1.
We have annuity producers that consistently get checks from their same clients for fixed annuity deposits. Interest rates matter of course, but the value of “walling” your nest egg off from visible bank accounts shouldn’t be overlooked. The money accrues safely at a competitive interest rate and your monthly bank statements show no sign of this asset. My suggestion is to contact all your clients and ask if they have funds needing a safe home with a competitive yield. And don’t forget the estate/beneficiary plainning benefits. Save the Savers! Sell a Guaranteed Fixed Annuity.
2.
Please don’t forget: The Fed has lowered rates to near zero to assist in appreciating assets like real estate, and stock and bond markets, as well as most collectibles. This “build wealth” psychology was supposed to make Americans feel wealthier which would make them want to purchase and spend more of their funds. This in turn was going to create more production and create more and more jobs in America. Very simple. So are these asset valuations based on fundamentals or just another artificial Fed contruct? Now, think of how these artificial low rates effected all the savers in America? Savers were crushed in America as a result. Lower rates harmed and continue to harm Americans every day. Always remember; there is a reaction to every action. Savers were betrayed by our government.
3.
The company WeWork is not just a mistake, it is a signal of weakness in the whole industry model. If Wall Street screwed up the WeWork valuation so badly, what about all of the other companies that are lurking in your investment portfolio?
4.
The reason why most traders fail is simple: Would you get into a fomula 1 race car and expect to compete with the best drivers on the toughest track? Of course not! But that is precisely what you do when you open a trading account and trade with little experience or training.
5.
Do we have free markets if The Fed needs to add $30 million of liquidity to our overnight markets? What if they had to add $10 billion? Maybe $100 billion? Are markets free and safe if they had to add about $400 billion in a span of two and a half months? Folks this is not normal and this is not a chicken little moment. This deserves concern by every financial advisor. Can we get through this unscathed or is this the canary in the coal mine? I don’t know, but “don’t fight the fed” has never been more true.
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