NetWorth Radio Advance Report - August 20, 2018

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 August 20, 2018.

Advance Report

Radio Show

7 years ago, the talk radio airwaves were filled with an advertising campaign using the tagline endofamerica.com. Investors were treated to a long video with pictures of the German currency collapse.
Our devotion to research led us to subscribe to the newsletter. The call to action actually focused correctly on owning Blue Chip U.S. dividend companies. The recommendations proved generally correct, despite the inconsistencies with the tagline “End of America.”
Scary forecasts will always be with us. Investors are reminded that forecasts for the end of the world are documented as far back as the year 999 in “Extraordinary Popular Delusions and The Madness of Crowds.” The book also detailed the rise and collapse of Dutch tulip bulb trading as a warning to investors. The cautious optimism of Sir John Templeton, founder of Templeton funds, proved to be the wisest perspective during his 4 decades of asset management leadership.
This week’s program will cover what has actually happened since the dire forecasts by several publishers that the end was near and the lessons for investors.
This Week’s Quiz Question*:
Relative to the trade weighted dollar index, how much as the dollar fallen in value the last 7 years as a result of accommodative Federal Reserve policies?
a. 26%
b. 11%
c. 53%
d. None of the above

 

This Week’s Financial Weatherman Reports

U.S. Dollar Spot Price Index & Gold Spot Price (7 Years)

-Courtesy of Bloomberg

Dow Jones Industrial Average Index (7 Years)

-Courtesy of Bloomberg

*Quiz Answer: Globally, the dollar has increased in value, relative to the DXY basket of other currencies, by over 30% since the lows of August 2011. Gold has fallen by 36% during the last 7 years.
Copper Futures Spot Price (Approx. 8 Months)

-Courtesy of Bloomberg

Soybean Futures Spot Price (Approx. 8 Months)

-Courtesy of Bloomberg

Bitcoin Spot Price (1 Year)

-Courtesy of Bloomberg

 

Headline Round Up!


*Trade Talks with China Headline Concurrent with Dow Spiking 400 Points on Thursday.
*Small Business Optimism Strongest Since 1983 Just Before Tax Cuts and Deregulation Led to 6% Economic Growth in 1984.
*Productivity BOOM: Up 2.9%!
*Consumer Strong! Retail Sales Spike.
*Home Depot Stronger!
*Walmart and Sam’s Club Boom!
*Beware the Department Stores: J.C. Penney Hits the Skids. Is the end near? Macy’s Slammed.
*Uber Sales Exploded 63%! Beware the IPO?
*Too High? Household Debt Record $13.3 Trillion vs. Household Net Worth Over $100 Trillion.
*Tesla: Musk Gets an SEC Subpoena for Pre Mature Tweet. Can you spare $72 billion?
*Marijuana Goes Global: Constellation Brands (Owner of Corona) Invests ANOTHER $4 Billion in Canopy Growth. Now Owns 38% of Pot Growing Empire.
*Chinese Implosion: Tencent Down $175 Billion in Value. SINA, SOHU Down 31% and 50% in 2018.
*PetroChina Threatens to Halt LNG from U.S.
*What is Bitcoin? Commodity, Currency, Security, or Property? Hint: since December it has been an effective way to lose a lot!
*Peak? Investors Most Bullish Since 2015. Contrary indicator or money flow confirmation?
*Round Up the Cash! Monsanto Loses One Case for $289 Million. Will thousands more follow? Bayer needs an aspirin after the acquisition!
*Export Boom in U.S. Oil. Is self sufficiency possible?

 

The Profit Report:


*Is Turkey important?
*Restaurant and Retail Updates.
*Trustee Boot Camp: Check your trust documents and call the CPA!
*Summer planning season: Check your beneficiaries!
*401k Mistakes to Avoid.

 

The Cash Flow Revolution:

*Interest Rate Updates: Money Markets, Treasuries, Corporates, and more.
*What pays more and is less volatile than stocks?

 

Research Round Up!


Investors are invited to improve decision making with a comprehensive tour of global economics, indicators, and actual results.
*Embrace the Power of Income: Special Report.
*Does a Yield Curve Inversion Forecast Recession?
*FERC Ruling Positive for Energy Infrastructure.

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