Full Show 9 - 20 - 17

Full Show 9 - 20 - 17 by The Financial Exchange

01:38:45

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This is the financial exchange with the very Armstrong and chunks of you're exclusive look at business and financial news affecting your day your city your world. Stay informed and up today about economic and market trends plus get breaking business news every day. And now the financial exchange with the Barry Armstrong and chuck Exxon. In the year torn fourteen we were paying an average price of 85 dollars per barrel for oil. Prices have come down and their continues to be downside pressure on oil prices hi everybody it's very and chuck with you here. It's a Wednesday morning. And some of again at eight I I would back an idea for just for kicks in vehicle struck I was looking it. The average price per year for well over the last 2030 years source. Pretty interest in Denton to look at. To see where we are today. It was kind of got used to that you know gosh uses up as high when years as high as 91 dollars and 96 maybe. Was that in 07 might have been somewhere in that range of yes it it's interesting where we are today and in the last five years as you mentioned you go back between thirteen 2014 and we are trying to open that 89 behind grange. And then all of a sudden I mean the it happens quickly we went if you go back to August of 2014 yeah. Oil was trading about 95 dollars a barrel you go three months forward Rick. Maybe five was forty go to December. Down to 57 and obviously we. We plummeted into law in twice sixteen new beginning at 2016 we were weighed Zell would we hit like 27 or my yeah that was it was February of 2016 when we hit those. Lows down in the high twenties so what are we paying for gas in Erie go back to 2014 on an assay. He must have been like 380 a gallon for for gasoline well let's take oh come pull this up right now on energy dot gov just because they have all this information here the average price so we're we're geared you wanna take a look at let's go back to 2014 when oil prices were averaging 85 dollars per barrel. And ominous gladly throw out I guess there are gonna say we were paying on average. To the 82 of you wanna adjust for inflation are no sure okay what he was atoms are just look what HRT fourteen and twice fourteen the average cost was three dollars and 37 cents per gallon okay. Adjusted for inflation becomes at 340. Makes you wonder overeat because you say okay oil prices come down. By a 50%. Gasoline prices are only down but we would we pay for gas now does that bug so book. Thank you so it before the hurricanes and everything that we around 230 on the national average. So you figure energy prices are down about 50%. Prices at the pump are down somewhere around maybe 3035 for that just shows you there's a significant amount attacks as the taxes per gallon tax that Donald though. And is tacked taxes per gallon up and then. The big thing is the sliding costs and distribution gas refining and distribution costs has gone up and that's why it's not as cheap as it was. At times where oil prices were the exact same what's interesting. Is you take a look at this chart now I've kind of gone back. It's a phenomenal chart is they've just the price of all of price of gasoline for inflation. All the way back to 1929 Jan Novak and I know you're. In is that two bucks historically you look at where it is. The average when adjusted for inflation. Around 220 to thirty Qaeda in that range. You know what when it makes you wonder is. Disease in it you always wonder gee should I be buying energy stocks now that. Gas is relatively inexpensive and oil. Is relatively inexpensive because we have short memories really we think about ninety dollar oil and in fact be averages nine dollars its act significantly less. And unity that OPEC saying we're gonna curtail production and we won 85 dollars a barrel Saudi Arabia is going public next year so. News that the speculation is that they're gonna try to get oil up to 65 dollars a barrel. But the fact of the matter is. We keep getting. Much more efficient in terms of getting oil out of the ground. And the cost related to it specifically chuck I came across a story in the Wall Street Journal about the North Sea. The North Sea had been Alec is dead zone. Yeah you beat people or not investing in energy in the North Sea because it was too expensive. Yeah it's written really for the last decade you didn't have a whole lot of energy investment there. But so far this year about sixteen billion dollars has gone in two deals to acquire assets in the North Sea. Which is far greater than the pace than you're seeing elsewhere in the biggest deal actually came last month. Went too tall bought a purchase from AP more mayors. For five billion dollars for. An oil and gas business in the North Sea and so you are seeing a little bit of activity picking up here it seems like. Royal Dutch Shell's plan to spend between 600 million and a billion dollars a year in the Dorsey and BP is expecting to double their production there by 20/20. We give you a number here folks who is this'll Shockey. BP has slashed its average production costs in the North Sea. From a peak of what was thirty dollars a barrel in 2014. To less than fifteen better dollars a barrel today. And by the end of the decade they think period that downed twelve dollars a barrel shell has cut their production costs by 60%. Yet it's. It would companies have figured out is that they can get a lot morally than they thought they could back in. You go back to you know 20122013. Because energy prices were so high companies were insanely profitable they had no incentive to cut for two. You know try to cut cost because they say look. Oil is ninety dollars a barrel we can try to produce it 3040 right out of the ground in the second have any problem pretty tough to jail the ground while it is it well it is now. Doesn't mean that it won't be in the future. So. She she'll stuff because not liquid either so much has to be done. No but the cost on that has come down significantly as well members they'll cost you should be up in the you know high fifties low sixties now we're seeing prices down in the thirties and forties shale which makes you ask was it really in the sixty's what was at the time I mean it it it of course it will. Like that's that's how much it cost to get it at the ground there it's like saying. Why is it TV today cheaply a big one from the 1950s well it's because the technologies. You know just how what is. We ate in it begs the question though would total. Kennedy has OPEC become. An antiquated. Cartel they can't do they have I don't think they have the same juice that they used to because the big advantage that OPEC used to have. Was lower production costs. And now he got a coming out of the North Sea twelve bucks a barrel. When the other thing is that even that when oil is in time this fifty dollar range. OPEC is is necessarily the swing producer and a where you're shale plays can get up and running much more quickly than people realize and so in some cases. US production is kind of become that swing producers well. OPEC it's going to be very interesting the next decade especially. As we see transitions in the form of you know car ownership in the fuels that we're using four vehicles we start see the popularity of electric vehicles. Take hold as hard it is for me to save them now. It's going to be interesting to see what happens OPEC because I think you can see some cracks even further cracks in now with an el cartel just because they have different views the other thing them interest to deceit. Is one of the biggest moves that the US may back in the 1970s was. The move towards the Patrick went all oil prices to be used to the US dollar. Answer the question that I have if if oil loses its importance in the world gradually. What does that do to the US's ability to borrow is right now one of the biggest reasons why the US can Barroso cheaply. Is because you pretty much have to buy oil in dollars you have to get dollars at some point. If oil is no longer as important 2030 years from now what does that do to the dollar and and that's it I don't know that could be the thing that finally tips the kids calling it caught. I'm I'm making a pitch from that point anybody but it's something that down the road if you're investing for the long term as they say. That that's something that I kind of need to keep in the back Marmol. The harder it is. Well our poll question today is do you think oil prices will remain under fifty dollars per barrel next year and when he eighteen. You know they're just scrapings that fifty dollar range right now north. Yeah they get up there and then they come back down but the big date and a good day we cottage at fifty dollars in a few cents. We've been in the range that we've been in largely has been kind of that 45 to 48 range we've had a couple little spikes the and a 2016 we saw a little bit of a spike up into the 5253. Range for about three months in bowl largely were kind of in that 45 to 47 little dip below every now and then a little spike about the effort. Well anyway the poll question is at our website financial exchange showed dot com. Some of view I don't actually hundreds of view. Have gone to that website to learn more about the Equifax data breach at will mention it is right in the center of the website. Does he signed when you get to the website says Equifax on it. What that blog pieces war it's for those of you who don't. Fully understand. The personal impact of the Equifax. Data breach. Shock has recommend I have recommended that you go out and free your credit I talked to Jim Toledo this morning he's already taken care of it. I I I just will warn you your your forewarned and forearm. Democrat patty do it you go to the website financial exchange showed dot com all the details as to how you go through that process. Are located on that website you can also participate in our poll which is do you think oil prices will remain under fifty dollars per barrel. In the year twenty team. I'm gonna say Neil and my theory is I think Saudi. Ravi who will want to do just about anything to get back up to 65 bucks apparently IPO. They include and start a war. I now am I hear you loud and if you think I'm night and what were they gonna start. Your story we can't say they're gonna start a war and then they think it starts up with a right manner and at the animal and a shooting war going on in Yemen there are they still movement. Yeah I mean it's it's it's relatively contained at this point that's more. I channel I struggled to suggest they're gonna start a war. To just yet to make 65 dollars. Greatly excited for them in the long run. Greg McBride from Bankrate dot com will join us next what is the impact of the feds starting to sell off. It's on port full howl that impact you how it would impact Q. When your borrowing money let's say you need to take out a mortgage with the impact going to be on a mortgage for it. And those of you worse sabres let's say you've got money in the bank CD years and money market account local bank. What will the Fed's policy change due to those rates that's our next topic. From the financial exchange radio network. Even without health care or tax reform all three major indices remain near record highs get the latest info on the sectors that are winning and those that are brakes here we Berrian junk on the financial exchange radio whenever. Work. If you worked hard and had success in your professional life protecting your wealth and your assets is essential to your ability to enjoy your later years advanced estate planning as many benefits and if you're like me you should want some sound advice on the best way to set up your state Titus is very Armstrong and if you're in need of state planning council or perhaps you just want to take a second look at your existing plan you should call Cushing and Dolan at 8668485699. And asked for their brand new guide called back to the basics lets host of the legal exchange radio program will educate you on the basics of creating your state plan including how to avoid probate and estate tax reduction call 8668485699. To get your free guide today the law firm of Cushing and has been helping families protect their assets for more than thirty years let them help your family call now for your free copy of back to the basics at 8668485699. You can also download the guide by logging on to legal exchange showed dot com. Hi this is very Armstrong and I've told you for years about my relationship with leader bank I'd been doing business with them for years because they're always coming up with great deals they've got another one that is surely worth your time to check out leader bank is offering in east savings account providing free online banking with a one point 15%. 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What what is your message to the young couple hours to somebody's out there looking to purchase their. First time home yet so you know for first time home buyers what we are telling them are a couple things one be patient. Yes you know we we see a lot of first time homebuyers who are making 51015. Offers two for fighting house now and offers except it's extremely. Okay. And so they have to temper their expectations. Oftentimes they're they're paying more than other half to. Paying more than the asking price and a now it is quite common right now in and in some cases are actually having to to research other towns and rooted in. Considered first because. You know it's very pat can't afford their dream home exactly. I'm getting we're telling first time homebuyers to really be aware. Of all the mortgage products that are out there that are relevant to tell us about this leaders thirty yes so we're really excited about this product we just launched its cult leader thirty. 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Security suffered two securities America eighteenth member finreg SIPC and advisory services arbiters securities America advisors think Gary Armstrong representatives Armstrong advisory group in the securities America companies are unaffiliated. Get the most comprehensive weekly economic update from CNBC senior contributor Larry Kudlow every Friday at 1045. Polling here on the financial exchange radio network. The Federal Reserve. Has been picked in winners and losers for the last ten years and they're about to pick some more this afternoon we're joined by Greg McBride from Bankrate dot com. I don't gripe. Camara bear trap we're glad to so. Federal Reserve begins selling off their four and a half trillion dollar portfolio. You know announce that this afternoon. Who the winners. Who were the losers. Well I mean if they don't get it right we're all gonna live side effects are really tough I mean this is uncharted territory here that vs. You know balance sheet this sport capturing dollar balance sheet has mushroomed up from something that was less than a trillion dollars about 800 billion before the financial crisis so. This is a process it's gonna take over the course of a couple of years and I edit you know the potential losers are. Higher rates for mortgages. I mean all else being equal higher rates for mortgages. You know like I do think that you know you're gonna it's gonna introduce a higher level of volatility in the stock market. You know this is this could well be the other catalyst or you know but he the next correction we see. And from an economic standpoint if they get this wrong it could well be the catalyst for. The next recession now that's not to say that this is an immediate they're just dip their toes in the water. But over the course the next couple of years. The cumulative foreign office really gonna grow by the end of the 2019. Their cases that they were downsized by about a trillion dollars I find it very hard to believe. Yet they're going to be able to downsize their stimulus by trillion dollars and without something going bump in the night. Why the rush it right they feel the need to do a trillion in by the end of next year mean that seems rather rapidly can do like who cares and it took a fifty years. It dammit I'd be at a 2019 so he's nineteen a little over two years and for them to write down by about a trillion but the pace. Picks up after the first twelve months though you have that'd be great at stopping uses solid it is estimated that the there's gonna be like watching paint dry it out. You like watching paint dry for the first twelve months that the second twelve months of the third in the fourth. I think. We have to worry about because that's where the cumulative amount grows I think that's where the consequences. Become more severe the recent. Did the reason they feel the need to do this and do that at the tape to doing is that. Maintaining too much of an influence in the market and holding those rates too low too long. Could lead to asset bubbles. All right what they're trying to do is kind of stave that off and someone. So Greg my mom who 78 years old does not want to invest in the stock market. She wants to buy be able to go to the bank to buy CD that's paying decent rate of return. What's the impact for savers in it and India and win will that impact start to be felt because frankly. We've had three or four fed rate hikes and sabres haven't gotten a nickel. Yeah I mean if you sit back waiting for that improvement to come and landing your lap gears you're going to be disappointed. Had the benefit our sabers is going to be continue to be tied to what that does what short term interest rates. Not the downsizing of the bond portfolio stuff but that does in fact I great again in December and that's worse sabres are going to be able to benefit but. Only if you're actually out there. Shopping around the improvement that we've seen. It's savings accounts and CDs has been among the banks that are already paying the most competitive or Turks the vast majority of banks as you noted very. They're not passing that along the sabres. What about the young guy that wants to buy a house with the impact going to be and I'm not talking about the Fed raising interest rates on talking about the Fed in this bond program. Because I would think that's gonna have a negative impact is gonna make mortgage rates higher. I it will all else being equal it will have an upward influence some mortgage rates. You know difficult to quantify how much but I mean let's face it that is not an economy that's. You know signal lights out by any means so I think you know even the increases will be fairly tempered I think for the foreseeable future. Yeah we're still gonna see mortgage rates that that have before handle even as the Fed continues. To downsize. That portfolio. I think a lot of people are wondering why this could have a negative impact on the stock market punitive markets at 22000. S and p.'s 2500. The what why why would this policy. Negatively impact my stock portfolio. Well bottom stock valuations are based relative to it interest rates and look low interest rates it really makes and in. Investments in stocks. Look batter and and it also has sent investors to go into stocks and other riskier assets yup to get a better rate of return if the Fed isn't it taking actions. That push up rates. On a relative basis that they undermine the attractiveness. Of the stock market particularly if we start to see more volatility. Investors get squeamish. Very good Greg McBride thank you very much for your time we appreciate. It very thank you Greg McBride Bankrate dot com. What's happening this afternoon. And I think the Fed pretty big denizens again they've been telegraphing they're gonna raise rates. Well and I think that I can raise rates this mean they are gonna begin tapering up bond were fall and begin begin bringing that down certainly makes when we say that we should be. More point might be the old four and a half trillion dollars of bonds that they bought during the crisis. Now they're gonna start selling. And the thought is that it's gonna cause bond prices to go down in interest rates to go really what they're going to be doing is they're not going to be. Buying new ones with those proceeds when they come due to what the Fed's been doing over the last several years as as the first round of Q we bonds that they bought. Had been. Coming do yeah they be going out and using the proceeds to buy more sinister stop buying the gonna stop doing. Okay they're also they're gonna start selling off a small portion of really the biggest piece all they have to do stop buying is they're gonna stop buying OK because then. Because they were buying anything maturities were rated as as I recall what seven to fifteen years they were between seven and ten years at an agent you figure that Q we started in 2010. Dale and Syria of the first ones for the lastly years so that have been coming do so be stopping buying some they will be selling some off as well. But the the aggregate effect is that going to be taking a big chunk of demand for treasuries. Out of the market and no one's quite sure how that works typically with supply demand if you take demand out him. It lowers prices I understand David the the the fierce. EEE here these panic stricken few years and I I question as to they're all valid or not because. If all of a sudden the wheels came off the Fed can come back again. Can't thank. So if if the Fed wanted to yes they can but keep in mind they don't have that much ammunition right now rich or 1% while they bought for a half trillion. And what's to stop them if that we just time practice start buying again or buying back. Spending half of the money. To it to read by those bonds will eventually get to a point where there aren't any more treasuries outstanding and they keep you can't buy something that's not there and so. The other thing the after members of all you do is the federal government owns oldest treasuries at the end of the day. If it doesn't do it it's what it would be really don't. They did there's nothing there no interest being paid out on the job vanished and that wasn't the purpose of it to stabilize the market at the time when when it was in freefall. It why it was it was yes it treasuries thereby. We'll know the toilet if they we can talk about it after the Wall Street watch is coming up. What's moving the market today yes MP actually just turn positive in crude oil summit got mistreated fifty bucks ever. Financial exchange radio network. Making your Smartphone even smaller here Intel Motorola mobile lab by surging financial exchange shelf in iTunes or those who. Who plays stores this is the financial exchange radio network. This is a special announcement for all landlords chasing down only rent payments and making trips to the bank to deposit checks ticked hassle out of rent today we're zero and leader banks all mine rent collection tool he went automatically deducts tenant's rent and deposited into your account visit WWW duds he ran dot net to learn more we see rent your payments for each unit to receive regularly on the same day every month tenants pay nothing in the first six months or free throw landlords visit WWW dogs he ran meant to learn more or call 7816418691. 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Or visit leader banks dot com member FDIC's equal housing lender and MLS number 449250. Subject to credit approval leader bank a. Time now for mostly watch a look at the market's performance so far today thanks to Barry and jug right here on the financial exchange radio network. Michael Armstrong is here for Wall Street was looking a couple stocks moving the market. Mike let's start with Bed, Bath & Beyond a big earnings miss for them. Yeah really really strong in this court they missed expectations by 20% that same store sales decreased by two point 6%. Vs expectations of only zero point steps have been slashed their full year outlook. They are you know undergoing a lot changed there obviously noticed big changes and humor habits and you know on my and so is completely represents. 15% of the total sales. Which in this state agencies can account. General Mills also with some struggles here they're down about 4% of people has not buying cereal anymore. It honestly looks that way yeah I mean consumers. Are increasingly looking for fresh products verses in the package to president that. Really General Mills specializes and then mr. earnings by five cents share on Greek yogurt and cereal sales. And a net sales have followed 7%. So we had to go through is just temporary trend or weapons yet teams where consumers are not buying as much here is based. Very good Mike thank you for the time. Of the sport known by now lucky charms cocoa puffs. That's actually good apparently known stealing their lucky charms. Existing home sales came in a little bit soft this morning that report was released at 10 o'clock. In number was down you speculated that it may have something to do with the working. Yeah I think there's two things at play here one obviously continued low inventories for existing homes. But second this was the existing home sales number for August yet and you member for working hard hit right at the end of August down in that Texas Louisiana area. A lot of closings typically scheduled for the end of the month here and so I do wonder if there was some impact in that region. That brought home sales down just because you're not gonna close on a home that was destroyed or flooded. Well and you think about Florida. Now Florida's in numbers are going to be impacted that'll be for September just because urban didn't hit until the early part of September but. You know you wonder if you have a couple months where things are skewed a little bin can we did miss out on existing home sales by about one point 7% in the insurance companies have backed away from a lot of these markets. When with the banks are next in the bank's gonna say you buy a place in Florida go ahead but you'd pay cash. Yeah I'm curious to see what they do Dee do you know anything regional banks insure any of these on their own you know register would do they pick up any reinsurance on their loans somehow they Tippett. We will say to a homeowner you have to go lot by insurance. But now they may be saying you're not only have to buy feature used by wind insurance in the wind insurance is what really costs a lot of money they'd be get flood insurance subsidized through the government. But the wind insurance. Witty if they even if the banks stop lending. That's been that that of have a very curious effect on on this in on the whole real state area down in the in the in the flood plains. Army wonders if instead of stopping lending down there they just raise rates is a local to make it up and and try our own insurance yeah just interest charged more on that side I wanted to go that route. Which either way it drives up costs for consumers and our if you. Caught and either video or not folks but the storm. Maria she is hitting Puerto Rico right now as we speak and it looks to be. Absolutely devastating. What's going on it did pass through saint Croix last night I don't have a lot of details on instinct for a we were real if we get any we'll certainly you know it looks like Dominica got the worst and I have it passed right over Dominican yelling Dominica is a poor. Island. With. In it inadequate construction saying crash saw some of the buildings and for the most part the B build it out over Hanks yeah if you do that you tend to have a lot less damage Puerto Rico. Will be better prepared. For this hurricane then Dominica would have been the video in Puerto Rico's. Incredible on in the stuff too late just the wins that you're seeing there it's it's absolutely Kris who couldn't get any video N'sync for a because it is the storm didn't hit in earnest until after dark. And so just warning you picking up the pieces yet but we'll let you know as we learn more information. Wal-Mart is going to change their strategy this Christmas and I'll tell you what I like this. Until what they're doing is instead of going out and trying to hire a number of temporary employees to fill the extra need. They're gonna first be offering the additional hours to their current employs the full time ones they're gonna like that. I think so would it gives the the people who have put in the time with the company the opportunity to earn that extra paid during the holiday season your pain time and a half dot. You're gonna get an employee who knows the system better. You don't do was much training or anything like that and that might be worth it you know when you look at the overall cost that might say look we met a little bit more for the employee but we've got a better employee is going to be able to do more time there in 50% more productive in the temple I suspect that the current employees appreciate that same table were being rewarded for the time that we spent you know over the rest of the year in and we have a chance to earn a little bit more there honey I'm going to be working. An extra twenty hours a week between Thanksgiving. Actually from middle of November through Christmas yeah probably I would imagine even though it seems like there's a witch creek with the holiday season now it's it's like. Yes you get like pac bell we know it's late you gotta be doing your Christmas shopping it's like me a break I got two months. Tell me two days before and I'll get it done. I've been doing business leader bank for years because Earl is coming up with a great deals that got another one. That surely worth your time I checked out leader bank is offering. And electronics savings account that provides free online banking. With a one point 15%. Annual percentage yield this is an online product only. And there's no minimum balance required to log on to leader bank dot com and you can sign up today. This rate may change without noticeable delay. Log on to leader bank dot com get all the information about this great offer and sign up today before the rates change the free online banking. With leader bank's new east savings account that has a one point 15%. EPY with no minimum balance and remember. This product is only available on line. So log on to leader bank dot com right now that's leader bank dot com leader bank a step ahead member FTSE Neuman about these may reduce earnings rate subject to change without notice. And may change after an account is opened. A surprise bump in bad critic cardinals what you know. I get a kick out of that headline because. You're talking about Capital One in some other lenders. That intentionally. Extend credit card offers to people with bad credit and then there are surprised. That those people who have a story in the history of not paying your bills. They'll pay their bills. I have a different view on this some unconcerned. Okay I'm more concerned on the I'm starting to get a little bit nervous because you take this and you put this and combine it with. The fact that we have a space savings rate that is getting close to an all time low in the US. The fact that credit card debt is getting close to an all time high in the US and the fact that wages are not going up in the US. And it paints to me a picture that people are stretched and a living beyond their means in that does not end well. You know what bothers it is you say to yourself okay. If their goal and if if if defaults are going up in delinquencies are going up because you talked about this Karsten yup. You are going up would on a plane with a template four point three. You know unemployment. At four point three. And AEA here this is a very valid point in because imagine if you all the sudden. Say have a an economic slowdown that causes employers to say gee we're gonna lay off. 5% of our staff. They knew that you got to credit problem now with DC the capital and. And in my concern is that your potentially heading into a demand induced. Slowdown in the economy because what happens is we know the USX is a consumer based economy near sixty to 70% of our economy is driven by consumer spending right. And so my concern is people get too stretched. All of a sudden they start pulling back consumer spending drops in and businesses have to start laying people off and you get into the cycle in and that's how you tend. To end up in a recessionary environment I have let me give you the flips I have some some very serious concerns heading into the next 24 months. Argue the the flip side of that argument is. Your in a stage where I think the unemployment. Issue in the challenge for employers hiring people I think it's gonna continue in perpetuity what do I mean bad. I think chuck this is a generational issue is my generation retires right there simply are not enough Mullen feels. To pick up the ball. They're not enough of you guys know there's more of us than you. There are but gears you're still when you look at the displacement rate trait like our generation is retiring and about what 101000 today. 101000 are there 101000 millennial every day yeah entering the workforce yes there's more there's about eleven. Lou will seek. It will all I'm telling used the data out there does not look good enough like his. This is the kind of data that typically is a leading indicator so why isn't the market respond. Yeah I mean the stock market descent and again and I'm not complaining but aren't market goes up every day so all I heard a you know I've talked other economists that have you made similar. Argument to the when your spouse. Also Robert Schiller came out today said the exact same thing he said look this is a market that for what ever reason he's continuing to run up. That doesn't mean that the fundamentals behind it or strong Bob's. Pretty negative and on the whole would you say he's from yeah that's a guy from Yale yup Bob's also probably the smartest guy in the room. Like Bob is right about the tech bubble yeah Bob was right about the run up in no way in late Bob nailed the last two balls. If funny looking. I'll take funny and Smart. I'll take funny looking and Smart over good looking and don't any day of the week at least from economists I buy into that. Let's talk about Bed, Bath & Beyond Simon again he ying ye your wife was not shop there enough score we know we we we tried to buy some curtains there actually we didn't like so we are turned him and apparently we weren't the only one having some issues with Bed, Bath & Beyond. They had a quarter it was it was a very difficult quarter for the men in particular. They're trying to do some restructuring right now but their stock is down about 15% here today. Yes 50% today Bed, Bath & Beyond right now is down to 2285. Down four dollars and eighteen cents from its previous close. And big earnings that's right they did their their net income oh pretty much was half of what it was at this time last year. Think they're really made me nervous about best best buy whose. I analyze what went hurry analysts wanted to buy the darn says buyer Bed, Bath & Beyond Unser Bed, Bath & Beyond one of our analysts wanted to buy the stock if you recall. And we've I think we we talked him out of it. But he wanted to buy based on valuation. But the thing that you look at if you're buying one of these retail companies and Bed, Bath & Beyond his or you know traditional retailer. Take a look at their same store sales in for a long time chuck Peter Buck in the trend they were doing OK yeah unseen source stale same store sales. Same store sales are down two point 6%. That is the kiss of death for retailer. You know who I think is payable on this business is way fair. We've hurt really I was gonna say Amazon of course he's easily fair wage fair way fares grown by leaps and bounds take a look at what their rest their growth rate later. So so yes of their revenue for the second quarter last year that in about 780 million dollars in revenue beta one point one billion this year says about a 4045%. Growth rate. In rattle my daughter and wife love it I we had to when we moved we bought a new rug and also a new watch TV console we did it through way fare are you allowed to go on the cider suggest would. Will I go secretly I I I make up fake name yet to Idec call my Charlene. Charlene is not a jerk you know to Keener who you know hey don't. Up next so anyway. Best Bed, Bath & Beyond senator. It's a tough one bit bath and beyond take in the tank today Peter back now from Morningstar will join us in the next segment. To talk about just one stock that's next from the funny to exchange radio network. Trumps administration hasn't passed any significant legislation yet but tax reform is front and center will it pass me in here. Keep it here with Barry and chuck for the latest on the president's agenda and how the markets are reacting and this is the financial exchange radio that. Work planning for retirement can be complicated process and I'd like to help make it easier this is very Armstrong from the Armstrong advisory group and if you've been saving money through and higher rate you should know that once you turn seven and a half to our report. Choir to start drawing from that account but how much should you take and where should you take affront if you don't take the required minimum you'll be subjected to a huge iris penalty call my office at 803934001. Get my brand new free guide and learn all about RA MD's call 803934. Zeros or one to get this free guide and if you'd like we can also set up a free no obligation consultation to review your investment strategy call 803934001. For our new guide about required minimum distributions or you can download it from our website financial exchange show dot com. Securities offered to securities America incorporated member finreg SIPC and advisory services are for the securities America advisors incorporated Barry Armstrong representative Armstrong advisory group in the securities America companies are unaffiliated. Right it is time for stock talk and we're joined by Petro back vial from Morningstar welcome Patrick. Petra how are you today. Or were talking about AT&T can you talk a little bit about whether or not you're bullish or bearish on the right now. Now where we're. Frankly I had just get a whole purview of the space of the dominant theme for the past few years little wireless bases and intensifying competition and so with wireless economic pressure by escalating price competition from T-Mobile and spread. AT&T is attempting to diversify away from wireless. Eighteen he would simultaneously pursuing a horizontal and vertical integration strategy here. So it acquired DirecTV and 2015 and with that they became the largest PD QB provider in the U last. And so eighteen he hopes it copied to keep industry's playbook. By providing tactic triple playing quite quite offerings. So bundling multiple data pipes together to wireless phone mobile broadband wired dot BN and pay TV. So right now with eighteen he agents hit the current price of 38 dollars and we at a price target. A forty dollars that we believe in the fervent slightly undervalued so despite all the challenges here we feel that's. Already reflected in the stock price and I AT&T sports an attractive dividend yield. About 5% that often makes it attractive. One of the questions that I have Patrick you know you mentioned the the acquisition of DirecTV. But court cuttings a major theme as well are they buying right into a dying industry. Welcome the great question because and I view it AT&T AT&T brought a they bought a declining satellite pay TV business at what we believe with the rich right. What they're trying to do is to. Do this bundling strategy similar to the cable providers that troubled plane quiet play. So for instance in Europe that converged wired wireless squad played those offering their very popular and sticky. But it remains to be seen it's been locked firings will have a broad appeal and EU Latin. So that's the big question for that to business but the whole how effectively AT&T bundling strategy be at gaining and retaining subscribers. We're at where else can they try to find additional growth are there any other initiatives they're undertaking right now. Mean the red that the big. Pending thing for them right now depending Time Warner acquisitions felt. With that we feel AT&T will be buying a good bed nets that we expected synergies there to be minimal because it's a vertical application they're buying contact. And again and the price paid is also rich in our opinion and that and that's what practice their returns on overwrought capital. I'll what AT&T aimed to do list I'm more Eric is that hopes to eventually my type Time Warner's contents via a appeared targeted advertising. Which really enabled by the unique beat attitude that says by virtue of being a service provider but the execution detail about battered Haiti. Very good Patrick thank you very much for joining us we appreciate the time today. Petra back Ralph for a morning start talking about AT&T the ticker on the if you do want to look them up yourself. Is T. About how much money we spend on that now relative to we spent you know thirty years ago into the net oh it's crazy you know you think big about that the two things to bills that we have today that no one had back in the seventies you've got cellphone bills you out. Cable bills now. Don't know what that was back in the seventies and now I five in is like Ian Ian paper Wi-Fi and you think about it and it went into who and it Wi-Fi camera ninety's. Thank you actually want finer house yeah. I mean that's that's a that's really last ten years kind of development prior to that it was only had a hard wired ethernet ports and you had the high speed Internet. But that's pretty much about it there so. It's. You know it's been a very recent development we're spending thousands of dollars a year on these things right or take a break it's the financial exchange radio network. This is the financial exchange with the Barry Armstrong and sharks are down. You're exclusive look at business and financial news affecting your day you're sick leave your world. Stay informed and up today about the economic and market trends plus get breaking business news and every day. And now the financial exchange with the very Armstrong and chuck Exxon. You know I woke up this morning and I said wow Microsoft raises their dividend by seven point 6%. Has to have a positive impact on the stock and some of a gun in the stocks down 56 cents. I everybody's very truck with you here on a Wednesday morning. You know Lou where's the love. And I think a lot of people saw this coming probably. And I think that's a big part of it Microsoft raising their dividend by seven point 6% as you mentioned here that dividends still going to be kind of in the 2.2 percent range so it's not going to be huge. But you know Microsoft also is company. That's done incredibly well the last five years the stock price under sided dal has gone from about 27 dollars a share up to 74. That's what you want to see things pretty progressive guy smartest tack you know. He's he's done a great job I mean it's it's a company that is he cut out a lot of junk but it would be. Talk about dumb and they've made so many bad. Acquisitions over the years and they have that they're not a good company when it comes to acquiring other companies locate certain last big link them we did the last big one they're not as bad as HP and that's kind of damning with faint praise it don't is this. And that's I am but I. Again this is a company that they've they've successfully transitioned to a more cloud based business we know that's not an easy transition for companies to make the they've moved in that direction. It's brought in a tone more recurring revenue for them they've moved off the you know the model they had been in for 25 years where it was. They sell someone Microsoft office for foreigner dollars in Microsoft. You know windows for 500 dollars that's how you make your money. They they've moved off that platform now. And they're starting to also compete with Amazon and some spaces. That previously they might not have been competitive in so it's it's interesting to see what they're doing right now. But they're grown revenue about 45% a year which for company that does 85 billion dollars a year in revenue in two big group. Yeah up to big move now. You know I don't know if you heard the term family office before news new to me at one point two. I am not referring to family offices where you enlighten you in the wife keep your your desk in you pay your bills. A family office is usually kept by very wealthy families you lose what's the dollar amount of the while I'm gonna say you can cracked me up from forty million. Yeah that's kind of the minimum. Right down that we you have a family office yet in and what their family office does is. He literally they failure credit card bills Korea they pay your utility bills. You probably have three or four houses so they make arrangements for the lawn to be cut in the house to be opened in the cars to pick you up and he basically. A family office is a concierge on steroids. Yeah they they manage everything that is needed from a financial perspective as you mention paying the bills making sure the properties and managed. As well as handling investments they might even go so far let's say you have a Holm. In the mountains in day in Vail Colorado where you go skiing. Bill range that house to be stocked with a all the groceries that you like you have to go to a grocery store. Yeah it's it's very much is a personal concierge you've seen a big rise of them probably in the last fifteen to twenty years it seems like eight it that's right yeah I was gonna say it's a fairly. New phenomenon and it's really the ultra wealthy. Part Japanese part of the reason for is that a number of former hedge fund managers kinda gotten out of the hedge fund business is there's been more scrutiny in that area and so they've actually gone and open these family offices just as a way for them to say look I still wanna manage money but not. Even with the reduced. Burden that hedge funds. Yeah and so what they do is a family office will provide advice to that wealthy family. And they'll charge a fee for that service yet now or how to get a look under the hood as to what those and we offices are buying equities accounted for 27%. Of the average family office for four I thought it would be more than you did. Well let's that stocks right day and I would think. That stocks I guess they have a lot of money invested. In real state in which they resided pride a lot of money invested in boats and yachts and jets and you know travel. Well and the other thing that he after members that. A lot of money is also still kept in cash you know that the ultra wealthy say look I'm gonna keep a few million dollars sitting in cash aid to look further investment opportunities I don't wanna have to sell something just because I wanna buy something new. And being they say look I wanna have a cushioning case you know everything goes to held him back. They like real estate real estate is a big component of the family office they'll buy real estate these family offices sometimes it's. Tracts of land like hundreds of acres thousands of acres of land. Other times it's just. Commercial real state they made by a shopping mall they might buy a a health care facility the deal are a lot of realistically like a brick and mortar. Yet that's 16% of the overall portfolio and what makes of the rest hedge funds are about 6% alternative investments about 4%. And so it really is a diversified portfolio that you see these family offices building in general. And one of the biggest things that you see. Is that they are interest in getting a little heavier inequities and heavier and realistic about 40% saying they wanna get heavier in both of those going forward. There instinct. And that's what and we offices and that's what they're buying. Yesterday we reported that Honeywell was going to move its retail team. From Rhode Island to Westwood Massachusetts and I have to confess we didn't really understood stand fully. With that meant you know we do know how many employees was. No it is 4040. Forty better than nothing in it it's better than nothing and they'd be high paid jobs and yet you would imagine neither jobs paying six figures you know good high paying jobs here. I was expecting a number in the hundreds but it's 40 PM. But you know you take what you can get and Honeywell it they're looking for tax incentives. I don't see Charlie Baker. Given tax incentives for forty people for forty workers you know like forty people go late you you find restaurants that employ more people. It suit you do what do ya say not a laughing at your right. Not laughing because I'm not laughing at chuck a rocking with them it's just hard for me to tell some times. Here's something here's something where Rhode islanders should be crying and you know. Chuck and I differ sweetly at different opinions but yesterday. Lawmakers OK the bill guaranteeing. Most Rhode Island workers. Up to five days of paid sick leave. Now I know supporters of the bill you know they estimated it'll provide paid leave for around a 100000. Of the 170000. Rhode Island workers whose employers. Don't already provide it. On the flip side and I think like an employer while I am an employer I I of this couple small businesses and I employed people and you know right I look at that and yes if somebody sick adding no winners policy is do you notice. No no yeah any day like. Pattern I hate being on the hawk and I hate. The government specially state government because when Rhode Island does this right. The next time a guy thinks about growing his business for any company that has more than eighteen employees that. Right let's say you're a business in Rhode Island and you've got a successful manufacturing facility. And Europe you're bursting seams right you're you're thinking and sort what we want to expand. What's to stop you from moving to another state. Where you don't have to. Provide. This sick patients but is that the argument for allowing states to do what they want not making a federal policy young man it is I just. I I've I wonder though. You are things so robust in Rhode it is is that is the economy so strong in Rhode Island that they feel that the government. Should have the upper hand. On the employee is is Eric people make it so much money in Rhode Island is the wage inflation in Rhode Island 10% I don't think it is. I just look like the way that I look at sick days is if someone comes in is coughing and getting everyone else sick you know you're losing more money in lost productivity anyway. You know right is the government have to come and say. You must senior auto dealer right you're selling cars in united hundreds of imports may get a big auto dealerships are now the sudden this is another. Component that your I don't know what they say up to drive on the right side of the road and it makes things safer so we're not running into each other. Now I bet you get and and it just. The that it's this old minimum wage debate now Massachusetts wants to expand in in in increased the minimum wage again. I mean it just lets them get our way let us is business owners to set let us you know you wanna do. Could create a strong economy so there's an auction you create an auction environment for employees so. I hit if I want a good employee like you and I know so god I don't pay chuck more money he's gonna leave and go to a competitor and that's the environment is if you wanna see people make money. That's how you do don't do it by saying. You must. Pay them sick time you bus give them. To Wear it where do you draw the line and what what should should and shouldn't be mandated now I don't made an eight years I've seen you know like. And I've studied history in the did you make about the abuses you can go back to the triangle player you can go through all these different things and I'm not saying that you have to you know at that sick leave this is the Hilton die but I'm saying. When people come into the office in their sick and they get other employees sick. In almost a new and with two or three employees who decided to take a vacation need to go out study cost to business more time trucks looking at me because I in my. There are reasons are coughing all over me and next thing I know I'm sick I don't wanna be either talkers of sick he's dealing with two miserable people now he wants to quit productivity goes in the tubes and the whole thing blows up see we've created an environment and our office where it's much. To come in debt I got my appendix out I've missed one day and was back in the office to. That's that's the environment we've created I'm proud of now I've I have in my in my career chuck and remind everybody has probably heard this for 500 times. I have never. Ever taken a sick. Now I've also made the argument though that in and taken a few I view an appendix is no different from a child so when it comes to maternity leave you do it's a bit. Pretty much the same women around the region have just stood up and said chuck I've got news for you kid independents pretty much on same thing right unless your wife yeah it was your name now doing their right. Think coming up we will be joined by Lauren Weber. We're be talking about second class employees. Who are the second class workers that's next from the financial exchange radio network. Margins continue to fluctuate but we've John you covered get your daily update on what time and what's not a pro Mike Armstrong every morning at 1030 boldly on the financial exchange radio network. If you worked hard and had success in your professional life protecting your wealth and your assets is essential to your ability to enjoy your years advanced estate planning as many benefits and if you're like me you should want some sound advice on the best way to set up your state is very Armstrong and if you're in need of a state planning council or perhaps you just want to take a second look at your existing plan you should call Cushing and Dolan at 8668485699. And ask for their brand new guide called back to the basics lets host of the legal exchange radio program will educate you on the basics of creating your state plan including how to avoid probate and estate tax reduction call 8668485699. To get your free guide today the law firm of and Dolan has been helping families protect their assets for more than thirty years let them help your family call now for your free copy of back to the basics at 8668485699. You can also download the guide by logging on to legal exchange showed dot com. If you're in the market for a small business loan you need to cult leader bank if you are small business looking to expand or improve your infrastructure you. He did take advantage of this great deal from leader bank for a limited time your business can get an SBA loan of three point 99 annual percentage rate with no closing costs on loans of up to 150000. 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This is very Armstrong from the financial exchange did you know that once you turn seventy in half you are required to start taking withdrawals from your IRA the problem is that many retirees don't know how much to take out of their diary or they get confused as to where to take it fraud if you don't take you were required minimum distribution you're subject to 50% IRS penalty this month I've got a brand new guide out about required minimum distributions that we'll tell you how much you have to take out of your diary based on your rage it also explains an exception to the R&D rule as it pertains to your current employer plan Colby Armstrong advisory group to request our retirement plan distribution guy at 803934001. That's 803934001. Or you can download it from our website financial exchange showed dot com. Juries are for two securities America incorporated member finreg SIPC and advisory services are with the securities America advisors incorporated Barry Armstrong representative Armstrong advisory group in the securities America companies are. Unaffiliated hi this is very Armstrong and I've told you for years about my relationship with leader bank I'd been doing business with them for years because they're always coming up with great deals they've got another one that is surely worth your time to check out leader bank is offering in east savings account providing free online banking with a one point 15%. Annual percentage this is an online product only and there is no minimum balance required so logon to leader bank dot com and sign up today this rate may change without notice that don't delay log to leader bank dot com get all the information about this great offer and sign up today before the rates change get free online banking with leader banks in new. 15%. Annual percentage yield and no minimum balance and remember this product is only available on line so logon to dot com right now leader bank dot com a step ahead. The financial exchanges all over New England to go to financial exchange showed dotcom and search for the station closest view this as the financial exchange radio network. Yes I saw the story in the journal gosh I can't remember what it was much in the last three. And it talked about the second class office worker and I thought they're talking about me because I get treated like second class citizen turns out goes wrong we're joined by Lauren Weber. From the Wall Street Journal Loren welcome to the shell grading so what exactly is he a second class workers who talk about contract workers. For the benefit of our audience that doesn't know what a contract worker is can you tell us what it. Sure. It basically means anybody who's not a full employee of the company where they're working. That can be somebody who's an independent contractor freelance very can be. I think in many cases it's been a security guard who work in the company there every day or at the did you editors who are there every day. But they're working for a third party service provider and inaudible employee of the company it's work they're doing. So so we used to call Temps member or murmur in the old days or be temp agencies and you know you're somebody wouldn't show up for work and you call the temp agencies they had needed a and I need to I need secretary receptionist up like that. What kind of contract worker let you know that did the janitor and an office building might be cleaning that building for years and years so I think a bit more than anyone who has kind of at arms length relationship with the company rhetoric. So how prevalent is that the how many contract workers is right. In in our company we don't have an air readies an employee who saw how prevalent are contract workers it would cut type of company would be hiring contract workers. Ray well you you may think you don't have any that you might want to ask the the janitor or are sometimes the reception at the is a unity even kinda contract workers and very unexpected places spent. It's very little identify how many there are in part because the government hasn't really contracted. With any reliable category but. The most reliable estimate that I've seen is. Something like 16% of Americans workers. Are working in these kind of alternative work arrangements and that's up from about 10% to ten years ago. Sore contract workers treated differently. From employees. Well in many believe that they are and that's when my reporting and covered. I think you can help keep people we're getting me back and mark and they're sitting next to each other. That might be somebody that you many companies will have their own right he passed and you know. Information technology but and they bring in additional people because they have a big project that there and it should not. And I think actually work sitting right next to each other one has a green badge one had a red badge at bat he tells other people. Whether or not here you know you're going to be there for the long haul your you know regular direct higher employee. And whether what you're there for probably under the short term. Short term to mean anything for the three month Q2 years or longer to some of these contractors are on the line and for a very long period. What I heard over and over from contractors and neat arrangement is that. They get treated like they are second class citizens. They're not allowed to ease again they don't get invited the other parties. People look at their badge and kind of look right through them you know after the time in getting to know them they don't get training and they don't have mentors that organizations because. They're considered sort Turner's. And even though it might have been around the mall and that like an over all and that. You are Atlanta and the people who are doing the work on a more regular basis and it really didn't either way a lot of people have confidence. Lauren in in looking at the current job market. You know jolts report we got last month stronger than ever write you a lot of job openings I would think that a lot of these contract workers. Are getting recruited to be full time employees so they don't go end up working for the competition. Well we have movie night yet and all that you know they are counted as employed even though the unemployment rated very low and people are moving around a lot that include the contract workforce. Is it that a lot of companies don't wanna hire workers that they really don't have to do they want the flexibility to be able to. Inspire somebody very easily without a lot of legal complications. Of hiring an employee. You know they want to be able to scale up the project scaling down if it's not working out they like these kind of short term arrangement. You know that. That Pluto in come cases. Workers don't necessarily have a kind of killing without without prayer days but device for cabin not even find out until there made an offer that it's actually a short term assignment. You know only eight it's it's inching you say that but maybe. I had a question as it relates to. This the examples you used in new war story. It seemed like they were all older workers you know 596264. So is this a week. That employers are earned. Keeping the they get the talent but they don't get saddled with bad old worker who might have health care issues. That was the pattern I was very noticeable and I didn't they interview many of people who were in the thirties and their bodies in some cases. The story were quite compelling candidate and that in the final version. But I definitely did notice that something that happens often with older workers first of all if they were let go accurate and retention. Today to keep their side in the labor market by get taking whatever were taken off and that means that short term assignment a lot of people were laid out will reinvent themselves as a quote unquote consulted nor Clinton quote contractors. And in any case at all they can find and part of it is you know maybe companies are reluctant to take god. A worker of the experience they need that they don't want to Qaeda person health insurance or you know a large part of their premiums. It is you know very rarely will company today we we hired and play because we want to reduce their costs but that really Atlantic county and making it. You alluded to the 81 B visa. As creating more contract workers what's the connection. Well it is. I've not had an apathetic to create more contact corporate but it in patent of the competition for. People who aren't certain kind of occupation particularly and I he. You know high skilled workers though I did you know off and let them my older workers who do you know. Had writing careers in ninety. And you know art and thriving careers and contractors because there were times in the ninety's and nearly 2000 what they really good at their price. And then tape sound increasingly they were getting shut out because. First period 101 compliant workers is going up because debate cal tech companies are trying to rely more on. H one B workers the Turks foreign workers quit you know often very similar to scale but it can be paid for our lab and then another issue that would solve every deepening. Income that. A lot of these. Highly skilled contractors kind of curtain working the way. When that in a cabinet that they lead they were independent contractors being negotiated their rates directly with the client wouldn't have happened in that. Big companies don't wanna be negotiating when thousands and thousands of market that is an independent contractors they now go to pretty big contract with taxing agencies. And that means that the contractor himself or herself an individual worker is there any shutout as the negotiation. Gloria and I have to get out or running into a break but thank you very much terrific segment and great story from the Wall Street Journal that lord Webber on the financial exchange radioed that. You've got Barry Armstrong. Financial exchange shall look I mean she'll exchange radio network and. 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A step ahead this is very Armstrong from the financial exchange did you know that once you turn seventy in half you are required to start taking withdrawals from your the problem is that many retirees don't know how much to take out of their hiring or they get confused as to where to take it from if you don't take you were required minimum distribution you're subject to 50% higher penalty this month I've got a brand new guide out about required minimum distributions that we'll tell you how much you have to take out of your diary based on your rage it also explains an exception to the R&D rule as it pertains to your current employer plan Colby Armstrong advisory group to request our retirement plan distribution guide at 803934001. That's 803934001. Or you can download it from our website financial exchange showed dot com. Securities offered to securities America incorporated member finreg SIPC and advisory services are with the securities America advisors incorporated Barry Armstrong representative Armstrong advisory group the securities America companies are. Unaffiliated hi this is with an important message for you and your family if you had a successful career and haven't yet taken the time to plan for your future now's the time to make that call Cushing and Dolan and senior partner Todd let's have been helping families like yours with their state plans for more than thirty years and he's got a brand new guide out this month called back to the basics it'll help you learn about the bare necessities needed to create estate plan but will also educate you on important items like how to avoid probate and passing your assets along to your family called Cushing handle right now what 8668485699. And ask for your free guide today that's 8668485699. You can also download the guide right now by visiting them online at legal exchange showed dot com proper estate planning is critically important to a safe and relaxing retirement so don't delay get this free guide today protect your assets and enjoy your elder years 8668485699. Or download it right now at legal exchange showed dot com. This is a special announcement for all landlords chasing down only rent payments and making trips to the bank to deposit checks take a hassle out of breath take with zero leader banks all mine rent collection tool zero automatically deducts tenant's rent and deposited into your account visit WWW duds he ran dot net to learn more we see rent your payments for each unit received regularly on the same day every month tenants pay nothing in the first six months or free throw landlords visit WWW dug see rent dot meant to learn more or call 7816 or 18691. Very Armstrong here and I'm joined by the vice president GA tool from leader bank. 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Well right now they're all writing multiple checks and sending them in and throw in order a source become confusing pain in the neck so would you Reynolds who has it will actually deputy each tenant can individually. Matches in 101 payment for that unit to landlord. And then of course there are reports in notification to all electric stuff. But going back to your question a Condo association's a lot of Condo associations have been using you aren't as well. Because the Condo. Payments that kind of the shirt to every month at the same so they've been signing up and there's a version of the rent for condos. I'll be darned well sounds like a something that you need to learn more about folks visit. Zeev rent dot net to learn more that's the website address or call them at 8776917900. Toll free 8776917. And 900 why collect your rent or your Condo fees with paper checks get with the modern age go to easy rent dot net or call them toll free 8776917900. They say video adds ten pounds. But don't tell Berrian jogging the financial exchanges alive every day on FaceBook and YouTube Davis who's the financial exchange radio network. Peter bank is offering savings account providing free online banking with a one point 15% annual percentage yield. This is an online product only and no minimum balance is required log on to leader bank dot com and sign up today. You know the trump administration. Has been really bad news for gun makers until yesterday. Yeah pretty much gun sales have been in the toilet largely because. People we're not buying them because they never feared that. Guns were going to be either me notes that the sale of them were all right curtailed in anyway right they hate they were. Yeah I'm just looking at the 52 week range on Smith & Wesson to have to call it American help. Ultimately wasn't good okay now America it's not American outdoor brands Smith and plus YOK they changed it name though even their symbols change as they obesity when they wanted to it's it's like all the tobacco companies changed from like you know hard court tobacco names now would there be you know. What's what's Altria you know no nose and Altria is sounds like a car but it's cigarettes so they change and a new American outdoor brands but. These stock Sturm Ruger and American outdoor brands Smith & Wesson. Both rallied more than 10% on the news and pretty much what they're talking about doing. Is right now the State Department oversees the ability of these companies to make overseas sales. The chatter is that they're gonna transition that authority to the Commerce Department which could potentially open things up a little bit more sets Rex Tillerson Wright State Department yet. Wilbur Ross. Commerce on armor that. That's the transition that they're being that there are out talking about right now and so it's unclear on exactly win this would happen. But it could be the last in the next twelve to eighteen month. So are those guns so good that they would be popular Leahy Corey could you by a German and they're good fire mocha and just curious I don't know the gun business what side you know with the if there's a in international demand. With products which an international there's always demand for guns right. The hidden obamacare detail that could cost hospitals. Billions. Of dollars. I just read your paragraph this from today's Wall Street Journal's well some aspects of the Affordable Care Act commonly known as obamacare. Were a blessing to hospitals and expanded access to insurance. And has meant more customers who can pay first services that they consume. That limits bad debt generated from bills that uninsured patients can't afford to pay a tea. This actually came up beat three obamacare. I had a client who is the CEO CFO. Of the New Hampshire hospital. And his on collectibles. Were running more than double of what his peer hospitals were running in Massachusetts yep and the house when we had Romney care. Dem for everybody else we universal health care him in Massachusetts. And New Hampshire did not happen and he looked envious. At Massachusetts. Now hospitals target and I'd I don't I kind of think that this story's a little bit misleading. They're still getting reimbursed they're not getting reimbursed at the same rate. Yet the way the VA CAA it affects things is that the hospital reimbursement rates for services that are provided by Medicare. There adjusted for productivity so what that means that if the average person can produce more in an hour and if you reimbursing for said services you're gonna reimburse a lower rate has doesn't take as much time for that person. To do something theoretically. And so what this could do. Is this might affect reimbursement rates by causing them to grow close to 2% annually. Instead of 3% so it'll reduce the amount that the reimbursement rates grow. Each year going forward the doctors don't earn as much they'll get as much for raise each year on Medicare. All right that that simplifies that force pay. Cushing and Dolan is a law firm that every month creates a free document for Europe reading and education purposes. This month they're providing a document called back to the basics what are the things that I find very helpful and it. Is it describes a state planning for couples that have or are individuals that have net worth greater than a million dollars. And estate planning for families who have a net worth of less than a million dollars why is that important well. Certain states have a state taxes that kick in at a million dollars so if you'd like a copy. Of the Cushing in Dolan guide for the month of September you can call ample free at 8668485699. War you can go online at legal exchange showed dot com that's legal exchange showed dot com for the September guide called. Back to the basics or call them toll free 8668485699. A shock to see the statistic. One more. More than you think about this from it folks more than 10%. Of the people across the country. That are enrolled in college. Are single mothers. And what's interesting it's not the way that you would think about it it's not talking about teen pregnancy so much rather people in their twenties and thirties and may not have gone to college previously because of early pregnancies and are now doing so when their kids are a little bit older and they have the time to do so and so it's interesting to see this where you're seeing a lot of people in their late twenties early thirties. That had kids and early twenties and didn't go to college are taking advantage of the ability to go to college little bit later now they're two point one million. Single moms now in college right now. You know I've met a single mom doing this and she's NASA be glow well yeah I'll tell you what she's doing she's working as a personal care system which is basically. You know you're changing diapers and and in people's homes are in a facility she says she's working in a hospital Oka and doesn't pay. I mean it that those jobs might pay heating bucks an hour thirteen to seventeen dollars an hour as not a great way to him but the hospitals helping her with their education so she's going to school for nursing. And we'll mow what nurses yup right so it's where it's it's hard for her I add so much respect for this woman. She's in her twenties. And she had to go back and take remedial courses and I'd junior college. And then going to nursing school is that probably take her six years to become an. But she's gonna go for making. What 1516 dollars and 30000 dollars a year up to you know 8000 plus. And and and she'll be able to stay at that same hospital and I just went I was. Dumbfounded. That is that one in ten college students are singled out and it had no idea it was that high very low graduation rates. Is that right now graduation rates I think were in that sixteen. 28 just 8% 20% of single moms who entered college between 20032009. Received a degree within six years about half of what you see for women in college without children into. It just shows you that. Look it's you have great intentions but it's tough to do that in maintain a job and having children. A lot international. Tourism to the United States declined. In early 2017. If you work international travelers came to the United States during the first few months of this year in over the same period last year confirming concerns of some in the travel industry. Yes this 700000 fewer visitors to the US in the first three months of the year works out to. About two point seven billion dollars that was not spent in the US on tourism related. Business and so you know it's of that over the course the year staircase on about twelve billion dollars out of the US economy if it were to keep up at this rate. We don't have any further data yet so we don't know if it was an aberration in the first quarter and I don't pull a ton from that just because it's such a short period of time. But it is something that bears watching because of it does continue you know it needs it he's going to have a measurable impact on the overall economy. You know I don't know paid this stats bear this out or not but in when Ronald Reagan was president we were very unpopular in hurtful. Just tell you that because when my wife and I went to Italy honeymoon and nobody liked us because we're Americans. But. From Europe. Is weighed down Muslim tourism to the United States is weak and it's impacting the travel industry that's bad for GDP it's bad for job growth. I'd I don't know if it's the same as when Reagan was in office but I can tell you. That the global sentiment. Is very similar to when Reagan's office you don't remember that no word diapers one other thing keep in mind the first quarter the of the US dollar was incredibly strong so was less affordable. For people to come over Dallas I've I don't buy because Canadians. Are coming to Canadian trial the United States was up 14%. Or more exciting here. It had it like if it if it's all currency rate the Canadians Canadian is cheaper than any. And they wouldn't be common here if it was just current Canadian tourists in the United States has a fourteen point 8% that's anchored so to Canada still loves us. Good it's your hate that's good that's just part of the deal. Coming up we're be talking about Amazon hitting it in the state based aid they gave us a big one. He made an embarrassing mistake which we will talk about that is Equifax. Not definitely as bad as Equifax. But they've made a bootable just one of my race. What's going on that's next from the financial exchange radio network. The financial exchange with Barry and chuck is liable and FaceBook and YouTube every morning beginning at ten days is the financial exchange radio network. Hi this is very Armstrong and I've told you for years about my relationship with leader bank I've been doing business with them for years because they're always coming up with great deals they've got another one surely worth your time to check out leader bank is offering in east savings account providing free online banking with a one point 15%. Annual percentage yield this is an online product only and there's no minimum balance required so logon to leader bank dot com and sign up today this rate may change without notice and don't delay logon to leader bank dot com get all the information about this great offer and sign up today before the rates change get. Free online banking with leader banks in new east savings account that has a one point 15%. Annual percentage yield and no minimum balance and remember this product is only available online so logon to leader bank dot com right now its leader bank dot com leader bank a step ahead. Security suffered through securities America ain't members finreg SIPC and advisory services are mr. securities America advisors think Gary Armstrong representative Armstrong advisory group in the securities America companies are unaffiliated. Go to Howard daily poll question at financial extreme show dot com while you're there buyer of the media player and watch the show while you work. This case the financial exchange radio network. And Amazon may have made a mistake but Equifax. Is creating the title wave of fraud. And I just want to remind you I. I'd be getting text messages this morning people contacting me on FaceBook people emailing me saying I'm having difficulty. Re using my credit and I understand look I it's complicated. And when you go to these web sites with their its trains union Experian Equifax and try to sell you. Other items don't do adult all port. There's a if you want. You can go to our website and go to horrible law in the here's a detailed. Explanation. As to how you can freeze your credit. In it'll tell you why you should read your credit I'm not saying don't buy. Eight credit monitoring service on years and all buried just alike like what has nothing to do. I think it's overpriced and it's not worth the 29 dollars a month say that. But I will tell you. Freezing your credit is better than monitoring. Your credit. Howdy do it go to financial exchange showed dot com it's on our blog in detail T even those of you who are having difficulty with it. My thought by 78 year old on read the article she was able to do you can do it too. Financial exchange showed dot com if you wanna learn how to freeze credit and more partly to learn why should preacher current. Our eight Amazon. They screwed up nobody nobody got hurt except you know well you don't young men may at art. Tax day you you don't know that no one got hurt from this what Amazon did it is too might not this is a letter to people who are well I did not have any children or babies on the way. They since and emails on Tuesday that an item on these people's baby registry had been purchased and was on the way to them. And so that's probably caused couple tense dinner time conversations you know where I is that something you wanna tell me gee I didn't know we were expecting. You know remembered Chuckie you always think go word awaits in where we are weary yeah I wanna remind you at this time you have no say in this matter. As to when you're going to be like yeah no I just thought I do you I will reiterate you have no say. As to win I do I've seen the videos I play an important part well idea I will. Suggest to you. You're lovely wife will control that decision making problems punting Amazon is secretly. They be doing secretly and you are doing secretly they're building a pair of Alexa enabled Smart glasses this is the technology access to take off. I just I do not believe in these glasses just because I think eight creepy now that there are always recording an always on. I think that the idea that you can possibly see enough just donned glasses is ridiculous. And I just I I I don't believe in smarty the whole idea here folks is that you're glasses will also be your fault. See where you're going on camera and so it's brilliant point at something take pictures and say I wanna buy that. Will Google was the first one to try this and it didn't work that what five years ago somewhere in the ballpark yet maybe 201213. Somewhere in that part I have a niece who's a doctor use them she thought their cool. I could see them having uses for professions and should I license if I just I I don't see them ever being some lake. I just I I'm very negative on wearable just because I've been told for so long the proms and we can tell how much you sweat if we have a Smart shirt and we can tell how much your blood sugar. I'd I'm out on where. Outs chalks not buying into an eye on how odd I'll albeit early adapter. Of Amazon's glasses maybe apple may make a pair. And I don't know if apple wants to go that direction they don't seem to be. They they haven't been able to crack the code with the apple wanting an apple is notorious for keeping a very tight product suite they don't expand too quickly. Don't know if they wanna potentially compete with the watch with glasses. Swedish auto maker Volvo is double in its investment in its first United States plant. To a total of one billion dollars that is a bit. That it's mesa and come back in the US market has staying power people love their balls Garrett talked to a Volvo order. To all wheel drive. Up and they're very good cars historically they had a reputation as a boring line of cars I think they've done and they used to be a agrees with their big boxes that was it it was like tribunal while you were box you know you bottom safety safety. You know they did well and accidents they've done some nice things to kind of make them look a little bit better they've got two good engines in them these days. And so they're adding a second production line to factory it's under construction down near Charleston, South Carolina on my favorite cities in the country by way. And so they're going to be making the S sixty sedan at this plant starting in 2018. Or with another unnamed vehicle that is. Yet to be determined and so this expansion is gonna add 19100 jobs to the 2000 already plants would be about a 4000 person plan that sell many cars here. No they they don't do anything about it like as a country we buy about. 1617. Million brand new cars every year yet they only sold 82000 are shocked that I thought it would be more than. They did you feel like you see more than that on the road I'd imagine more of them are in the northeast right just because of the snow and so forth so on guessing that we probably have the bulk of sales in the conflict. Why why you by having buying a volatile does California northeast you know. One of Minnesota buys a lot of and they still Swedish donors did Chinese buy them to believe the Chinese Chinese whenever. There. I save this story for the end because I'm hoping we can have an update. The latest push for health care law repeal accepts I don't know I think back when I'm on Volvo and they should they they continue to be Swedish actually are good. Health care law they gonna vote on the unit passes that. Repeal I'm sticking with no you're staying no I'm sticking with no and the good. The bill they're putting in it's it's it's a funny bill what they're trying to put in with some of the stipulations on now ides I can't see getting through you know. The east a lot of holdouts. There's still hold outs and and I just like some of the things that is trying to put through now Los Senator Kennedy from Louisiana is trying to put stipulation with what the bill as large as saying it's gonna transition the money that's currently from the ACA. In the block grants for the states where he's trying to put in the provision. That would prevent states from assembling single Payer systems with the block grants one. Can we already had some base it while that we have impairments that are. No way he would be handed so he's saying I don't like single Payer so you can't use on a state level for. Sitting there that can't lose here is federal money for single Payer in which don't which goes completely against the State's rights issue that you would campaign on elsewhere so I sit there and I'm like well at least like have a coherent argument right make up your mind you know if if you say look we don't like this just owned that argument don't like try to make some different argument about it. I wonder if the should just walk away from this issue and focus on tax reform there are a lot of us in that camp the business community has said look ice. It get away for a no Kudlow has talked to them said the goal touch this this is like the third rail any politician who is touched. Federal Health Care Reform in the last 25 years. Has gotten destroyed well acquainted to the clintons back in the the mid ninety's they got destroyed in their first mid terms look what it did to the Obama administration. Set six years ago they got destroyed mid terms you don't do this unless you actually have a better plan. Oh crude oil's trading up 87 cents a barrel at 5035. Gold is at thirteen fifteen and out and son of a guy on the Dow's up again it's up fifteen points. It's very chap from the financial exchange radio network.
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