Published on: July 28, 2023

NetWorth Radio Advance Report - July 31, 2023

In this NetWorth Radio Advance Report, Spencer McGowan, President of McGowanGroup Asset Management, delivers financial news and intelligence with insights you can act on for July 31, 2023.

Advance Report

Radio Show

Q: What was the equity market reaction to this week’s Federal Funds Rate increase?
A: The Dow Jones Industrial Average spiked 170 points as Federal Reserve Chairman, Jerome Powell, indicated the tightening cycle is likely over. “It’s possible that we would choose to hold steady . . .”
Q: What is a “Soft Landing?”
A: “A soft landing, in economics, is a cyclical slowdown in economic growth that avoids recession. A soft landing is the goal of a central bank when it seeks to raise interest rates just enough to stop an economy from overheating and experiencing high inflation, without causing a severe downturn. Soft landing may also refer to a gradual, relatively painless slowdown in a particular industry or economic sector.”
Q: What is an In-Service IRA Rollover?
A: Also defined as a pre-termination rollover, allowing participants, usually after 55, to roll a large portion of their 401k to an IRA in preparation for retirement. McGowanGroup has in depth logistics and planning experience to help investors explore this option.


Headline Round Up

*Healthy Economic Growth: Q2 GDP Comes in at 2.4% Matching The Atlanta Fed’s Estimate!
*Big Humble Pie: Bearish Mike Wilson, Chief U.S. Equity Strategist at Morgan Stanley, states, “We were wrong.” Just what was his forecast to investors?
*The Power Phoenix: Vistra, Corp., A Power Generation Giant, Hits All Time Highs.
*EPA New Electric Vehicle (EV) Rules Likely to May Short-Circuit the Power Grid, Says ZeroHedge at
*God Bless Texas! Success Meeting Record Breaking Electricity Demand This Summer.
*Oil Dances to $80!
*Crude Axis: China Stockpiles Cheap Russian Oil.
*Exxon Mobil Corp., Standard Lithium Ltd., and Tetra Tech, Inc. Set to Make Arkansas the Lithium Capital of the U.S.
*Nearly $3 Billion in Dallas Commercial Real Estate Recently Listed as Distressed by Dallas Business Journal.
*Breakthrough Battery Technology! Enovix Corp. Announces Army Contract, 25% Production Over Target, With Funding Secured.
*Artificial Intelligence (AI) Insights: Alphabet and Microsoft Earnings Calls.
*AI Speech Platform Taking Over Fast-Food Drive Throughs.
*General Electric Roars Back After 6 Years of Shareholder Degradation and Humiliation.
*Wild Ride: QQQ’s, Nasdaq 100, Even After Surge, But Still Down About 5% Over 18 Months.
*Recurrent Advisors Reports Record Surplus Cash Flow in Excess of Large Dividend Increases for the Pipelines.
Dow Jones Industrial Average (07/28/2021 – 07/28/2023)

– Courtesy of Bloomberg LP

Department of Energy – Total Change in Cushing, OK Crude Oil Inventories Data & Generic Crude Oil Contract Spot Price (07/28/2021 – 07/21/2023)

– Courtesy of Bloomberg LP

Standard & Poor’s Case-Shiller Dallas Home Price Index, Non Seasonally Adjusted (07/28/2020 – 05/31/2023)

– Courtesy of Bloomberg LP

Profit Report

Has your current advisor actually read your Trust and Will?


McGowanGroup Wealth Management
Q3 2023 Client Update

Disinflation and Possible Financial Outcomes Through 2026?
At this writing, Inflation has plummeted from 9.1% annually to 3% according to the Consumer Prince Index (CPI) annual measure. According to the Federal Reserve most recent projections, by 2026 the Federal Funds Rate is likely to be near 2%. So far, Gross Domestic Product (GDP) economic growth has remained healthy, near 2%, despite prevalent headlines of a “Looming Recession.”
A Potential Magic Carpet Ride for High Cash Flow Assets?
In previous Disinflation cycles, after reaching the peak Federal Funds Rate to control inflation, the Federal Reserve begins to return interest rates to normal. Net present value of future cash flows is higher when the competing discount rate is lowered. After 18 months of pressure on investment asset prices, the path to normal cash rates of 2-3% instead of over 5%, is likely to bring higher values for high cash flow assets including:
• Discounted Global High Yield Bond Funds
• Energy Infrastructure Assets
• Dividend Companies
Perspective Reversal of Prior Investor Pessimism?
Cautious optimism appears to have contributed to the legendary successes of Warren Buffet and Sir John Templeton. The negative equity market forecasts in late 2022, including economic contraction, so far have been proven wrong. Investors who enjoyed positive outcomes in the first half of 2023 appear to have shifted into a more optimistic perspective for now.

Research Round Up!

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*AllianceBernstein: Nasdaq Rebalancing July 24th, What’s The Big Risk to Big Tech 7?
*Nuveen: Tightening Cycle Over.
*Calamos: Why Bullish on Energy?

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