RECAST: An Interview with Fiduciary Bennett Aikin AIF®

Posted on May 21, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

On Financial Fiduciary Accountability

[By Dr. David E. Marcinko MBA CMP™]

[By Ann Miller; RN, MHA]

Currently, there is a growing dilemma in the financial sales and services industry. It goes something like this:

What is a financial fiduciary?
Who is a financial fiduciary?
How can I tell if my financial advisor is a fiduciary?

Now, in as much as this controversy affects laymen and physician-investors alike, we went right to the source for up-to-date information regarding this often contentious topic, for an email interview and Q-A session, with Ben Aikin.

About Bennett Aikin AIF® and fi360.com

Bennett [Ben] Aikin is the Communications Coordinator for fi360.com. He oversees all communications for fi360. His responsibilities include messaging, brand management, copyrights and trademarks, and publications. Mr. Aikin received his BA in English from Virginia Tech in 2003 and is currently an MS candidate in Journalism from Ohio University.

Q. Medical Executive Post

You have been very helpful and gracious to us. So, let’s get right to it, Ben. In the view of many; attorneys, doctors, CPAs and the clergy are fiduciaries; most all others who retain this title seem poseurs; sans documentation otherwise.

A. Mr. Aikin

You are correct. Attorneys, doctors and clergy are the prototype fiduciaries. They have a clear duty to put the best interests of their clients, patients, congregation, etc., above their own. [The duty of a CPA isn’t as clear to me, although I believe you are correct]. Furthermore, this is one of the first topics we address in our AIF training programs, and what we call the difference between a profession and an industry. The three professions you name have three common characteristics that elevate them from an industry to a profession:

Recognized body of knowledge
Society depends upon practitioners to provide trustworthy advice
Code of conduct that places the clients’ best interests first

Q. Medical Executive Post

It seems that Certified Financial Planner®, Chartered Financial Analysts, Registered Investment Advisors and their representatives, Registered Representative [stock-brokers] and AIF® holders, etc, are not really financial fiduciaries, either by legal statute or organizational charter. Are we correct, or not? Of course, we are not talking ethics or morality here. That’s for the theologians to discuss.

A. Mr. Aikin

One of the reasons for the “alphabet soup”, as you put it in one of your white papers [books, dictionaries and posts] on financial designations, is that while there is a large body of knowledge, there is no one recognized body of knowledge that one must acquire to enter the financial services industry. The different designations serve to provide a distinguisher for how much and what parts of that body of knowledge you do possess. However, being a fiduciary is exclusively a matter of function.

In other words, regardless of what designations are held, there are five things that will make one a fiduciary in a given relationship:

You are “named” in plan or trust documents; the appointment can be by “name” or by “title,” such as CFO or Head of Human Resources
You are serving as a trustee; often times this applies to directed trustees as well
Your function or role equates to a professional providing comprehensive and continuous investment advice
You have discretion to buy or sell investable assets
You are a corporate officer or director who has authority to appoint other fiduciaries

So, if you are a fiduciary according to one of these definitions, you can be held accountable for a breach in fiduciary duty, regardless of any expertise you do, or do not have. This underscores the critical nature of understanding the fiduciary standard and delegating certain duties to qualified “professionals” who can fulfill the parts of the process that a non-qualified fiduciary cannot.

Q. Medical Executive Post

How about some of the specific designations mentioned on our site, and elsewhere. I believe that you may be familiar with the well-known financial planner, Ed Morrow, who often opines that there are more than 98 of these “designations”? In fact, he is the founder of the Registered Financial Consultants [RFC] designation. And, he wrote a Foreword for one of our e-books; back-in-the-day. His son, an attorney, also wrote as a tax expert for us, as well. So, what gives?

A. Mr. Aikin

As for the specific designations you list above, and elsewhere, they each signify something different that may, or may not, lend itself to being a fiduciary: For example:

• CFP®: The act of financial planning does very much imply fiduciary responsibility. And, the recently updated CFP® rules of conduct does now include a fiduciary mandate:

• 1.4 A certificant shall at all times place the interest of the client ahead of his or her own. When the certificant provides financial planning or material elements of the financial planning process, the certificant owes to the client the duty of care of a fiduciary as defined by CFP Board. [from http://www.cfp.net/Downloads/2008Standards.pdf]

• CFA: Very dependent on what work the individual is doing. Their code of ethics does have a provision to place the interests of clients above their own and their Standards of Practice handbook makes clear that when they are working in a fiduciary capacity that they understand and abide by the legally mandated fiduciary standard.

• FA [Financial Advisor]: This is a generic term that you may find being used by a non-fiduciary, such as a broker, or a fiduciary, such as an RIA.

• RIA: Are fiduciaries. Registered Investment Advisors are registered with the SEC and have obligations under the Investment Advisers Act of 1940 to provide services that meet a fiduciary standard of care.

• RR: Registered Reps, or stock-brokers, are not fiduciaries if they are doing what they are supposed to be doing. If they give investment advice that crosses the line into “comprehensive and continuous investment advice” (see above), their function would make them a fiduciary and they would be subject to meeting a fiduciary standard in that advice (even though they may not be properly registered to give advice as an RIA).

• AIF designees: Have received training on a process that meets, and in some places exceeds, the fiduciary standard of care. We do not require an AIF® to always function as a fiduciary. For example, we allow registered reps to gain and use the AIF® designation. In many cases, AIF designees are acting as fiduciaries, and the designation is an indicator that they have the full understanding of what that really means in terms of the level of service they provide. We do expect our designees to clearly disclose whether they accept fiduciary responsibility for their services or not and advocate such disclosure for all financial service representatives.

Q. Medical Executive Post

Your website, http://www.fi360.com, seems to suggest, for example, that banks/bankers are fiduciaries. We have found this not to be the case, of course, as they work for the best interests of the bank and stockholders. What definitional understanding are we missing?

A. Mr. Aikin

Banks cannot generally be considered fiduciaries. Again, it is a matter of function. A bank may be a named trustee, in which case a fiduciary standard would generally apply. Banks that sell products are doing so according to their governing regulations and are “prudent experts” under ERISA, but not necessarily held to a fiduciary standard in any broader sense.

Q. Medical Executive Post

And so, how do we rectify the [seemingly intentional] industry obfuscation on this topic. We mean, our readers, subscribers, book and dictionary purchasers, clients and colleagues are all confused on this topic. The recent financial meltdown only stresses the importance of understanding same.

For example, everyone in the industry seems to say they are the “f” word. But, our outreach efforts to contact traditional “financial services” industry pundits, CFP® practitioners and other certification organizations are continually met with resounding silence; or worse yet; they offer an abundance of parsed words and obfuscation but no confirming paperwork, or deep subject-matter knowledge as you have kindly done. We get the impression that some FAs honesty do-not have a clue; while others are intentionally vague.

A. Mr. Aikin

All of the evidence you cite is correct. But that does not mean it is impossible to find an investment advisor who will manage to a fiduciary standard of care and acknowledge the same. The best way to rectify confusion as it pertains to choosing appropriate investment professionals is to get fiduciary status acknowledged in writing and go over with them all of the necessary steps in a fiduciary process to ensure they are being fulfilled. There also are great resources out there for understanding the fiduciary process and for choosing professionals, such as the Department of Labor, the SEC, FINRA, the AICPA’s Personal Financial Planning division, the Financial Planning Association, and, of course, Fiduciary360.

We realize the confusion this must cause to those coming from the health care arena, where MD/DO clearly defines the individual in question; as do other degrees [optometrist, clinical psychologist, podiatrist, etc] and medical designations [fellow, board certification, etc.]. But, unfortunately, it is the state of the financial services industry as it stands now.

Q. Medical Executive Post

It is as confusing for the medical community, as it is for the lay community. And, after some research, we believe retail financial services industry participants are also confused. So, what is the bottom line?

A. Mr. Aikin

The bottom line is that lay, physician and all clients have a right to expect and demand a fiduciary standard of care in the managing of investments. And, there are qualified professionals out there who are providing those services. Again, the best way to ensure you are getting it is to have fiduciary status acknowledged in writing, and go over the necessary steps in a fiduciary process with them to ensure it is being fulfilled.

Q. Medical Executive Post

The “parole-evidence” rule, of contract law, applies, right? In dealing with medical liability situations, the medics and malpractice attorneys have a rule: “if it wasn’t written down, it didn’t happen.”

A. Mr. Aikin

An engagement contract accepting fiduciary status should trump a subsequent attempt to claim the fiduciary standard didn’t apply. But, to reiterate an earlier point, if someone acts in one of the five functional fiduciary roles, they are a fiduciary whether they choose to acknowledge it or not. I have attached a sample acknowledgement of fiduciary status letter with copies of our handbook, which details the fiduciary process we instruct in our programs, and our SAFE, which is basically a checklist that a fiduciary should be able to answer “Yes” to every question to ensure the entire fiduciary process is being covered.

Q. Medical Executive Post

It is curious that you mention checklists. We have a post arguing that very theme for doctors and hospitals as they pursue their medial error reduction, and quality improvement, endeavors. And, we applaud your integrity, and wish only for clarification on this simple fiduciary query?

A. Mr. Aikin

Simple definition: A fiduciary is someone who is managing the assets of another person and stands in a special relationship of trust, confidence, and/or legal responsibility.

Q. Medical Executive Post

Who is a financial fiduciary and what, if any, financial designation indicates same?

A. Mr. Aikin

Functional definition: See above for the five items that make you a fiduciary.

Financial designations that unequivocally indicate fiduciary duty: Short answer is none, only function can determine who is a fiduciary.

Q. Medical Executive Post

Please repeat that?

A. Mr. Aikin

Financial designations that indicate fiduciary duty: none. It is the function that determines who is a fiduciary. Now, having said that, the CFP® certification comes close by demanding their certificants who are engaged in financial planning do so to a fiduciary standard. Similarly, other designations may certify the holder’s ability to perform a role that would be held to a fiduciary standard of care. The point is that you are owed a fiduciary standard of care when you engage a professional to fill that role or they functionally become one. And, if you engage a professional to fill a non-fiduciary role, they will not be held to a fiduciary standard simply because they have a particular designation. One of the purposes the designations serve is to inform you what roles the designation holder is capable of fulfilling.

It is also worth keeping in mind that just being a fiduciary doesn’t equate to a full knowledge of the fiduciary standard. The AIF® designation indicates having been fully trained on the standard.

Q. Medical Executive Post

Yes, your website mentions something about fiduciaries that are not aware of same! How can this be? Since our business model mimics a medical model, isn’t that like saying “the doctor doesn’t know he is doctor?” Very specious, with all due respect!

A. Mr. Aikin

I think it is first important to note that this statement is referring not just to investment professionals. Part of the audience fi360 serves is investment stewards, the non-professionals who, due to facts and circumstances, still owe a fiduciary duty to another. Examples of this include investment committee members, trustees to a foundation, small business owners who start 401k plans, etc. This is a group of non-sophisticated investors who may not be aware of the full array of responsibilities they have.

However, even on the professional side I believe the statement isn’t as absurd as it sounds. This is basically a protection from both ignorant and unscrupulous professionals. Imagine a registered representative who, either through ignorance or design, begins offering comprehensive and continuous investment advice. Though they may deny or be unaware of the fact, they have opened themselves up to fiduciary liability.

Q. Medical Executive Post

Please clarify the use of arbitration clauses in brokerage account contracts for us. Do these disclaim fiduciary responsibility? If so, does the client even know same?

A. Mr. Aikin

By definition, an engagement with a broker is a non-fiduciary relationship. So, unless other services beyond the scope of a typical brokerage account contract are specified, fiduciary responsibility is inherently not applicable. Unfortunately, I do imagine there are clients who don’t understand this. Furthermore, AIF® designees are not prohibited from signing such an agreement and there are some important points to understand the reasoning.

First, by definition, if you are entering into such an agreement, you are entering into a non-fiduciary relationship. So, any fiduciary requirement wouldn’t apply in this scenario.

Second, if this same question were applied into a scenario of a fiduciary relationship, such as with an RIA, this would be a method of dispute resolution, not a practice method. So, in the event of dispute, the advisor and investor would be free to agree to the method of resolution of their choosing. In this scenario, however, typically the method would not be discussed until the dispute itself arose.

Finally, it is important to know that AIF/AIFA designees are not required to be a fiduciary. It is symbolic of the individuals training, knowledge and ongoing development in fiduciary processes, but does not mean they will always be acting as a fiduciary.

Q. Medical Executive Post

Don’t the vast majority of arbitration hearings find in favor of the FA; as the arbitrators are insiders, often paid by the very same industry itself?

A. Mr. Aikin

Actual percentages are reported here: http://www.finra.org/ArbitrationMediation/AboutFINRADR/Statistics/index.htm However, brokerage arbitration agreements are a dispute resolution method for disputes that arise within the context of the securities brokerage industry and are not the only means of resolving differences for all types of financial advisors. Investment advisers, for example, are subject to respond to disputes in a variety of forums including state and federal courts. Clients should look at their brokerage or advisory agreement to see what they have agreed to. If you wanted to go into further depth on this question, we would recommend contacting Brian Hamburger, who is a lawyer with experience in this area and an AIFA designee. Bio page: http://www.hamburgerlaw.com/attorneys/BSH.htm.

Q. Medical Executive Post

What about our related Certified Medical Planner® designation, and online educational program for financial advisors and medical management consultants? Is it a good idea – reasonable – for the sponsor to demand fiduciary accountability of these charter-holders? Cleary, this would not only be a strategic competitive advantage, but advance the CMP™ mission to put medical colleagues first and champion their cause www.CertifiedMedicalPlanner.org above all else.

A. Mr. Aikin

I think it is a good idea for any plan sponsor to demand fiduciary status be acknowledged from anyone engaged to provide comprehensive and continuous investment advice. I also think it is a good idea to be proactive in verifying that the fiduciary process is being followed.

Q. Medical Executive Post

Is there anything else that we should know about this topic?

A. Mr. Aikin

Yes, a further note about fi360’s standards. I wrote generically about the fiduciary standard, because there is one that is defined by multiple sources of regulation, legislation and case law. The process defined in our handbooks, we call a Fiduciary Standard of Excellence, because it covers that minimum standard and also best practice standards that go above and beyond. All of our Practices, which comprise that standard, are legally substantiated in our Legal Memoranda handbook, which was written by Fred Reish’s law firm, who is considered a leading ERISA attorney.

Additional resources:

Q. Medical Executive Post

Thank you so much for your knowledge and willingness to frankly share it with the Medical-Executive-Post.

Assessment

All are invited to continue the conversation with Mr. Aikin, asynchronously online, or thru this contact information:

fi360.com
438 Division Street
Sewickley, PA 15143
412-741-8140 Phone
866-390-5080 Toll-free phone
412-741-8142 Fax

Conclusion

Your thoughts and comments on this ME-P are appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.

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Speaker: If you need a moderator or speaker for an upcoming event, Dr. David E. Marcinko; MBA – Publisher-in-Chief of the Medical Executive-Post – is available for seminar or speaking engagements. Contact: MarcinkoAdvisors@msn.com

OUR OTHER PRINT BOOKS AND RELATED INFORMATION SOURCES:

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HOSPITALS: http://www.crcpress.com/product/isbn/9781466558731
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Filed under: "Advisors Only", "Doctors Only", Book Reviews, Career Development, Ethics, Financial Planning, Insurance Matters, Interviews, Investing, Media Mentions and PR, Monthly Reports, Op-Editorials, Portfolio Management, Professional Liability, Quality Initiatives, Research & Development, Sponsors | Tagged: AIF, ann miller, bennett aikin, Bob Veres, certified medical planner, CFA, CFP, CMP, CPA, david marcinko, Fi360, fiduciary, financial fiduciary, Fred Reish, hope hetico, iMBA, Inc., insurance agents, RR | 20 Comments »

UPDATE: Dr. Mike Burry, I-Bond Web-Site Crash and Wall Street

Posted on May 21, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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“The Big Short” celebrity investor and colleague Michael Burry MD recently disclosed that he is short Apple stock. Could he be right about AAPL dipping even further from here? Famous hedge fund manager Michael Burry, the real-life character in “The Big Short”, became famous for his short position on subprime CDOs ahead of the 2008 crash. This time, he is shorting Apple stock. The bombshell news has come recently via a 13F filing released by Burry’s hedge fund.

CITE: https://www.r2library.com/Resource/Title/082610254

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People searching for a respite from inflation have flooded the Treasury Department phone lines and website to try to buy Series I savings bonds, causing much longer waits than usual. It’s the latest example of outdated government computer systems causing anguish for Americans. On May 2nd, the Treasury Department announced that the inflation-protected I bonds will earn 9.62 percent interest at least until the end of October. A day later, TreasuryDirect, the website that people have to use to purchase the bonds, crashed.

Finally, Wall Street rumbled to the edge of a bear market after another drop for stocks briefly sent the S&P 500 more than 20% below its peak set early this year. The S&P 500 index, which sits at the heart of most workers’ 401(k) accounts, was down as much as 2.3% for the day before a furious comeback in the final hour of trading sent it to a tiny gain of less than 0.1%. It finished 18.7% below its record, set on January 3rd. The tumultuous trading capped a seventh straight losing week, its longest such streak since the dot-com bubble was deflating in 2001.

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Filed under: Breaking News, Glossary Terms, Investing | Tagged: DJIA, i-bonds, Mike Burry MD, NASDAQ, S&P, Scion Capital, Treasury Direct, Wall Street | Leave a comment »

UPDATE: Ark Investment Management, Home Sales and Rent Inflation

Posted on May 20, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Ark Investment Management’s Cathie Wood says “exploding” inventories at major retailers like Walmart Inc. and Target Corp. paired with declining US consumer sentiment portend slower inflation on the horizon. The money manager was responding on Thursday to a tweet quoting world’s richest man Elon Musk saying the recent inflation surge was due to government pandemic stimulus, even as money velocity held constant.

Home sales slowed for the third consecutive month in April as mortgage rates surged, driving up borrowing costs for would-be buyers as home prices soared to new highs. Existing home sales fell 2.4% last month from March to a seasonally adjusted annual rate of 5.61 million, the National Association of Realtors said Thursday.

And, in April, the median U.S. rent hit a record high for the 14^th month in a row of $1,827, according to Realtor.com, a residential real estate information service. “If recent trends continue, we expect the typical U.S. asking rent to eclipse $2,000 by August,” it said. April rent increased 16.7% from a year earlier. That’s the third straight month in which year-over-year rent growth has dipped, down from 17.1% in January. Higher rents are taking money away from renters’ budgets for regular expenses and savings, Realtor.com said. Rent represents the biggest strain on renters’ overall finances, according to a Realtor.com survey.

Incidentally, a number of American corporate giants, including Walmart, Target, Bank of America, Charles Schwab, and Intel, hit 52-week lows yesterday.

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Filed under: Alerts Sign-Up, iMBA, Inc., Investing | Tagged: Ark Investment Management, Cathie Wood, home sales, rent, rent inflation | Leave a comment »

ECONOMIC INFLATION: Why So High Right Now?

Posted on May 20, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

SIX REASONS

By Vitaliy Katsenelson CFA

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DEFINITION: In economics, inflation is a general increase in the prices of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money.

CITE: https://www.r2library.com/Resource/Title/082610254

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The war in Ukraine will likely pour more gasoline on the already raging inflationary fire, threatening to send the global economy into stagflation. Stagflation is a slowdown of economic activity caused by inflation.

READ: https://contrarianedge.com/why-is-inflation-so-high-right-now-6-reasons/?utm_source=IMA++-+Main+Articles&utm_campaign=8be9ec7af7-UBER_MONEY_MANAGER_KIDNAPPED_COPY_03&utm_medium=email&utm_term=0_f1c90406d1-8be9ec7af7-55139025

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Filed under: Experts Invited, Glossary Terms, Investing | Tagged: inflation, six reasons inflation now, Vitaliy N. Katsenelson CFA, why inflation so high? | Leave a comment »

UPDATE: Target, Netflix, the Markets, VIX, Home Equity and LiteCoin

Posted on May 19, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Target Corp. is on pace for its worst stock drop since 1987’s Black Monday crash after becoming the second big retailer in two days to trim its profit forecast. A surge in costs during the first quarter shows little sign of easing, said Chief Executive Officer Brian Cornell. Operating profit will amount to only about 6% of sales this year, 2 percentage points below the previous forecast, Target said Wednesday. And the company’s first-quarter adjusted profit missed the lowest of 23 analyst estimates compiled by Bloomberg.

Netflix continues to hemorrhage subscribers, as the streaming service laid off 150 more employees representing 2% of its workforce. In a statement, a company rep clarified “the changes are primarily driven by business needs rather than individual performance.”

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And, socks plunged as deepening concern about the economic impact of high inflation and rising interest rates drove the Dow Jones Industrial Average to its worst day since March 2020.

The Dow closed with a loss of 1,161 points, dropping 3.6 percent Wednesday for its steepest one-day drop since the onset of the coronavirus pandemic. The S&P 500 closed 4 percent lower and the NASDAQ closed 4.7 percent lower Wednesday.

A failure by the CBOE Volatility Index [VIX] sometimes referred to as Wall Street’s fear gauge, to push above the mid-30 range was seen as one sign that investors hadn’t made the sort of “capitulation” that often clears the way for a sustained rebound. However, some positive market internals on the upside during Friday’s and Tuesday’s bounce have some analysts looking for some near-term upside, which could continue to confound market bears.

More Americans were considered “equity rich” in the first quarter of 2022 — meaning that they owed no more than 50% of their home’s total value — amid a rise in home prices, according to new data from ATTOM Data Solutions. The number of equity-rich homeowners grew to 44.9% of mortgage holders in the first quarter, up from 41.9% in the fourth quarter of 2021 and 31.9% in the first quarter of 2021, according to the company’s first-quarter 2022 U.S. Home Equity and Underwater Report.

CITE: https://www.r2library.com/Resource/Title/082610254

Finally, Litecoin (LTC-USD) is getting ready for its newest upgrade on Thursday, May 19th. The MimbleWimble (MWEB) upgrade will turn the Litecoin crypto into a more fungible, private currency. Privacy coins like Monero (XMR-USD) and Zcash (ZEC-USD) have been hot investments in recent weeks

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Filed under: Alerts Sign-Up, iMBA, Inc., Investing | Tagged: Brian Cornell, CBOE, DJIA, Dow Jones Industrial Average, equity rich, Litecoin, MWEB, NASDAQ, Netflix, S&P 500, Target, VIX, Volatility Index | 1 Comment »

UPDATE: The Waltons, Economy, Gasoline and Pfizer for Kids

Posted on May 18, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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The Waltons are the the world’s richest family, and five of them own just under half of Walmart. They lost a combined $19 billion on Tuesday after Walmart posted disappointing quarterly results. The group is worth about $212 billion, according to the Bloomberg Billionaires Index.
Economy: On the other, national retail spending in April increased for the fourth straight month, despite inflation nearing a 40-year high and consumer sentiment at an 11-year low. It’s an unusual time!
Gas prices have risen above $4 a gallon in all 50 US states for the first time ever. Five states are averaging more than $5 a gallon, and one—California—hit a record of $6.02.
The FDA authorized a booster shot of Pfizer’s vaccine for kids ages 5–11.

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https://www.amazon.com/Comprehensive-Financial-Planning-Strategies-Advisors/dp/1482240289/ref=sr_1_1?ie=UTF8&qid=1418580820&sr=8-1&keywords=david+marcinko

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Filed under: Alerts Sign-Up, Investing, LifeStyle | Tagged: Bloomberg Billionaires Index, economy, FDA, gas prices, gasoline, Walmart, Waltons | Leave a comment »

SECURE Act 2.0 and Retirement Planning?

Posted on May 16, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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On March 29, the House of Representatives voted 414-5 in favor of the Securing a Strong Retirement Act of 2022. If passed by the Senate, and then signed into law by President Joe Biden, the act could represent a massive economic policy shift regarding retirement savings and investment.

The retirement savings legislation, also known as SECURE Act 2.0, expands on the original SECURE Act and includes provisions to boost the required minimum distribution (RMD) age from 72 to 75 over time, broaden automatic enrollment in retirement plans, and enhance 403(b) plans.

READ: https://waysandmeans.house.gov/?s=secure+act

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FIN PLAN: https://www.amazon.com/Comprehensive-Financial-Planning-Strategies-Advisors/dp/1482240289/ref=sr_1_1?ie=UTF8&qid=1418580820&sr=8-1&keywords=david+marcinko

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Filed under: "Ask-an-Advisor", Investing, Retirement and Benefits | Tagged: retirement planning, SECURE Act 2.0, SECURE Act 2.0 and Retirement Planning? | Leave a comment »

UPDATE: Stock Market Sentiment and Capitulation?

Posted on May 16, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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More than $11 trillion in value has been erased from global stocks since the end of March. And, despite a a pop last Friday, many analysts don’t think we’ve hit the bottom yet. Fewer than 30% of S&P companies have hit a one-year low during this downturn, compared to almost 50% during 2018’s rout and 82% during the financial crisis in 2008, according to Bloomberg.

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Capitulation means surrender. In financial markets, capitulation marks the point in time when a large enough proportion of investors simultaneously give up hopes of recouping recent losses, typically as the decline in prices gathers speed.

CITE: https://www.r2library.com/Resource/Title/082610254

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According to MarketWatch, the latest bull market for U.S. stocks remains on the brink of expiring, with the benchmark S&P 500 just shy of the threshold that marks bear territory.

Going ganular, the S&P 500 SPX, +2.39% finished 0.1% lower at 3,930.08 on Wednesday, after falling as far as 3,858.87 at its session low. That was the index’s lowest close since March 25, 2021, and left it 18.1% below its record finish from early January. A Friday bounce for stocks saw the S&P 500 nearly halve its decline for the week to 2.4%, closing at 4023.89.

In One Chart: Stock market’s ‘ultimate lows’ are still ahead as investors have not yet capitulated, says B. of A.

A finish below 3,837.25 would mark a 20% fall, according to Dow Jones Market Data, meeting the widely used technical definition of a bear market.

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Filed under: Breaking News, Glossary Terms, Investing | Tagged: capitulation, DJIA, Market Data, MarketWatch, NASDAQ, S*P, stock market capitulation, Stock Market Sentiment and Capitulation? | Leave a comment »

UPDATE: The “Market Top” or Not?

Posted on May 15, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

“Market top”= when investor behavior became so irrational, so carefree, that it couldn’t possibly defy gravity forever.

CITE: https://www.r2library.com/Resource/Title/082610254

What are the warning signs?

Here were a few floating around the internet this week, according to Neal Freyman:

When Matt Damon said, “Fortune favors the brave” in a Crypto.com commercial in October 2021. (It actually was kinda the top, because bitcoin peaked at $69,000 a few weeks later.)
When one investor went on CNBC last year to promote his investment in a lending platform called Upstart, he was asked what Upstart does. He hesitated, told the anchor his audio had cut out, and never responded.
When Dogecoin surged more than 10,000% to become the fourth most valuable cryptocurrency ahead of Elon Musk hosting SNL.
When electric vehicle startup Rivian was worth more than $110 billion and didn’t bring in any revenue.
When NFT platform OpenSea raised money at a $13.3 billion valuation—more than the value of American Airlines.

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UPDATE: Giga Cap Tech Stocks, Markets and the T Bond

Posted on May 14, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Until recently, giga-cap technology stocks like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) had large avoided the full brunt of the bear market in the NASDAQ, even as smaller companies lost 50% to 80% or more of their value.

However, over the past couple of months, some of the largest companies in the market, including Meta Platforms (NASDAQ: FB), Netflix (NASDAQ: NFLX), and Amazon.com (NASDAQ: AMZN), started to move sharply lower. Those big-name moves put a bigger dent in market capitalization-weighted benchmarks.

Broader Markets: But, the good news is that stocks surged on the best day for the NASDAQ since November 2020. The bad news is the S&P is now in its longest weekly losing streak since 2011, and the Dow’s weekly losing streak is its longest since 2001.

Ten Year T-Bond = 2.820%

CITE: https://www.r2library.com/Resource/Title/082610254

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How the “6 percent rule” can help with a pension plan payout decision

Posted on May 13, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

A general guide

[By staff reporters]

As a general guide, according to financial advisor Wes Moss, if your monthly pension check equals 6 percent or more of the lump-sum offer, then you may want to go for the perpetual monthly payment. If the number is below 6 percent, then you could do as well (or better) by taking the lump sum and investing it, and then paying yourself each year (like a personal pension that you control).

Here’s how the math works:

Take your monthly pension offer and multiply it by 12, then divide that number by the lump-sum offer.

Example 1: $1,000 a month for life beginning at age 65 or $160,000 lump sum today?

$1,000 x 12 = $12,000 divided by $160,000 equals 7.5 percent.

Here, you would have to make approximately 7.5 percent per year on the $160,000 to earn the same $12,000 a year. Earning 7.5 percent a year consistently and over many years is a tall order. Taking the monthly amount in this case (7.5 percent is greater than 6 percent) may likely be a better deal over the long haul.

Example 2: $708 a month for life or a $170,000 lump sum today?

$708 x 12 = $8,496 divided by $170,000 equals 5 percent.

In this scenario, the monthly pension amount is offering you a return for life of about 5 percent. Remember, for the first 20 years even earning zero percent, you could do the same before you run out of money. If you made even a modest return (say, 2 percent per year), you would be far ahead of what the monthly pension would pay you. In this case, 5 percent is less than the benchmark of 6 percent, so you might be better off taking the lump sum of $170,000.

When You Should Take the Lump Sum Over the Pension

Assessment

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“Insurance & Risk Management Strategies for Doctors” https://tinyurl.com/ydx9kd93

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“Business of Medical Practice 2.0” https://tinyurl.com/yb3x6wr8

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UPDATE: The IRS, Crypto, Starbucks, Tech Stocks, the COVID Toll & Bill Gates

Posted on May 13, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

It’s Friday the 13th

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The IRS destroyed data for an estimated 30 million filers in March 2021, according to the Treasury Inspector General for Tax Administration. The decision, prompted by a backlog of paper filings, has sparked anger in the tax community. “It just further damages the IRS’ reputation in the business community and in the public,” said Larry Harris, director of tax services at Parsec Financial.

More than $200 billion has been wiped off the cryptocurrency market today alone, as investors are sent into a panic. Ethereum, the world’s second largest digital currency plummeted by 20% in the space of 24 hours. Bitcoin, the original cryptocurrency started in 2009, dropped by 9%, but overall it is down 50% since its all time high in November. Chaos on the market has seen other currencies such as Shiba Inu and Dogecoin losing 30% and 25%, respectively. Meanwhile Terra Luna, which was among the top 10 most valuable cryptocurrencies had 98% of its value wiped out overnight, falling to below one dollar per coin.

Immediately after becoming the interim CEO of Starbucks (NASDAQ: SBUX), Howard Schultz suspended the company’s share-repurchase program. “This decision will allow us to invest more into our people and our stores — the only way to create long-term value for all stakeholders,” he said in a press release.

Snowflake, Meta, Microsoft and Uber — are all down from 20% to as much as 60% year to date. The technology stock sector, especially unprofitable firms and richly valued software names, have been hit the hardest as of late. The NASDAQ Composite slid more than 13% in April, dropping almost 30% from its all-time high.

CITE: https://www.r2library.com/Resource/Title/082610254

President Biden, anticipating the milestone of one million American lives lost to Covid-19, said in a formal statement on Thursday that the United States must stay committed to fighting a virus that has “forever changed” the country.

Finally, Microsoft founder Bill Gates said on Tuesday that he tested positive for COVID-19 and is experiencing mild symptoms. In a series of tweets, the billionaire shared that he was “lucky to be vaccinated” and will be isolating until he’s healthy again.

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UPDATE: Carvana, DJIA, NASDAQ, S&P, Crypto, Gasoline and the US Budget Deficit

Posted on May 12, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Carvana, the fast-growing used-car seller based in Tempe, announced its plans to lay off 2,500 employees – more than 10% of its workforce – as losses mount. The company, which operates a network of high-profile vehicle “vending machines” including one at Loop 202 and Scottsdale Road, said the move was designed to “better align staffing and expense levels with sales volumes.” Carvana reported a $506 million loss in its first quarter ending March 31st, well above red ink of $82 million during the same stretch of 2021, despite a 56% jump in revenue to $3.5 billion and a 14% increase in vehicles sold.

And, new inflation data scared some investors, who continued to dump riskier assets like cryptocurrencies amid the ongoing market selloff: The price of Bitcoin fell up to 7%, to around $29,000, according to Coin Metrics, before paring back losses. The price of the Terra (LUNA) cryptocurrency has fallen by more than 99 per cent, wiping out the fortunes of crypto investors. Terra, which ranked among the top 10 most valuable cryptocurrencies, dropped below $1 on Wednesday, having peaked close to $120 last month.

LINK: https://www.msn.com/en-us/money/markets/crypto-billionaires-vast-fortunes-are-destroyed-in-weeks/ar-AAXaijp?li=BBnb7Kz

Indices:

The Dow Jones Industrial Average fell 215 points, or 0.7%, to 31,949 after swinging between gains and losses after the opening bell.
The S&P 500 shed 46 points, or 1.2%, to 3,954.
The NASDAQ Composite fell 296 points, or 2.5%, to 11,445.

The national average for a gallon of gas surged to $4.40, the highest price recorded by AAA since it began keeping track in 2000 (though lower when adjusted for inflation than the high-water mark in July 2008, when gas was $5.36 per gallon in today’s dollars).

Finally, the US federal government’s budget deficit has shrunk by some $1.57 trillion so far this fiscal year, driven by record receipts from a strong economy and a slowdown in spending as pandemic-era programs fade.

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Filed under: Breaking News, Investing | Tagged: budget deficit, Carvana, DJIA, gasoline, NASDAQ, S&P, stock index, stock indices, US budget | Leave a comment »

BITCOIN: A Subjective Theory for Physicians

Posted on May 11, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

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By Michel Accad, MD

Michel Accad MD Practices internal medicine and cardiology in San Francisco

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In a recent article on the Mises Institute’s Power and Market blog, Kyle Ward appealed to the subjective theory of value to castigate Peter Schiff for his notorious skepticism of Bitcoin:

READ: http://alertandoriented.com/the-subjective-theory-of-bitcoin/

CITE: https://www.r2library.com/Resource/Title/082610254

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What Really is a STABLECOIN?

Posted on May 11, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

Types with Guide

By Staff Reporters

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According to Investopedia, a stablecoin is a class of cryptocurrencies that attempt to offer price stability and are backed by a reserve asset. Stablecoins have gained traction as they attempt to offer the best of both worlds—the instant processing and security or privacy of payments of cryptocurrencies, and the volatility-free stable valuations of fiat currencies.

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Stablecoins are cryptocurrencies where the price is designed to be pegged to a cryptocurrency, fiat money, or to exchange-traded commodities (such as precious metals or industrial metals).

CITE: https://www.r2library.com/Resource/Title/082610254

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Key Points

Stablecoins are cryptocurrencies that attempt to peg their market value to some external reference.
Stablecoins may be pegged to a currency like the U.S. dollar or to a commodity’s price such as gold.
Stablecoins achieve their price stability via collateralization (backing) or through algorithmic mechanisms of buying and selling the reference asset or its derivatives.

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UPDATE: Palantir, T Bonds and the CPI

Posted on May 11, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Palantir Technologies Inc., Peter Thiel’s single-biggest equity position, plummeted as much as 23% Monday after it reported widening losses and slow revenue growth. The slump erased $270 million from the value of Thiel’s stake. So far this year he’s shed 19% of his net worth, now valued at $7.4 billion, according to the Bloomberg Billionaires Index.

10 Year T-Bond: 2.987%

Economy: The Consumer Price Index report will drop this morning and give us inflation data for April.

NOTE: The CPI is a price of an index or the price of a weighted average market basket of consumer goods and services purchased by households. Changes in measured CPI track changes in prices over time.

CITATION: https://www.r2library.com/Resource/Title/0826102549

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Filed under: Alerts Sign-Up, Health Economics, Investing | Tagged: BBI, Bloomberg Billionaires Index., Consumer Price Index, CPI, Palantir, Ten Year T Bond, Thiel | Leave a comment »

UPDATE: Bitcoin and the Stock Markets!

Posted on May 10, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Bitcoin is now almost 50% off its all-time high. If bitcoin is a store of value, it certainly hasn’t proven itself yet. With bitcoin’s price falling below $30,000 for the first time since July 2021, at least 40% of bitcoin investors are underwater.

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Markets: The S&P fell below 4,000 points for the first time in more than a year as inflation concerns trampled a day down on Wall Street. Big Tech companies lost more than $1 trillion in market value over the past three trading sessions alone.

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UPDATE: US Stock Futures, Oil, T-Bonds, Tiger Global & Weekly Economic Events

Posted on May 9, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Last night, the Dow Jones Industrial Average futures lost 191 points, down 0.6%, while the S&P 500 futures declined 0.8% and NASDAQ Composite futures fell 0.9%.

Crude oil futures (West Texas Intermediate) fell 0.2%, to $109.54 a barrel.

TEN Year Bond: 3.128%

CITE: https://www.r2library.com/Resource/Title/0826102549

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Tiger Global, the hedge fund with the most investments in private billion-dollar startups, is going through one of the worst stretches of any hedge fund in history, falling 44% so far this year and 15% in April alone.

This week’s notable economic events include: On Tuesday, the National Federation of Independent Business releases its Small Business Optimism Index for April. On Wednesday, the Bureau of Labor Statistics reports the consumer price index for April. On Thursday, the BLS releases the producer price index for April, and the Department of Labor reports initial jobless claims for the week ended on May 7. On Friday, the University of Michigan releases its Consumer Sentiment Index for May.

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UPDATE: The Markets and Economy

Posted on May 7, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

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Markets: All three indexes closed lower (the Dow’s sixth-straight week) following the FOMC’s guidance on future interest rate hikes. Peloton shares fell to a record low yesterday with new CEO Barry McCarthy’s revival plan not inspiring confidence.
Economy: The April jobs report showed a labor market that continues to chug along. US employers added a more-than-expected 428,000 jobs and the unemployment rate remained low at 3.6%. The economy has recovered almost 95% of the jobs lost due to Covid pandemic.
Health Economics: https://www.r2library.com/Resource/Title/082610254

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UPDATE: The Markets, Crypto and Online Retailers

Posted on May 6, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Markets: After booming stocks had their worst day of the year because of raging inflation, slowing economic growth, and a potential recession.
Crypto: Bitcoin and other major cryptos like ethereum also tumbled in the aftermath of the FOMC announcement. They’ve typically tracked the performance of growth stocks, which have gotten hammered on the prospect of higher interest rates.

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Almost every major online retailer reporting earnings with signs of a decline:

Wayfair shares cratered nearly 26% yesterday after announcing that its active customer count dropped 23.4% from a year ago.
Bed Bath & Beyond reported an 18% nosedive in online sales.
Etsy and eBay shares both dropped by double digits yesterday after giving weak guidance for the current quarter.
At least five senior executives from Meta’s fledgling e-commerce division have fled in the last six months.
Shopify shares plummeted about 15% on Thursday after posting much lower-than-expected earnings.

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UPDATE: The FOMC, Markets and Cinco deMayo

Posted on May 5, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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FOMC: The Federal Reserve approved a rare half-percentage-point interest rate increase and announced plans to shrink its $9 trillion asset portfolio starting next month in an effort to reduce inflation that is running at a four-decade high.

Markets: Stocks boomed after Fed Chair Jerome Powell spoke. Still, JPMorgan CEO Jamie Dimon pegged the probability of a recession at 33% and a “soft landing” (lower inflation, no recession) also at 33%.

And Lyft, the ride-hailing company lost nearly 30% of its value after its profit outlook came in below forecast. Uber tried to distance itself from its ailing rival, saying that it does not need to spend money recruiting drivers like Lyft does.

Cinco deMayo commemorates the defeat of French forces by the Mexican army at the Battle of Puebla in 1862, but its popularity jumped in the 1980s, when beer companies leveraged it in aggressive marketing campaigns. Now, Cinco de Mayo is a day for celebrating Mexican culture and, interestingly, it’s now more popular in the US than in Mexico.

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PODCAST: How Modernized Self-Directed IRAs Help Democratize [Physician] Retirement

Posted on May 4, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

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In this podcast, host Dara Albright and guest, Eric Satz, Founder and CEO of Alto IRA, discuss how modern Self-Directed IRAs (SDIRAs) are democratizing retirement planning by providing all Americans with the ability to add non-correlated alternative asset classes to tax-advantaged accounts.

The single greatest – and free – investment tool is also disclosed.

***

What are the Advantages of Rolling the Money of My Retirement Plan into an IRA? - Protection Point Advisors, Inc.

Discussion highlights include:

How SDIRAs offer wealth building opportunities for “not-yet accredited investors”;
How SDIRAs have evolved to accommodate micro-sized alternative investments;
Why alternative assets belong in retirement vehicles;
Three reasons most retirement savers are underweighted in non-correlated assets;
Trading cryptocurrencies without tax consequences;
Why RIAs are looking to ALTO for clients’ crypto allocation;
How to open a cryptoIRA account.

PODCAST: https://dwealthmuse.podbean.com/e/episode-12-how-modernized-selfdirected-iras-help-democratize-retirement-1623424270/

Your comments are appreciated.

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UPDATE: “May the Fourth”, Markets and Economy be with You!

Posted on May 4, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Markets: Led by energy, stocks posted their second straight day of gains. But some see danger ahead given the FOMC raising interest rates with slowing growth [stagflation]. Hedge fund billionaire Paul Tudor Jones told CNBC, “You can’t think of a worse environment than where we are right now for financial assets.”
CITE: https://www.r2library.com/Resource/Title/0826102549
Economy: There were a record 11.5 million job openings in March. Plus, a record 4.5 million Americans quit their jobs in March—also a record.

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Filed under: Alerts Sign-Up, Glossary Terms, Health Economics, Investing | Tagged: CNBC, FOMC, inflation, Paul Tudor Jones, stagflation | Leave a comment »

UPDATE: The Markets, T-Bonds and Economy

Posted on May 3, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

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By Staff Reporters

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Markets: Stocks rallied very late in the day to close in the positive green. It may be the start of a turnaround or just a rest before they resume their decline.
Bonds: Over in the bond market, the yield on the 10-year Treasury note touched 3% for the first time since 2018, continuing an upward trend that coincides with the Fed’s move to raise interest rates and shrink its balance sheet.
Economy: The US economy is projected to recover all of the 22 million jobs it lost at the beginning of COVID by this summer, according to Fitch Ratings. Back in the fall of 2020, Moody’s warned that the US wouldn’t recoup all of those jobs until 2024.

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CITE: https://www.r2library.com/Resource/Title/082610254

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Filed under: Alerts Sign-Up, Glossary Terms, Investing | Tagged: covid, economy, jobs, markets, T-bonds | Leave a comment »

PODCAST: The TENDER OFFER?

Posted on May 2, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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DEFINITION: In corporate finance, a tender offer is a type of public takeover bid. The tender offer is a public, open offer or invitation (usually announced in a newspaper advertisement) by a prospective acquirer to all stockholders of a publicly traded corporation (the target corporation) to tender their stock for sale at a specified price during a specified time, subject to the tendering of a minimum and maximum number of shares.

In a tender offer, the bidder contacts shareholders directly; the directors of the company may or may not have endorsed the tender offer proposal.

CITE: https://www.r2library.com/Resource/Title/0826102549

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PODCAST: https://www.youtube.com/watch?v=wLaiOoVm99Q

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UPDATE: The Domestic GDP, Bond Yield Surge and Stock Market Volatility [VIX]

Posted on May 1, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

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By Staff Reporters

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The U.S. economy reversed course in this year’s first quarter, when it shrank at an annual rate of 1.4% after posting full-year growth of 5.7% in 2021. While many economists believe the first-quarter setback was temporary, it marked the worst quarterly GDP result since the second quarter of 2020, when the pandemic triggered a brief recession.

And, despite a relatively flat result in the latest week, the yield of the 10-year U.S. Treasury bond jumped in March and April, climbing from 1.83% at the start of that two-month period to around 2.89% on Friday. Rising interest rates have eroded bond prices, pushing yields higher.

Finally, the stock market’s relative calm in the first half of April was fleeting, as the past two weeks produced a 47% jump in an index that measures investors’ expectations of short-term volatility. The CBOE Volatility Indexꟷalso known as the VIXꟷrose to an index level of 33.4 on Friday, up from 22.7 on April 15.

CITE: https://www.r2library.com/Resource/Title/082610254

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Filed under: Breaking News, Investing | Tagged: bond yields, bonds, CBOE, FOMC, GDP, inflation, U.S. Treasury, VIX, volatility | Leave a comment »

UPDATE: Domestic Stock Indices and SCM

Posted on April 30, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

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By Staff Reporters

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DEFINITION:

In finance, a stock index, or stock market index, is an index that measures a stock market, or a subset of the stock market, that helps investors compare current stock price levels with past prices to calculate market performance.

CITE: https://www.r2library.com/Resource/Title/082610254

How did domestic stock indexes perform?

The Dow Jones Industrial Average DJIA, -2.77% dropped 939.18 points, or 2.8%, to close at 32,977.21.
The S&P 500 SPX, -3.63% dropped 155.57 points, or 3.6%, to finish at 4,131.93, re-entering correction territory.
The NASDAQ Composite COMP, -4.17% shed 536.89 points, or 4.2%, to end at 12,334.64.

Ironically, on Thursday, the Dow rose 614.46 points, or 1.9%, while the S&P 500 gained 2.5% and the NASDAQ Composite jumped 3.1%. The Dow and S&P 500 marked their best daily percentage climbs since March 9, while the NASDAQ saw its best day since March 16th, according to Dow Jones Market Data.

For the week, the Dow dropped 2.5%, the S&P 500 slumped 3.3% and the tech-laden NASDAQ lost 3.9%. In April, the Dow fell 4.9%, the S&P 500 tumbled 8.8% and the NASDAQ plunged 13.3%.

SCM: Supply chain bottlenecks are still stinging corporate giants. With China locking down cities at the first trace of Covid, American companies whose products are made in Chinese factories aren’t able to fulfill orders. Apple said Thursday that it would face up to $8 billion in losses due to restrictions in Shanghai.

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UPDATE: Big Tech Stocks and Teladoc!

Posted on April 29, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

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By Staff Reporters

The Big Tech earnings boom is officially over, but some of the world’s most powerful and valuable companies are breaking off from the pack.

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According to MarketWatch, profit increases are no longer a given for Big Tech. Collectively, Alphabet Inc. GOOGL, +3.70% GOOG, +3.82%, Amazon.com Inc. AMZN, +4.65%, Apple Inc. AAPL, +4.52%, Meta Platforms Inc. FB, +17.59% and Microsoft Corp. MSFT, +2.26% saw profit fall more than 17% year-over-year in the first quarter in earnings reports delivered this week, as they lapped the end of a pandemic boom that brought record results. But only three of the five actually saw earnings decrease individually, as Amazon’s surprising loss swayed the collective results.

But, it wasn’t good for the company Teladoc, which is one of investor Cathie Wood’s biggest holdings. Teladoc plunged 40% on a gloomy forecast. The pandemic winner is now down nearly 90% from its high in February 2021.

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UPDATE: The Markets and Energy

Posted on April 28, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Markets: The NASDAQ stayed flat at its lowest level this year. Spotify shares sank to a record low. Facebook is having a rough go, but it’s not the only one. Netflix stock plunged nearly 70% this year after hitting a ceiling on subscriber growth. At one point, it was worth more than Disney; now, it’s not even half as valuable. Even Google is googling “ways to make more money.” Its parent company, Alphabet, reported a slowdown in growth last quarter because, like Facebook, YouTube’s also being been dinged by TikTok and Apple’s privacy changes: The video platform’s revenue came in more than $500 million below expectations.

Energy: Russia’s halted oil shipments to Poland and Bulgaria yesterday.

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UPDATE: The Stock Markets and Dow – Now!

Posted on April 27, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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The Dow Jones Industrial Average fell 809 points, or 2.4 percent today, as investors sold stock amidst concerns of coming recession.

The Dow faced a significant decline since trading opened. By the market’s close, it had reached one of its lowest closing values in the past year. Similar declines were observed on other market indices – including the S&P 500, which fell by 2.8 percent, and the NASDAQ Composite (comprising technology company stock), which lost 4 percent of its value.

The BEAR: https://medicalexecutivepost.com/2022/02/01/doctors-and-bull-and-bear-markets/

The National Review and most experts ascribed the loss to stocks by big technology companies, whose increases in value have come to represent a sizeable portion of market indices. Alphabet, Apple, Microsoft, and Twitter all declined by several points. Each of these companies was due to present earnings reports after the close of trading, which investors did not expect to bode well.

Alphabet, in particular, announced slower sales growth and a drop in earnings from ad-revenue on Google and its other platforms. Netflix, which reported a decline in subscribers on Friday, had previously experienced a 30 percent decline in its stock price amounting to a loss of $54 billion.

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UPDATE: On Crypto-Currency and Elon Musk’s Twitter

Posted on April 26, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Dogecoin jumped more than 17% Monday following several reports that Twitter is poised to accept Elon Musk’s $43 billion bid, with the potential for the two parties to finalize a deal as soon as Monday. The meme token DOGEUSD, -3.99% gained 14% over the past 24 hours, trading at around $0.15, according to CoinDesk data. Still, it is down about 80% from its all-time high in May 2021.

Bitcoin BTCUSD, 0.88% was trading 0.02% lower from 24 hours ago to around $39,407. Ether ETHUSD, 0.22% was trading at around $2,928, up 0.1%, according to CoinDesk data.

And, after Musk, chief executive at Tesla TSLA, -0.70%, made a bid on April 14 to buy the remainder of Twitter TWTR, +5.66% stock that he didn’t already own at $54.20 per share without saying how he would pay for it, the social media giant’s board had been expected to reject Musk’s offer, as it adopted a so-called “poison pill” plan. However, the company took a dramatic turn after Musk said last week he lined up $46.5 billion in financing, The Wall Street Journal reported. Deal later done!

MORE: https://www.msn.com/en-us/money/companies/twitter-locks-down-product-changes-after-agreeing-to-musk-bid/ar-AAWAqJ7?li=BBnb7Kz

According to MarketWatch, Dogecoin supporters are hoping that Musk, the long-time backer for the Shiba Inu-themed token, could boost its usage after he takes over the social media platform.

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Filed under: Alerts Sign-Up, Glossary Terms, Investing | Tagged: dogecoin, MarketWatch, musk, Shiba, Tesla, twitter, Wall Street Journal | Leave a comment »

UPDATE: Battered Stocks, the FOMC & CBOE Volatility Index

Posted on April 25, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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After last week’s sharp decline, the S&P is down 5.7% so far in April and is on track for its worst monthly drop since March 2020, when the spreading COVID-19 pandemic blasted stocks.

And, battered U.S. stocks are facing a potentially painful stretch in the weeks ahead as hawkish Federal Reserve policy, rising bond yields, geopolitical uncertainty and the corporate earnings season fuel investor unease. For example:

REPORTING COMPANIES:

Monday: Germany business climate; Earnings from PepsiCo and Whirlpool

Tuesday: US consumer confidence; Earnings from 3M, General Electric, JetBlue, UPS, Warner Bros. Discovery, Alphabet, General Motors, Mondelez, Microsoft and Visa

Wednesday: Earnings from Boeing, Harley-Davidson, Kraft Heinz, Spotify, Ford Motor, Mattel, Meta and PayPal

Thursday: Bank of Japan policy decision; US first quarter GDP; Earnings from Caterpillar, Altria, Domino’s Pizza, Mastercard, Twitter, Amazon, Apple, Intel, Roku and Robinhood

Friday: Europe first quarter GDP and inflation data; US personal income and spending data; PCE Price Index; Earnings from ExxonMobil and Chevron

One measure of investor anxiety, the CBOE Volatility Index, known as Wall Street’s fear gauge, on Friday notched its largest one-day gain in about five months to close at a five-week high of 28.21.

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Filed under: Alerts Sign-Up, Glossary Terms, Investing | Tagged: CBOE, Covid-19, Federal Reserve, pandemic, S&P, Volatility Index | 1 Comment »

PODCAST: The War and Your Finances?

Posted on April 25, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Morning Brew

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An event like the Russia-Ukraine war creates ripple effects throughout the financial markets, in sometimes surprising ways. In this episode of Brew Breakdown, they explain how geopolitics affect the global market and point out what you can look out for when it comes to your stock portfolio during times of uncertainty.

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Filed under: Breaking News, Investing, Videos | Tagged: Brew Breakdown, Finances, Financial Markets, global markets, Morning Brew, Russia, Ukraine, War Finances | Leave a comment »

INDEX: Fear & Greed

Posted on April 23, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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What a week in the world’s financial markets? It is perfect timing for this ME-P.

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It is useful to look at stock market levels compared to where they’ve been over the past few months. When the S&P 500 is above its moving or rolling average of the prior 125 trading days, that’s a sign of positive momentum. But if the index is below this average, it shows investors are getting skittish.

The Fear & Greed Index uses slowing momentum as a signal for Fear and a growing momentum for Greed.

But, a few big stocks can skew returns for the market. So, it’s important to also know how many stocks are doing well versus those that are struggling.

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https://medicalexecutivepost.com/2022/04/14/dictionary-health-economics-and-finance-2/

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Filed under: Ethics, Health Economics, Investing | Tagged: fear, fear greed index, fear index, greed, greed index | Leave a comment »

UPDATE: Stocks Crash, Crypto’s are Flat and the Ukrainian Bitcoin and Chinese Yuan Decline

Posted on April 23, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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US stocks plunged yesterday with the Dow Jones falling nearly 1,000 points as investors grappled with new comments from Fed Chair Jerome Powell that indicate bigger interest rate hikes ahead.

For the week, the Dow finished down 1.85%, the S&P 500 tumbled 2.7%, and the NASDAQ crashed 3.8%. The Dow Jones marked its fourth consecutive weekly decline, while the S&P 500 and NASDAQ 100 registered their third straight weekly drops.

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Despite the bearishness in the stock market, first-quarter corporate earnings continue to beat analyst estimates on both the top and bottom lines. According to data from Fundstrat, of the 95 companies that have reported so far, or 19% of the S&P 500, results are beating profit estimates by a median of 6%. Meanwhile, revenue estimates have been beating by a median of 3%.

Cryptocurrencies continue to trade in a sideways range as bitcoin remains in a bear market. These were the five best performing cryptos over the past week.

Ukraine announced limits on bitcoin purchases Friday to protect against capital flight as Russia’s war on the country pushes into a third month. The National Bank of Ukraine is banning bitcoin purchases made with the hyrvnia and is capping purchases made with foreign currencies at $3,300 a month.

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China’s yuan was on track for its worst weekly drop since 2015 on Friday, as investors rushed back to the US. The offshore yuan, or renminbi, had fallen 2.4% over the week to 6.53 per dollar, according to Bloomberg data.

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Filed under: Alerts Sign-Up, Investing | Tagged: China, cryptocurrency, DJIA, Fundstrat, NASDAQ, renminbi, S&P 500, S&P 500 Index, Ukraine, yuan | Leave a comment »

UPDATE: “Earth Day” on Stock Markets, Bond Yields & China

Posted on April 22, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Stocks fell as investors monitor a steady stream of corporate earnings against a backdrop of elevated inflation and further Fed policy tightening.

CITE: https://www.r2library.com/Resource/Title/082610254

The S&P 500 dropped and erased earlier gains. The Dow Jones Industrial Average also turned lower. The NASDAQ fell more than 2% and extended losses when the tech-heavy index was weighed down by a slide in Netflix. Meanwhile, Tesla (TSLA) shares rose after the electric vehicle-maker handily exceeded expectations in its fiscal first-quarter results.

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Treasury bond yields climbed after Federal Reserve Chair Jerome Powell suggested the case for front-loading interest rate hikes with 50 basis-point increases in order to quickly address persistent inflationary pressures. San Francisco Federal Reserve President Mary Daly also suggested in an interview with Yahoo Finance that she would back a larger-than-typical 50 basis point interest rate hike following the Fed’s May meeting given current price pressures.

China: The nation’s securities regulator issued investor guidance for the country’s giant social security fund, just as the benchmark CSI 300 Index was heading toward the lowest level since June 2020.

HAPPY EARTH DAY 2022!

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Filed under: Alerts Sign-Up, Glossary Terms, Investing | Tagged: bond yields, bonds, China, CSI 300 Index, DJIA, Earth Day, Jerome Powell, Mary Daly, NASDAQ, Netflix, S&P, Tesla, Treasury yields | Leave a comment »

PODCAST: The BLANK CHECK Company?

Posted on April 21, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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DEFINITION: A blank check company is a development stage company that has no specific business plan or purpose or has indicated its business plan is to engage in a merger or acquisition with an unidentified company or companies, other entity, or person.

CITE: https://www.r2library.com/Resource/Title/082610254

Blank check companies are speculative in nature and are bound by Securities and Exchange Commission Rule 419 to protect investors.

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SPAC: https://medicalexecutivepost.com/2021/10/28/spac-v-direct-listing-v-ipo/

PUBLIC SPACS: https://stockmarketmba.com/listofcompaniesthathavemergedwithaspac.php

PODCAST: https://www.youtube.com/watch?v=OnYRxHuI10Q

***

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Filed under: "Ask-an-Advisor", Glossary Terms, Investing, Videos | Tagged: Blank Check Company, development stage company, IPO, SEC, Securities Exchange Commission, SPAC, SPACs, special purpose acquisition companies | Leave a comment »

UPDATE: The Markets, COVID and Home Prices

Posted on April 21, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Markets: Yesterday was a tale of two markets. The Dow, which is home to blue-chip corporations like P&G, gained, while the NASDAQ, comprised of tech stocks, fell. Netflix is now the worst performing stock in the S&P this year.
Covid: The DOJ appealed a judge’s ruling that overturned a federal mask mandate for transportation. The move came at the suggestion of the CDC, which determined that people should still wear masks in indoor public transportation settings.
Homes: The median existing-home price in the US hit an all-time high of $375,300 in March, up 15% from the year before. With surging mortgage rates and higher home prices, the average borrower is paying ~38% more than they would have for the same home a year ago, according to Realtor.com.

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Filed under: Investing | Tagged: CDC, covid, DOJ, home prices, home purchases, home sales, NASDAQ, S&P | Leave a comment »

UPDATE: Student Debt and the Up Markets

Posted on April 20, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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DEBT: At least 40,000 borrowers will now qualify for immediate debt cancellation under the Public Service Loan Forgiveness (PSLF) Program. This program eliminates the debts of government and nonprofit workers, such as teachers, health care workers, and military members, after 10 years of qualifying loan payments.

MARKETS:

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Filed under: Alerts Sign-Up, Career Development, Investing | Tagged: NASDAQ, PSLF, Public Service Loan Forgiveness, S&P, student debt | Leave a comment »

UPDATE: The Markets and Commodity Prices

Posted on April 19, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Markets: Stocks dipped to start off the week without many market-moving developments. Twitter’s use of a “poison pill” to prevent Elon Musk from taking over the company was a hit with investors, who sent shares soaring yesterday. The company’s stock is up more than 23% since Musk revealed he owned a 9.2% stake.

Commodities: Prices up. Corn hit a nine-year high in part due to the war in Ukraine, while US natural gas prices reached their highest level in 13 years ahead of an unusual April snowstorm hitting the Northeast. Natural gas prices have more than doubled so far this year.

***

Filed under: Alerts Sign-Up, Investing | Tagged: commodities, corn, DJIA, gas, NASDAQ, oil, S&P | Leave a comment »

UPDATE: Winners, Bonds, Inflation and Covid-19

Posted on April 18, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Winners: While the broader S&P 500 fell in April, the health care, utilities, consumer staples, and real estate sectors have all gained.

Bonds: The 40-year bull market in bonds could be on its last legs as interest rates continue to rise as higher interest rates often translate into lower stock prices. Now the widely-followed 10-year US Treasury yield is pushing against its 40-year downtrend line that starts with the 1981 peak in interest rates of 15.81%.

Ten Year Treasury bond: 2.843%

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If the 10-year US Treasury yield decisively breaks above its 40-year downtrend, that could be seen as the start of a new uptrend, which would mean a continued rise in interest rates and ongoing pressure on stock prices.

But if the 10-year yield gets firmly rejected at the downward sloping trend line, one could expect a continuation of lower interest rates for longer, which could help boost valuations for risk assets and drive stock prices higher.

Covid-19: Cases are rising in more than half of all states due to the new coronavirus subvariant, but White House Covid-19 advisor Dr. Ashish Jha said Sunday the vaccines are still “holding up” against the virus and the new strain does not cause more severe infection.

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Filed under: Alerts Sign-Up, Glossary Terms, Investing | Tagged: Ashish Jha, bonds, Covid-19, inflation, S&P 500, US treasury yields | Leave a comment »

Stress Testing your Investment Portfolio

Posted on April 17, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

What is Your Risk Number?

[By David Gratke]

Are your current investments aligned with YOUR investment goals and expectations in 2022?

As we all know, the global financial markets have responded tremendously to the past seven years of Global Central Bank monetary polices. i.e. asset prices, stocks, bonds and real estate have all gone up in price as a result. But now, we have the pandemic and Ukraine war to consider.

So, when have you last ‘stress-tested’ your portfolio to see how durable it may through various market cycles? And, how do you determine if your current investment holdings are right for you? Maybe they are too conservative, or just the opposite, still too aggressive? Maybe they are right where they need to be, but how do you know, how do you measure that?

Capture you Risk Tolerance
See if your portfolio fits you.
OK, How do I Start?

By simply answering a few questions, and spending 10 minutes of your time, based upon the size of your investment portfolio, you will quickly determine your own tolerance for risk.

Comparing your Risk Number to your Portfolio

Now that you have calculated your Risk Number, how does that number compare to your actual portfolio holdings? Is the portfolio you have today, the one you started with some time ago regarding risk and return? Is it still in alignment with your original expectations?

Does your portfolio have?

Too much risk?
Is it too conservative?
Or, is it just right
What if the market drops significantly? Instead, what if the market goes up significantly? See how your current portfolio will fair in any one of these market conditions:
Let’s put your portfolio onto the treadmill; just like the doctor’s office.
How do you know, how do you measure?

Let’s Stress Test your Portfolio

Bull Market (Prices generally rise)
Bear Market (Prices generally fall)
Financial Crisis
Rising Interest Rates

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Are the results in alignment with your expectations?
Any ‘hot spots’ you need to know about?
Are there any individual holdings that will cause you loss of sleep over?
Maybe investments don’t generate enough income?
Maybe investments fluctuate too much in price?
Now you can have a look and see if there are any ‘hot spots’ where you may need to re-balance a portion of your holdings based upon these findings.

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Yes! That feels like me

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Congratulations. Once you have determined your Risk Number, and perhaps re-aligned your current portfolio to your Risk Number, then yes, you DO have the portfolio that is right for you, one that ‘feels like you’.

ABOUT

David Gratke is chief executive officer of Gratke Wealth LLC in Beaverton, Ore. A Registered Investment Advisory Firm.

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Conclusion

Your thoughts and comments on this ME-P are appreciated. How does the current market tumult affect this ME-P or your own investing strategy? Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.

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“Physicians who don’t understand modern risk management, insurance, business and asset protection principles are sitting ducks waiting to be taken advantage of by unscrupulous insurance agents and financial advisors; and even their own prospective employers or partners. This comprehensive volume from Dr. David Marcinko, and his co-authors, will go a long way toward educating physicians on these critical subjects that were never taught in medical school or residency training.”

Dr. James M. Dahle MD FACEP [Editor of The White Coat Investor, Salt Lake City, Utah]

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USA “With time at a premium, and so much vital information packed into one well organized resource, this comprehensive textbook should be on the desk of everyone serving in the healthcare ecosystem. The time you spend reading this frank and compelling book will be richly rewarded.”

Dr. J. Wesley Boyd MD PhD MA [Harvard Medical School, Boston, Massachusetts, USA]

Filed under: Investing, Portfolio Management, Research & Development, Retirement and Benefits, Risk Management | Tagged: David Gratke, Global Central Bank, Risk Number | 1 Comment »

UPDATE: Happy EASTER SUNDAY & Happy PASSOVER

Posted on April 17, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Russia: Shut its stock market all week in a bid to curb panic-selling after the invasion of Ukraine. The ruble cratered to trade below 1 cent as Western sanctions effectively weaponized the financial system.

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CITE: https://www.r2library.com/Resource/Title/082610254

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Filed under: Alerts Sign-Up, iMBA, Inc., Investing | Tagged: Easter, passover, ruble, Russia | Leave a comment »

UPDATE: Carbon Removal Investing & Funding

Posted on April 16, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Corporate funding: Earlier this week, Stripe, Alphabet, Shopify, Meta, and McKinsey Sustainability announced they would spend a collective $925 million over the next nine years on permanent carbon removal. They created Frontier, an advanced market commitment that will work to ensure future demand by enabling large organizations to purchase high-quality carbon removal from startups developing promising technology.

On Frontier’s website, its founders say they want to send a “strong demand signal” to the industry and help accelerate the increase in the supply of CO2 removal.

Policy moves: Following the release of the IPCC report, Reps. Paul Tonko (D-NY) and Scott Peters (D-Calif.) introduced legislation in Congress that would provide federal support for CDR tech.

The bill would require the US Department of Energy (DOE) to remove an increasing amount of CO2 each year and invest in smaller CDR projects and emerging carbon removal technologies.
The New York Legislature introduced a bill with a similar aim earlier this year. The Carbon Dioxide Removal Leadership Act would direct the state to purchase at least 10,000 tonnes of CO2 removal in 2024 and then double that target each following year for a five-year period.

Venture capital: Direct air-capture startup Climeworks raised $650 million earlier this month—the largest round ever for a CDR company. The Swiss startup operates the world’s largest DAC plant in Iceland, which can pull about 4,000 tonnes of CO2 out of the atmosphere each year.

NOTE: The markets were closed yesterday Good Friday April 15th, 2022. But, according to a Bank of America survey, 71% of investors expect a weaker economy over the next 12 months—the highest share on record. Plus, 64% think the S&P will drop 10% before it tops 5,000 points (it’s at 4,392.59 currently). The ten year US T-bond finished at 2.830%.

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Filed under: Alerts Sign-Up, Ethics, Investing | Tagged: Alphabet, Bank America, carbon, carbon dioxide, Carbon Dioxide Removal Act, carbon removal, CDR, Climeworks, CO2, DAC, Department Energy, DOE, McKinsey Sustainability, Meta, shopify, Stripe | Leave a comment »

UPDATE: Holiday Weekend Investing?

Posted on April 15, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Investors are about to embark on a three-day (or three-and-a-half-day) holiday weekend.

The stock market is closed on Friday, April 15, 2022 – Good Friday, as well as the start of Passover this year – ahead of the Easter Sunday holiday, which falls on April 17th. As a result, no major earnings are scheduled for Good Friday.

However, bond traders will enjoy not just a full Friday off, but also had a partial trading day Thursday. The bond markets shut down early, at 2 p.m., for Maundy Thursday. Stock and bond trading resume at their normal hours on Monday, the day after Easter Sunday.

Markets: But, all three major indexes posted a losing week as investors weighed solid Q1 earnings against threats like inflation and the war in Ukraine … with the threats getting more attention. But there’s nothing like a three-day weekend for a reset.
CITE: https://www.r2library.com/Resource/Title/082610254
Corona: A Pfizer-BioNTech booster shot boosts immunity against Covid in ages 5–11, the companies said yesterday.

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Filed under: Breaking News, Investing | Tagged: corona, Easter, Good Friday, Holiday Weekend Investing?, inflation, Maundy, Ukraine | Leave a comment »

UPDATE: One NFT, Bonds and the Stock Markets

Posted on April 14, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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One NFT: In March 2021, a crypto-currency entrepreneur bought an NFT of Twitter founder Jack Dorsey’s first tweet for $2.9 million. Last week he listed it for $48 million, promising to donate half of the proceeds to charity. But when the auction closed yesterday, the top bid was just … $277.

DEFINITION: NFT stands for non-fungible token. It’s generally built using the same kind of programming as cryptocurrency, like Bitcoin or Ethereum, but that’s where the similarity ends. Physical money and cryptocurrencies are “fungible,” meaning they can be traded or exchanged for one another.

Ten Year Bond Yield: 2.701%

Markets: The S&P and NASDAQ snapped their three-day losing streaks, and airline shares boomed after Delta said it would report a Q2 profit. And, Peloton’s shares are down nearly 30% this year and have lost virtually all of their pandemic gains.

JPMorgan’s profit dropped 42% last quarter and it wrote down almost $1.5 billion in assets it linked to the war in Ukraine and inflation.

CITE: https://www.r2library.com/Resource/Title/082610254

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Filed under: Alerts Sign-Up, Glossary Terms, Information Technology, Investing | Tagged: Bitcoin, Delta, DJIA, Jack Dorsey, JBMorgan, NASDAQ, NFT, Non Fungible Tokens, Peloton, S&P, twitter | Leave a comment »

RATE OF RETURN [RoR]: Investments 2022?

Posted on April 14, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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DEFINITION: A rate of return (RoR) is the net gain or loss of an investment over a specified time period, expressed as a percentage of the investment’s initial cost. When calculating the rate of return, you are determining the percentage change from the beginning of the period until the end.

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And so, according to Greg McBride CFA, before you invest your money, you’re likely wondering how much you’re going to earn. This is known as the rate of return. The rate of return is expressed as a percentage of the total amount you invested. If you invest $1,000 and get back your original investment plus an additional $100 in interest, you’ve earned a 10 percent return.

CITE: https://www.r2library.com/Resource/Title/082610254

However, numbers don’t always tell the full story. You’ll also need to think about how long you plan to keep the money invested, how your investment options have performed historically and how inflation will impact your bottom line.

Key return on investment statistics

When you’re trying to get the best return on your investment, you’ll likely start combing through loads of data. A good place to start is looking at the past decade of returns on some of the most common investments:

Average annual return on stocks: 16.63%
Average annual return on international stocks: 7.39%
Average annual return on bonds: 3.05%
Average annual return on gold: -0.21%
Average annual return on real estate: 11.72%
Average annual return on CDs: 0.40%

CD rate data is from internal Bankrate averages.

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ECONOMICS: https://www.msn.com/en-us/money/realestate/from-real-estate-to-inflation-heres-what-to-expect-from-the-economy-in-2022/ar-AASbBHN?li=BBnb7Kz

MARKETS: https://www.msn.com/en-us/money/markets/stock-market-outlook-were-going-to-get-an-explosion-to-the-upside-in-january-strategist-says/vi-AASbBih

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Filed under: Experts Invited, iMBA, Inc., Investing | Tagged: Bankrate, Greg McBride CFA, Investing, investment statistics, rate of return, rate return, ROR | Leave a comment »

The STEP-UP In Investment Value?

Posted on April 13, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

Understanding the TAX loophole of a ‘step up’ in BASIS value

By Dr. David E. Marcinko MBA CMP®

SPONSOR: http://www.CertifiedMedicalPlanner.org

The term “step-up” refers to the difference in value and tax liability that an asset has when it is acquired and when it is transferred to an inheritor.

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CITE: https://www.r2library.com/Resource/Title/0826102549

EXAMPLE #2: The proverbial millionaire Doctor Joe, for example, could buy a home for $350,000 and sell it for $1 million, after which he’d pay taxes on the $650,000 gain. But if Dr. Joe passes the home onto his daughter Ella, and she has it appraised at $1 million, its value has taken a “step up” in value to $1 million. If Ella sells the home for $1 million or less, she wouldn’t owe anything in taxes.

ASSESSMENT: For billionaires like Jeff Bezos, Bill Gates and Elon Musk who earn far more through their investments than their salaries, this loophole is a perfect way to shield their wealth. Intergenerational wealth has contributed to surging inequality in America, which grew wider during the pandemic. Since 2019, the wealth of the top 400 richest people in the US increased by $1.4 trillion, per research from Gabriel Zucman and Emmanuel Saez, a pair of left-leaning economists at the University of California, Berkeley.

“Often, for these people, wealth accumulates tax-free their entire lives,” Frank Clemente, executive director at the left-leaning advocacy group Americans for Tax Fairness, opined. President Joe Biden proposed ending this loophole and making billionaires “pay their fair share,” so why does it look like his party won’t touch it?

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Filed under: Accounting, Experts Invited, Investing, Taxation | Tagged: accounting basis, David Edward Marcinko, investment basis, politics, step-up basis, tax basis | 1 Comment »

UPDATE: The Markets and Money

Posted on April 13, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Markets: Stocks blew a lead in the afternoon for the NASDAQ’s and S&P’s third straight losing session. Blame a red-hot inflation report that took another bite out of stocks.

CITE: https://www.r2library.com/Resource/Title/082610254

DIGITS: Money is about to enter a new era of competition and digital technology is poised to change our relationship with money and, for some countries, the ability to manage their economies.

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Filed under: Alerts Sign-Up, Glossary Terms, Information Technology, Investing | Tagged: Bitcoin, digital money, DJIA, inflation, NASDAQ, S&P | Leave a comment »

COVID, Inflation and Value Investing [Millennial Interview]

Posted on April 12, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

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By Vitaliy Katsenelson CFA

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COVID, Inflation, and Value Investing: Millennial Investing Interview

I was recently interviewed by Millennial Investors podcast. They sent me questions ahead of time that they wanted to ask me “on the air”. I found some of the questions very interesting and wanted to explore deeper. Thus, I ended up writing answers to them (I think through writing). You can listen to the podcast here.

By the way, I often get asked how I find time to write. Do I even do investment research? Considering how much content I’ve been spewing out lately, I can understand these questions. In short – I write two hours a day, early in the morning (usually from 5–7am), every single day. I don’t have time-draining hobbies like golf. I rarely watch sports. I have a great team at IMA, and I delegate a lot. I spend the bulk of my day on research because I love doing it.

This is not the first time I was asked these questions. If you’d like to adapt some of my daily hacks in your life, read this essay.

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CITE: https://www.r2library.com/Resource/Title/082610254

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Filed under: Experts Invited, Glossary Terms, Interviews, Investing | Tagged: covid, covid value investing, inflation, Millennial Investing, Millennial Investors, value investing, value stocks, Vitaliy Katsenelson CFA | Leave a comment »

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