Sunday, October 15, 2017

October 15, 2017, Bob Brinker's Moneytalk: Stocks, Bonds, Economy and Investing

October 15, 2017....Bob Brinker was live on Moneytalk  today.....(comments welcome)

STOCKS....Brinker did not mention the stock market and certainly did not report that it has risen over 25% since President Donald Trump was elected.

However, in the latest Marketimer, he is still fully invested.  Page 3: Paragraph 4; Brinker wrote:  "Applying this (17 to 18 times operating earning for the S&P 500 Index) to our 2018 estimate provides the potential for the index to challenge the 2600 level going forward."

BONDS....BB did not talk about bond funds today, but his advice to buy only short-duration funds is the same.

GOLD AND PRECIOUS METALS NOT FOR BRINKER.....Caller Gregory from Clovis asked about owning up to 10 of gold to guard against a declining dollar and inflation.  BB replied: It depends if you want to speculate on precious metals. It's not my preference. I'd rather invest in things that have value, pay dividends, grow their earnings - doesn't apply to gold bullion. It's purely speculation and will depend on if you think there is somebody out there that will pay more for it than you."

Honey EC: Several years back, Brinker added the ETF for gold (GLD) to his Marketimer list of "recommended issues."  He never said how much he recommended or why he recommended it. A couple of years later, GLD disappeared from Marketimer. There was never any reason given, but it was probably because gold had been dropping.

INFLATION BACK, TONE-DEAF IF YOU SAY OTHERWISE.....BB said: "I would disagree with those who are telling you that there is no inflation. I think they are wrong. The year-over-year increase in wages stands at considerably over 2%.....That's inflation. The Consumer Price Index, which just took a bump because of rising energy prices recently. That certainly has moving at a little over 2% on a year-over-year basis.......So those who say there is no inflation. I think they are tone-deaf."

ECONOMY.....BB commented...."We've been stuck in 2 to 21/4 GDP growth for years."

Honey EC: Is it possible that BB missed the latest adjusted numbers - or did he ignore them:  GDP, the value of everything produced in America, was revised up to an annualized growth rate of 3.1% from 3%. It was the fastest rate since the first quarter of 2015.

FED CHAIR JANET YELLEN.....BB commented that a new appointment at the beginning  of February. No one knows if it will be Yellen - or if she would accept.

FOMC  MUST STAY AHEAD OF THE CURVE OR LEAD US INTO RECESSION .....BB said: "If we  were to have a Fed Chair that for political reasons, held rates down lower than they should be - what that would do is create a situation where the Fed would get behind the curve on interest rates. And if that were to happen, you could get into a situation that could lead to recession."

SOCIAL SECURITY PENSION INCREASE.... BB said that beginning in 2018, there will be a 2% increase. For example, if you receive $1000 per month, it will be increased to $1020 per month.

MULTI-MILLIONAIRE CALLER'S CLUB:

1: Linda (no location given) at age 52, having put her children through college and one of them through law school, wanted to know if her $3.1 Million and $1500 a month pension (at 52) - $3000 at age 60 - would be enough to retire.  Brinker thought she could retire and "buy back some of her time." He sang her praises about how well she had done.

Honey EC: Brinker gave a lot of kudos to Linda for having so much money at such a young age. My question to Brinker is: How do you know? You don't know anything at all about how she came by so much money.

=> IN EDIT: dRahme audio clip: Reinventing Yourself; HSAs: Tax Bill

2:  Mike from New Jersey, with $3 million net worth called for his wife who was offered lump sum payout of $42,000 at age 48 or a monthly payment at age 65.  Brinker made the comment that either way, the money was not important because of his net worth, but seemed to think that taking the lump sum was the better way to go.

ADDED IN EDIT     The following comments written pen-name, "Smile" 

"Million dollar calls are a little annoying simply because of what is not said. Usually the multimillionaire caller starts by saying been listening and subscribing for years...

The annoyance is based on this intro. The facts usually beg the question of where all the money came from, Bob does not ask the relevant question because he already has his advert. plug from the caller stating long time listener and subscriber.

Bob dares not ask a single question because instead of credit going to him under presumption of caller statement long time L&S... we might find out that maybe the man or woman calling in have huge salaries and or stock options which are outside of norm and attributable to the wealth described in the call or might we find out that they started with 10 million and now only have two or three.

better for Bob to be silent and let naive listeners think that his rag is by default responsible for the success of the caller rather than outside the norm events having nothing to do with da Brink...

these multi million dollar callers are annoying... for what is not said and asked even though it is part of the interest of the call... and in my mind I think the answer to why Brink does not inquire has been asked and answered.


Still annoying though.
Smile


October 16, 2017 at 3:15 PMDelete


TAX-REFORM TALK...BB and many of his callers SPECULATED  about possible upcoming tax changes. BB summed it up with this statement: "There are no concrete numbers."

=> IN EDIT: dRahme audio clip: Tax Reform; Property Taxes and Deductibles


HONEY EC1....TAX-REFORM COMMENTS SENT BY JEFFCHRISTIE:  It's best not to make any tax plans until changes actually become law - saves a lot of useless speculation.....And remember that what President Trump intends and what Congress presents to him, may not be exactly the same.  

Honey EC2: It seems to me that Brinker is using this tax speculation   issue to open up the phones to allow President Trump to be trashed.  I think that "Trees" sent some excellent comments:

Trees has left a new comment on your post "October 15, 2017, Bob Brinker's Moneytalk: Stocks,...":

Bob was quite the Drama Queen again with proposals on IRS rule change. Like what we have now is the optimum.

Our tax system is a mess, why can't he start there with the discussion? Germany and France are proposing lowering their tax rates. We have the highest corp tax in world. Shouldn't a money talk guy know more about the caustic effect of our screwed up IRS tax system to economy? He should alert listenership to this. Also, he smearing the tax overhaul as the proposals and political actions are dishonest without accurate final numbers. Really? Like Obama health overhaul met all these benchmarks.

We have to raise revenue to pay for tax cuts? What is he talking about? It is a economic game of tax revenue not offsetting pluses and minuses upon an accounting leger. That is a completely bogus idea he spins. How about the rich are getting a tax break? O.k. but that is a nonsensical statement. Tax revenue is not based on tax rate. It is based on overall tax package effects. One example, a lower tax rate often dispels power of income tax avoidance concerns and positioned investors decision making upon hard reality. Meaning no artificial government regulation pollution to distort decision making. This will present a more efficient economy. 


RULE 72 (t)....BB explained this  method of taking money out early from tax-sheltered accounts.


FRANKJ'S MONEYTALK GUEST-AUTHOR SUMMARY

Today’s guest on this 15th day of October 2017 was Robert L. Dilenschneider, founder and principal of the The Dilenschneider Group a Connecticut-based consulting firm.  You can read about his outfit here:  https://www.dilenschneider.com/

He has published his 55th trend report titled, A Time of Turmoil:  At Home and Abroad, All Order is Challenged.    This was a pretty interesting guest interview.  Bob threw a lot of questions at the guest and he had ready answers.    (Editorial comments in italics, as usual). 
We start with population trends:  By 2020, millennials will make up 50% of the work force.   This will change how we (they) work.  Technology will become even more important in the workplace.   In that same vein, fertility rates are trending down in the US, Europe, Russia and Japan.  This is a big deal because we need to do more than just replace ourselves we need population growth to expand the economy and produce tax dollars.  India will have 2 billion people in 15-20 years.  Africa’s population will surge in 10-15 years.  A contributing factor is the lack of readily available contraception.   

Self driving cars:  What would a future trends interview be without a swerve into this topic?   The guest was firm in his belief that this would be the future for cars and trucks.  He pointed out that 10 years ago not much of the US was digitally mapped.  Now, there is not much that ISN’T digitally mapped.  
Bob said on any freeway there are people who are going above the speed limit.  He gently challenged the guest asking him if this crowd would be OK in a self-driving car limited to going the speed limit?  The guest said he didn’t think they’d have any choice about how fast the car went and an “orderly” procession on the highway would be better.

Education:  Asian countries spend more time working with young people.  He’s optimistic though about our prospects.  The cost of a college education is “off the charts.”  He cited his own experience at Notre Dame (and put in a plug for them) with his $500 tuition per semester there, back when.  Investments in buildings, technology, etc. have driven costs up at a rate that far outstrips inflation.   Tenure is a problem, colleges cannot move ineffective faculty out of the picture. 
Caller John from West Chicago said spending (by colleges) is the result of money thrown at them.  The guest agreed and pointed out that the larger institutions have raised lots of money and the small, private liberal arts schools are struggling to keep their doors open.  He said we’ll see closures in this sector in the next four years. 

Cybersecurity:  Hacking is “off the charts.”  Everyone’s data and accounts are at risk.  We need something equivalent to the Manhattan Project to shore up digital security in this country and protect ourselves from hackers in Russia, the Middle East, China and Europe.  The lack of cooperation between tech companies and our law enforcement agencies is “shocking.”   (We all probably still remember the big stink Apple created with their unwillingness to help the FBI get into a domestic terrorist’s cell phone – the San Bernardino  murderer.)  The guest said they have an obligation to come forward and help out.

International relations:  “New boss same as the old boss.”  The crowd running things in China is little different from those in charge at the time of Tiananmen Square, 1989 --  remember the picture of the guy in the slacks and white shirt standing in front of a tank?   If the bosses don’t want something to happen it won’t.  They’ll limit access to the Internet to keep a lid on things.  China has a big problem with so many people there still in poverty.  
Tom from Carson City, NV said Chinese people are buying up land and businesses in the US.  The guest pointed out that China’s foreign expansion includes putting tens of thousands of Chinese into a foreign country as workers in some Chinese enterprise.  

Almost as an afterthought, the guest mentioned the on-going border war between China and India which is virtually unreported here.   (Well let’s see …. If you were an editor of a major media outlet and you had to choose between a story on Harvey W. shuffling around in a bathrobe and a war between the two largest (in population) countries in the world … oh never mind.)
Will we see a third political party?   Mr. Dilenschneider says yes, no question.  The Democrats don’t have a leader so a third party could come from that side.  Or, John Kasich of Ohio could emerge from the GOP.  He thinks President Trump will go the distance – not just 4 years, but 8.  If the tax bill goes through, there will be economic growth here.

The economy:  We’re growing slowly but passage of the tax bill and repatriation of corporate money from overseas will be a huge boost to the economy.  On the downside, on Wall Street, places where you can accomplish trades have decreased.  This could be a problem.    He thinks low interest rates will need to continue, given all the areas that need to be rebuilt:  Florida,  Texas, Puerto Rico (and California although not mentioned.)
 .....and right here at 3:50 is when my audio connection to KKOH Reno cut off for no apparent reason so I was not able to listen to the rest of this very interesting interview.  By the time I got back in at 3:54 it was over.

One thing I liked in particular about this guest is he didn’t equivocate with any of his answers.
Honey here: Thank you very much, FrankJ.  Interesting guest - and a fabulous summary! 

I see that the guest said "there are still opportunities in gold." Earlier in the program, Brinker did a long speech on how buying gold is speculation.

Brinker's guest-author was Robert Dilenschnieder:  "Power and Influence: The Rules Have Changed"

IN EDIT: dRahme's audio clip: The Week Ahead

Radio Station 
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KKOB770

66 comments:

bob said...

The opening monologue is NOT live? If not, when do you think
it was originally broadcast?

Anonymous said...

I think Bob is live today. He just announced the call in phone number and spoke about the latest tax reform proposals.

Honeybee said...

.
I was wrong....He is live today.

Thanks Bob.... Gotcha.

Honeybee said...

.
Bob fooled me today. Was that a chuckle he stifled when he came back from commercial?

Jim said...

Either Bob is getting forgetful or he set a trap. We'll never know.

Honeybee said...

.
Jim....True....we'll never know for certain, but I know what I think happened.

And I appreciate Bob sending his little note during the commercial. LOL!

Trees said...

Bob was quite the Drama Queen again with proposals on IRS rule change. Like what we have now is the optimum.

Our tax system is a mess, why can't he start there with the discussion? Germany and France are proposing lowering their tax rates. We have the highest corp tax in world. Shouldn't a money talk guy know more about the caustic effect of our screwed up IRS tax system to economy? He should alert listenership to this. Also, he smearing the tax overhaul as the proposals and political actions are dishonest without accurate final numbers. Really? Like Obama health overhaul met all these benchmarks.

We have to raise revenue to pay for tax cuts? What is he talking about? It is a economic game of tax revenue not offsetting pluses and minuses upon an accounting leger. That is a completely bogus idea he spins. How about the rich are getting a tax break? O.k. but that is a nonsensical statement. Tax revenue is not based on tax rate. It is based on overall tax package effects. One example, a lower tax rate often dispels power of income tax avoidance concerns and positioned investors decision making upon hard reality. Meaning no artificial government regulation pollution to distort decisionmaking. This will present a more efficient economy.

I'm wondering if BB record of live performances is due in part to growing concerns of public within stock market wealth and possible losses? May Market Timer sales ballooning? This may be another indicator of bubble trouble when the sidewalk investors start to pay attention?

BB talks of attaining critical mass with the 52 year old multi millionaire. A discussion on regaining the most precious commodity one has, time or better known as freedom. This is the discussion to pay yourself 4% withdrawals and quit your job. This approach maintains your base finances. I will propose this is a strategy, but not a good one. One needs to first determine your quality of life needs and minimum yearly spendable income to maintain this. So, best to start the thought process with minimum needs and how to lower these. How to lower your COL requirements. The thinking can take one to new life style and very low financial needs. I've mentioned the blog wherein the Candian engineer did such a thing and achieved financial independence in early thirties. His method required 250k for financial freedom. He has an exceptional lifestyle as well.

Warden Gordon Borden said...

The guest speaker kind of put his foot in his mouth not being pc even though he is very interesting to listen to. He referred to the US Japan Russia and Europe having declining fertility rates. He referred to these countries as civilized and implying the other countries aren't. He kind of stammered a little bit then what went on.

gabe said...

An individual receiving the maximum Social Security each month will receive a $53 raise minus around $25 increase in medicare part B premium. A $28 increase.....not too shabby.

Gabe

testing said...

What a weird exchange Bob had with the woman caller who was disputing the context of an earlier caller who had claimed other states are paying for California due to the state income tax deduction. It was weird because she wasn't disputing anything Bob had said, yet his tone came across as defensive. Not the first time I've noticed this, especially in the past few years.

Anyway, it would have been nice if he had went into some depth on the topic because there are a lot of claims being made that California pays more in than it receives. I think that claim is a gross oversimplification of something rather complex and normally viewed under a subjective lens. Bob tends to do well with giving a layman's explanation, and that would have been appreciated here.

frankj said...

testing, I think the "pay in/get back" meme IS too simplified. Some states have big Federal "footprints." National parks, national forests, military bases, all kinds of Federal presence. Are there adjustments made for these? Along with these go the people who work there.

Some states have lots of retirees who get Medicare and SocSec. Do these benefits make the state look like a "taker?" I don't know the answer.

Unknown said...

@Trees: Okay, in order to be able to use reconciliation to pass the "tax reform" it has to be revenue neutral. Using reconciliation means that they can pass it with a simple majority vote, rather than the usual 60 votes in the Senate for this sort of thing. So if "tax reform" creates a deficit, they have to find a way within the bill to close the deficit so created in order to be able to pass it. They'll never get 60 votes, they're well aware of that, so they absolutely need to be able to say that the bill is revenue neutral.

Bill W. said...

As to speeding with autonomous vehicles, the present speed limits often could potentially be increased. The number one, or close to it, reason for collisions is following too closely for speed and conditions. Just partially automating all cars to prevent them from going relatively too fast and or following too closely in bad weather / road conditions would drastically reduce chances for collisions.
I have seen demos where a physically unconnected train of auto. cars were travelling up to 80 mph , following each other at a few feet intervals and never collided. That is because the sensed speed of the leading cars automatically caused trailing cars to slow down to maintain safe intervals. Those were extreme conditions for the sake of the demo.
Finally, it does drive me crazy when news reports state that poor weather/ visibility 'caused a collision'. In reality it was almost always drivers failing to adequately adjust their driving to the poor conditions that was the cause.

Anonymous said...

Thank you, Unknown!
You presented the issue in a clear, concise nutshell for our benefit. Thanks again.

Now it's clear what the pundits are yapping about concerning revenues and neutralism. But it might be hard to get spending cuts from anywhere considering the war between the sides of the aisle and the fragging within the GOP. Just guessing we are stuck between a thumb and a doorjamb. Ouch!

And yes, Testing, the radio commentator is often "short" with the callers. It's like he's not paying attention to their questions, as if he's watching sports on TV in the "studio" with one eye, and dreaming of wagers with the other.

Pity the fool who calls that program.
Everett

Trees said...

It is funny how the OMB works for CIC and still political left. They have historically been way off on scoring. Obama Care for one. Sure they have to assumptions, but the office is contaminated with political overhead as the usual fare for DC operations.

The White House is surrounding himself with the best talent. That is not my assessment, but financial experts. Economist on top tier as well. Financial community is very happy with the selection to date. I'm not one who really cares of political opportunities for yet more party control. Meaning what is important is to more the bar to best position within citizens prosperity and freedom is my choice. Everything I read upon pushing economic growth past the 2% benchmark is of paramount importance given our entitlement and national debt load. Tax overhaul is way past due and presently a huge drag. Almost all agree. It really should be 99 Senators voting for tax change the hold out being Bernie.

That brings me to a Sunday News show in which Carl Rove made the comment upon the California Senate race D. Feinstein. Paraphrased. "The Left is split per old fashioned liberalism and far left socialism. Bernie represents the latter. The Millennials are taking control of the party in the near future. This group has a firm attraction to socialism. I think BB's guest missed the biggest factor upon nations future trajectory. What will happen if Socialism makes inroads?

Honeybee said...

.
Trees...What will happen if Socialism makes inroads?

We all suffer, lose our freedom, and ultimately end up like Venezuela - starving in the streets.

Biker said...

It was good to hear Bob mention a less common financial strategy such as the Substantially Equal Periodic Payments (SEPP). But Linda, age 52, with 750K in her taxable account already has a solid bridge to when she can withdraw from retirement accounts at age 55 (401k) or 59.5 (IRA). Why would Bob restrict her to a 4% withdrawal from her taxable account? Aren't we supposed to look at the entire portfolio as a whole? She said she needed 60K per year which is only a 2% withdrawal rate on the total portfolio. That withdrawal rate from the taxable account for a few years would be much simpler than a SEPP.

Jerrod Clarkson said...

C'mon Bob,

The penny-ante millionaire call-ins have become quite pedestrian...

B-O-R-I-N-G!!!

Let's step it up. Howzabout some billionaire and trillionaire call-ins, OK?

JC

Jerrod Clarkson said...

Online Savings Accounts and MMFs continue to raise APRs

Just got a note from Barclays. Their current Online Savings Account rate is now 1.30% APR. This is their third (fourth?) increase in just a matter of a few months.

My Schwab and Fidelity Fidelity MMFs keep going up several times a week also.

Yeah, I know all of the above are 0% APR (inflation adjusted) but it's a lot better than the 00.01% we had for so many years.

They also mirror the [2% S.S. increase - Medicare cost increases]. Actually I am much better off with the Savings and MMF instruments.

JC

Anonymous said...

HoneyBee said: STOCKS....Brinker did not mention the stock market and certainly did not report that it has risen over 25% since President Donald Trump was elected.

How much of that rise do you attribute to Trump vs. continuation of trend, great earnings and business cycle? The last Unemployment report showed loss of jobs of what 33k which was a break of continued jobs growth for the first time in 7 or so years is that Trump or attributable to impact of storms?

Brinker as you pointed out is doing it right using earnings estimates and reasonable multiple to project out.

One thing that I hope I get right is if the tax reform does not pass I am predicting the market will not take a huge hit because tax reform passage is not in the market stock valuation at this time. Earnings drove us higher.

I think Buffett indicated he ostensibly was on the other side of this bet saying something like people are reluctant to sell since he thinks some sort of tax reform will pass. Actually when you analyze his concept Buffett is actually agreeing with me. If tax reform passes much higher stock prices would ensue... that does not imply that passage of tax reform is actually in stock prices at this point. I think I heard Mnuchin say anything which passes will be retroactive to beginning of 2017 selling anytime in 2017 would not impact the decision.

One other point is most know not to take credit for stock price appreciation because you also have to take the blame when stock prices eventually fall.

smile

Honeybee said...

.
Smile....You quoted me so you can easily see I posted FACT not opinion about the 25% run-up in the stock market since Donald Trump was elected.

If you want me to discuss President Trump with you, you will need to track me to my Silicon Investor message board - where I discuss him freely.

Also, I certainly did NOT say that Brinker "....is doing it right." Please don't put words in my mouth.

Anonymous said...

Million dollar calls are a little annoying simply because of what is not said. Usually the multimillionaire caller starts by saying been listening and subscribing for years...

The annoyance is based on this intro. The facts usually beg the question of where all the money came from, Bob does not ask the relevant question because he already has his advert. plug from the caller stating long time listener and subscriber.

Bob dares not ask a single question because instead of credit going to him under presumption of caller statement long time L&S... we might find out that maybe the man or woman calling in have huge salaries and or stock options which are outside of norm and attributable to the wealth described in the call or might we find out that they started with 10 million and now only have two or three.

better for Bob to be silent and let naive listeners think that his rag is by default responsible for the success of the caller rather than outside the norm events having nothing to do with da Brink...

these multi million dollar callers are annoying... for what is not said and asked even though it is part of the interest of the call... and in my mind I think the answer to why Brink does not inquire has been asked and answered.

Still annoying though.

smile

Warden Gordon Borden said...

Does anyone have any predictions if the bull market will beat the odds and continue the bull run through the whole Trump term?

Honeybee said...

.
Smile....Your last post is so right on that I am going to add to the front page under the Multi-Million Dollar Callers section.

frankj said...

Mnuchin can say what he wants about the tax reform being retroactive to 2017 but I don't think he's the final word, Congress is.

Anonymous said...

frankj, I agree it doesn't matter what Mnuchin says - it is an impossible lift the deficits created by on the table tax cuts are not offset by spending cuts. Freedom party wants no part of this, nor do deficit hawks. The numbers just don't work without dynamic scoring. The market already knows this which is why the 25% up market from election is bogus. One normally waits till they get in office before claiming something happening under another administration. LOL Rational count if so inclined is from 1/20/17 but nobody claims credit for stock market gains since you have to claim the drops too... just like the Employment Report.

Stock market already anticipates no policy changes - at least that is why I still have money in the market. Bull will continue if Yellen doesn't mess up the QT and normalization of rates. This Buds for you Warden Borden - it depends. Brinker is watching the same thing I am earnings, inflation and tipping point. Feels like a game of musical chairs.


smile

Anonymous said...

Warden, I forgot to mention from my last post on your question - wildcard is N. Korea. Latest escalation: NK says not interested in diplomatic talks working on perfecting an ICBM to reach the east coast of US. "Nuclear war may break out at any moment" is latest from NK.

I still say Bannon's statement when he left is correct. We have no good options.

Yes we can destroy NK w/ conventional weaponry. Question is if NK senses loss will they strike Seoul nuclear and/or Japan.

This is not looking good at all.

Congress needs to step in on this and uphold their constitutional duty. Only Congress can declare war. Anyone have faith in Congress to do anything raise your hand. Maybe McCaine's speech tonight will light a fire. Not holding my breath.


smile

Anonymous said...

Is someone with a screen name of 'smile' really implying that Congress should formally declare war on NK ??

Honeybee said...

.
Anonymous...Please use a handle of your choice and sign your posts.

Not speaking for Smile, but speaking for myself - Whatever it takes to stop N. Korea from being able to lob nukes into the US is fine with me.

Or would your rather keep "negotiating" until there are millions of dead Americans.

Time has run out - and prior negotiating clearly worked so well - NOT!

Anonymous said...
This comment has been removed by a blog administrator.
Honeybee said...

.
Anonymous...Disagreeing with the hostess is fine, but disrespecting my request to create a handle for your posts is not.

Honeybee said...

.
Note to all readers: I have added dRahme's three audio clips to Sunday's Moneytalk Summary.

Anonymous said...

This is sort of a follow-on to what smile and HB mentioned about the 25% market increase since Trump.

Has Brinker or some other economist mentioned how much a new US Federal budget impacts the market? My point is the US is still running under Obama's final federal budget. Trump and Congress should be working and passing on a new federal budget soon. End of October?

Is the World economy and the US economy so large that the Federal Budget is just a minor blip?

Brinker still has a positive outlook for 2018 so by not mentioning the Federal budget is just a way of saying that it doesn't matter?

~Curious G.

gabe said...

President should sign an executive order permitting the importation of prescription drugs. He'll gain a wide approval from all parties!

Gabe

Anonymous said...

Anonymous said...

Is someone with a screen name of 'smile' really implying that Congress should formally declare war on NK ??

=============

smile said: no that is not what I am saying.

Article I, Section 8, Clause 11 of the United States Constitution, sometimes referred to as the War Powers Clause, vests in the Congress the power to declare war.

Congress has sense enough to know what Bannon said is true and therefore would not declare war on NK.

A preemptive strike by the executive branch is an act of war and therefore a breach of the Constitution.

As I stated IMO Bannon's statement is correct: https://www.cbsnews.com/news/steve-bannon-north-korea-threat-no-military-solution/

Steve Bannon: "There's no military solution, forget it. Until somebody solves the part of the equation that shows me that 10 million people in Seoul [South Korea] don't die in the first 30 minutes from conventional weapons, I don't know what you're talking about, there's no military solution here, they got us."

smile further states: We have over 20,000 US troops in S. Korea

Kim is already nuclear if he wanted to strike the US he could via submarines loaded with nukes or via dirty bomb. His objective is simple DMWM 'cause I am nuclear. Self preservation thru cold war tactic of mutual assured destruction. CIA person states Kim is not a madman and is a rational actor.

http://www.foxnews.com/us/2017/10/06/kim-jong-un-not-madman-but-very-rational-actor-cia-official-says.html


The rhetoric on this needs to be dialed back on both sides. N.K. is already nuclear. Last thing we need is a mistake born out of bluster and quien es mas macho

smile

Trees said...

That tactic works for Kim. He has exploited the fear and has done wonderfully under prior administrations. I remember all the conventional wisdom that NK was bluffing and had no nuclear technology. Looks like he made a fool out of U.S. passiveness.
.

gabe said...

Dow over 23,000!

Gabe

Warden Gordon Borden said...

I've been looking around for a managed balanced fund with CDs maturing with puny yields.

I have many of the vanguard target and other index balanced funds.

Was going to take another peek at the Wellington fund but now I see there are going to be separate Wellington and Wellesley Global funds. They're just forming but sound interesting.

frankj said...

Warden, Wellington has a good long term record. It was closed for a while, I don't know if it is open again.

Jim said...

Vanguard has been constantly sending me e-mails about converting my mutual fund account to a brokerage account. Don't know if is the right thing to do or not. Anyone remember if Brinker discussed this at all in recent months? I don't know if there are any disadvantages or not. If I do nothing could they switch my account over without my consent?

Warden Gordon Borden said...

I have every kind of account imaginable with vanguard. One of my accounts is a brokerage. If you buy non vanguard funds it's needed.

Biker said...


Jim: If you only hold Vanguard mutual funds, I see no need to change yet.

https://www.bogleheads.org/forum/viewtopic.php?t=222234

Unknown said...

Where were you 30 years ago on Monday, October 19, 1987?

BLACK MONDAY, the day when terrestrial radio was proclaiming the end is nigh.

The global markets crashed and the DJIA suffered the biggest one - day percentage loss ever (22.61%).

BLACK MONDAY

Of course, it could never happen again – this time it’s different!

sn said...

RE Vanguard "upgrade" account to Brokerage

IMHO; unless you want/need to trade stocks,bonds,cds or etfs "upgrade" is more like a annoying nuisance.

gabe said...

As I posted previously, (not published) in my opinion, health and tax reform will not be passed in 2017. Wait till next year?

Gabe

Honeybee said...

.
Note to Smile...Your comments about Brinker and the markets are certainly welcome.

But - this morning's note has gone to far in your subtle slams against the president.

Please edit the parts that have nothing to do with this blog and are strictly political opinion and send again for publication.

You have not seen me or even Brinker discuss The Wall, have you?

Anonymous said...

I would repost w/ wall comment edited out but for some reason when I hit control c to copy my prose b4 I submitted after submission when I pasted there was nada.

smile

Honeybee said...

.
Smile...Do you want me to edit and post?

Anonymous said...

HB,

yes please edit out the wall comment and post. Thank You.

smile

gabe said...

A nice rebound!

Gabe

Smile said...

.
Neither health care repeal and replace nor tax reform will be passed in the form campaigned on. As I have stated smart money knows this already and market will not be affected (i hope). (moderator edit..................)

The Stock market sb ok going forward for awhile if JY does not overdo the QT and rate normalization.

10/19/87 was scary fortunately I did not panic out of the market and held on. Funny thing is an investor with long term view even putting money in at the peak in 1987 would be miles ahead if they held on.

oh and da Brink got caught too and maybe even have gone to cash shortly after while he fine tuned his "model" LOL

smile

Jerrod Clarkson said...

From a historical perspective, next week begins the Worst Performing period of the year.

Will it repeat this year? If I knew that...

Actually, this year seems to be an outlier as measured against the 20-year average. But, "just in case" you might want to check the market's "goings-on" a bit more frequently.

JC

gabe said...

My on going plan is to take a sliver of profit periodically as the market goes higher. I'm 73% in equities; have three(3) pension streams of income and income from business activities permitting me to increase my equity portfolio to this level, however, do not care to go beyond. Taxes is the big headache!

Gabe

Jerrod Clarkson said...

Here is a little more info on the "Worst Week of the Year".

This editorial is via Tom Bowley at StockCharts.com.

It is somewhat different than my post above, as it is specific to the S&P 500 and is based on 67 years of market data:

Historical Tendencies - Tom Bowley

October tends to be very strong on the S&P 500 during the first half of the month, then things settle down for a week, turn ugly for a week before resuming its march higher. Here's a breakdown of October by various time frames (annualized returns since 1950):

October 1-15: +16.54%
October 16-21: +9.78%
October 22-27: -42.18% (worst historical week of calendar year)
October 28-31: +72.72%

JC

Mad as HELL ! said...

Gabe,

With your humongous stash you should consider expatriation:

https://goo.gl/cNA4vT

gabe said...

Mad: Hard work will make you happy!

Gabe

gabe said...

Yay! We have two winners today and one horse going Sat and one on Sun. Two generous purses! Paid next years tuition for my grand kids. Brinker would give me a commendation.

Gabe

Anonymous said...

Fear and greed index back to 90. Volatility nowhere in sight. Come on in, the water is fine. NO FEAR! It's the new normal.
It's different this time!

My finger is on the sell button. Just in case.

Just sayin!

Pavlov's Cat

Anonymous said...

Just found your blog, have been a follower of Brinker since 1986, then 32 yo working stiff in service sector management, started with $125,000 in savings from real estate . In the beginning listened to Brinker weekly and did not really understand everything he was discussing with his listeners, stayed with it, read some investment books recommended by Brinker. Following about 80% of Brinker's advice over all these years, I'm now 64, made money, lost money but always stayed focused on end goal. Here is what has contributed to my investment success; 1. You don't get rich at work you get rich at home learning how to manage and invest your money, 2. You don't get rich quickly but you can become poor quickly, meaning that chasing gains is a losers game, 3. Asset allocation and rebalancing is more important than what you actually invest in, 4. Don't just follow main stream media investment personalities advice, in most cases they are for entertainment purposes only. 4. No Broker , Financial advisor or brokerage firm will watch over your money like you will, not even another family member in the business. 5. Have a plan to invest your money and have an exit plan. 6. When investing time is your biggest asset, the rule of 72 rules!

I reached the land of critical mass at age 56 and joined the club of multi- millionaire

Honeybee said...

.
Anonymous....Your comments are so interesting that I published them. But next time, please use an identifying moniker of your choice.

gabe said...

Anonymous: Well said!

Gabe

Unknown said...

What Could Derail The Stock-market Rally?

Watch Profit Margins

Trees said...

I do think Millennial generation will have a profound impact on our lifestyle and wealth. This generation is the akin to sixties movement, but with more socialism (share the wealth) mentality. IOWs they are not content to do their own thing. They fundamentally want to change the U.S.. They think older generations have savaged the natural resources and polluted the country for wealth. That it is their burden to rectify the damage. They are smarter and less selfish. Much health and easy living lifestyle is available if the Bourgeoisie were throttled and the rich were to pay their fair share.

So, given the future distortion of political power and ideals, one needs to be cognizant of the possible political ramifications. Meaning how and where the country could be headed. I've read that this generation values much in Social Security and Medicare. That if anything these programs will increase in value and not be sold out per cost. That is a little hard for me to believe as many also claim our politics are pitting generations against each other.

I've read disturbing protestor statements on Baby Boomers power and wealth as ground zero of problem of country. I have a hard time envisioning Millennials working extra hard to pay for their parents retirement given that they received easy funding for their success. This is a psychological flip flop in which one would receive easy living and then asked to sacrifice. I don't know about you, but my life experiences lend me to believe those whom receive much will quickly flip to entitlement justification.

Also, concern on savings plans that avoided their fair share of tax load (so they think). These savings are a lucrative target to tap when socialist run out of government money. Sure, if we have no more hard times and the country can right the ship for good GNP growth no such problems. However, if we suffer some climatic reset in which citizens need to belt up and take it on the chin, well this generation will quickly decide we need to get Bernie out of retirement. That to much wealth is bankrolled within those that don't need it. I'm just saying a new generation will soon be in power and they don't think like the typical free market educated grand parents. The ones that want opportunity and freedom to improve their own plight by self will. This new generation wants to hold hands and work the federal government to easy living. You know grow a few organic potatoes and walk to the neighboring village for a free love wine social thus saving the planet.

frankj said...

" this (Millennial) generation will quickly decide we need to get Bernie out of retirement."

I'm not so much worried about Bernie rising again as I am about someone with socialist leanings from the Millennial generation or close to it rising up. That age group CAN get elected. Trudeau of Canada is an example. Yes his last name helped for certain. Or, the recently elected 31 year old, Sebastian Kurz of Austria who happens to be conservative.

Millennials: "early 1980s as starting birth years and the mid-1990s to early 2000s as ending birth years." So the oldest are in their mid-30s and the youngest in their mid-teens.

Anonymous said...

Sounds like a best of show --10-22-17

Honeybee said...

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Please send 10-22-17 comments to new front page post.