In the prior installment on this series, I exposed the deceptive marketing used to sell fixed-index annuities. Today I will look at a firm that purchases annuities from investors – the Annuity Action Network. It is a way for clients to borrow money at a high interest rate, but it may be an appropriate solution under certain circumstances.
Ross Glotzbach is head of research and a principal at Southeastern Asset Management, one of the most respected value managers. In this interview, he discusses his investment outlook in an era of political and economic uncertainty.
The biggest tax debate in Washington right now is not between Republicans and Democrats, but between Republicans and Republicans. Both sides of the debate seem to understand that the US tax code, particularly the fact that the US has the highest corporate tax rate of any industrialized country, is harming the competitiveness of US companies.
As has been the case for the past couple of months, investors continued to be highly attuned to the political backdrop last week. Early in the week, concerns over the president’s immigration and trade policies cased unease, but sentiment improved on Thursday after Donald Trump signaled a near-term announcement on tax reform.
The US economy has grown at an average annual rate of only 2.1% since the recovery started in mid-2009, far slower than during the economic expansions of the 1980s and 1990s.
After hiking rates in December, the chances of another rate hike from today's meeting were close to nil. But where changes, mostly modest, were made to today's statement, they point to a more hawkish stance.
The past several years have made many investors complacent about inflation. That complacency served bond bulls well.
An ideal retirement product should provide steady, secure income and upside participation in the stock market. That’s why advertisements that promise performance that will be “up with the market and never down, forwards with your money and never backwards” are so tempting. That’s exactly what Ty J. Young claims in his advertisements. I’ll explain why investors should be extremely wary of the products his firm sells.
A memorable part of President Trump's inaugural speech pointed to mothers and children trapped in poverty, rusted-out factories, a flawed school system, and crime and gangs and drugs. He described these problems as "American carnage" and stated emphatically that it "stops right here and stops right now."
Speculative markets have always been vulnerable to illusion, and in the US, two have been sustaining asset-price gains since November's presidential election. But seeing the folly in markets provides no clear advantage in forecasting outcomes, because changes in the force of an illusion are difficult to predict.