You may remember the best selling book Liar's Poker by Michael Lewis (he also wrote The Big Short). Liar's Poker was a close look at the inside dealings of Salomon Brothers, and its legendary boss John Gutfreund. Salomon had cornered the U.S. treasury market in the early 90s and was brought down by regulators. The 86 year old Gutfreund passed away last week, marking the official end of an era. Steve and Sinclair review a new Wall Street Journal piece on Salomon and Gutfreund that is revealing and instructive, especially since Warren Buffett and Charlie Munger were involved in the bailout. Interesting piece. In today's Q & A segment, CFP Murray Titterington with IQ Wealth Management talks about Warren Buffett's annual letter to shareholders and dividend investing fundamentals.
Today on Mastering Money, Steve and Sinclair review a Fortune magazine review of the renaissance happening at Penny--better known as JC Penney, under new CEO Marvin Ellison. The President of Caliber Wealth Development joins the A-Team for the Q & A segment, to talk about the exceptional growth happening at Caliber Wealth Development, and the upcoming event with Caliber and IQ Wealth. The Steve reviews "what ever happened" to Montgomery Wards, another American icon. Wards is an interesting story, especially since Amazon has taken over the buy from home market that Wards started, even before Sears. Find out what helped them succeed, and what caused them to fail.
H & R Block Enrolled Agent Doris Milton joins Steve and Sinclair to talk about taxes and what is deductible if you own a part time business. Steve reviews the alarming rise in corporate debt and increasing bond durations. The bottom line? Risks are growing for retirees holding onto bonds, bond funds, and bond ETFs. Corporate debt has doubled since 2009 and the average duration is up over 147% to an average duration of over twenty one years! How old will YOU be in twenty one years? Are bonds suddenly the most risky investment on Wall Street? Find out more in this episode of Mastering Money.
Gary Kaltbaum joins the A-Team to examine the markets and talk about his methods.
Today, March 9th, marks the seventh anniversary of the current bull market--making it 84 months old. That's the third longest in history with the average being 44 months. Are we due? The Wall Street Journal points out that those retiring in 2016 and 2017 have the highest risk of retiring into a bear market since 1999. The Journal's article interviewed renowned retirement expert Dr. Wade Pfau. Wade D. Pfau, PhD, CFA, is a Professor of Retirement Income in the new PhD program for Financial and Retirement Planning at The American College in Bryn Mawr, PA.
Today on Mastering Money, Steve and Sinclair examine "style drift" among mutual fund managers, using research from former Morningstar analyst John Courmarianos. Courmarianos studied 106 funds that drifted from their original style box on Morningstar, and found a mutual fund that has more than doubled the S & P 500 since 2000. In the Q & A Steve answers questions and clarifies how it is possible to average an 8.43% return over 20 years, withdrawing only 5%, and still run out of money in a traditonal equity portfolio by the 21st year. Learn how the math works.
Today on Mastering Money, national gold expert Nick Grovich joins Steve and Sinclair to talk about the 20% rise in gold--why its happening, what's causing it, and what is the smartest asset to buy. He also discusses the gold to silver ratio, the gold to platinum ratio, and the silver to platinum ratio--and what they are telling the savvy investor right now. Then Steve reviews a Wall Street Journal piece on why the U.S. will need 1.5 million more mathematicians in the next four years to handle the data explosion, IBM reports that 90% of the data in the world today has been created in the last two years alone!!
Today on Mastering Money, Steve and Sinclair review the many warnings by Finra and other agencies regarding Target Date mutual funds, often found in 401ks and by individual investors as a shortcut to planning for retirement. Just as Warren Buffett says bonds "should come with a warning label", Target Dates also come with heavy market risk and interest rate risk. Then, Mr. Chuck Carnevale, renowned dividend expert and editor of FastGraphs.com joins The A-Team for deep insights into dividend stocks.