1.

This is what the all-time great investor, Jeremy Grantham, has to say about today’s markets: “The long, long bull market since 2009 has finally matured into a fully-fledged epic bubble. Featuring extreme overvaluation, explosive price increases, frenzied behavior, I believe this event will be recorded as one of the great bubbles of financial history.” Please keep in mind that just last year, he was touting a fair market with fair valuations. I feel 2021 will be a harsh year. As a financial advisor, protect your senior clients by allocating more into guarantees.

2.

My Princeton Economics daughter loves the stock market. But she kicks herself every day that she didn’t buy Tesla over the summer. But no worries, she owns Peloton. She has made a “killing” on her Starbucks stock and she can’t wait to jump into the Bitcoin game when it goes down. I have tried and tried to show her stock valuation and to explain how many tech stocks are being moved by the Robinhood-type investor; like herself. It’s not important though. Her stocks keep going up and she insists, she will get out in time. So I’m feeling pretty good about this now…

3.

The only game The Fed has is the Wealth Effect. Its monetary policy is only effective inflating asset bubbles not generating real economic growth. They are putting extreme effort into maintaining the phoney wealth of inflated asset prices hoping people will borrow and spend.

4.

Welcome to 2021:
1. Stocks: all-time highs
2. Housing prices: all-time highs
3. Corporate bond yields: all-time lows
4. Mortgage rates: all-time lows
5. Jerome Powell at FOMC’s last meeting: We need many more years of 0% interest rates and QE to stimulate the markets and spur inflation…

5.

Interest rates are historically low, but the risk in all markets is at historic levels. As I have been preaching for months, grab 2% for your senior clients while you can. Start reallocating away from risk into guarantee rates. Our company, Legacy Matters, offers two simple “hybrid” life products that offer a guarantee return of premium and a tax-free benefit. One product actually can give some clients over a 2% yield on their premium after ten years! Call NestEgg Builders for an illustration and info.