This week’s program:
We introduce ourselves and tout the broad experience of our staff: Biff as a stockbroker, James as fund manager and chief investment officer and Jim’s years working in insurance. Together we have a total of over 75 years of relevant experience to assist our clients with their financial planning needs.
This holiday season Safe Harbor teamed up with local news affiliate Fox 10 to collect Caring Kits to distribute to vets, homeless and underprivileged families. Our clients brought so many donations to our Christmas party that we filled two vans!
- What do you think of the Trump rally so far? The market is up 4/5% since the election and some people are predicting another 4% in the closing days of December. Looks good but… much of the run up is just for four Dow stocks, not broad-based gains.
- Watch your bond funds! Bonds are a lead indicator for the market and they’ve been going down. In the last three months the leading bond fund has dropped 12% — most of the losses coming since the election. So much for the idea that bonds are safe. Lower prices are the future for bonds and stocks too — where the bonds go the stocks will follow
- So what’s going on with bonds? Two things, in our humble opinion. First, bonds have been way overvalued for ages and will have to correct sooner or later. Second, the Obama administration’s heavy hand has been holding interest rates at artificially low levels. Investors expect Trump to allow the market to set rates. Everyone knows it and the smart money is moving out.
- We work with so many people with different investment objectives. Some seek a secure income, others want an alternative to the stock-market, and others again are already well set up and thinking about building an estate for their heirs. Each objective has its own set of solutions. At Safe Harbor in Daphne we know the market and how to get you the right products.
- Clients are starting to look more carefully at retirement and asking for help to identify and deal with different issues they may face down the road in their lives — but also help with their portfolio and IRA. We work with everyone on a holistic, structured retirement plan.
- Regular listeners know that we talk a lot about inflation. We do it because it’s so important to our personal financial well-being in retirement and for the country as a whole. Inflation is far higher than the government publicly admits; it’s closer to 5% than 2%. As Trump renegotiates trade agreements with China and Mexico and ships jobs back to the U.S., the cost of our goods will go up further. That’s not a bad thing long term but it will upset bonds. It wouldn’t surprise us if the price of your bond funds dropped 30 or 40% this year. They are so overpriced that even that large move would only move yields to 5%.