NetWorth Radio Advance Report - December 25, 2017

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 December 25, 2017.

Advance Report

Radio Show

Bonuses, Buybacks, and Repatriation!

This week’s program explores tax reform impact that rapidly began to occur this week after the (FINALLY!) Senate passage and signing of the bill.

Assuming $3.1 Trillion in corporate cash repatriates at 15.5% during the 2018 deadline, Federal revenues could increase by about $900 Billion during 2018 putting the US Treasury at a potential surplus.

Share buyback announcements are anticipated. Charitable contributions, and bonuses were announced almost immediately.
Increased capital expenditures of $51 Billion were announced almost immediately by AT&T and Comcast.

NetWorth Radio’s Dallas Business Leadership Series: A Powerful Interview Featuring Dr. W. Michael Cox, Former Chief Economist of the Dallas Federal Reserve!

W. Michael Cox, Ph.D., is founding director of SMU’s O’Neil Center for Global Markets and Freedom, which studies the impact of competitive market forces on freedom and prosperity in the global economy.

Cox is former chief economist and senior vice president of the Federal Reserve Bank of Dallas, where he served for 25 years advising the President on monetary and other economic policies. He is the author of numerous op-ed articles for The Wall Street Journal, The New York Times, USA Today, Financial Times, and Investor’s Business Daily, and his work has appeared in virtually every major newspaper and magazine worldwide. He is the author of Myths of Rich and Poor: Why We’re Better Off Than We Think.

Headline Round Up!

  • The Most Important Forecasts for 2018!
  • Moment Trades Still Getting Money Flow this Week!
  • Dallas Based AT&T Says Shut Up Scroogey Schumer! Announcing at Christmastime Paying an Estimated $200 Million in Team Bonuses.
  • Boeing Announces $300 Million for Employees and Charities
  • Repatriation Could Strengthen US Dollar and Offset Fed Tightening!
  • Little Kim Loves Bitcoin: 7,000 Hacker Bitcoin Operation. WannyCry Ransom Inflation?
  • Important Updates, Oil, Natural Gas, and Energy Infrastructure.
World Equity Indices (Year To Date)

-Courtesy of Bloomberg LP

Cryptocurrencies (Bitcoin, Ripple and Ethereum) Approx. 4 months

-Courtesy of Bloomberg LP

Alerian MLP Index (Approx. 1 month)

-Courtesy of Bloomberg LP

U.S. Federal Budget Dashboard Since 1940

-Courtesy of Bloomberg LP

Profit Report:

Often the most popular investment category is “too much in the sun(1).” The resulting overpricing and subsequent bear underpricing have often marked the greatest dangers and resulting opportunities in my 31 year career.

In 2009, we cheekily nicknamed one of our best research pieces as “20 Companies That We Believe Will Not Die.” The list included Whole Foods which subsequently rose from under $10 to an all time high near $60(2). So unpopular were stocks we found most investors fearful of adding positions at what was proven to be a great inflection point.

Harken back to 2014. Oil was over $100(3). Scores of research pieces touted the energy master limited partnerships, one of the most popular investment categories at that time(4). For several years now we have watched opportunities develop which appear to have come to the point of attractive inflection in the inflation friendly energy category. The 3 year bear market cycle in oil prices appears to have now ended based upon recent prices approaching $60 per barrel after a 2016 low near $27(5).

Our diligent research process has identified, what we believe to be, one of the best opportunities since early 2016, when the high yield credit markets froze producing large discounts with high income. The term “capital call” refers to our urging clients to make deposits into an attractive asset class.

For clients able to make deposits and for our cash reserves, we are completing allocations into attractive high dividend energy companies. Please call to discuss the opportunities for 2018 “and beyond.”

Spencer D. McGowan – December 2017
McGowanGroup Asset Management


  1. Hamlet Act1,Scene 2
  2. Bloomberg LP – July 2003/October 2013
  3. Bloomberg LP – West Texas Intermediate Crude, February 2014
  5. Bloomberg LP – West Texas Intermediate Crude, November 2017/January 2016
*Barron’s Loves Energy Infrastructure MLP’s for 2018!
*Tax Reform Impact Unfolding Rapidly *What’s the Plan? Details of the New Tax Plan and What it Means for Investors!
*What is Laffer Curve and Why it Matters! What is the Cox Curve and Why it Matters!
*2018 Tax Planning Strategies!
*What is an Exchange Traded Note, ETN?

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