NetWorth Radio Advance Report - August 13, 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 13, 2018.

Advance Report

Radio Show

Over the last 32 years, extended periods of flat to down returns for traditional allocations occur often.
This week’s program will explore solutions to Warren Buffett’s recent forecast that US equity markets will experience an extended period of disappointing returns. His conviction is evidenced as well by a reported $111 Billion in cash in the Berkshire Hathaway portfolios.
The long term Dow Index illustrates the potential for disappointment in traditional Equity allocations:
Dow Jones Industrial Average Index (Approx. 78 Years)

-Courtesy of Bloomberg

Certainly the total return of the traditional fixed income allocations like the Vanguard Total Bond Market Fund illustrate the point for one of the most popular Bond Fund allocations:
Vanguard Total Bond Market ETF (Approx. 5 Years)

-Courtesy of Bloomberg

This Week’s Quiz Question:
Since 1950, what was the longest period that the Dow failed to make a new high?
a. 5 years
b. 11 years
c. 16 years
d. 21 years?
Answer: c. 16 years: In 1965, the Dow hit 1000 and did not ascend higher until 1981.

 

This Week’s Financial Weatherman Reports

Cisco Systems Inc. & Apple Inc. (Approx. 28 years)

-Courtesy of Bloomberg

PetroChina Co. Ltd. (Approx. 18 Years)

-Courtesy of Bloomberg

Alerian M.L.P. Index and West Texas Intermediate Crude Price (Approx. 5 Years)

-Courtesy of Bloomberg

West Texas Intermediate Crude Oil Spot Prices for Midland Crude and Cushing Crude (Approx. 30 Years)

-Courtesy of Bloomberg

U.S. Dollar and Turkish Lira Exchange Rate (Approx. 5 Years)

-Courtesy of Bloomberg

 

Headline Round Up!


*Profits Surge Over 23%! Energy Profits Near Double!
*Texas Boom Towns: National Rank for Austin #1 and Dallas #7!
*Need a Job? 6.66 Million Jobs Available, Remains Near Record Levels.
*Inflation? Producer Inflation Annualized at Just 1.2%
*Warren Buffett’s Cash Pile $111 Billion. Operating Results up 67%!
*Jamie Dimon Predicts 4% and Possibly 5% on 10 Year U.S. Treasury? Bull Market May have 2-3 More Years?
*University of Texas New Stadium $175 Million? Do they really deserve it?
*Shamu and Free Beer! SeaWorld Spikes on Attendance Boom. (Dad, are you sleeping?)
*Insert Other Shoe! Elon Musk Tweets $420 $72 Billion Private Equity Buyout. Can you spare $66 Billion?
*Bankruptcy Rate Quadruples for Age 75 and Older.
*Beware Fish Sticks! China Tariffs Endangers Processed Fish.
*Japan Buying More Junk Bonds.
*Amazon and Whole Foods: Just Throw it in the Trunk Please.
*Once Bond King Bill Gross Down to Just $1.25 Billion.
*Bank of Facebook?
*Short Term Municipal Tax Exempt Bonds Too Expensive?
*China Proposes 25% Tariff on Liquid Natural Gas.
*Cheniere May Explore Europe LNG Exports.
*Goldman Buys LNG Tanker Full. Trading Boom?
*Spending Boom By Big Oil Gains Momentum.
*Permian Pipes Full. Prices $53 versus $68 Spot. More Pipes Needed?
*FLOW! Natural Gas Exports Predicted to Total 15% of Output in 2019.
*Man Camps Near Midland Full. “Have Fun Honey, Send Money”, Wives Stay Home. $1,300 per Month for 700 Square Feet.
*Cheniere Energy Revenue Spikes! Income Almost Quadruples. Dividend Raised.

 

The Profit Report:


*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.
*401k Strategy for Estate Planning and MISTAKES to avoid.
*FERC Ruling Positive for Energy Infrastructure.

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