he wanted to do things like that as well as cut corporate taxes. And provide more incentives to manufacturing in the US and overall that the leaders of the Big Three GM Ford and Fiat Chrysler all said that it went well. Having said that he's also set his sights on these guys because for example Fiat Chrysler and Ford. Both have significant. Auto manufacturing. On facilities in Mexico. And he what he's doing is really putting them on notice that. He wants them to build cars intended for US consumption. He wants them to build them in the US. He also started moving on some pipelines oil pipelines that we've been taught zero for six or seven years we have an and boy has it been frustrating again as an egg you know we look at our country. And and we were really struggle ended to create jobs for quite some time. Arm and finally under president trump he said you know what we know we are gonna allow the keystone XL pipeline but to proceed I don't see any meaningful ops opposition to what that has been raised. He's that's being re approached. And also a bid to Kodak access pipeline. Is also going to be allowed. And for those of you who don't remember the Keystone Pipeline really provided a more direct route for oil that was being generated produced in the Alberta oilsands. To be delivered to Gulf Coast refineries. And the decode access project. That was an almost finished pipeline it's literally 90% finish but there was a section in the middle that hadn't been finished. And it had been rerouted a whole bunch of different times. All completely around any concerns of native Americans for example and still it wasn't approved until now and president trump has approved it and guess what. On the news trans Canada and Energy Transfer Partners the owners of the respective projects were up over 3% imprisoned drug didn't do something formal about the wall yeah he signed executive orders starting the process of getting the wall built and he said it was gonna start. Within months. Always come back we're widgets are annoyed Europe and some other news that investor should know about its plans drug financial for this is tall Parsons president of planned strong investment management. And you're listening to them planned strong financial forum on WRKO. Costs talk station. If you like what you hear on our show and what I mean to take a look at your investments and retirement plan called my office 889727526. That's 888972. Plant securities and investment advisory services opportunity for them to group member to me as I can see Clinton mismanagement and billions of mismanagement grouping who's competed in Washington street dimension to six. Hi this is Avi Nelson. People use different strategies to acquire enough money for retirement. Some try to do it themselves. Others buy insurance for investment products help sometimes no 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 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 grouping member former SIPC plans to investment management is not an affiliate of next mentioned grouping and is located at 980 Washington street Dedham mass. Finally your really your show is not trying to show you insurance or a new business. This is the plan strong financial forum quick call portions president we'll plan strong investment. I'm Ken Darby area. The anchor desk calls toll free number 8889727526. That's 888972. Planned. This is time to call ball and set up employment when you go in sin with Paul and his team. And you look at your urine Stephen to bring them with you and if you have a couple of years would be more awful. Poll tell you what those numbers of the bottom of the statement name regard about a regain the program out can be very confusing and frankly a little misleading to have to folks who don't do this for a living. I'll be more than happy to sit with you explain that to you that you know what you made what you should have made no cost no obligation. The B have to do do that eighty 8972752. Six and you know Kenny Whitey talk about that another thing is. How are you invest it today vs how were you invested say a year ago I wrote down a year ago did you anticipate that president trump would be president trump know did you anticipate that Britain would vote to leave the European Union no right and I'm so you look even six months practically every month it was June that was late Jones decency you think about this and out there are many people say oh I just invested and let it go and and and at my reaction to that is. You know you can do that. Bud but I I think there are better ways. A two manager portfolio to get better returns with less risk and then quarter quote letting it ride in an and as I said I think the best example that just think about what. If if you have president trumpet office verses you have Hillary Clinton and office. You know. How would you invest in Mexico with Hillary Clinton probably would you invest in Mexico president trump probably off bright and so forth shot and if you say well I don't invest in Macs go anyway well my reaction has spewed probably do when you don't know on and through Europe your portfolio and and can you give me example just off the cuff. How do you mean exemplify how I might be invested in Mexico would not knowing it sure we're where might it be hidden sure say you're an emerging market fog down. Any emerging markets fund will have Mac or developing market find anything like that China will have Mexico was one of the components summit you don't have to and by the way you could be in a Latin America fund something like our Latin America ET after all so it doesn't need to say in Mexico want to point I'm so that the short answers there's a bunch of ways you can unintentionally be invested in some economies that frankly just don't look at Rosie now they may have looked very good T New York all right and they look less good tune now and and the corollary stroke when you look now at for example the UK you're leaving. The European Union and and arm to say say OK I get it but it does look like it's too bad so far we talked about that quite a bit last week during the show right up and and we said you know OK they're gonna be leaving but not a lot has happened yet. For them to actually exit so it's premature to declare victory that it's not going to be a big deal when Britain leased by the European Union. But having said that I also said there was more and more risk. But a debt the European Union could disintegrate. In. 20172018. And the reason I'm saying that is because there are several key elections coming up in Europe. And one of the once I talk about for simple Francis having an election it's scheduled it's gonna happen and the if you will the playoffs the final championship game is in early neck okay that's a very important election to watch. Up me I Germany also is having an election miracles running for reelection I think you know she's got a she's gonna be pushing rock uphill but. She may survive. But the one that I really wonder about is Italy and that was the story that came out this week and I really wanted to mention because what I said was that while our brands he had been voted out of power very recently. They had an interim government in place and there wasn't scheduled to be in an election in Italy until 2018. But this week. That changed and in fact. On the Italian courts ruled this week that there may be early national elections as soon as potentially June. And within interim government in place the question is whether that five star movement which is the populist movement in Italy. Can wrestle control and ultimately. Conduct a referendum. For Italy to lead the European Union if that happens that's a big deal so now it looks like Italy actually may have a national election and name may have it. Certainly before. The end of the summer to we really need to be keeping it real close are under we do and what does that mean for investors well think of it this way just like Mexico you'd say well MI invests I'm not really invested in Europe and I MI won't you are in many cases are first of all you could be an eight world stock fund or world stock index. All you're opera presents 30%. Of worldwide capitalization that's a big come component jury enough you could be in something called the the MSCI EAFE index each side is an hour. Acronym for Europe knows the first one Asia Europe Asia and Far East okay here so guess what that's a big part of that and if Europe disintegrates at the European Union disintegrates it means very likely that European growth won't be nearly as much as it had its as currently baked in to. What companies think they're going to be able to earn this is really important stuff as an investor and by the way this didn't exist a year ago a year ago the biggest concern with Europe was whether or not Greece. Was Gannett was very have a problem okay you're right Greece is not Italy Italy. Germany France are the Big Three Italy is is an asterisk it is 3%. Of the overall capitalization. Of the European Union think about. So if you don't know if you're involved if you currently with the European stocks or Mexican stocks or some other things that you really should know about. Another good reason to call Paul sit with pollen is team find out what you are invested in. Toll free number for ball is eighty 9727526888972. Plan. Or you can go online to plan strong dot com and to send an email to Paul the red back dude read back to on Monday Tuesday he said at a time to sit with Paul and his team. Conduct in the US Paul there was a that we haven't had a lot of large mergers and acquisitions in the DePaul there was some big news this week it in the in the US courts regarding a proposed merger of. Sure companies that's right health insurance companies and guess what it was rejected there was a proposed merger between Aetna and Humana. And Tom and the courts essentially said. This is any competitive at the antitrust situation as they are we do not approve this merger so looks unlikely that that's gonna happen and by the way Aetna now is gonna have to pay Humana a billion dollars as a breakup fee to home than they do OCR. You know that's does that suggest Schechter rent rats and big Cherokee operative and by the way at this stock dropped 4% on the news and not not on coincidentally primary. Now anthems purchase of Cigna that's the other big merger on the same space is also being scrutinized by federal courts. And by the way it's unclear. If president can't trump is really gonna influence that many way because think of it this way. Republicans have historically been open more open to mergers of of large businesses. But press trump has openly criticized large deals that concentrate power and reduce competition again the populist comes right now and especially when it comes to insurance health care drugs pharmaceuticals. He is is less predictable than people originally thought he might be the so I am not sure how the anthem Cigna situations gonna work out but the first of the two big mergers got the big no this past week. Well wouldn't be a week of our programs we have at least one Amazon's storage life or 3COM. Sergio well there're couple things first of all Amazon is expanding into ocean freight I swear these people have been ruled the world while armed. The what they're gonna do is they are going to. Handled a shipment of goods from the Chinese merchants selling on their site. Two US warehouse it's home and what this does marks Amazon's latest move as part of a multi year initiative to build out its delivery business. And really what it means is you know if I'm UPS and FedEx and I'm wondering if their common for me next time I really wonder if they are gonna see it they're gonna so plan to me with your own. Cheaper more efficient service and it's going to be interest thing I know that FedEx has said so far Ono were complementary. World we've we've got scale look they don't have well. I can tell you Amazon's got a lot of scale only stays in any big big catch up real fast too and they don't they are and and and Amazon I ate I continue to say is a competitor you don't wanna compete with because they are Smart. And and they know how to go about it and they most importantly. Dana how do it to invest in something and they don't demand an immediate payback so they can actually invest and have deep pockets to outlast other competitors think Hollywood is finding out and Amazon can show up and make some news very quickly that's true just one year after launching their original movies business. Amazon is the first Internet company to earn an Academy Award nomination for best picture now. And that's huge and it's OK Gerri we've been in it for one year and we already have a picture and and by the way it was that the motion picture called Manchester-By-The-Sea. We're just about. Massachusetts governor struggle Manchester proceed justice. It's more about cluster get these little things bother me OK okay but as an investor yeah why is it interesting to me well Amazon as you know understands that contents. Is the ultimate goals when it comes to media and distribution. And so they're getting into the contents business and they hit off they already did very very well with their first foray into this and here's the link. When you have great contents and you have Amazon prime. You attract. More educated affluent viewers who now goad you worse service because they wanna stream stuff from your site that they can't get a house where. Right I admit it makes sense here's a young I'm not sure makes and so Amazon and bookstores in is controlling full circle it is already put all the bookstores out of business easiest this actually is fully legitimate but you know what they're doing their dare doing bookstores S test locations not a lot of self farming or stores either gonna 2000 bookstores I don't think that's the case. But in what they're doing is they're in their creating these little bookstores. There are gonna be a showcase for some of their other products like the echo and Kendall and the fire tablet and fire TV. The ascension what they are there are physical advertisement and you know it's no different than what people are New York City and they see. The beautiful apple are building in the middle in the middle of a Manhattan they say wow that that that is literally a physical advertisement. That's why they're doing at that and frankly what they're trying to do is find a showcase for people to be able to seize some of their products and. Makes sense I guess the all still free number 8889727526. Call that number to set at a time. To go in and present Paul your year end statement especially if you have a couple of years in a row the last three years would be really useful as simple what does this mean. M I making what I should be making what that I make what should be making especially given the risk you're taking. All of this team would be happy to see with you at no cost no obligation to explain that to you 8889727526. That's he DD 8972. Plan. Or you can go online to plans strong dot com bowl thanks so much for providing us with all this information we'll see you next week sounds terrific it's a classroom financial form. This is tall Parsons president of planned strong investment management. And you're listening to the plan's strong financial forum on WRKO. Dawson's talk stations. If you like what you hear on our show and what need to take a look at your investments and retirement plan called my office. 80889727526. That's 888972. Plan. Securities and investment advisory services offered through an extra to prevent remembered him as I can see classroom investment management and filling them a special group thinks is located at any Russian diplomats who threw 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 the securities and investment advisory services offered through next financial group rank number -- SIPC -- investment management has not affiliate in its financial grouping this radio show is for informational purposes only and is not a solicitation recommendation that any particular investor should purchase or sell any particular security information contained herein is obtained from sources believed to be reliable but its accuracy and completeness or not guaranteed neater next financial groupings nor represented of provides talked about.