1.

Central banks around the globe have managed to make one disaster after another since 2000, and yet for some reason the confidence in their ability to steer us through any economic outcome is resolute. I mean, in other words, it won’t be shaken.

2.

The World Series ended with a thud. Tampa manager Kevin Cash decided to use Ace pitcher Blake Snell for a measly 73 pitches. I woke up that morning to my baseball-fan daughter complaining about Cash’s decision. I said to her “now you understand why I yell when I watch ball games. The biggest problem I have with baseball is starters do not take possession of their games.” I have stated this to her ad nauseum, I mean big time ad nauseum. She stopped listening. But she finally gets it. When a pitcher is dealing, let him go. It’s his game. Especially in the deciding game of the World Series.

3.

Here’s a fun investment fact: Over the last 20 years, IBM has bought back $136 billion of its own stock. Its current market cap is: $111 billion. IBM is the poster child for financial engineering…

4.

The economy doesn’t need more consumption, it needs more production. Productive employment will stimulate the economy. Printing money and distributing it to non-productive people will not. It will only result in larger trade deficits, a weaker dollar, and higher consumer prices. Every government understands the above. But very few will implement it.

5.

Earl E Bird is back. NestEgg’s furry friends are back to help us market investment concepts to the American Saver. Earl is a friendly, curious bird, always looking to do the right thing. He doesn’t know nor pretend to understand financial concepts, but in the long run, he will take the safe road with his hard-earned nest egg. Earl is in it for the long haul, and wants nothing to do with quick short-term schemes. I will introduce another character next time.

6.

Interest rates are moving to the 2% level for annuities. I have been barking about locking in rates for the last 7 months. The Fed is buying up hundreds of billions in investment grade bonds and rates can only go lower right now. When compared to the principal risk of bond funds, fixed annuities still look very attractive. The 60/40 portfolio concept is a relic from the past. Seniors can earn similar rates with no principal risk nor volatility with a fixed annuity. I think it’s time to move most of your bond holders to guarantees with no volatility. Give NestEgg Builders a call. We will help you through the paperwork nightmare.