Today the S&P 500 is clinging to positive territory for the year but the technology bubble, especially cloud and social media stocks, is popping. It is very remiscient of the 2000 tech downturn which I am very familiar with. At my first Wall Street job, I was in charge of IPOs and this IPO market is eerily similar.
Soaring food inflation threatens to derail US growth
In a speech last Wednesday, Fed Chair Janet Yellen said that persistently low inflation poses a more immediate threat to the US economy than rising prices. This is a very curious comment as food inflation has been soaring in 2014 thanks to droughts in California and Latin America as well as the central banks printing presses running hot. Pork, beef and shrimp prices are all hitting all-time highs.
Can Sotheby’s stock predict a stock market crash?
Investors are always on the hunt for a reliable market indicator which signals a market top. In my mind, asset protection is often an underappreciated skill in this business because so few people have been able to repeat the skill time and time again. Every cycle is slightly different so it is certainly a challenge, but I believe it can be done and with huge value added.
Earlier this month on CNBC, famed hedge fund manager Jim Chanos shared a chart which shows that shares of Sotheby's (BID) have peaked before every major financial bubble since 1987.
An impartial review of the Allianz 360 Annuity with 360 Benefit Rider
(Important note: since publishing this blog post in April 2014, cap rates have been lowered and spreads have gone up. In addition, the bonus rider has been reduced from 50% bonus to 25%. Both negatively affect potential returns of this product. This shouldn't be a surprise. As interest rates fall, you can expect returns to be smaller and smaller on index annuities.)
The annuity business has grown in popularity as investors, especially those nearing retirement, look for options to protect themselves from stock market volatility and give them a decent income stream in retirement. With over $200 billion in annual sales, the annuity industry is big business with lots of salesmen trying to persuade you to make a purchase.
Today I will dig deep into the best selling indexed annuity for the 4th quarter of 2013. Sales of indexed annuities, a fixed annuity that provides a minimum guaranteed rate of interest combined with an interest rate tied to movement of an index, increased to $39.3 billion in 2013, a 17% gain year over year. This is the biggest percentage increase of any form of annuity.
US Service Sector accelerates in March
The US service sector accelerated in March thanks to stronger employment.
The Institute for Supply Management (ISM) reported that its service index rose to 53.1, up from 51.6 in February. This was slightly below analyst expectations of 53.5. This marks the 51st consecutive month of growth. A reading above 50 indicates the sector is expanding.
Don’t Let Market Bubbles Hurt Your Portfolio
The guitar has always been abused with distortion units and funny sorts of effects, but when you don't do that and just let the genuine sound come through, there's a whole magic there.
– Jeff Beck