NetWorth Radio Advance Report - May 4, 2020

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 May 4, 2020.

Advance Report

Radio Show

Why are traditional allocations NOT likely to work as well in the future?
What Assets are rebounding the fastest?
What is “Getting Paid to Wait,” and “The Power of Compounding.”
What guidance does Dalbar provide on the best approach?
What is Modern Monetary Theory, and what does it tell us about Inflation between now and 2025?
Why is the “Cap Rate” calculation so important?
Dow Jones Industrial Average  (Year To Date)

– Courtesy of Bloomberg LP

 Quarterly U.S. Economic Actual & Estimated Forecasts w/ Probability of Recession (04/01/2019 – 07/01/2021) 

– Courtesy of Bloomberg LP

Yearly U.S. Economic Actual & Estimated Forecasts w/ Probability of Recession (2013 – 2022)

– Courtesy of Bloomberg LP

Standard & Poor’s 500 Index Earnings Per Share and Estimates (2 Years)

– Courtesy of Bloomberg LP

 U.S. Crude Oil – West Texas Intermediate Crude Spot Price (15 Years) 

– Courtesy of Bloomberg LP

Enterprise Product Partners LP, Energy Transfer LP, & Kinder Morgan Inc. (Approx. 15 Years)

– Courtesy of Bloomberg LP

AllianceBernstein Global High Income Fund, Inc. & BlackRock Corporate High Yield Fund, Inc. – Comparative Returns (12/29/2006 – 12/31/2012)  

– Courtesy of Bloomberg LP

Headline Round Up!

*Charts: Updated Economic and Earnings Forecasts
*Damage Survey? Q1 -4.8% Annualized. 30 Million Jobless Claims.
*DFW Payroll Drops, Business and Real Estate Surveys.
*Fed Chair Powell and Treasury Secretary Mnuchin Weigh in with Bad News and Action Plans.
*No State Bailouts?
*With Increased Unemployment Benefits and Stimulus Checks, Many Workers Received More in April Than Prior Earnings?
*Bain Capital Jumps to Provide Capital!
*Kitchen Sink Quarter: Earnings Reports
*Bailout Big Government Confusion. NY, NJ, and CT Feud Coming.
*Food Shortage? Vegetarians Safe?
*Pending Home Sales Down 20%. Freddie Mac Takes a Reserve Loss for Missed Payments.
*Total COVID-19 Tests Could Be About 7,000,000 by Monday.
*Gilead May Have A Solution.
*The Reopening? Hope and Confusion?
*Elon Musk Goes Off on Shut Down!
*Airlines? Boeing? There are likely much better choices. Should investors wait for December?

Texas Energy Gold Rush

*Blackstone Loves Energy Transfer Shares! Indicates company has likely access to future capital needs.
*15 Year Charts
*Futures Markets in 2021-2022? What does it tell us?
*Exxon Mobil and Chevron Report Earnings.
*Kinder, Enterprise Products and Cheniere Report Earnings.
*Cohen and Steers Midstream Update.
*Oil Storage Full!? Good news for Energy Infrastructure companies?
*Kinder Morgan RAISES the Dividend?
*Modern Monetary Theory and the Best Inflation Assets!

 

Profit Report!

What is the Cash Flow Revolution? How did it help recover to record profits after 2002 and 2008?
Education on “Cap Rates!
Updated calculations on Net Present Value of future cash flow: What is $1,000,000 in net cash flow worth in Real Estate?:
1. Distressed market: 10-12%
2. Healthy market: 6%-7%
3. Overpriced market: 3%
For an Asset, what is the estimated 10 year outcome?
Buffett warned us in 2019 about the Bad Corporate Whipsaw Rule: Quarterly corporate insanity on long term assets driving CFO’s crazy for the next year – The unrealized Mark to Market rule.

 

Research Round Up!

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*Cohen and Steers Midstream Update
*Credit Market Opportunities
*Blackrock New Outlook

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