That Was The Week That Was-3rd Week June

  Off for 3 Days Last Week… stuff I was reading, and listening to, while on the road…

Consequences of Iraq in the hands of extremists:   Martin D. Weiss, Ph.D., wrote an article in his Money and Markets (6/14) on not underestimating the consequences of Iraq falling. It’s a huge country where the U.S.has spent close to $800 billion in country and another trillion dollars in war-related veterans benefits, plus trillions more in interest and other costs. According to a Brown University study we’ve spent close to $6 trillion dollars. China is also vitally dependant on oil produced by Iraq. A disruption could be damaging to their economic recovery. These are world changing events, Weiss writes,  happening so quickly that we could see an almost immediate inflation spike and global market recession.  The worst is that the current administration seems to have no policy or contingency for this situation. Iraq could be splintered into three countries. One a terrorist nation.

We’re overdue for a correction?

S&P 500 Chart from The Reformed Broker. Source Bloomberg/Morningstar.

The Morningstar 2014 Conference Didn’t Lack for Topics of Conversation. The one I thought most interesting was that investment managers are ‘pessimistic’ about the direction of rate and stretched valuations, especially in credit-oriented investments while there is no shortage of fixed investment buyers. Retail investors are still clamoring for ‘bonds’. Morningstar’s post 6/19 on the conference noted that it is getting extremely difficult for a manager to stay close to a ‘benchmark’ and still generate a positive absolute return in a low-interest environment.

Stocks Moved Up for The Week. Buoyed by the Federal Reserve global securities rose to records last week. Bloomberg 6/21, reported, confidence that central bank policies will spur economic growth and a valuation call by the Fed Chair sent global equities rallying for the week, with benchmark indexes in the U.S. and Canada climbing to all-time highs.

Finally: Traveling outside major metro areas at one time was especially enjoyable when listening to various ‘Tradio’ shows.  Remember ‘Tradio’? In rural, small towns the local radio stations opened their shows with listeners  calling in and trading junk they owned for junk they wanted. The radio host was there to simply get a proper description of what was being offered and move things along. As you drove the highway and the radio signal faded you always wondered if Joe got his chicken coop roof, Ed make the trade for a used tractor tire, or Martha Sue get someone to pick up the old Kelvinator? It was wildly fun, but sadly no more. Now it’s all the same from here to the Bridge. Small town radio with big city sounds, and that’s the shame.

Questions call Paul @ 586 295 0430 or write him at pstanley@westminsterfinancial.com. Share this blog with someone who cares about their money.

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