Planstrong Financial Forum 03-04-17
Mar 4, 2017|
"Smart investing, simplified"
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
I. From those plans stroll in the broadcast studios it's good play and strong environmental forum where you're hosed. Jim farmer and the president Roh plans strong investment. Full portions there's two I'm Bruce Morton investing you simply fall. And I'm Don Garber at the anchor desk along with the ball Parsons and once again while we're here to talk about. If you're him. Asked to do what you were a year ago oops we'll show it. I mean it's been pretty crazy things have been happening the markets have been really while stock market in particular. On US start Margaret to do so we'll throw some of those details but big picture. Things definitely look different now than they did just a year ago. Well take on the sway our. I chuckle when I hear ads on the radio sometimes there's an add on right now I can't remember who does it but it goes a long lines or something like well markets are our topic. And and you sit there you go okay. Markets have been topping for quite some time now Aaron then there and by the way if you thought that markets were topping. And you said that say three months ago you would have dismissed out. On you know call it. 1012%. To think your nose and that's that's missing on some topic you are right so I you know it it is funny it it's the old adage. Broken watch is right twice a day from great. You know if you if you keep saying it eventually you'll be ranked but in the meantime you won't have probably been the best you could of your clients so absolutely I would argue emphatically. That calm though the markets. Today and the economy today in the US. Is. To substantially. In a different place than it was a year. So postal free numbers. ADB 9727526. That's ADB 972 plan. And if you aren't investing the way you were a year ago Paul be happy to explain how that might not be prudent. Yeah I mean you know and you don't even have to. You know think that hard about it just take a look at a chart of the S&P 500. Which is you know an index of 500 the largest publicly traded stocks the United States and take a look at. We are was. You know in February of 2016. And take a look at work ended February of 2017. And you're I'll just throw a couple mummers actually I think it it hit its low point around 1830. High end guy mid February 2016. And it just our clips this past week. 2400. You 2400 substantially. Higher than 1830 and are okay. So just keep that in mind and and if you. Are invested the same way you were exam now you know I'd argue that that bidders there's really some inconsistencies there that that dot. Things have changed and Europe are your portfolio should have been adapted. To take advantage. Of all the things that are happening because even now you might say well OK so now all have markets topped. And you know no one knows for certain let's be clear about that first of all but what we can saying it was funny the Wall Street Journal I think on Friday had an article one the skinny on they had an article it said up all the pros who have been saying well you know this is our forecast for this year for for Iraq for 2017. And literally they blown through almost all of their forecasts already morally and you know two months and a few days into this. Here are so it's like now what's now guess what their their re doing their forecasts from but anyway I at the point of the of the journal was almost. Hey it's almost best to go diametrically opposed to whatever these you know exports. I predict as it relates to the market 'cause they've been wrong so many times especially over the last few years prior to what's gone postal. And this is this has been an interest in Rhode it has and I'd like to say something too about bomb it. How we look at the markets and we you know under underneath it all we look the fundamentals. You know Warren Buffett's famous for people ask me what do you think the market's gonna do when he says I have no idea but he does know when he's buying something if he thinks it's a good value or not if he thinks it's reasonably priced or not reasonably priced. A lot of what we do was we look at the underlying fundamentals of the economy and I have to tell you I'll only talk about some of the it was an incredible week for our government data this week. A lot of really important stuff I don't see that that often but it it actually was important data this week and all it was almost uniformly very good. On and when you look at that it's substantiates. You know why the markets are doing what they're doing that time to get really nervous is when. But the market ax and a way that is inconsistent. With the underlying data and by the what year old observations as a person has as a consumer you know you know you look at it you say geez I I was at legacy place you other other day in data more our office as. And you just can't get a parking space aren't -- example what does that indicate a rough and by the way it was 11 o'clock in the morning and schooled. You know it's not Friday night her kids are all we know you can get a spray her Friday night aren't like us who live in the area and same thing with red you know a good restaurant can you get a reservation at a good restaurant to Ryu. What what what are airfares like our airfares pit stop or are the planes full. You know all of those things are indicators of economic activity and he you know US an investor can assess that and say Jesus rings true work doesn't ring true. I'll tell you a lot of the indicators that we're looking at whether the reported by the government or what were actually experiencing. I have to tie their fallen in line pretty well here that I would say that the the state of our overall economy. Is looking pretty strong and there's a really good reason for it doesn't fly in the face of why is this hat. Bryant know Europe well as our front and this is within our memories a lot of times when he talked about things in music try to. Remember back in 1960 true bright but Kennedy yet again did did the tax cut well no quite frankly we don't. But we can look at the numbers read the story but we do remember just a few years ago when the restaurants were full and all my goodness when it all started closing in our earlier yeah 'cause. The two more pay their employees to sit their doing not coax and that was just a few years ago so we certainly 20082009. So we remember all of that we we felt that and we felt it changing. Gradually India we're certainly billion more in Arabic you can't get a space that at a ball he can't get a reservation. And that means folks out spending money feeling good about things and I think the numbers support that don't. And you're even seeing you know is it easier your if your businessperson you're either you are boutique whatever how hard is it to hire somebody right in now and again are they asking for race and nobody ask for a reason 2009 I don't think so help you to screw viral I was gonna say it was their last conversation at that employer program so I mean all of this points to kind of the health. Of the underlying economy and Indiana and as an investor. If something doesn't smell right it probably isn't right and what I would say right now is that there's an awful lot of reason for me at least to believe that there is something substantial underneath. This economic activity were saying and frankly it starts and and to a great degree is dependent. On the impending tax cuts are that are coming and we'll talk about that a little while but I'm. And underneath at all disc kinda does make sense to me. And I and I am relatively comfortable with where the markets are today and it is you know what I'm seeing. Observing not just as an investment analysts also somebody who's out the air as a person a consumer whatever. It does feel about right in all of my activities so having said that when another good week in the US stock market assert right. Stocks were up call at 11 and a half percent this week. On an international stocks were about half that amount. A year to date yes and 500. Is up almost 7%. That's in the first. Two months 7%. Excluding dividends slump that is just incredible and don't forget. This same period last year market was down almost 11% from. Big difference and honor salmon that's that's called a good start to the are supposed to last year down eleven is called eight. Bad start to your big hole to dig your way out of which by the way we did and then sock from OK so. The IDS and 500 up about 7%. While international stocks no slackers on a grown much better than last year. Are up about 6%. And by the way many of the indexes of US stocks. Our act all time highs in fact this past week and I saying that the last several we just every week but check this out last week. The RS and 500 a clutched 2400. In the middle of the day on Wednesday notes it's come back down below that sense that but it has gone through 2400. In the last in this past week and the same time the Dow Jones Industrial Average which is an index of thirty. Companies that represent. Many of the sectors in the S&P 500 but not all of them so it's it's a smaller sample but they're kind of the blue chip of the blue chip companies and United States. Ot it topped 21000. The same day and twenty it's the first time it's ever gone through 21000. And it didn't take long what how long ago was at that it went through twentieth out marriage just to break him and you know everybody was counting their chest and saying oh my god this is at its greatest. It went through 21000. You know this past weeks that tells you how robust the markets are right now. And it by the way it's stayed above 21000 for the week as well right so these are these are good level see certain you know very nice gains you've opera dissipated Dench if you've been in the market during this time an and that really goes to the last thing. Be careful what you listened to and when you act because you know the warnings. About note this market have been. Pervasive for years. On every year for the last 345 years always just the end is this the top of the market I get a paper one time a few years ago called it was. We played the music of Jim Morrison's and the doors called DN remember that up there and played in the background and I said this isn't the end in my opinion this is not the and the underlying fund in the map Mandelson the marker to good. Are for this to be the end right now and that's when the markets work. 203040%. Below where they are today if you ascribed. To a bearish look at that time and you hold out of the market. You missed out on twenty or thirty or 40% upside those are the kinds of upsides and frankly can't afford to miss out on. And still a achieve. Your goals for your investment account. Well once again toll free number to call Paul. To have him take a look at your portfolio deceive you positioned correctly for the market as it stands now and of course. The change in the end our president has made a bit of a change too and policy policy you could talk about that we come back also look at. What's going on with the bond markets and what's going don't think interest rates short term interest rates because that's and that is a big role investments as well also free number eighty 9727526. Eighty 897 to plan its support and strong financial for 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. If you like what you hear on our show and what media 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 sequester investment management and billions of this financial group thinks is located in Washington street and Massachusetts. Hi this is Avi Nelson. Others buy insurance or investment products though sometimes will benefit the seller more than the buyer what makes sense is to hire an advisor with first rate credentials and why do investment management experience. Should have a fiduciary obligation to 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 planned strong investment management to learn more. Call 8889727526. Hiring the right advisor could be your best investment. That's 888972. Plan or vision plan strong dot com. Securities and investment advisory services offered through next financial group linked member tumor SIPC plans to investment management is not an affiliate of next financial grouping and is located at Miami Washington and. Okay. Okay. Yeah okay. It's. It's. Mobile and strong broadcast studios at the epicenter of capitalism and this is no plans strong financial forum where all portions president's plans stronger investment management. And I'm Ken carver in the anchor desk along with a full Parsons and a all of our lesson and we're talking about the stock market the US and international markets and what's going on there but we talked a little bit about the fact that. Changes going on in the economy that people really need to be paying attention to an end as the stocks were not what happened to the bar. Well we actually in a normal has her as opposed to an. In abnormal growth in that as the price of stocks one upped the price of high quality bonds actually went to and that's what you would expect most people would expect that most of the time the ten year US treasury. I traded wheat yields up almost. Point 2% doesn't sound like a lot that's a big move on marriage so they went from 2.3 percent almost up to 2.5 percent that's shoots move on a tenured US treasury. Ot the tenure is now treating a slightly higher yield than at the beginning of 2017. So in other words we say that the bad way if you only ten year US treasury. It's actually lost a little value since the beginning of the year not including interest that it pays OK because interest rates are a little bit higher now than they were the beginning of the year and by the way did ten here you are German bond. It's he'll also increase from point to 3% up to point 3% so not as much as the US are. Tenure did but it's still did increase and also on the Japanese tenure though remained just below point 1% so we continue to see very very low interest rates in both Japan and in Europe. And frankly the US is the place where we hope to see a bit more inflation mine and we don't have our government buying nearly as many bonds as what you have happening in both Japan and in Europe and that's why you see interest rates higher here in the US they knew deep deep seed them they are. Now what is the probability there were looking at a fed increase in the near future while so this been kind of the story. That you and I've talked about since the beginning of the year because. One of the forecast that the Fed me at the beginning of the year was that they were gonna raise interest rates three times during the year by. Point 25%. Each time for three times and you know if you remember if you go back one year that's what they said about 2016 also great and wondered and they didn't they did it once siren and they stopped and everybody got nervous right. So opt it looks much more likely though that conditions are much more favorable now for them to actually be able to do that and in fact this last week there was a very very big increase in the probability that the Fed is gonna increase. A US short term rates in March not may march OK I and that's based on the cart Fed Funds futures price say that three times as you do very well had a factor and you don't we talk about this probability every week are up last week 22% probability that there was going to be a URS are a yard short re increase in March. That jumped up. To 75%. Probability last week. And a whole bunch of that move resulted from a lot of good economic data which I'm gonna talk about a minute and also by the way. A parade and I mean a parade of fed governors. Giving statements all during the week. Are indicating that conditions have improved substantially. From that they don't do that just you know still most papers this is a way of them setting expectations. That hey fellas. Things get better route the air here intent nod nod wink wink we think conditions have improved substantially and as a result it may lead itself to. Having an a rate increase sooner than we might have I done otherwise right and there's one other reason why the probability is gone opt that the market started to figure out and that's this. Originally. It looked likely that the first read increase was gonna happen and may. But so kind of dodge he's happening and made the French are holding their presidential elections they have their primaries in April they are the final election in May Day and in the unlikely event. And that marine Le Patton. Wins the French presidential election on then that would be a real shocker that be a populist shock or in France and it would be a shock her to the European Union because look pan. Has campaigned. Ott at at with the idea that if you vote for me you are voting to leave the European Union right okay so obviously that would be a big shock. The reason to be a big shock is because while Britain has voted to leave the European Union. I'm Dave don't use the Euro currency. Would France voting to leave not only are they are very large economy not quite as big as Britain's it's still big but they also use the Euro currency. And that could really I get really trusting fast with. The implications for data across the European Union as well so I think part of what. Our people are starting to think about is it actually makes more sense for yellen to raise interest rates in March. So that if things do go bad if you will in Europe in May Day they won't have to not do to raise them because they're worried about the worldwide impact of that so it looks like it's actually very receptive time based on where our stock markets are based on economic data and even. What if you look at what the market how the market receive this snap our snapped chat com IPO this past Ryder just a whole bunch of indicators that say it's a pretty healthy market here and it can absorb that kind of an increase so would you recommend a bond holders in particular pay attention to what's going on well you have to be because if interest rates go up in the price of your bonds likely will go down it's a direct relationship. And so yeah I mean your EE and more importantly not only for this one. But what does it mean for the timing of future ones as well rough and could that impact the price of your existing bonds and what should your strategy be to ameliorate the impact of these rate increases on your bond portfolio. When the US dollar receive further shrinking there well if it looks like interest rates are going up sooner than you'd expect it makes sense that the dollar be stronger why because. Paid people are gonna go to the currency and it's paying the highest interest rates with the best economy right now looks like the US fits the criteria there archive so the dollar strengthen debate bit this week they job it's trading at about a dollar five per Euro down from a dollar sex. And it's trading at 114. Yen per dollar up from a 113. And by the way also even strengthened against the Mexican peso in May were call we've been talking about that the last several weeks where the peso it actually strengthen against the US dollar. Well this week it went the other way and probably also because of trumps our speech. When he addressed congress on and I think it was Tuesday night Monday or Tuesday night crash and you know he came out and you know kind of stuck to his guns and as a result the peso weekend and it's up from nineteen point 67 pesos per dollar after about twenty pesos per US dollar. When oil prices phone and watching them closely beyoncé you know they haven't done much this pass it down a little bit and it was frankly was on news of more supply again on you don't that west Texas is trading around 53 dollars a barrel Brent is trading around 5550. A barrel. Armed but the real our story this week was that crude inventories continued to creep up a little bit. They're now at a level of about 7%. Higher now than they were a year ago that you know it's still big numbers and we have to work our way through that before you can really see. These output cuts that oh Pakistan making really kind of flow through to the rest of the market for the they're commodity get scare sir and therefore the price to go up more. We talked earlier about how the Fed is looking very closely at bumping up interest rates and they rely on data coming from the government these data releases a big week lots of data so when we talk about some of those. Numbers that we start tomorrow. Well a couple of the data points at the Fed really relies on came out this week I'm okay and in fact you may were calling match in this a few weeks ago that as we were trying to talk about when to expect to read increases I said look their couple key pieces of data that are coming out that the two biggest pieces of data that are come out -- the February jobs report that that didn't come out this week that comes out next week and we'll talk about that in next week's show our cash but the other one that is that they are very interested in of course is inflation right and the. He CE. I index which would price index came out this week they don't use CPI the Consumer Price Index or the Producer Price Index nearly as much. As the broader measure of inflation which is called the PCE. Price index that came out this week. And it was actually pretty healthy what it showed was that prices were up personal income was up about four opt point 4% month over month so think about 5% annually that's very good. Spending was up point 2% in a month over month so that's 21 half percent but. Here's the most important thing the price index was up point 4% month over month. For all of it including energy and even the core price index was up point 3% month over month. Both of those annual ice to numbers well in excess of 2% target but the Fed is targeting remind you the actual. Year over year inflation isn't quite 2% yet but it's trending above that based on the latest month over month. Read extra and sell. I would argue that probably the strongest piece of data and most important piece of data that the Fed got this week was that inflation data from the PCE index Iran and it was robust enough to substantiate. To support. On you know the likelihood that they would increase rates because of it. Now of course there was other data as well I came out this week and I should talk about durable goods orders. They were OK they work great headline number looked much better than it really was the headline number was good simply because they a lot of aircraft worst aircraft orders you know there really expensive banks right so if you don't want it makes things look really good if you don't get aircraft orders it looks really bad will this past month and this past month we got a bunch aircraft orders are made it look really good but if you strip out the aircraft orders it wasn't a very good reports a durable goods not so good second thing we got was that the second revision to fourth quarter GDP there was no change it's still one point 9% OK so not great. Third thing we got though was home prices home prices were up strongly in December up much more than people expected that was a good thing according to Vick case Shiller home price index. Consumer confidence. Excellent reading this past week in fact. The highest level consumer confidence in the last fifteen years. And that really. Fuels. On strong armed activity by the consumer if I feel confident and I'm gonna act on it I'm actually in a buys stuff. When we come back Kenny there are couple more things I wanted to talk about on being that not a lot more but I want to talk about manufacturing data. Wanna talk about auto sales as well and of course there was a little bit of employment data came out that's all coming up next and play a 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 station. If you like what you hear on our show and what immediate take a look at your investments and retirement plan called my office of EDD 89727526. That's 888972. Plan. Securities and investment advisory services offered through metro metro group member to go SIPC classroom investment management is an affiliate of mismanaged everything concluded that any Russian diplomats includes 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. Paul Paul Parsons at planned strong investment management. A schedule financial checkup call 8889727526. That's 888972. Plan commit to getting your financial house in order. Call 888972. Plan or vision plans strong dot com. Securities and investment advisory services offered through next financial group and member former SIPC plans to investment management is not an affiliate of next mentioned grouping and is located at 980 Washington street Dedham mass. My career where your show is not trying to show you insurance or movies. This is the plan's strong financial forum where all portions resident phone plan's strong investment. Had Canterbury at the anchor desk along with Paul Parsons that it is the classroom residential form once again reminded of balls toll free number. If you invested the same way you were a year ago. Also certainly not be terribly prudent because there have been some changes. Eighty Dade 9727526. Has postal free number eight DD 8972. Plan or go online to plan strong dot com. And did you UNC football and his team ball tens of one of these meetings who separatists who review for an hour or so and who over your portfolio. That you know perhaps. Would you doing that he is or is not prudent based on where we are where we weren't. And you don't all I was just thinking. When when you look at some of your investments. Not only how you're invested in how much or whatever but just also look the sector is a mean I think six months ago when we assumed that be another democratic president. I'm we perhaps were looking for different sectors to do well in other sectors to do badly I imagine that's kind of flipped around now. It's certainly hassle and it's a very accurate comment it's it's not just even sectors to catch. Aren't if you think about what Donald Trump is proposing east proposing a massive tax decrease. On that's very very different from Hillary Clinton was talking not raising taxes on the wealthy. An entirely different tax policy would entirely different implications till it. And as it relates to sectors. It's whether it's underlying policy itself or even regulatory action towards think about energy you know a year ago. I Keystone Pipeline was dead. And on the don't Dakota accessed our pipeline was dead they're both alive now aren't right think about that. Are you a look at banking regulations and kind of where we're going there aren't aren't you know Dodd-Frank I don't believe will continue as written today are in the future there will be changes to Dodd-Frank there are some good parts store and there's some parts to what that frankly are too much and I think you're gonna see that it just it is well. What does that mean that should substantially implode we improve the profitability. Of the financial sector for example. Right what dimples so for number 8889727526. That's 88 B 972 plant or more in line to plans strong dot com are also been talking about what happened over the last week or so smoothly key government data that was really. Slowing consumer confidence you know right highest level in fifteen years okay and then we had motor vehicle sales motor vehicle sales in February were about seventeen point six million. On an annualized basis first the ball that's almost double where we were at. At the worst of the recession in 2009 and remember we're selling about nine million cars and light trucks in the United States in 2009 if for the last whole bunch of months we've been selling on an annualized basis around eighteen million and in fact. We came minutes seventeen point six million in annualized basis in the month of February. And you know from your perspective that's pretty that's good and strong it's real it's good distraught. But the bad news is is that discounts. Have been going up and we've been talking about this tour over the last few months and discounts now where present. Ten point 5% of the sticker price that is a big number and what it means is car companies continue to produce an awful lot of automobiles and order for them to not sit on the lot as inventory can be have to discount them that tells you that perhaps were getting leader in the longer in the two here as it relates to people catching up and actually having you know refurbished or or replenished. Their auto supply after the frankly having not done so you know certainly 2009 and 20102011. A lot of people say I'm not buying a car on rocker by new carnal with a car haven't fixed the car and because. The economies to one certain well we've reversed that trend an awful lot of people black Carson son you might argue that. Does this represent me beach kind of the peaking of that particular demand. I would say certainly having to increase your discounts as one indicator that something to keep your eye on if you were invested in you know motor vehicle type companies. We did see the people when they were willing to hold onto their cars longer that. The modern cars seem to last longer than they did wrong and I do and I were growing up oh my gosh yes absolutely true and that you know the other couple other key data points manufacturing activity in the US was actually good dirt too big surveys that we get once a month. Both those surveys were good or very. Odd this past month as rough as they reflect. Manufacturing. Activity in the United States that's a very important metric that you have to look at. And you also the other thing is construction spending we saw construction spending. And while it contracted a bit in January it was because. Of public spending we. It wasn't because of construction spending on an op private homes and so even they are there's one where the headline number looked bad but actually the underlying report was pretty good -- and eerie kind of compare and contrast that with the durable good order the durable goods order had a really good headline number but it actually wasn't that good because it included airline you know on airplanes from airplanes are very very I'm you know I'm irregular as it relates to how much how they impact on manufacturing activity. Oh the initial unemployment remember unbelievable. 223000. It's the lowest levels since the early 1970s. And by the way that's what they much bigger labor base today sure in what we had in 1970 moved so 223000. People applied for first time unemployment benefits. I this this past week. And you know these are incredibly low numbers this is an indicator obviously the stronger labor market but it up potentially strong employment report. For February which as I said will be talking about in next week's show overall I think you can get a feel for what we just talked about the last five or six minutes. That didn't do eight grew overall was quite strong and that's what the feds looking. And some of the key. Especially the inflation day. The Fed could look at and say wow we finally have gotten very very close tore target now may be it is time to raise rates and for it not adversely impact the economy. I'd argue that that's the case all self because we something more that has even happened yet and that's the tax cut. The impact of the tax cut. Should further. Add fuel. To this economic expansion and that's what I think the Fed is is wary up and wants to make sure they get thrown out and so would not surprise me at all to see a read increase. In March. Poll a couple of big news stories and in the week in particular that was an IPO we haven't seen one like this and wild with snapper whichever parent company snapshot will tell us about that well is our first of all they are doing a road show I think we may have talked about this a weaker to a guarded road show was just starting up bench you don't gut the kind of the chapel was. K Dick Dick you know the CEO in the CFO or going around at with the investment bankers. And for those of you that don't know how IPOs work they did it goat company management along with the investment bankers go around two influential investors and they do what's called a road show and they say hey look this is coming out would you be enter how much can we sign you up for. Right here now and and they're looking for solicitations of interest in well. You know that the question was could these guys in this road show really convince people. To buy this I PL given the fact that this is this kind of had a little bitter memories of you know kind of the 992000. Dotcom bubble in that. They're losing money okay and they're not projected to make money for several more years. Sold the question is how much you wanna pay for something it isn't making money and isn't gonna make money for awhile and by the way one other thing their average daily user base growth has been decelerating. Here's the goodness they got a 160 million. People as their average daily user base and man oh man. Not only that but it's a 160 million young people what a demographic that eighteen to 24 demographic is massive frame for advertise this have the ball. They do in that demographic there every single person and even I would I would say in the fourteen to 230 Cole thirty God's army did get a broader on the younger side and the older side. There's yet everyone I don't know any any. Young person who doesn't use snapshots obviously they think they can monetize that going forward. And for those have you who were dinosaurs like Kenny and me who you know don't you snap chatter don't even know what snap Chad is. All snapped Chad it is is it's an ability to take a video. And then to post it but it doesn't stay forever it disappears it disintegrates if you well after a short period of time. And the beauty that is you can share our things it may be a little goofy or a little more you know edgy with your friends and not worry that it's if you will on the Internet forever right it's something that will go away and it's frankly it's intended to go and and it gives people a lot war. But comfort with this stuff that they're sharing Reitman so these guys tapped into that and nearly did quite well within us to the tone of they finally had the IPO this week and if they did the deal was priced at seventeen dollars a share which would put the market value of the company awfully close to thirty billion dollars. Okay now that's incredible and this is by far the biggest tax IPO. Of 27 team okay and could and is one of the biggest I tech IPOs. Of all time in its fourth on the on the overall list. On but a couple things that I wanted to mention about this first of its started trading at seventeen dollars a share. But it immediately traded around 24 dollars a share as soon as it went on to the public market. So it had almost a 50% bump up. It in the secondary market and by the way the IPO was ten times oversubscribed according to the Wall Street Journal morrow is not amazing isn't it out and you know another thing that I wanted to share Liu because I know you're always looking our for your daughter Aaron yes is that. The CEO. Is 26 years old. And is now worth four billion dollars on OK okay and can you do make sure many many girls and you know I think Greg guy in my I think I'll tell you know you're messing Ilan mosque there was one that you had targeted a site now you have a second one in the CEO also all of of op snap and his name is Evan Spiegel and should probably get him on speed dial for you're a bank. Another thing that people ask about too is. You know who else benefited from tasks while a couple of venture capital firms were original investors in the past and back they own 20%. Of the company. And I'd be included. Benchmark and the light speed so if you happened. Owns something in either of those two on venture capital funds are investor neither of those funds. They all had a very very good day as well and finally last thing if you are wondering if you were watching this on television and you saw some people sunglasses on while they were doing the IPO now it's because. Snap actually has a camera application that you can take with their own hardware you. And what it does is allows you to hands free followed well or video exactly what you're experiencing. And so in a way it's kind of a cool way to be able to store your own memories that we actually saw something. And the only cost I think it's about a 130 dollars so anyway. Great story for the week it was a very very well received and most important finally this could bode well for other very large tech IPOs that are waiting in the wings and those two of the biggest ones of course are Hooper. And era BNP. And you know if you look at how all on snapped was received this week. You probably licking your chops if you're on either who Borough or air B&B and saying maybe this is a good time to go to market. Only come back some more business stories some good some bad its plans from financial for this just. All Parsons president of planned strong investment management. And you're listening to the plan's strong financial forum on WRKO. Boston's talk stations. If you like what you hear on our show and what need to take a look at your investments and retirement plan called my office of he DD 9727526. That's 888972. Plan. Securities and investment advisory services offered through metro metro group member to go as I can see classroom mismanagement and filling in this country grouping 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 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 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 linked member humor SIPC plans to investment management does not affiliate of residential group think and we'll give you and I need to Washington street Dedham mass. Ground zero for your financial news and economic commentary. This is the plan's strong financial forum where all Parsons and president of home plans stronger investment management business. It's. The. And I'm doing Garber at anchor desk along with all that was given postal pretty number eighty 89727526. That's ADV 972. Planned or go online to plan strong dot com sit with Paul and his team to see if you are. Properly aligned for this. Upcoming market and if you made the changes that are necessary based on what's happened over the last few months here in the United States. And Ballmer are you about some of the news things that happened over the last. Unbelievable we screws and been answering well yeah and and you know by the way I do think I'm gonna ask for a fee. I'm and I'm actually a matchmaker fees are getting either of your two daughters are ends up with a width Evan Spiegel on the seat that 26 year old CEO you know billionaire pull it off you get you burned your femur traps. Your right and you know what I think it's actually better fit for your daughter's illness that 12327. Yeah right yeah and he's 26. OK okay but there are a little apps and a chance Earl ER NEC and it went to Stanford remarkable attitude we're trying to check check and most importantly four billion dollars or. That does work doesn't yet a healer and he looks better and better by the minute doesn't he does so do you think that I won't have to pay for the wedding you I don't think you're gonna think he's gonna raise your pony up I think caught all would be well under that even even if you have to pay for the wedding it's the last in you're gonna pay its investment beyond the line up and the only reason I'm so free with this of course is because my daughters sorry Matt. Right exactly or otherwise I guarantee him Sarah and John were already married believe me I'd I'd be sending -- you know tax right now you need to get there you need allergies in New York July knows exactly right anyway self. You asked about good good weeks and bad weeks well there you know so let's talk about the other side of the coin right if you think snapped had a really good week which I deal and by the way I think that poll tax sector had a good week because really what it reflects is a very receptive market. I two summit the other upcoming IPO is that likely will come out. And probably won't play a role in people's armed portfolios when you think about who they are what they are right we think Lowber. Might play a role in several people not people's portfolios were different kinds of risk tolerances for example. Two but let's talk about people who didn't have as good a week or at least as good day on let's talk about did you watch watch the Oscars. I only watched the and is it true there was a write part to watch. If you are one of the two. Price Waterhouse Coopers partners that were mixing up who actually won the best picture award. Had a bad yeah I know I told you before hand if I sit poll who's going to really mess up the awards will be. An actor who mood piece an accountant well I think you just wonder if the count and got soul. I involved kind of caught up in the whole thing I guess the es been involved in some commercials for the Oscars and some other things as well over the years and they've even said he's kind of a Mac. Damon lookalike indecency handsome guy without a doubt about it but. Anyway long story short she was tweeting and some other stuff in the middle to show and then he forgot his most basic duty which is to give the guy who's the present are the co wrecked envelope kind. It's not goats anyway why did he have a bad week well it wasn't just that game the wrong envelope and its grip the under the shell but the hand. The the Oscar committee. Banned him and the other partner for life. For ever participating. Ever again in the Oscars that's like if I let's clear Pete Rose thing boy he's Kiki girl's baseball game. Yeah that's a tough form that it's just not the way you wanna do and by the way it was awful publicity for PWC. The good news is -- BC is not publicly traded security investor this likely didn't impact you when anyway rush you know it certainly goes to. If you invest and professional services firm that's publicly traded for example a censure soccer great farmer in and you know if they were involved in something like this this is the kind of thing that's completely on for CNET is just a totally opt and all of a sudden it's real and go on the face and it's that kind of thing that I think PW seat which is a if they've got some explaining the deal and it's I think it's probably likely against my guess I don't have any inside knowledge that's my guests. They'll lose that engagement and will not be able to keep it keep adding gays shouldn't run and that tells you when you're investing in professional services firms. If you got one big public gaffe it can be a big problem real fast and again a reason to diversify those kinds of investments Amazon had some problems this week a lot of different type of problem aborted very good had a badly out your actually right so if you know PWC had a bad week and then on the publicly traded side Amazon had a bad week because on Tuesday. Amazon Web Services had a was down now essentially. And you know this is the thing that you want I have done nothing but you know pound our chests about sank how profitable it is for Amazon most importantly how fast growing it is for Amazon com and here's what happened. Apparently and again I read this on Friday it was in Friday's on Wall Street Journal. They said their programmer who was working. On doing some maintenance. Rolled it typed in the wrong command and instead of taking down a couple servers took down a whole bunch of servers that eventually led to the entire system essentially crash now. On and as a result. On a whole bunch of people use the service didn't have access to their information. And by the way even more important 54. Of the internet's top 100 retailers. Saw their web site performance slow by 20%. Or more. That tells you how coach in matched in Amazon Web Services it is. In the entire. World. And certainly in the US retail economy and so that was not good and guess what it was on stock act date dropped you know 11 and a half percent the good news was as soon as it was fixed. The stock recovered and actually behaved very much in line with the market overall run for the week but man that got one week I I have a feeling there was some a few anxious phone calls or occurring that that this thing needed to get resolved and resolved quickly might be one programmer looking for work you can probably. He may be would those two PW auditors and right yeah absolutely guard recruiter okay Google's YouTube had history too this is an interest this is a big story is very day so I can you might have a wide like you're about Google's YouTube well first of all if you're Google alphabet investor you definitely care about this and by the way. If you're an investor and any of the cable companies any of the providers that content providers or the cable companies themselves. And you know music on cable company like we use Verizon Firefox at our house you're all cash. And how much we pay a 10050. Bucks a month probably does that sound Daria Chirac. And it's a bumble and you got all kinds of channels many of which I have never doubt in my life right you know I don't know kind of Animal Planet goes to or someplace up I don't care not watching that. ESPN's important to me and you know the networks the major networks from Puerto me at some new news cable things are important beeper I. I don't you know so he's ancillary things are they call me ancillary for a reason her right to fair and so. The whole. Business is changing as migrating and it's not by people like us it's our kids think sure right now and what young people are doing is they're going to these skinny. Bundles and what they're doing is they're cutting the court what they're doing is they're going to these providers that say listen for a fraction of what you're paying a cable provider. I'll provide you the channels you really care about and I just won't provide you the other guard action OK and so that happened this week. With our YouTube which is as I said owned by Google's alphabet the air and offer web TV service with a package of more than forty broadcast and cable channels for 35 dollars a month it's gonna be incredible in that they will have all of though the major broadcasters. Applause but also have some very well known cable channels including ESP Anna and FX and USA and Fox News so there grab a lot of the networks. They still don't have MTV. CNN. TNT. HBO and discovery as part of it. But the question is will leave it be able to bring in some more of those in the bomb blows well and still keep the price in kind of that 3540 dollar range per month what this highlights though is that these skinny bundles are taking all night and it's gonna really. Adversely impact the margins. Of some of these cable companies. That have been able to package together you know that the 200 channel offering that you watch only thirty of the channels on what these guys are doing is essentially saying we're start off for the thirty channels are gonna do it for 35 bucks a month and that kind of pricing pressure is not welcome at the major cable companies paradox that you're gonna seed you're gonna see that happening and as a result. You know big charge for app actually having Internet access could go up short right through them aren't set up they have to do and armed and so that's gonna get entrusting its gonna see what happens on that side of the coin when it comes to the cable provider. Right well I mean our kids started with cutting the cord completely dead and so this would be and they just say no I don't want any TV yep and so this is give Britain and they say don't want to our own thing thank you and the just slowly you know pick and choose which one of the bundles they want. And it does make sense if Tom ended it certainly eight because that's a lot of money tree to at least a 150 to 200 dollars a month. For young people. And not worth and on earth that know what and besides they don't watching either way us old folks do not on the schedule they say oh look it's Thursday night this show is outnumbered the blacklist design they don't know I don't mean that I don't think you'll watch it on their on their laptop anytime they want more and and it's such a different mindset and I we still are the victims of the way we're brought up short capsule but it's changing and investors need to adapt to I'm. Bank stocks brewer were really high again this week all the you know this is another area that makes a lot of sense that talk about the difference when you're going today you know we we talked about that when we started to show them. Bank stocks reached their highest point in nearly ten years this past week. And that was one hopes that firms will soon be relieved of Abacha regulation we talked about. If we don't finally get rid of super low interest rates as it's starting to see those come up. And they've also been the victim of slow economic growth as more banks do they lend money to companies in peoples that they can rollicking grow their business they can buy new house whatever. And all of this is very very important and frankly the result of president Trump's agenda. And so are popular measure of 24 of the biggest bank stocks is up 32%. Since the election. That's that's 20% more than in the market overall that is an incredible. On improvement and by the way Bank of America. Is the biggest bank stock to benefit from a up over 50%. Cents trump was elected and by the way one last thing earnings estimates for 2018. Have increased substantially since the election also so there really is some good fundamental stuff underneath this that's fueling. This stock price appreciation. This is another reason. That if you're an investor or the way you invest today certainly should be very very different favoring financial in my opinion compared to say a year ago right where you had. Increasing regulations. You had ultra low interest rates and you had frankly relatively low growth. Temple to you look at your portfolio and to see if that might be appropriate for you you McAuliffe eighty 89727526. That's 888972. Plan or go online to plan strung dot com. Paul the great program thanks for being here have a terrific weekend 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. Boston's talk station. If you like what you hear on our show and what media take a look at your investments and retirement plan called my office. 808897275260. That's 888972. Plan. Securities and investment advisory services opportunity financial group member to go as I can sequester investment management is an affiliate of this financial group thinks is located in Washington street diplomats who. And six and strung investment management is located 980 Washington street Dedham mass 02026. 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 plaster 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 grouping category represented of provides talked about.