1.

Our benevolent friends at The Fed has purchased over $ 1 trillion of mortgage securities in 6 months. So at that pace, they will own 100% of the market In a year. This is not normal folks. And it’s not a good thing. Markets need to be priced openly and based upon free markets. Price discovery is essential. Without it, abnormalities like bubbles result. It’s comparable to building a house as a hurricane approaches. It’s time to grow more cautious guys.

2.

I’m finally back in the salt water. I drive to Rhode Island weekends to body surf. I picked up some used wet suits at a RI surf shop and I’m driving 90 minutes to tranquility. No boards for me at this time. I grew up body surfing in Southern California. Seldom is there an east coast wave that intimidates me. It takes a lot of effort and time so I haven’t pursued surfing for years. But quarantine has gotten the best of me. This is a way to prolong the feeling of summer. And since I’m not watching football, my weekends are wide open…

3.

What are savers suppose to do? Savers are usually seniors that don’t want excessive market risk. The Fed is pushing down rates so savers are forced into volatile investments. The Fed believes they can minimize the downside risk via securities purchases or by pumping dollars into the markets. Think about that for a minute. What arrogance this institution has? It’s worked up until now, and will perhaps a while longer. But this can’t go on much longer. Markets cannot be manipulated for this long. Can they?

4.

How are you preparing your clients for the next 5 years? 10 years? 20 years? Do we just assume that current investment models continue on the same path of the last few decades? Do we become more cautious due to the uncertainty or do we take on more risk because rates are so low?

5.

Speaking of Covid, Make sure your mature clients are getting enough vitamin A,C,D and zinc. What a great gift idea! Maybe place your brand on vitamin bottles and offer them to clients? Please keep in mind the FINRA’S gift limits.