1.

Foreign holdings of U.S. treasuries fell by $112 billion in the month of October. The U.S. is up to its eyeballs in past debts and currently have budget deficits exceeding $200 billion a month. Can The Fed actually buy all our bonds moving forward? This disaster isn’t going away soon…

2.

What is still poorly understood is since 2008 we have created ludicrous asset bubbles–which will ultimately have to return to their “true mean.” This is going to have serious repercussions economically, monetarily and culturally. There is no magical solution so buckle up…

3.

I am a “reversion to the mean” kind of guy. Valuations and multiples, in a non-artificial monetary world, find their fair levels. It’s easy to be wrong when central banks keep printing money for years and years. As a result, keep your funds safe with low volatility. Stay with the safest companies if you are selling fixed annuities.

4.

I lost a good friend recently. He was a man I never met but I followed his every move. I listened to all his press conferences and studied him from afar. There was no one like him. He was primarily a grade A character, and he was secondly an innovative college football coach. He was the mastermind to today’s pass-happy offenses. My friend’s name is Mike Leach and the world will never be the same without him. Do yourself a favor and watch his interviews and press conferences on YouTube. You can thank me later.

5.

Interest rates look like they have peaked in the short-term. No matter what your government says, our economy is contracting big time on a real basis. If you can grab around 5% per year for your senior clients, I would recommend you do so. And again, keep it with quality insurers.