Month: December 2013

New Year’s Resolution: 3 Easy Tips to Be Financially Fit in 2014

New Year's Resolution

“Ring out the old, ring in the new,

Ring, happy bells, across the snow:

The year is going, let him go;

Ring out the false, ring in the true.”

― Alfred Tennyson

It's that time of year to make a promise to yourself to start doing something good or stop doing something bad on the first day of the year. Nearly 50% of Americans regularly make New Year’s Resolutions; and according to the Fidelity 2014 New Year Financial Resolutions Study, an all-time high 54% of Americans say they are considering resolutions regarding their finances. Here are three simple tips to help keep you financially fit in 2014.

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Larry Summers and Keynesians love bubbles

The market is eagerly awaiting the last FOMC meeting of 2013. Will they taper or not taper? I highly doubt that Ben Bernanke will be the Grinch and choose to taper in his last Fed meeting. However even if he does, it is a few months overdue.

Larry Summers was President Obama's favorite to replace Fed Chairman Ben Bernanke. Even though Summers ended up bowing out, it is important to listen to his recent IMF Research Conference speech because his Keynesian view is very much in line with incoming Fed Chair Janet Yellen, ECB President Mario Draghi and Japan's Shinzo Abe. The simple conclusion is easy monetary policy, quantitative easing and zero interest rate policy will likely be with us for a very long time. Bubbles, crashes and more bubbles are going to be our future. This type of environment is going to be especially rough for traditional buy and hold investors.

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The Madoff Effect: Do you trust family businesses?

Madoff Effect

Ever since Bernie Madoff’s $50 billion ponzi scheme hit the news in 2008, as a family investment firm we inevitably face the question, in no uncertain terms, “How do we know that you aren’t another Madoff?” First of all, I don’t think one bad apple should spoil the bunch. America has been built on the backs of great entrepreneurial families whose businesses are still thriving today. Walmart, Mars, Aflac and Fidelity Investments are family owned shops that have grown into multi-billion dollar corporations. I don’t think anyone questions them just because they are family businesses. But I understand people’s concerns especially when their hard earned savings are on the line.

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Do Higher Yields Mean Higher Risks For Captive Insurance Investment Portfolios?

Captive Investing Today

Since the financial crisis began in 2007, the Federal Reserve has taken extraordinary actions including reducing the level of short-term interest rates to near zero and pushing long rates to historic lows. This has impacted captive insurance portfolios that strive to safely generate enough investment income to cover operating costs, maintain statutory reserves, and pay claims when needed. With new Fed chief Janet Yellen taking charge soon, most participants believe the key themes for 2014 will be timing of the Fed taper and how financial markets will react.

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