Financial Sense Newshour
Jim welcomes back Jeffrey Saut, Managing Director of Research at Raymond James Financial. Jeff sees the main problem for most investors is never having learned to manage risk, as they took big losses in both 2000 and 2007. Jeff notes that both individual investors and institutions are currently underinvested in equities, and the biggest mistake now is being too bearish. He also believes if we get a correction caused by the upcoming debt-ceiling debate in Washington, it will be a buying opportunity. Jeff also sees the trend in dividend investing continuing and growing.
Jim welcomes back Eoin Treacy, Global Strategist at Fullermoney in London. Eoin sees the new Japanese government aggressively attempting to create more inflation, and improve exports by cheapening the Yen through massive money printing. He also believes the US industrial sector looks extremely attractive, and believes investors should be buying equities at these levels. Eoin also notes that the “dollar collapse” camp has been wrong in the past, and he believes they will be wrong again this year, as he expects the dollar to strengthen.
Jim welcomes back energy expert Joseph Dancy. Joe notes that Saudi Arabia is cutting back oil production, and the US is one of the few areas in the world where oil production is growing. Joe also sees more merger and acquisition activity ahead, as he believes the cheapest place to find oil reserves is now on Wall Street.
In this week’s edition of the Lifetime Income Series, Jim looks at the topic of how highly-compensated employees can avoid paying a high tax rate, and also use these strategies to plan for retirement.
In the Big Picture this week, Jim has three related topics. The first is “Waiting For Armageddon”, which focuses on investors stuck in cash, waiting for the world to end. The next topic, “Irrational Apprehension” deals with the fearful investor...
Jim is pleased to welcome back former US Senator Alan Simpson. Senator Simpson blasts politicians of all stripes for not addressing the main issue: unsustainable health care costs. He feels the debt ceiling debate will be pure political theater, and the US is not in danger of defaulting on its debt. Despite the coming media and political theatrics, Mr. Simpson believes the issue will pass without a crisis. He advises turning off your television. He also notes the reason that politicians continue to “kick the can down the road” and never seriously confront the serious debt issues, is simply because they don’t want to anger the special interest groups and risk losing their privileged positions at the center of power.
Jim is pleased to welcome back John Butler, Chief Investment Officer at Amphora Commodities Alpha Fund in London. John discusses that more countries are moving out of dollars, and eventually the dollar will become less important as a reserve currency. But he cautions there is danger in predicting an eminent dollar collapse, and those who did in 2010 have paid the price. John also notes that because of the special privilege of having the reserve currency, the US will likely win a major currency war. He also discusses why the world’s central banks are buying gold, and why the bond market is not a store of value. It is an inflation wolf in sheep’s clothing.
Jim welcomes Jonathan Potts, Managing Director of FideliTrade Inc at Delaware Depository Services Company LLC. Jonathan covers a wide range of issues on bullion storage, including the difference between allocated and non-allocated storage. He notes that bullion storage offers liquidity as well, as investors can buy or sell their bullion at any time. Jonathan also notes that one of the biggest changes in the bullion storage industry is that investors can now buy physical precious metals in their IRA’s. He also sees most gold bullion investors as long-term holders of the metal, while silver bullion investors tend to trade and speculate more.
Jim welcomes back Bill Powers, Editor of Powers Energy Investor. Bill believes the price of uranium has bottomed due to fundamental factors. This is the last year of the Megatons to Megawatts Program between the US and Russia, which provided a large supply of uranium into the market. Bill also notes rapid development of nuclear energy plants in both China and India, as well as plans in Japan to re-start the Fukushima nuclear facilities. Bill also sees tremendous value in small and mid-tier energy companies, and believes we will experience higher oil prices later this year.
This week on the Lifetime Income Series, Jim looks at what is a realistic annual rate of return on your retirement investments. With annuity rates low, as well as all fixed income at very low yields, Jim discusses what is realistic in terms of rates of return.