Sunday, September 24, 2017

September 24, 2017, Bob Brinker's Moneytalk: Stocks, Bonds, Economy and Investing

September 24, 2017.....Bob Brinker hosted Moneytalk live today....(comments welcome)

STOCK MARKET.....BB comments: In or near retirement, maintain a balanced asset allocation of 50% stocks and 50% fixed income.....no changes in Marketimer advice - fully invested. Possible S&P 500 target range projection now at "mid-2500's range."

TAX REFORM PROPOSALS AND  BB'S SPECULATION:  Brinker  talked about "the president's" proposed tax reforms,  health care bill, deficit .  ==> Thanks to dRahme, here is the short clip of what he said.  

BOND MARKET......BB commented that his Marketimer bond fund recommendations at this time have very low duration to keep the interest rate risk low, but he is willing to take credit risk because there is no recession forecast at this time.

Honey EC: Brinker mentioned one fund that he recommends in Marketimer has done very well because of the high yield (junk) bonds in it. He was talking about Osterweiss (OSTIX) and it IS a junk bond fund and it has lagged behind VWEHX in both total return and dividends paid.  Brinker sold all VWEHX several years ago. I held mine all the while and have done much better.   Compare the two funds:   VWEHX;  OSTIX.

TWO THINGS YOU NEED TO KNOW ABOUT ROTH IRAS....BB: 1. You do not have to report any contributions on your income taxes. 2. You should always keep good records because it is possible for the rules to change in the future.

THREE THINGS YOU NEED TO KNOW ABOUT BOND FUNDS....BB:  Firstly, the average duration (so you can gauge interest rate risk). Second,  the current yield (so you can gauge how much interest you will get),  And third, the credit quality.

ECONOMY.....BB said that there is no recession in the  current forecast.

FED/QUANTITATIVE TIGHTENING....BB:  FOMC 2-day meeting this week. No rate change....Next possibility of rate increase is in December....Balance sheet has swelled because of three Quantitative Easings...Now has close to $4 1/2 Trillion on it....now Fed wants to decrease balance sheet by using QT = Quantitative Tightening, which means they go back into the open market....Will start with  $10 Billion starting in October, November and December. That's $30 billion for the next quarter... But, they will be putting $50 billion a month back into the market....That equals $600 billion annual rate into the open market.....This will continue for years and could throw a couple of $trillion into the bond market.....So the question is, how much demand will there be?

==> Thanks to dRahme, here is the clip of BB explaining FOMC plans and Quantitative Tightening.   (At 10.3, caller Linda asked how QT would affect the stock market - but Brinker didn't seem to under stand what she was asking.)

Honey EC: I find it very interesting that since the change in presidency, Yellen and the Fed has done a 180 from massive  easing to massive tightening 

WHAT  WILL QUANTITATIVE TIGHTENING DO TO HOUSING PRICES.....Caller Kathy from So. Carolina wanted to know if in light of upcoming Fed action, is she should sell some of her real estate now or later.
Brinker replied: "That's a very tough question to answer because we still don't know how the market will receive the additional securities that are going to be placed into the market as a result of the Quantitative Tightening Program which starts in a small way in October. We don't know what will happen in terms of investors, buyers stepping up around the world in order to meet the additional supply that's going to be thrown upon the market. Although, in small amounts this 4th quarter - only $10 Billion a month. That's not much in the bond market.....What we do know a year from now, if the Fed keeps its word, they are going to be putting an annual rate of $600 billion onto the market, on top of the federal deficit, whatever that turns out to be a year from now.  One can only imagine what that's going to be a year from now with the talks we're hearing  in Washington about possible tax cuts, possible infrastructure. Will it be deficit neutral? We don't know any of that yet. We don't know any of that, but it is something to keep your eye on." 
WHERE DID THE FED GET THE $TRILLIONS IT NOW HAS TO GET RID OF......Brinker said:  "But the securities that they have on their balance sheet that are subject to be redeemed or sold in the future, as they reduce the balance sheet size, are primarily in two categories:  U.S. Treasury Securities, which are bills, bond and notes. And also agency securities, and that would include mortgage-backed securities......These are securities that were acquired through the three Quantitative Easing programs that were engineered in past years."

FEDERAL RESERVE IS HONEST, REPUTABLE AND HARD-WORKING.... Brinker said: "Let me very clear, I do not believe that the Federal Reserve has a shredder in the Federal Reserve Department and I don't believe that they behave dishonestly, or that they are a disreputable group in any way, shape or form. I do believe that they are doing the best they can in a very complicated operation of managing the money supply."

Honey EC: My tongue was firmly planted while writing the title in the paragraph above. 

MAY YOU LIVE IN INTERESTING TIMES.... BB:   Fed going into uncharted waters. Never in their history have they had so many Trillions to put back into the market.

==> Thanks to dRahme, audio clip: the week ahead in the Canyons of Wall Street.

LAND OF CRITICAL MASS...BB: Only the accumulation of assets will get you there. Income will never get you there.

FRANKJ'S MONEYTALK GUEST-AUTHOR SUMMARY

Bob’s third hour guest on Sunday September 24, 2017 was Professor Markus K. Brunnermeier, of Princeton University, co-author of the book  "The Euro and the Battle of Ideas" His co-author is Harold James.

The interview started with a review of the election in Germany. Angela Merkel won but she needs to form a coalition and include additional parties in her government.

A more interesting part of the interview was a discussion by the guest on how French and German economic policy differs.

1. With regard to policy, the French tend to want more discretion to act on problems, i.e., they grant more latitude to the government. In contrast, Germans tend to want established rules to guide government actions.

2. The French will exhibit a certain amount of solidarity, the example being their ready approval of help to Greece. The Germans are more concerned about how action will lead to liabilities – “if you’re in charge, you’re liable.”

3. The French are more prone to solve a problem by boosting liquidity. The Germans tend to look to reforms and restructuring as ways to solve an economic crisis.

4. The French have placed more emphasis on stimulus while the Germans value austerity.

Bob asked the guest about how the European Union was reacting to the UK exiting the Union. He said the European countries want the UK to stay in but they are wary of “cherry picking” of the benefits if they leave. The benefits of being in the EU include the easy movement of goods, services, capital and people. The UK would like to retain the benefits of all of the above but restrict the free movement of people.

Bob brought up the topic of the Fed’s plan for Quantitative Tightening (QT) – next fall they expect to be selling $50 billion per month ($600 billion per year) of securities they own. Bob expects this to raise interest rates, he spent a great deal of time on it in the earlier part of the show. The guest said the short end of the yield curve may not be affected much, but yields on the long end may come up.

Bob asked why would anyone invest in a 10 year Treasury yielding 2.25% when the Fed’s inflation target is 2.0%. Again, he spent time on this with a caller earlier in the show. The guest speculated that the 2.25% yield might be the result of investors thinking the Fed will miss its inflation target. If I interpret this correctly he’s saying inflation may not run at 2.0%, it will be lower, so someone will actually get a little bit of a return on the 10 year.

Wrap up: Super Mario Draghi has two more years to go on an 8 year term and he cannot be reappointed. The guest thought Janet Yellen has done a good job of communicating the Fed’s intention on QT and he would reappoint her.

Honey here: Thanks very much, Frankj. That was a difficult guest to understand and follow. We appreciate your sorting it out for us. 

Brinker also sang the praises of Janet Yellen and said that "the president" (no name from Brinker in ten months now) should be praised if he re-appoints her. He added that he did not approve of some of the names he has heard floating around to replace her.  Hmmmm...... guess I'll zip my political lip. LOL! 

Radio Station 
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65 comments:

Biker said...

Did I hear brouhaha, not donnybrook?

Bill W. said...

Sorry Bob but there is nothing 'ugly' about no further reduction in the taxes that the wealthy (including you ) will pay.. Especially that is when you are continually harping about the deficit and US debt, which you rightly should.

Honeybee said...

.
LOL Biker....I wish there was a way to block him from reading this blog - like Jr blocks me from his Twitter feed.

gabe said...

The solution to this income tax issue is to go to a fair or flat tax and be done with it!

Gabe

Trees said...

"We live in interesting times", meaning all are clueless to the financial future. The FOMC has to unwind per QT as they expect a QE in the near future. They have to have some powder. Also, they fed us the line the QE was critical for economy strength and now want us to believe no ramifications to QT? Contradictory statements. One is false.

Bonds are running 220-250 basis points, so about even with inflation. Not very attractive other than capital security. Investors are sliding up the risk curve to improve returns since economy appears stable. Bond funds are utilizing the Call Option to increase returns (short bets).

Financials are expected to do good if the sector can enjoy less regulation. They are risky given the asset coverage sits at 55%. Health care sector love expensive Obama Care and they invest heavily to keep status quo. To much wealth floating within DC politics to help consuming public. Tech is over priced and most suggest taking profit. Not much left other than energy or standard fare S&P 500 that BB targeted over 2500. Good to quality international companies, I would guess.

Economy keeps chugging along. One Kudlow commenter claimed we are within a new era of slow growth, low inflation, and low volatility for some extended duration. This reminds me of Japanese QE experiment that had a dampening effect. So, much money at the helm of fed that open market competition is choked off. We have the QT policy that guarantees this dampening effect as they need economic growth to achieve reeling in the easy money years expenses. You know the QE cost per economics analysis is just guess work. I read a good analysis that had such economic investments worked to wealthy class advantage at cost of earners. Assets enjoyed huge run up that hurt the working class. No inflation since were within a period of ample commodities. The larger consuming public can't save as they pay more for housing and securities. Savings are worthless and credit can be very expensive, still. This is the rock and hard place people are talking about. The class warfare stuff should be directed to government control instead of demanding more. Why would wealthy popular politicians concern themselves? They are interested in the hand that feeds them and obtaining more power. The public can be easily fooled.

Honeybee, I was comparing VWEHX to VWINX. Interesting they have same 10 yr return history. When comparing yr to yr the VWEHX is way more volatile. I do like the latitude Wellesley fund has with stocks and bonds. The stocks are conservative investments and add to stability. The active management is a big plus for me, but I think VWEHX is active, also. I'm using the fund as my safe harbor fund.

The country would benefit from health care and tax overhaul. This is basic or fundamental improvement that all non partisans agree upon. Just the politics are on the hunt to claim the high ground and accomplishment vs utilizing the activity to demagogue rivals. Politics rule the day and so much stagnant actions. Same with health care. Big changes needed for economic health of our country, but the nonsensical political chicanery is at an all time high. This practice I fear the most and most should. Can you imagine the middle class got hit with health care bills that rival another mortgage? The power of Congress to change you budget. Some fear what could happen with 401s, IRAs, and Roths. If the country becomes desperate, your savings will be reviewed per some tricky legislation that claims the resource for government operations.

Infrastructure is rated as "good" debt and readily pays for itself within countries ability to improve efficiency. Both sides agree to this, just both want to claim the accomplishment. So, no deal until were in power again.

gabe said...

Market volatility...hold on to your suspenders.

Gabe

Anonymous said...

All this talk about The Fed makes me gag.

Its so irrelevant to our daily lives, similar to the price of rice in China. If QE made interest rates go down, then QT will make interest rates go up. Said and done. The rest of the discussion is pure pap.

Although, as Honey mentioned, Jr. blocks his Twitter feed to certain people. Very interesting. "May you live in..." Then again, he's a very busy man. He's gotta compile all that free economic data obtained from the free government sources into his published rag that he charges $99 for. Like father, like son. The apple doesn't fall far from the tree.

I gotta believe that BB recommends funds that are managed by his personal friends, because they certainly aren't cheap. You see, when he was a bond manager for Lloyd's "in the canyons of Wall Street" near the corner of Wall and Broad, he met a ton of money managers, especially at conventions and trade shows in Vegas and Atlantic City, where they kibitzed over pizza in a hotel room about "the spread" and "the new girl's shapely shape."

Remember? BB was all in love with Dick Strong in Milwaukee until Dick got plinked by the SEC for fraud. Now BB is all over Jeff Gundlach as if he's the second coming. Vanguard never sent over a complimentary bottle to BB's room, so he doesn't recommend any of their bond funds.

It's a "rub my back, I'll rub yours" world.
Elvis, Tupelo

Trees said...

Anonymous- That cronyism you refer to is the way to power within civilization. Always has been, but systems of gov't such that the founders set up with the additional foundation of moral code really propelled U.S. wealth to the many. Unfortunately, the caustic effects of greed and fellowship of the wealthy is making inroads. Central control has much ability to infect itself as they control the power.

I read one big demerit of active funds is the good old boy fraternity. Fund managers will sometimes contaminate stock evaluations per desire to purchase from friends in trouble or purchase premium shares from sellers they are friendly with when seller wants out. A premium spread. The book that BB reviewed was a good review on Wall Street shenanigans. This is what Bogle preaches about and the reason to invest in simple index funds.

Last week someone posted a collegiate study per comparing treasury investment with stock. It was striking how much the stock market did pay attention to fed chair actions. Most of the volatility occurred in such times. It was almost a one hundred year study or about the maximum data available.

frankj said...

"he met a ton of money managers, especially at conventions and trade shows in Vegas and Atlantic City, where they kibitzed over pizza in a hotel room"

Funny image but I don't picture Bob B. sitting in a hotel room in Vegas, Atlantic City or anywhere else eating pizza.

That's something I did recently after a long day's drive. Asked my wife if she wanted any, answer: NO. So, ordered a small. Turns out she ate two pieces. Should have ordered a medium!

Honeybee said...

.
Trees... VWINX is a great fund.....

I just have always liked the Vanguard High Yield Fund.... I know, I shouldn't get married to any stock or fund. :)

Honeybee said...

.
Elvis, in Tupelo...Not to brag too much, but I honestly think that I am the only person who Bob Jr blocked from his Twitter feed. He did it right away after Twitter was just getting started.

I just have to tell you that you are spot on about how Brinker chooses his recommended funds - he always has done it that way.

I don't know what happened between him and Vanguard, but would betcha something did.

Same with "Chuck" Schwab - even though he pretends to the audience that they are buddies.

Honeybee said...

.
Hey, Kirk Lindstrom....I had forgotten about you, but as fate would have it, went to your Brinker website and have this to say:

I knew you were a rat, but sure wish I had a way to block you from reading my blog.

Still piggy-backing off my work and monetizing it to sell your newsletters, huh?

If you weren't such a small fish, it might be worth my time to inform the public about you via another Beehive Buzz Blog.

Anonymous said...

Frankj's wit continues to exceed expectations. Not kidding. Thank you for all you do!
-Neuman

Jerrod Clarkson said...

Honeybee,

YIKES!

JC

Honeybee said...

.
Neuman....I second that. Frank is an amazing writer. I am sometimes treated to some of his more "private" work.

Honeybee said...

.
Jerrod....I have circumstantial evidence that would prove to a jury beyond any reasonable doubt that what I said is true.

I also have about 8 years of being taken advantage of....And he still monetizes my archived blogs.... I posted the links a week or so ago where you can see for yourself.

I never got a dime from ad revenue on those blogs even though I was so doggone naive that I did 98% of the work.

That's why I started this one - which pixxed him off and he blocked me from making any further changes or even searching my old blogs.

Now he simply lifts information that I post - and posts it on his own Brinker blog. He never has any information that was not posted first on this blog - almost verbatim.

And he told me long ago that he does not listen to Moneytalk and does not subscribe to Marketimer.

Jerrod Clarkson said...

Honeybee,

He certainly does not sound like a good netizen (to say the least)!

Maybe check here for some ideas?

https://goo.gl/4ZB5X6

JC

frankj said...

Thank you Neuman and HB, very kind. (Now they're wondering about the nature of the so-called "private work.")

Honeybee said...

.
Frankj....Well, I'm sure it will be okay with you if I say that most of the "private" things had to do with the beautiful cat in your profile picture.

A really unique cat who is likely now residing a the Rainbow Bridge:

Just this side of heaven is a place called Rainbow Bridge.

When an animal dies that has been especially close to someone here, that pet goes to Rainbow Bridge. There are meadows and hills for all of our special friends so they can run and play together. There is plenty of food, water and sunshine, and our friends are warm and comfortable.

All the animals who had been ill and old are restored to health and vigor. Those who were hurt or maimed are made whole and strong again, just as we remember them in our dreams of days and times gone by. The animals are happy and content, except for one small thing; they each miss someone very special to them, who had to be left behind.

They all run and play together, but the day comes when one suddenly stops and looks into the distance. His bright eyes are intent. His eager body quivers. Suddenly he begins to run from the group, flying over the green grass, his legs carrying him faster and faster.

You have been spotted, and when you and your special friend finally meet, you cling together in joyous reunion, never to be parted again. The happy kisses rain upon your face; your hands again caress the beloved head, and you look once more into the trusting eyes of your pet, so long gone from your life but never absent from your heart.

Then you cross Rainbow Bridge together....

Author unknown...

gabe said...

Once again, a bumpy ride on wall street.


Gabe

birdbrain said...

Market continues a tight trading range, up one down two percent since 7/26.

With the Oval Office tweeting about kneeling football players and the GOP majority House and Senate so far unable to replace Obamacare, you can only shake your head at the total incompetence in Washington DC.

Repeal and replace? Tax reform? Infrastructure spending while addressing the national debt? Draining the swamp?

Thank you Honey for changing my vocabulary. When I am upset about something, like my message today, I will from now on declare "that really pixxes me off."

DJ said...

Anyone----just a couple questions on bond/funds & etfs

where is the most money to be made----when bonds prices are on the rise or when interest rates are on the rise?



I hold my munis until maturity, & I understand the teeter/totter effect, but if there is an equal effect on both the fund/etf & the interest rate (in different directions of course), which one are most investors wanting to see for purchasing---an interest rate on the rise or a bond price on the rise? Where will they make the most $?

Along the same lines, what good does it do to purchase bond rates on the rise if you are going to lose on the price of your bond as the rates continue to rise?

Or is the only good time to buy bonds are with interest rates high & prices down. If the answer is yes, I would guess this is not a good time to be investing in bonds.

Even though I mentioned munis, my questions are about bond funds/etfs---thx--dj

Anonymous said...

Senate (McConnell) just punted on GC bill to repeal and replace (no surprise to anyone knowledgeable).

Next on deck...

Tax reform unless they do revenue neutral (not dynamic scoring) will also fail - deficit hawks (mostly republican but also representatives of independents like myself) if they hold true to concept will not vote for any tax reform if it is not paid for by cutting expenditures.

The only question how will the market react when tax reform failure occurs.

In the past I have written with strong earnings and smart in the know money who already know the outcome, I stated market won't sell off bigly. However, these storms (Harvey, Irma, Maria) have put a big dent in US economy on the GDP side which in time will be offset by rebuilding so we might see a little dip as long as the Fed does not overdue their QT and rate normalization.


smile

Unknown said...

Honey… eloquent and beautiful work the Rainbow Bridge.

Another masterful work is currently being broadcast on PBS: The Vietnam War.

Last night’s episode seven was the most eerily haunting though, as if resonating from the 35,000 graves that had given the ultimate sacrifice to date as of Oct 1968. With just days until the election, candidate Nixon secretly contacted the South Vietnam government to stay away from the previously agreed upon peace talks.

The taped conversation between President Johnson and candidate Nixon that was broadcast was just jaw dropping. When asked, candidate Nixon disavowed any collaboration in meddling in the peace talks. President Johnson deliberated on the matter-whether to expose Nixon for his act of Treason, which would have resulted in the likely victory for candidate Humphrey, but would have required exposing the methods and procedures used by the intelligence community, (FBI and CIA) pre-FISA.

President Johnson chose not to expose the act of Treason by candidate Nixon, three days before the election. President Johnson took the Nixon secret to his grave in 1973. The rest is history.

gabe said...

Tax Reform.......Fair or flat tax!

Gabe

MikeE said...

I am with you Gabe but I got an idea we ain't goin' to see nutin'. Nothing will get passed.

gabe said...

October is right around the corner........supposedly, the market will tank in Oct. Whew!

Gabe

AAPL came back somewhat today!

Gabe

Jerrod Clarkson said...


gabe said...
October is right around the corner........supposedly, the market will tank in Oct. Whew!

Gabe,

How did you arrive at that?

JC


----------------------


Honeybee,

Was that Google search helpful?

JC


Anonymous said...

VIETNAM - just watching a bit of it. I was 4 to 8 years too young to be drafted but remember vividly that war and the thousands of Americans who died or were wounded.

Hamburger Hill...

One part came up where they showed footage from Woodstock and music and juxtaposed footage from American soldiers dying or wounded on the battlefield. The contrast was such that I just shook my head.

Heard a marine talk about going into the tunnels and killing Vietnamese with his bare hands in the dark and losing a piece of his humanity in the process...

I remember the talk maybe from movies of fragging officers... not the same as taking a knee, but probably similar treatment.

My Lai...


turning the channel...

smile - but not on this one

Honeybee said...

.
JC..I appreciate the attempt to help, but I would not be able to apply it in this kind of forum.

But thanks....I will just ignore him again for the next five years, like I did the past five years. :)

gabe said...

JC: Historically, October has been a down market month; perhaps, more volatile, than a losing month over these many years. Be that it may, I will be more cautious than usual. So...in sum, a vey volatile month but a somewhat losing time of the year.

Thanks,

Gabe

Jerrod Clarkson said...

Honeybee,

Illegitimi non carborundum!

goo.gl/ZZomHH

JC

Honeybee said...

.
JC....LOL. It will never happen..... :)

gabe said...

Bond are in the toilet!

Gabe

gabe said...

Equities led by the financials! A nice move.

Gabe

Jerrod Clarkson said...

gabe said...
"JC: Historically, October has been a down market month; perhaps, more volatile, than a losing month over these many years. Be that it may, I will be more cautious than usual. So...in sum, a vey volatile month but a somewhat losing time of the year."


Gabe,

I am not sure what index (or indices) you are using, but I generally prefer $SPX.


With respect to the month of October (and specifically The S&P 500):

S&P 500 Past 5 years:
$SPX October closed the month higher than it opened 75% of the time.
$SPX October was the best performing month of the year (average = +3.3 %)


S&P 500 Past 20 years:
$SPX October closed the month higher than it opened 68% of the time.
$SPX October was tied (with March) for the best performing months of the year (average = +2.1%)

$SPX March closed the month higher than it opened 65% of the time.
$SPX March was tied (with October) for the best performing months of the year (average = +2.1%)


That said, historically the $SPX final week of October has frequently been volatile and “bearish” (i.e. the worst performing week of the year). However, historically the gains in the first three weeks in the month more than offset the final (Spooky) week.

Q. Will October 2017 $SPX performance mirror the above?
A. No one knows!


JC

Jerrod Clarkson said...

Honeybee,

Any word on:

1. Bluce?
2. Bacon Boy?

Hope they are both OK!

JC

Honeybee said...

.
JC...I too miss them. But no, no word from them.

gabe said...

JC: As I said, I believe volatility is more of the issue than movement. And so, I believe you have a good point.

Thanks,

Gabe

P.S. Amazon closed higher today by 1.33%. Just imagine if they go the pharma route in the next couple of years. This stock will skyrocket!

Gabe

Pig said...

Jerrod Clarkson said... Any word on: 1. Bluce? 2. Bacon Boy?
Hope they are both OK!


The word is given. I'm fine, and thanks for asking. Planned and went on vacation and now trying to catch up on politics, the NFL and other life threatening stories. Unfortunately discussing the boB, and/or his worthless kid, doesn't rate much prime time in my hectic schedule. BTW, did the kid ever figure that you don't put stocks in a bond fund just to pad the earnings? How reputable is that? NOT

Honeybee said...

.
Fox Business News Report:

The US economy grew at an upgraded annual rate of 3.1 percent in the spring, the fastest pace in more than two years.

More on this: Foxbusiness.com

Jerrod Clarkson said...

Re: APPL

Those who own and/or are interested in Apple might find this video presentation interesting. Run time is 10.06 minutes.

https://youtu.be/yz4s1_7K7Ik

JC

Jerrod Clarkson said...

Bacon Boy,

Thanks for checking in. Your fans here were concerned!

JC

gabe said...

All three (3) major indices are up for the week.....the S&P a record close!

Just one entry this weekend.

Gabe

Irving said...

I had an aunt who just died. Her brokerage account was left pay on death to four relatives one being my deceased mother. My brother and sister and myself inherit a third each of my deceased mom's forth. That's how the account is set up.

It's a full service high fee brokerage.
You'd think that they'd liquidate all the holdings and divide by four. No, going to give each inheritor the funds in their own brokerage account with holdings intact.

Has anyone heard anything so stupid?
Sounds like a ploy to generate more fees before cashing out. Unless that's how my uncle had it setup?

Also is doing it this way increasing my tax liability? The account is 1.2 million so it is under the federal tax on estates limit I believe.

frankj said...

Irving,

Quit worrying and quit griping. You just inherited about $400K.

If your tax liability is increased it will be only slightly. You get the stepped up basis at the date of death. Google it.

Not liquidating and giving you cash -- I believe they are following something called, THE LAW.

Is it an IRA account you're inheriting or personal money? What you do with it makes a difference.

Jim said...

Nice finish to the week for stocks with the S&P at a record high. A down week for bonds however which probably has Brinker saying "It's about time!" After being wrong about bonds for 4 years I detected a bit of frustration from Brinker last Sunday when he was saying he doesn't understand why investors are still buying the 10 year Treasury when the yield is so low. After the initial "taper tantrum" when Brinker sold, that's exactly what investors have been doing for the past 4 years. So overall Brinker should be in a good mood on Sunday if he shows up.

gabe said...

Well.....We made some change today!


Our only entry of the weekend WON! Made some bucks!

Perhaps interest rates are rising because the President interviewed a hawk to head the Fed and rumors had abound throughout this month regarding this possible choice, Anybody"s guess.

Want to wish my jewish friends a very happy holiday

Gabe

Anonymous said...

Everything is fine on Wall Street! But I am so sad to hear that even Dr Suess is racist. What will they think of next?

Pavlov's Cat

Bob (not THAT Bob) said...


frankj said...
"Irving,
Quit worrying and quit griping. You just inherited about $400K."


frankj

I think THAT Bob may have purloined your I.D.!

LOL!

Unknown said...
This comment has been removed by the author.
Irving said...

It's in Edward Jones that is known for high fees and loaded mutual funds. I'm just very suspicious of a high fee brokers maneuvering and hiding his fees.

Not worrying or griping just trying to minimize fees, and avoid a shark attack what Bob Brinker always preaches.

Unknown said...

Second Biggest Bull Market Since WW11

Go!

Biker said...

Irving - Take the money and run - to the low fee brokerage or mutual fund provider of your choice. As others said, tax ramifications are negligible.

gabe said...

A late entry tomorrow!

Gabe

frankj said...

Irving: Good instincts. Once it is in your name at Edward Jones, you can open a brokerage account at a low fee place like Vanguard, Fidelity, Schwab. Then you can send them a statement showing what you have and ask them to have all the funds transferred in-kind. They'll contact Jones who will have to comply. Jones won't be happy and they might clip you for a modest exit fee. Once everything is at the new place you can start rearranging things. Good luck!

Anonymous said...

Anybody have a suggestion for a good comparison chart for etf and/or stock ticker symbols?
I am trying to help my son get started and the sites I used to use are not to be found for some reason.

Pavlov's Cat

Honeybee said...


Pavlov's Cat....I have been wondering the same thing. My usual stand-by's seem to be absent.

frankj said...

Pavlov and HB: Try Morningstar for charts. You do not have to be a subscriber.
Morningstar.com

Ruyfa said...

EDWARD jones has caused me great stress. My wifes 95 yr old grandma has an account with that firm , they have 70% in equities 50% of that in overseas. And they tell me its not at risk and the lady at the counter tells me its low risk? Have a meeting with our advisor , which I do, he confirms no risk here, and tells me im a market timmer. All here funds have a front end load of 5% or better , they also have mass hidden fess. Stay away from EDward jones!

Anonymous said...

Yes, good advice from Frankj.

Inherited some company stock held by a "company-preferred brokerage." But the access was cumbersome and the web site was mickey-mouse compared to Vanguard.

Established a brokerage account at Vanguard and requested an in-kind transfer of the assets. Vanguard helped me print the paperwork needed to satisfy the m-m brokerage and transfer the assets in-kind to the Vanguard account.

It worked well. Now everything is at Vanguard and can be viewed on their great web site.
Al, Long Branch

Anonymous said...

Thanks frank!

Pavlov's Cat

frankj said...

Ruyfa, have you considered getting Power of Attorney?

Irving said...

Edward Jones was fined I read for overcharging customers in 2015.

There have been regulations implemented recently for brokerages who overcharge.

I have an account at vanguard and will talk to them soon.

In the account are some nice tax free Muni bonds in the mix yielding 4 % that are at a premium.

The yelp reviews of Edward Jones fee pounding is troubling.

My aunt & uncle gave the broker control to buy what he wanted with extra money and it looks like he bought Columbia high yield and Columbia intermediate bond funds with huge front loads and expense ratios.

They actually did real well with EJ but I think that's due more due to favorable stock & bond climates.

God only knows how much they've been soaked in fees over the years?

I'm taking complete control of the account and the broker will follow my orders before I transfer it to vanguard.

EJ is massive too with a sales environment first mentality.

Bob brinkers guidance over the years is so valuable in this type of situation.

Honeybee said...

.
Irving...Your comment about Brinker's guidance being valuable in your type of situation is right on the mark!

I will always be grateful to him for giving me the courage and guidance (via Moneytalk) to break away from the high-cost brokerage-sharks house with my investments.

At that time, it was Dean Witter who had me in their jaws. And Frankj is so very right, they do not like to let go!

Dean Witter was actually refusing to do as I was requesting and transfer my money to Charles Schwab, so that I could manage it myself and get their hands out of my pockets.

I had been recently widowed when I began the move and was not up to fighting speed, so actually took my daughter with me to their office to talk turkey with them.

It became very ugly before it was over - and the "agent" there went from kissy-face when he was making expensive moves for me, to rude and nasty as I took my money and ran.