Planstrong Financial Forum 02-04-17
Feb 4, 2017|
"Smart investing, simplified"
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
From the plan stroll in the broadcast studios it's good ones from financial forum where you're host. Kendra are very humbled president Roh plans strong investment minimum. Full portions it's time Bruce Morton investing it Symbian phone yeah. And then can. Arbor along with Paul and it's Super Bowl weekend heavy super bully your meridian balls and do you have vis a role again how spoiled that way yeah I. I know what it is not just husband you look at our kids are to you about the same age our kids especially and we suffered Favre that's okay that we we are very we deserve we. Just ask this cell depth but our kids holy smokes and our own lives they think it's like every every year or you're kind of disappointed if it is in every year in Charlotte losses like are you kidding I mean in their young lives is seen all four of the major teams win championships at six. That's really a better and it doesn't happen including you know things like the Red Sox and and and patriots. Several. That's out while while you and I are perpetually scarred. Sox and the principal very how can we ever forget you know whether it was 67 or 75%. And me just pick up lunch you know 86 always left the market on me and hockey down the whole thing you know it's. Yet when you look at the whole thing you say. The Red Sox can't win enough championships at this point to kind of undo my my psychological scar you're right by the patriots on the other hand. I think we always kind of looked at them you know kind of smile is like okay and our big dude yeah. I thought but that didn't really didn't. You know look at that surge sleep until you know this whole new group game and not not a new group known Alan gold group and how fortunate we to have probably the greatest football coach of all time right and certainly the greatest third string college football. Hi quarterback with an all time denied it as as part of the team I mean just incredible. And and ever true dynasty in every sense of the word now so it's it has been fun. You know I keep thinking about this game I keep trying to think of ways the patriots can moves but you know I can't think of any but. We as we know in any game any good madam. Half an especially one and dot I I that's my only issue with well actually shouldn't be an issue because you know sometimes it's your favorable but we're the last Super Bowl -- exactly I mean I you don't wanna go through you know mark are they gonna really not what Marshawn Lynch run that ball we all change when you by the did there oh my goodness are and Malcolm Butler what do you know when John but. On our sport's not that we're talking about sports from an at the other thing that I saw mud that was just. Absolutely. Chilling bone chilling to me was watching Roger Federer win the Australian Open last night where and and he beat our Rafael Nadal and it was a five set match and that who of them work like 22 Urals not 35 and thirty year old and they. Were absolutely. Stunningly. Great now and both limit comeback from injuries both them had played in like six months on the torque. And it was some of the best tennis I've ever seen in my life it and and tennis is. As always done well when there was a name when there was a stars. Talk. And these are tool of those guys who have who have not been doing as well lately excess and and the names were not so familiar with the winning in Buena. Exactly these names when there when there on top it makes a big difference this. Or the Wall Street Journal had a how an article about people getting up at 3 in the morning in the United States to watch that the final lie and and it's cut its very similar to like the World Cup games and soccer one. A World Cup was on and I know my kids. One summer when they were relatively young riding their bikes this somebody's house at two or 3 in the morning to watch a game in an. And my wife and are like Nike sells out and it happens once a lifetime that you get the seat. You know a great soccer player as he was Rinaldo or somebody at that time in cash and pay knock yourself out have some fun with and and and they were great hands and as a result we had a really great like experience. To the ice for joining us here in sports radio's talk I am not happy. A happy wells are quite a sports program but you know we need to you know finance is a little sport to and his well and certainly you you need to it's something you need to pay attention to ball or adapter game plan yeah I mean and what is bella checked the best stat. Right sure you've got a guy he watched the first half a game. And you watch a team run through the patriots surpassed two would a weak spot in his own or something an ego I think ever gonna fix that this second half starts. And the patriots either get a pair Cora fumble or something red and the acting is shot. Our credit card and that's you know that's Belichick's genius a long and his assistance. In a adapting his game plan and that the parallel like drawn that can in the investing world list. Think about what we've had. For the last eight years on as far as an administration. And really the the goals of that administration their policies and so forth and what industries. Might benefit from that. And now we look at the new administration the trump administration and if you don't adjust if you don't adapt your portfolio. You're Gulu smoker you're you're no better than the coach that makes no adjustments in the middle of the game and because YouTube for so long we had the seem. Feelings the same. Direction to rearm the White House commuter Washington Post. Perhaps gotten used to okay this is the way I'm lining my portfolio counsel and it makes sense here and they didn't need to make change out for awhile because it was consistent. But if there's anything that we know now ought to skiddie tour examples from this last week alone aren't OK first one. Donald Trump on Friday said. I think dodge Dodd-Frank it's a bad idea you it's a good idea very poorly executed implemented. And a lot of Dodd-Frank is going away. And so you think about that and that's the antithesis. Of what happened under President Obama and so something that put in all kinds of regulations and costs and constraints on banks. Trumpets talking about getting rough there so does that mean you have the same underweight financials. Odd that you have under Obama because you saw that the profits were gonna get squeezed profits in fact worse squeezed. How would you implementation of Dodd-Frank. And the corollary is true is it time now potentially go overweight financials if you think that trump will in fact. Get rid of a lot of Dodd-Frank get rid of a lot of the regulatory. Hang over a few well and financials are able to earn you know significantly more so there's one the other one. President trump met with the pharmaceutical leaders again are weak credit. Yeah and that he he's he's been talking about this for our guard Andy and as soon as he is in office he's meeting with. The big guy he. Is and this particular case you know. And and it appeared that they were going down on the path of eventually getting towards price controls off for pharmaceutical drugs. And when I truck came and he first made some noise about hey I think some of the the pricing and pharmaceuticals is is beyond egregious. But Benny met with Tom the pharmaceutical heads this past week and send them look. I understand what you are trying to do was good. You know I I I don't point shooting gouge our consumers. But the same time I'm gonna make your life easier I'm gonna reduce regulations that don't add value in my opinion. And I'm also gonna make sure that they speed up he'd go approval process so you're either gonna get thumbs up or thumbs down a lot quirk with us and I imagine that also could make a big difference if you're investing in that area absolutely right I mean that's that is a very big difference. From the way presser Obama and opted to you know what would have been president Hillary Clinton. Might have done verses the way that Donald Trump's handling so if you haven't adjust your portfolio dosage just two examples. Meetings this article is true Rachel while I I know you don't have to hold onto your hats I'm but. What you do know is that that things have certainly changed and now the third one that immediately comes minor promised to give your third one is you know the whole. Our energy side I think about it I mean who was last week he approved combo REE said that he would do everything he could to support. Both of the TransCanada line and the echo the keystone XL pipeline and also the decode accessed pipeline that Obama had shot down. With then you know it was several months of the thing going lives mine will what does that do to pipeline stocks and and so forth I mean it's entirely different environment. And what it had been literally a month ago. So if investors haven't readjusted. Or their portfolios that they haven't looked at it from this new standpoint and quite frankly even if even after trumps election. But before he took office we weren't exactly sure what would have and frankly we're stole much Roger we're getting better or getting closer and closer we have you know he certainly sending out smoke signals and CE saying. Tax cut us com and on some other things that really should change. Are you need to adapt your portfolio to take full advantage of that. An ice and the best way pursuant to do that ball would be. To sit down with view and your team this is the stuff you do you do so well let me just you're listening as the phone number or talking about it. You can call Paul's office were no obligation review he's happy to sit down with the UN safe. Where were you over the last several years under Obama where are you now under trump. The numbers eighty 9727526. ADB 972 planned or enjoyment of plans strong dot com to no obligation meeting. I'll be happy to see review and follow. For that kind of meeting it's it's a little different from an overall review is an all shall we knew it couldn't involve some major switches capsule. And grand part of what we do was we sit down. We look at your portfolio we talk about places that we wanna emphasize in this environment why we wanna emphasize them in a portfolio. And also areas that frankly or either avoiding completely. Under wading. And Alec and another example something that's dramatically changed in the last year the last nine months has been our perspective on Europe. Now I mean think about it. 99 months ago no one thought that racks was gonna go through and no one thought the Donald Trump is going to be the press the United States okay and now. All of a sudden you've got elections in Italy that are coming up this year. Not and you also have elections in France with marine apparent push us showing stronger than she had prior and both of those elections. Could trigger some sort of a populist move. Within those countries but ultimately leads to a referendum for those countries to leave the European Union if that happens. That's gonna root significantly. Change on the outlook for that region and potentially the worldwide economy for a period of time. And just on a side note Marie the parents. Posters for office yes quite an attractive lady a wishy yes children and Andy you know it's it's France so they make sure you know that I I guess I'll put it it's it is odd to see how because I think just a few months ago we first heard argument she was still a bit of an out liar yes. But that's not the case and no looks like she would get the largest amount of initial vote. But then when they go to what true person race at least right now what the the oddsmakers are saying are saying that she would lose. Not to feel long. I in the general election but you know they say that Todd was gonna lose to Hillary as well sergeant we are sadly we don't listen the regular one frankly that doesn't happen to Kapler made a lot can happen between now and then and and I don't wish this. Obviously. But especially some sort of terrorist activity. Happened short in France as as a matter fact this week we had one of those of the move where they shot a man who was. Acting very strangely and oranges had that been worse shot that that might also affect the -- exactly might illicit more people to support a populist movement to restrict immigration for a while Paul still free number 80889727526. Whom we come back we're going to do business in new stories cover the stock and bond markets it's a plan strong financial form. This is tall Parsons president of planned strong investment management. And you're listening to them plans strong financial forum on WRKO. Boston's talk stations. If you like what you hear on our show and what you need to take a look at your investments and retirement plan called my office at 80889727526. That's 888972. Plan. Securities and investment advisory services offered through metro metro group member to go as I can sequester investment management and filling in this country grouping that is located in Washington street and Massachusetts. 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. You 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 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 is not an affiliate of next financial grouping and is located and I need to Washington street Dedham mass. It's. Okay. It's okay. Mobile and strong broadcast studios at the epicenter of capitalism this is no plans strong financial forum with the poll portions president of planned stronger investment management. Hello again current NBA. Does belong with the ball its plans strong financial form in the first segment while we're talking about you know are you aligned properly leave through the new trump administration are your investments aligned properly have you made the switch it because Griffin window that nobody would have been a lot of verbally. For five months ago. Well use it if you're another way to say it is are you aligned the same way you were six months ago now four months ago if you are. And you've got some catching up today Iran Bryant so up balls numbered to do that to sue Paul find out if you're aligned properly for the upcoming. Administration ADD 9727526. Accords owed them we've been talking throughout the month of January you know we're just starting for more and with still folks are. Just getting their urine statements in and over the last couple of weeks and and mini me he didn't open their first game in Europe does decide. As a sin don't open that you see all those numbers in the bottom and you try to make sense. We as we have been discussing this is also a time to figure out. What numbers are important to you would did you earn what you should have last year and that's something folks and can learn from you as well. Absolutely right what is the appropriate benchmark against which to measure your performance in other words. Hey I made 9%. Should I have made 12% should I've made 6% the level of risk that I talk. And that's something that we can answer for you. And not even go further right so you can get around the path a little bit and said OK I understand how did this past year. But candidate to the year before the year before wasn't terribly good year in the market straightened around but the year before that there the markets were pretty gutsy god. A Goodyear earned 2014 and not so good you are 2015 and a good year in 2016. So how did you do in good markets how did you do in the bad market and if you can't say that you consistently did well. Well then maybe it's time to look at an alternative and common and have somebody evaluate your portfolio. Postal for a number eighty Dade 9727526888972. Plan or you go online to plan strong dot com and just send the mini mill million red bank but let's look at what happened over the last week and we'll start with the stock market's not but the best week. Well you know what's funny on Friday the week prior close tie and it dropped on Monday and it never really recovered most of that back drop a lot you know it was they were down maybe half a percent to 1% over US stocks this past week. And by the way though don't forget year to date yes and 500 which I am obligated to remind our listeners is an index of 500 the largest publicly traded stocks. That's still opt to Hu percent. Through you know the end of January early February now the same time international stocks. Are up about 4%. Year to date so international stocks of Don actually better than US stocks. A for the first month and a few days and we've seen just last couple of weeks all time ours for our our stock index is not a free international indexes but for the US stock index is absolutely true you know war within a hair's breath. Of of the other record highs for the Dow Jones Industrial Average within yes and 500 index and so forth jealously the barn side you know on the bond side the ten year US stress free trade with yields down a little but other words. If it's if risk was awful little bit this week well guess what the price of bonds went up a little bit which means yields went down a little debt. So yeah I yields were down about five basis points or point 05% to about 2.4 5% for the ten year US treasury. That German ten year bond is a little over point 4%. And the Japanese ten year is right around point 1% all three are in positive territory. Don't forget Japan's target rate for their tenure is zero right so they're just slightly above that point 1%. And then finally the last in whenever I talk about bonds and US treasury to 45 on the ten year. I like to also talk about the probability. Of the Fed raising interest rates in the near future and the reason I do that is because if interest rates go option in the price of your existing bonds most likely will drop. And cures the deal there and there was a continued deep crease in the probability that the Fed will increase user US short term rates in May. As opposed to June. I'm just think of it this way 65%. Currently expect rates to not move in May while only 35%. Expect a reading RS that's nice little different from where we were just a couple of weeks ago that's right a couple weeks ago it was more likely that may would actually see your read increase. It's backed off from that can now but June continues. To look very very likely to have the first rate increase top of of this year. And we're but the US dollar. It weakened a little bit against the Euro and the yen. On the Euro to dollar or eight. Pots about a 120 yen per US dollar and even weakened a little bit against the Mexican peso which you know we are talking about have you adapted your portfolio to the trump administration vs. How the prior administration. Well I hope you have as it relates investing in Mexico for example because the Mexican peso is down I don't know fifteen or 20% ten cents trump was elected so I don't know about you but I think a fifteen or 20% move is probably something when adapt your portfolio Bryant so when he sees. Of these little moves toward goes up or gets a little with a dollar weakens against that. It is is that something you see is as temporary is that it in more rather than indicative of a trend. It is in in this particular case the dollar weakening or strengthening has so many variables that come into play would that. On and in and sometimes it has to do with the perceived strength. Of the US economy compared. To the strength of the other re economies but it also can reflect other things like monetary policy and also mean there is there's talk that our president trump wants to actually purposely. Weakened the dollar a little bit. To make our exports more attractive. Our two countries so the bill by more and will be more competitive with you know countries that already have weak currency so. There's a whole bunch of factors that go into it but the important thing is. If you're investing in companies that do business overseas it's very important few to know whether or not the dollar strengthening an octopus if the dollar is strengthening. Then it's likely gonna adversely impact our international earnings of those stocks. Our oil prices. Well prices were up a little bit. You we've been in this range for awhile were about 54 dollars a barrel for west Texas and around 56 or cell. Opt for branch mine and that's the so even though they were op crude inventories were up again this as well. On crude inventories were six million barrels this past week they now represent a 5% increase over the same period last time. In addition serious inventory it's got to get worked off for I believe for oil prices to really go up substantially right now. He's so resist price range. I'm more comfortable price range for the energy industry where their and they're not at a big Russian try to push it up. I think that's very accurate right I think you know when we are down on the 20s30s and foreigners out war crime and now were or are almost somewhat peacetime no neutrality and I think the target for OPEC is around sixty dollars right now they don't want it to be too high because it'll encourage too many trackers to get back in a marginal producers to get back and but they wanted to be high enough that they're generating more government revenue because don't forget a lot of the OPEC countries get a lot of their government revenue through oil. I'm right probably ever gotten some data from the US government week we can it was a good week it was a big week and I don't wanna scare people because here indeed sounds and learn but I. There really important stuff there is boring but this is really good stuff I run the data means isn't it. Exactly I mean this stuff actually counts as it relates to your portfolio and and let's start at that you what's the most important data of the week first round the and that was the jobs report on Friday which is officially known as the employment situation report Bureau of Labor Statistics comes out of that but here's the deal we added in January nonfarm payrolls increased by 227000. Jobs that's a good number and okay anything over 200000 jobs I look at and say okay checked the box that's pretty gut. And it was after an increase of only a 157000. And December remember we look at the December numbers said. Yeah yeah a little bit of hold your nose in it wasn't even non neutral it was a I wish I was a little bit better. Om and the other thing that happened this was the unemployment rate actually increased even though we had to over 200000 jobs. The unemployment rate increased up just a little bit the reason for that asks the labor participation rate went up so more people. Tried to reenter the workforce that's actually a good thing that's good news there all right. I'm pat and armed finally go to a negative side of report that I wanted to match because there was a lot of positive to him but the negative side was that wage growth continued to beat last. They we hoped it would be. Why do you need wage growth this wage growth. Drives inflation. In I'll think about it it it that is the nexus subject to a great degree. If people get paid more when they're working. Then they'll go out and they'll bid for goods and services no pay more for if they're getting paid less they won't pitted ops he won't have as much inflation to what we saw four. I'm inflation or a wage growth in this this past month in January. Was it only went up by point 1% or about caller what are one point 2% for the year writing and on and that was after they revised down. The December wage growth from point 4% 2.2 percent remember we said well at least there was good wage growth in December and ask good because it means that we're finally seeing him some wage growth inflation. And that actually wasn't true there revised down a point 2% so I would say that was the Achilles heel. In this labor report overall good number jobs. Bad news still not fueling a not for wage inflation and I think that's gonna fuel. On the Fed to not necessarily wanna raise rates sooner because they wanna see some Hulk the amount of inflation and I think of any of the metrics at the feds looking out at this point inflation's the one that they still haven't been able. Two on to substantiate took two of I'm fuel as much as they'd like to. Now we also got personal income numbers how does that tie in with a wage growth well personal income was up point 3% in December so that's that's really good nose on your incomes were op and they are substantially depressed or any of the numbers or talk about the monthly number multiplied by twelve and you get an annualized numbers right so. Point three times to almost three point 6%. That's pretty good that's pretty good income growth. But even more portly personal spending was up point 5%. So people were spending. At a greater rate than they were actually seeing their wages go up their earnings go up. On and dumb probably the most important part of this report is what the Fed looks out for inflation this is called. Other PC he price index that was up point 2% month over month. And one point 6% year over year it's still a little bit below the 2%. That the Fed would like to see 22 and a half percent somewhere in there is their target. For inflation and neither one of these reports the jobs report for January. Or that the personal income in the PCI us on price index. Showed substantial. Gains in in inflation at this point. Well when we come back we'll look it's more government data it's the important stuff and we'll look at a little bit deeper dive into the GDP number from last week. And why it's important to investors disciplined strong financial form. This is tall Parsons president of planned strong investment management. And you're listening to them plans strong financial forum on WRKO. Dawson's talk stations. If you like what you hear on our show and what you need to take a look at your investments and retirement plan called my office of EDD 89727526. That's 888972. Plan. Securities and investment advisory services offered through metro metro group member to go as I can sequester investment management and filling in this financial group think 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. Who protect your retirement. If your financial life together. Call Paul Parsons at planned strong investment management. A schedule financial checkup call 8889727526. That's 888972. Planned commit to getting your financial house in order. Call 888972. Plan or vision plan strong dot com. Securities and investment advisory services offered through next financial grouping member tumor SIPC plans to investment management is not an affiliate of next the next grouping and is located at tiny Washington street Dedham mass. It says financial talked him through your signing and informative. At least it's informative it's a plan strong financial forum where bold portions president's bold plans stronger investment management. I'm Kent armory at the anchor desk along with Paul. Disciplined strong financial form and if you haven't gives Bruno were different show what kind of a different financial program trying to sell you anything. Paul is sharing. Hear us say a new would be one time or refer to when nobody narrow time or mislead you about anything to do with all well you know get all the upside and none of the downside and all never mention the word a new forty we don't do when nobody's guys I have some news for you we are fee based investment advisor which means. We charger percent of the assets. And we are. Absolutely economically in different as to what we put UN weather stocks or bonds or mutual funds are each guest was between the lowest cost alternative and what we think has always in your best interest not to suitable for you but you work best interest to score all the fiduciary standard and that's how we operate our business and you always have always check out some businesses are changed or inhibiting tumor after what we've been doing that since we were business. Postal for number 888972752680. 8972. Planned or go online to plans strong dot com and send me milk. The obvious self employment would view and it doesn't take long it's no cost no obligation. And it's it is worth while these these Smart people in northern talking about and if you can tell that from this program. So all the time of the date some of the data I don't know what the eyes glaze over and over but it's good data and it's important to have more importantly importantly it you know it people say it who cares how many jobs we added welts and incredibly indicator to strengthen the economy is the economy's strong. Then shouldn't earnings also be strong of companies and you're these are all key indicators that you should be watching as you assess the environment in which you are investing. And so we talked about that it was a relatively strong jobs report other hand we just didn't go up that much from what that means is there wasn't as much inflation if there isn't as much inflation that means. The likelihood of interest rates going up in the Brett short term. Is less because if you don't have inflation. One thing you don't wanna do is raise interest rates in the face of not having inflation aren't okay. On some other but overall I if you ask me to reach the week on you know how good was the noose like compete clause all right this so we had we did go a relatively strong jobs report. Personal income was up. Are relatively well but not not huge but not terrible by any stretch the imagination. On home prices were up sharply in November. Are Adair stir not still at their all time high for increases during this expansion but the Europe five point 3% year over year and most importantly for us and our listeners. Price increases were worse significantly favorable elsewhere in the Boston area of the twenty cities boss was one of the best ones this last reports of apps. As good a new we can generally feel that but I thought the Boston numbers had slowed down a little bit younger the last few months and it's a deer in their bouncing our guests some places are really starting slowdown in New York being one of their head and really enjoyed a lot of price appreciation we're now seeing that go the other way. Another thing that was really good news consumer confidence. You know I think like him or not. One thing that Donald Trump is Don has unleashed a lot of what are called the animal spirits of the market. And we're actually seeing people be more confident. About. They did a concept that this economy could grow battery Bennett would have otherwise because. What's trump talking about he's talking about cutting taxes. Cutting regulations. And increasing fiscal spending on infrastructure projects all three of those things. Lead to a better economic growth and so and if you think that economic growth is gonna be better. Then you're confidence is not be say welts likely a market loose my job because there's going to be an economic downturn and so forth and so consumer confidence held strong and steady in January reflecting only a slight decrease. From December's. Fifteen. Year high. Okay so that's how strong consumer confidences. Motor vehicle sales are growing we look at you know cars and light trucks are we sour on him. The answer. At the app slew bottom. Of the market. In march of own time okay so thinking that we sold twice as many cars and light trucks in December as we did in March a bona. And in you can few years ago Paula bloom we first started doing this program we were in those low numbers and we were there ten and 121000012. Every month right. And now you know that crept up towards fifteen and we've been at seventeen or eighteen million now for a essentially the last. Oh gosh at least 66 to nine months probably this has been a very good Ron with a lot of pent up demand for cars frankly people put off buying. When they weren't as confident about the overall economy so we saw that having said that. I do sense that. Car buying is starting to slow Kenny. And the reason I'm saying that is because we they continue to have to more heavily discount you know these cars to get a moss blocked their average discount and I was 10%. Okay that's pretty significant that in in. In a a spectrum of discounting for automobiles 10% towards the high and now okay. And on the other thing though is that the top four sellers all experienced reductions. Against the jet that December numbers came in January it makes sense it's too if December was a record and we're slightly lower Nat. Then GM and Ford and Chrysler and Toyota all were down a bit. From from the December lob pass and manufacturing numbers came out of the word go but yeah you know we had a couple of good numbers there we had our two major indexes that we track from manufacturing activity again another indicator of the overall. Economic. Strength and activity in our country they were both very street no strong numbers and you know last week we also owe. On you know had a good readings are related bomb GDP was okay but capital goods was actually pretty good. Durable goods were pretty good last week so some of the soft that you start deceit when the economy's really starting to fire and also owners were really starting to see whether it's. I durable goods orders from last week or things like manufacturing Acton. This week I mean those are those are good numbers that that really support you overall economy. So overall I give it at least a B plus for the week. And then of course the Fed met Matt this week as well right and they talked they had their usual statement at the end of that and you know no surprise to anybody they didn't change their outlook is related to we're not changing short term interest rates at this point to target short term interest rate at this point still. Point 52 point 75%. Say no change but what they did you. Was they did mention on debt they thought that things were calm. Getting a little bit better it would inflation they were upgrading their expectation of inflation. And they also confirmed expectations for several rate hikes. Sometime this year but as usual they didn't specify when those rate hikes where car camera and case. We'll keep an eye on that will be hearing more from them and the it is interesting to note though that more work the betters the folks who put their money on the line who were saying many. Now backing off that a little did you. And I think I'm probably be in its not that I don't think it's the job market. I don't think it's. I think economic growth could be a little more robust you know we saw GDP growth not as good as you wanted to see offer for 2016 and for Q4. And I think inflation if you think of the three mandates that the Fed is looking out. Got to cool the three are close but not quite soup yet and I and that's inflation. And overall economic growth I think what we're seeing on the leading indicators now is that we're gonna see better economic growth. In Q1 and and that's a reflection of all stuff I just match and manufacturing activity in all and other stuff. So let's look a little bit more than GDP number that we heard last week Paul when taking a week now we step back a bit when we learn from that you know it was it was an okay number and and that's all that's the best I can say Brett it was. I'll one point 9% was that the quarter over quarter change. I'm so. And that's that's below obviously the target more importantly. Four year over year rappers are for the full year represented a one point 6% increase and happy that's not my definition of robust growth right very exciting number and and and here's. Frankly that the bad news about that Q4 and number two it also included an inventory built. So I mean it really was worse even than the one point 9% would suggest. So I would say overall it it wasn't a great number. And maybe another way to talk about our GDP growth is to compare to other regions. So if you compare our GDP growth to Europe. For the first time in oh gosh five or six years. Europe's GDP growth that was faster was great and van the US's GDP growth atomic elected I just felt our growth this past year was one point 6%. Europe's GDP growth was one point 7% in 2016 on the still doing easing there now what they're still going he's in particular bad stuff that was happening in their tracks that they are shown right. And they had terrorist attacks in France and Belgium and Germany I mean talk about you know what blankets on Asia on an economic expansion and still. They excel or gay mirror are or their growth their economic growth was greater than that of the United States and you know. Having said that as you look forward there are facing I think bigger headwinds and we are. You know certainly as it relates to their there are starting to see some inflation. And more importantly there's a lot of economic uncertainty associated with the upcoming national elections that we talked about earlier. In France and then Germany and Belgium and and and non and in Italy. Well it's good earnings season starting here now what do we learn both smooth corporate numbers that came out well were we've now hit past the first third of all corporate earnings for Q4. Of sixteen are now win there in the blocks. And you know bearer. Work for looks like for the second quarter and a rower in a positive earnings growth that's good news that looks right now. That earnings growth quarter over quarter is gonna go about four point 2% on an annualized basis. And frankly that's that's good news is that's up from the initial estimate when we started the earnings season at the beginning of January it was supposed to be three point 1%. Now they've operated that forecast based on actual sort of comment to four point 2% in May were called at that time I said TO. Might gases were gonna come in closer to 5% rather than 3%. I think we're right on track to do that. And you know that's good news because. On you know this is the last quarter net earnings of energy company should adversely. Impact overall corporate earnings goats at. After this corner. You're gonna get positive. Energy earnings growth. And the I believe that the overall lesson 500 earnings growth is going to be substantial and just to give you an idea. For all of 2017. FactSet which is kind of does the Bible of corporate earnings in the S&P 500. They're projecting earnings growth of 12%. On revenue growth of 6% so 2017. Looks like it could be a good earnings growth here. All we come back we used to resort apple FaceBook Amazon Microsoft when we're cutting edge here is the plan's strong 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 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 EDD 89727526. That's 888972. Plan. Securities and investment advisory services offered through metro metro group member to go as I can see classroom mismanagement and billions of mismanagement grouping that is located in Washington street domestically and six. Hi this is Bobby Nelson. People use different strategies to acquire enough money for retirement. Some try to do it themselves. Others buy insurance or investment products though sometimes will benefit the seller more than the buyer what makes sense is to hire an advisor with first rate credentials and why do investment management experience. Should have a fiduciary obligation to acting your best interest. And be paid the same amount no matter watcher invested in if these things matter to you. Call Paul Parsons at plan strong investment management to learn more call 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 former SIPC plans to investment management does not an affiliate of next mention grouping and is located at 980 Washington street denim. My and we are really your show is not trying to show you insurance corps annuities. This is a plan strong financial forum could pull portions. President told plans strong investment. And I'm Ken carver against the desk along with Paul it is a plaster or financial four men we've got a program just chock full of information for you. And always talking about quarter earnings before the break and does some pretty good numbers out there any specific stories don't talk about the investor should Nomo. Well there are but you're so business like the day before the super pitcher not even talking about I know I I just of course I wanna talk about apple and FaceBook what would cause some really good stories are but before we get second askew there. Germany like superstitions. Or do you have any on. You know kind of ritual and go through when the patriots are playing in the ultimate game is yes of course trip mean for it did and you can sheriffs that you know I think a lot of people have this weird feeling that if you're not watching something bad could happen even though we have watched too bad things happen out so you've got to be sitting in your seat in the right place you know you because things that's where I am yeah things start to go well it. You can't wolf I don't absolutely not I yup I'm it's like. I hope what's commercial 'cause otherwise there's no bathroom break OK can't leave you can't hear that room go to Joseph and I don't know where the Red Sox two and you know my wife will be sitting in the Sugar Bowl. Sound yeah until loosen things over really scoring runs exactly let's simulate something wrong with me curtains yeah which of course there is but I think that's sent again. Listen we're scarred he's OK you are deeply scarred after our up bringing in in the Boston New York but. We were proud of and a you have to import you have to embrace it okay and that's where I am I'm good at this point and I'm talent if they start to do well. I will I will sit at exactly that same angle or not yeah. For the next three and a half hours are okay that's might bow up. I mean a lot of those of us who decisions I got when I used to Wear the Red Sox are younger and working at Fenway Park for the games. Some of the guys who weren't that way some of them don't pay attention to look at some of the more guaranteed up don't leave your seat. Don't get opt. You can't move rights are learned some of those things you know what working with some of the former Red Sox players Tommy Harper's that was a good friend of mine and Tom targets also those stories. Even if he didn't believe him it was fun to tell why. And the athlete still I mean they have. Boarded they have their superstition Trenton I'm in public Nomar. Every time the guy got up to play it was half an hour from where just everything just right now and then swing and nationals like really do all I'd miss the organic not I'm listen on the first one to admit that baseball is an incredibly hard game to hit a baseball had a hundred miles an ark a matchup but. I'm like but I don't get it you know I'll watch if if it didn't work why do you keep don't want it but. Anyway it didn't end in football of course you know that there are certain rituals do we mussina especially pregame they ought to pregame rituals if you get to. He gets it until early ya and you see what some of those rituals are in terms of they run from here to there exactly this in turn around a run that same thing exactly and you don't see this guy. The NG EU Brady does it you know army he has is certain things he does before every games onto. Well good luck to the patches can be so much Fonda why action and you know what what a great season they've had considering you know the start of the season. Just incredible and by the way that's yelling I was gonna ask you. Do you think that in the in hopeful that the actually prevail tomorrow. Do you think I don't think. That mister Kraft or Tom Brady. Or on anybody I'll spell check will. Actually say or indicate anything towards Roger Goodell if they're accepting. We'll be very business like I don't see any hugs although may be may be mister Kraft will dude the handshake and hug to do Dell has to take the heat off of his. His players out emperor and his coach but I don't see either bill or Jack or Tom Brady hiding Roger Goodell. I you know what I think would be the best answer of course I think they should be gentlemen about it but there's a way to be a gentleman. And I think the ultimate way might be just to be very dismissive off patent and you know literally. It takes the trophy and turn the other way and just pay attention to metro hey pay attention to that the the fans' sense and their teammates. And and I think that's still. Isn't it un gentlemanly. But it it gets the point across it yet you're just cheered at the Wimbledon trophy actually in an upset yes I too as a delivery boy who has we'll figure from our case and later wasn't that gentleman OK and I at least at least that way it wasn't over sleep on gentlemen and how is that. It's fun to be able to have this discussions I had a fantasy and maybe it'll come true we hope you never know that's why they play the games absolutely so good luck to the painters who will will look they next week we'll do a quick review obviously if you if you've heard this you know why we don't the sports show. We do trying to show exactly I mean we're not fans absolutely soared to argue about our corporate earnings and in particular some some specific story right when they wanna pay attention out of big. Stories these are very very large companies many many investors hold these if you whether you're an index investor or. Or you you pick individual stocks in your portfolio. A many many investors hold apple or FaceBook or Amazon or Microsoft or just some of the biggest names and the fact if you don't own them it's an overworked. On move. To avoid them because there's such a big part of of the US economy and so let's start with a three of these companies were reported earnings this past week. Apple apple shares jump 6%. After earnings were released that indicated strong demand for the iPhone seven which you may remember I have 11 wrong. It was unveiled just since September are okay but they had good shipments of those Europe 5%. During the quarter. Vs the prior year. And that by the way help snapped three consecutive quarters of revenue declines and so it got the job done from that perspective. And also their service businesses which includes the App Store. On at all so. On music and payments that saw revenue grow 18%. In the quarter side to be more than three times the size of Netflix sales morrow got just tells you how big. Apple's services business is this point. The bad news sales in China were down a little bit amid increased competition from lower cost alternatives that's a real shocker not that the Chinese would go in and and punish apple. In that marker we'd cheaper versions of summed it looks relatively similar to an iPhone salve and but. In spite of all that there were even supply problems remember with ear pods are wireless earphones dating come with the sun universal and and still I don't know if you can even get them today I think you can order them I don't know if there in yet or not per sag. On and they also had me they didn't have sufficient quantities of the bigger iPhone seven Kobe iPhone seven plus. And that by the way is the more expensive one too so in spite of all that. They beat revenue which was very very good news on on the other side about. You know Samsung had eight. Terrible old theater like that they had to hand medical and yet apple didn't gain a lot of market share the same time and that's a little venture interest in Samsung buyers seem to have stayed with Samsung. At right now Apple's the number one Smartphone provider with a 31% market share Samsung on their heels at 29%. And in spite. Of the instantaneous combustion. Of 29% and real. And a slight interest or those are true fans of the product it even maybe even though they know it just might blow up in your pocket or in California rare playing or her car mean but that's not your first choice right and so that is enters into it is doing and going forward you'd have to assume that those Samsung. Devote tees are missing without a product I. I would thinks so apple could earnings and the stock reflected but a FaceBook will Facebook's their quarterly revenue increased by 851%. Think about that. I mean you sir Hugh coach and and the reason because each user generated. 30%. More revenue obvious our. I don't even how to put these numbers in in relief for people. Here's the deal what FaceBook is done as they headed towards video they want more people to watch video. On FaceBook as as an application and as well as. I'm at the FaceBook app apps that are owned by FaceBook lite instead grant him their posting more and more video contents on those people are watching them more and as a result they get more chance to put more ads up in front of customers and that generates more revenue for FaceBook. And don't forget. Mark Zuckerberg said. That the strategy the company is how to we get more video contents. In all of everything that we do because that's gonna really help us in the reason he wants to do that is because I think eventually he wants to pivot. From being not only a site for news and updates from friends but also for entertainment. You know and and I think he looks at that says while there's real money to be made there. And by the way you know they have out like one point nine. Billion subscribe to a pretty big number that's a big market and if you can have good contents on that. Think of the additional revenue you can our choice so I think that's where Zuckerberg going. Having said all that even though their revenue was up 51%. Their earnings were up substantially and so forth. The stock was only up 1% and the reason for that discuss frankly this is pretty much what the market anticipating this is why there are FaceBook didn't vote taste. Honest in the stock market. But Amazon's earnings well here's another one Amazon reported stronger than expected earnings which is unusual for Amazon they usually. A day usually generate tons of revenue but they under report on earnings and they do the opposite this time. They they are actually optics beat all the earnings estimates but they just missed. Odd that the odd the revenue estimate they were came in essentially on estimate for revenue and as a result the stock was down 4% but I think the reason that that's the case. Has to do with Amazon web services and when we talked a little bit more about this. Amazon Web Services is the cloud computing part of the Amazon which is clearly a part of this is that we love you we love it because it has a 26%. Operating profit compared to watch single digit operating profit of anything else and I am okay. Secondly date it's eight it us 3.5. Billion dollars of revenue for their firm already. And he grew 47%. Over the same period the prior that this that's real revenue yet right. But here's the deal they've been hitting home run after home run after home run for the last two school years ever since they started to report. Break out the separate revenue and earnings for Amazon Web Services the cloud computing business right they've beaten the revenue and earnings expectations. Every single corner all this time they beat her earnings expectation but they only net revenue expectations and because it's such a high margin part of the business and I believe that's why the stock was down the 4%. Opel and all of these companies just mention looks like sales and earnings are up might be another indicator that the economy is going in the upward direction. Should be time for folks to reevaluate their portfolio. Once again Paul's number eighty 8972752680. 8972 planned or go online to plan strong dot com. Good luck to the patriots policy next week go perhaps it's the plan's strong financial form this just. All Parsons president of planned strong investment management and you're listening to them plans strong financial forum on WRKO. Boston's talk stations. Did 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 metro metro group member to go as I can sequence from investment management is an affiliate business financial grouping that is located in Washington street domestically. 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 ranked number fender SIPC classroom investment management has not affiliate next financial grouping this radio show is for informational purposes only and is not a solicitation recommendation that any particular investor should purchase or sell any particular security. The 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 to provide started to.