Money

Fed Statement: Highlights, Red Line

Ok, here comes the Fed. And you should enjoy this FOMC statement because it represents the outcome of the last meeting Janet Yellen will chair. So you know, maybe print it out and frame it for posterity in case the equity bubble she’s spent years presiding over crashes an burns under a relatively hawkish Powell. The consensus is that this should be some semblance of upbeat as a way of both conveying confidence in the outlook (perhaps on the back of the growth prospects tied to the tax plan) and paving the way for Powell’s Fed to adopt a slightly more aggressive stance going forward. Just to give you something to benchmark this against in terms of reality versus expectations, here’s a reminder about what Goldman said in their preview: At Janet Yellen’s final FOMC meeting next week, we expec...

Brexit: Still A Stupendously Bad Idea, Still Happening Anyway

By Rlevente [CC BY-SA 4.0], via Wikimedia Commons It’s been nearly two months since the European Union grudgingly agreed to let the British begin to mention the shape of a post-Brexit world in its presence in spite of their reaching an agreement on only two of the three things that the EU said was necessary. And ever since, they’ve been regretting it. Six weeks after EU leaders gave their blessing to moving the Brexit talks on to future arrangements, frustration is mounting that the UK is “not ready” to complete the divorce, which the EU deems essential for a deal before Britain’s departure on 29 March 2019…. The Irish border issue is the most difficult hurdle, but negotiators must also resolve a host of technical matters, including Euratom, police cooperation and the role of the European ...

Even Deutsche Bank Thinks GE Is A Hot Mess

When your new CEO admits almost right off the bat that the place is kind of a shithole, you really can’t expect your company to be going too great. And while GE shareholders have come to accept bad results, messy bitches causing ratchet drama and a deep distrust in the long-term recovery process as commonplace, you’ve got to believe that this still hurts… “We believe the chances that GE could be removed from the Dow are increasing as GE continues to face substantial challenges including earnings and cash pressure, tough global power generation markets, aggressive downsizing, shrinking its portfolio, management shake-up and SEC investigations,” Deutsche Bank analyst John Inch wrote Wednesday. “Apart from GE’s other challenges, as the company’s absolute share price has continued to drop, GE ...

An $11 million opportunity: It’s time to think about your estate plan

Here’s a way for financial advisors to strengthen their client relationships: Start a chat about the legacy your client would like to leave for heirs. Such was the focal point of a panel Wednesday at the TD Ameritrade National LINC conference in Orlando. “There is an opportunity for you to get into that conversation,” said Michael Cyrs, a panelist and director of wealth advisory at Savant Capital. “It’s a people conversation: You don’t have to follow the estate-tax nuances we were dealing with in the past.” The Tax Cuts and Jobs Act has opened the door for financial advisors to have more meaningful conversations with their clients about their legacies – and to team up with estate-planning attorneys to update plans. The estate-tax exemption is now a...

Middle America Already Winning Big From Tax Plan As Lowly Workers Get Free Hos And All-You-Can-Eat Dongs

There were a lot of bumps in the road on the way to finally getting the GOP tax plan across the finish line. One persistently pesky problem was explaining how a corporate tax cut and a plan that screams “trickle down” could possibly warrant the “middle class miracle” branding that was slapped on the bill for the purposes of selling it to Trump’s base, which is comprised of working Americans. There were innumerable issues with that branding effort including, but certainly not limited to, numbers and history, two things that are extraordinarily annoying because they’re hard to argue with. The numbers problem manifested itself in independent analysis which showed that by 2027, taxpayers in the top 1% of the income distribution would receive an average tax cut of 0.9% of after-tax income, acco...

Puny Financial Giants Finally Standing Up To 88-Year-Old Bully

For decades, Jack Bogle has let Wall Street know what he thinks of it: That the army of besuited money managers crowding the island of Manhattan and city of Boston are beneath his contempt as they literally steal their clients’ money to do a lousy job, all the while literally eating their lunch while doing so—Bogle’s Vanguard Group has gobbled up $3.5 trillion in assets during Bogle’s 80s. Well, the downtrodden aren’t going to take it anymore. Poor little Fidelity Investments, which manages just $2.3 trillion of the $6.2 billion entrusted to it overall, isn’t going to pay for the pleasure of looking stupid at Bogle’s hands anymore. Fidelity, the largest 401(k) plan administrator in the country, will now charge some new corporate customers that hire the firm to run their 401(k) plans a fee ...

GE will likely be dropped from the Dow, Deutsche Bank predicts

General Electric will likely be removed from the Dow Jones industrial average, according to Deutsche Bank.

The 9-year stock rally still has ‘years left,’ says one of Wall Street’s most bullish strategists

The two-day plunge was not the beginning of the end of the stock bull market, says Jeffrey Saut.

Fear of running out of money plagues many retirees

Most people spend much of their working lives saving for their future. Yet, after so many years of being disciplined about saving, many of my clients are uncertain how to allocate their hard-earned nest eggs once in retirement. As a financial advisor, I have found that there are two primary reasons for this. First, they are concerned they will run out of money. Second, they are suddenly transformed into spenders of assets, while no longer bringing in additional earnings from a paycheck. Both of these factors can certainly require some adjustment. To help you get there, here are four tips that can help you wisely manage your savings in retirement. Create a realistic spending plan. I work with my clients to create plans to help them reach retirement, but it’s just as important to estab...

Bitcoin headed for biggest monthly drop since January 2015 with nearly $60 billion of value wiped off

Increased scrutiny from regulators and criticism from major businesses and leaders has weighed on the price of bitcoin.

Bitcoin headed for biggest monthly drop since January 2015 with well over $60 billion of value wiped off

Increased scrutiny from regulators and criticism from major businesses and leaders has weighed on the price of bitcoin.

Big market swings are something you’re going to have to get used to, says Wells Fargo

After Tuesday's sell-off, investors would be wise to roll with the punches, says Wells Fargo's Scott Wren.