Random Thoughts for a Monday
Here are random thoughts from last week's headlines:
What does Warren Buffett think of the Stock Market?
I think that everyone will agree that Warren Buffett will go down in history as one of the greatest investors of all time. What is he doing these days? He is holding 111 billion dollars in cash which is the most in his company's history. Should we take notice when the king of investing would rather hold cash then invest it? Yes, apparently Mr. Buffett is concerned about the market as well as he should be.
Happy Birthday Social Security
Too bad you are won't live to see my retirement.
Social Security Day is Aug. 14, marking that day in 1935 when the Social Security Act was signed into law.
The system is projected to be able to pay only 75 percent of benefits starting in 2035, when the Social Security trust fund will deplete its reserves, according to estimates by the Social Security Administration.
“Previous generations could rely on company pension plans, which are declining in number, and Social Security, which is experiencing deficits that threaten its future existence," says Mark Henry, an estate planner, investment advisor and founder/CEO of Alloy Wealth Management (www.alloywealth.com).
What are the chances that the politicians will fix social security? What could possibly go wrong that the people who broke the system can fix it?
JP Morgan's Jamie Dimon is Conflicted
JP Morgan's head guy Jamie Dimon says that interest rates will increase to 5% and that there is a recession on the horizon. So, he must think we are in for a bear market as well. No, he sees the bull market continuing for 2 to 3 more years. He is speaking out of both sides of his mouth. As an analyst and market watcher he is being realistic with his market predictions. As a CEO who only makes money in bull markets, he is being very unrealistic that the bull market can coexist with his first two predictions becoming reality.
Investors are Dumping Winners
This article talks about the top investments that investors are selling and getting out of. Since most average investors never sell for strategic reasons, this list leaves you scratching your head. For instance, take the 5th investment on the list. This mutual fund is up 16% (according to the article) year to date. Investors are selling it?