STOCK MARKET.....Today, Brinker again recommended dollar-cost-averaging money into the market.
EXPECTING TAX CUTS HAS MADE THE STOCK MARKET STRONG....Brinker comments......The elimination of the "obamacare" 3.8% tax on higher earners is still there. However, looking ahead, the market has been strong because investors are expecting a corporate tax cut.
EVENTS IN GUBMINT AND UPCOMING POSSIBLE TAX CHANGES....Brinker discussed at length the House failure to repeal Obamacare last week. As he pointed out, no Democrats voted to repeal, and enough Republicans joined them, so that the major 3.8% tax remains in place. Through Obamacare, taxpayer's are still forced to pay for abortions, and costs for those forced to buy insurance will continue to skyrocket to subsidize those who pay nothing. Thanks to dRahme, a short clip from the opening monologue.
2016 NATIONAL DEFICIT AND NATIONAL DEBT HIGHEST EVER.....Brinker comments: The national debt represents the accumulation of all of the overspending over the history of the Republic. Last year, we had an enormous increase in the national deficit. It went up 35% to about $588 billion for the government fiscal year ending in September 30th of last year - and that is why the national debt is right now at $20 trillion. The annual deficit is added on every year.
DVY HIGH DIVIDEND ETF.... Brinker recommended DVY as a high-dividend-paying ETF - right now about 3%....He also commented that because of "the president's talk about lowering drug costs, there are some pharmaceuticals on sale right now.
Honey EC: Brinker has had DVY on his Marketimer list of "Individual Issues" for about 15 years now. It dived like Mark Spitz during the 2008 megabear.
QUALIFIED DIVIDENDS.....Brinker comments: For dividends to be accepted as "qualified," stocks need to be owned 61 days prior to ex-dividend date.
ECONOMIC....First quarter estimate for GDP is slow - possibly 1%, slower than 2016 - which was very slow.
WHAT GOES WHERE FOR BEST TAX RESULTS.....Brinker comments: In general, it's best to keep fixed income investments in tax-privileged accounts and stocks into personal accounts.
HEDGE FUND TURMOIL.....Brinker comments: Turmoil in the Hedge Fund industry is incredible. in 2016 there were 1057 closures. ....Another one shut down last week (Eton Park - Eric Mendage) - he had $2 billion under management. Thanks to dRahme, here are more of Brinker's comments about Hedge Fund closures (Forbes article Hedge Funds Dying at an Alarming Rate)
PREFERRED STOCKS....Brinker reminded a caller that preferred stock funds, like bond funds, are subject to interest rate risk and could decline if rates rise.
TAKING SOCIAL SECURITY EARLY....Brinker comments: If you delay taking Social Security to age 70, you will be 80 before you break even.
COMING NEXT WEEK.... Brinker comments; Busy week....tsunami of Fed-speak, Case-Schiller, GDP revision, jobless claims. Thanks to dRahme, a short clip with more details.
THE REDUNDANT BRINKER NEWSLETTER....Honey EC: Caller Tim in the first hour told Brinker that he subscribed to both his newsletters. Brinker did not tell Tim that the "Fixed Income Advisor" is not his newsletter, even though the information about the FOMC, money supply and portfolios are very similar. The "Advisor" is published and edited by his son with the same name - and his son's wife.
FRANKJ'S MONEYTALK GUEST-AUTHOR SUMMARY
Bob’s third hour guest on March 26th was Cal Newport, a college prof whose latest book is “Deep Work, Rules for Focused Success in a Distracted World.” Prof. Newport wrote the book because of the need to focus intensely in today’s knowledge economy. Despite this, it is becoming harder to do so. Deep Work is the intense focus on one task.
The author believes that distractions are responsible for an actual impact on the overall economy. Silicon Valley companies pay big bucks for programmers then put them in open office environments where there are too many distractions. The author believes these tech companies will realize this if they haven’t already because it is a “dollars and cents” issue.
Most people don’t do “deep work,” although they might think they do. Four rules mentioned in the interview include:
1. Put aside specific time to work on something with no distractions.
2. Embrace boredom.
3. Quit social media. He mentioned he’s never used it.
4. Drain the shallows: much of what people do at work is viewed by them as vital, but it really is not. E-mails, meetings, phone calls etc. are “shallow work.” Recognize them as such – too many people don’t make the distinction between shallow and deep work.
Bob attempted to draw the guest into criticizing President Trump’s use of Twitter. He started by quoting the actor George Clooney about why he doesn’t use Twitter. Then he asked the guest for his reaction to famous people using Twitter. The guest didn’t bite.
Bob pointed out that he engages in Deep Work each month when he spends several days writing the newsletter. He said his focus is 100% on the newsletter as it has been for 32 years. Two other people capable of Deep Work are Bill Gates and Warren Buffett.
Bob mentioned the dangers posed by people driving while playing with their phones. The author agreed and said for some, the phone and the social media becomes a behavioral addiction. Facebook is an example of an addictive technology.
The author characterized the ability to do Deep Work as a Tier 1 skill. If you can tune out the distractions and do it, your career will advance.
A quick survey of other books by the author:
1. So Good They Can’t Ignore You, whose message was, “follow your passion” is actually bad advice. (But given at practically every graduation ceremony.”
2. How to be a High School Superstar. Advice for students.
3. How to Become a Straight A Student. Advice on this topic culled from interviews with 50 straight A students.
4. How to Win at College. Just what the title says, advice culled from interviews with recipients of prestigious scholarships.
This summary is not the result of Deep Work. I wrote it, as always, while listening to Hits of the 80’s with headphones on. Cheap ones.
Honey here: Thanks Frankj. I can't help but make a comment about Brinker using George Clooney as any kind of an authority on whether Tweeting is a good thing or not - or for anything else - pretty sorry choice, in my opinion.
And one more thing I'd like to say to anyone who is bothered by President Trump Tweeting - hey, just don't read them. Is someone taking over your computer, Mr. Brinker? Most all of President Trump's supporters like his Tweets because that's the only way to be certain we are getting the exact truth about what he says.
JEFFCHRISTIE HAS NOT RETURNED YET, BUT KEEP UP YOUR MONEYTALK STUDIES.
Brinker raved about the book "Black Edge" again. Here is the link to Frankj's summary from the author's appearance on Moneytalk about a month ago.
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