Podcast #38 Putin Xi

Let’s Go Brandon  

DISCLAIMER:  This broadcast is intended for educational

purposes only and does not constitute investment advice or an offer to buy or

sell any security or insurance product. All information provided here is for educational

purposes only and does

not constitute investment, legal or tax advice, an offer to buy

or sell any security or insurance product; or an endorsement of any third party

or such third party's views.  All examples are hypothetical and for

illustrative purposes only.  Please contact us for an assessment of your

personal financial circumstances and to obtain personal investment

advice.  927-6400

CHINESE STOCKS:

I

rarely purchase equities in third world countries, but I believe China might

be an interesting equity play right now.  I was convinced that Chinese

Ch Xi Xingping was poised to invade Taiwan this year.  Remember folks

that Taiwan manufactures 64% of all computer chips made on this planet. 

China spends some $300 byn on computer chips…every year.  That’s more

than they spend on their entire military budget.  When I hear Ch Xi wax

poetically about reuniting w/ Taiwan, I roll my eyes because I understand the

desire to take Taiwan is purely financial and political

It’s

political because Ch Xi is up for re-election by the 25 person Politburo on

Oct 18 of this year.  Apparently Xi has locked-up hundreds of thousands

of fellow CCP members for corruption in his first 9.5 yrs in office, and some

of those guys are getting out of prison as their terms expire.  I have

read that they have the “long knives” out for Xi.  They literally want

him dead.  Keep in mind that only 1/13 Chinese are CCP members.

Starting

one year ago, Xi initiated a crackdown on Chinese tech companies.  Some

stock prices are down as much as 80% and many of the old-guard, hardliners

who owned shares in those tech stocks aren’t too happy w/ Ch Xi.

I

believe Ch Xi has watched Putin’s failed invasion of Ukraine and re-drawn his

plans.  Fox News is reporting that Putin has lost ⅕ of

his army in his first 4 weeks of fighting; 15,000 are dead, and 25,000 are

wounded or MIA.  Ukraine is going to have one hell-of-a time housing

10’s of thousands of Russian POW’s.  

So Xi

has watched this botched invasion, and more importantly the western world’s

reaction to it, and has decided to go w/ plan B.  I believe Plan B

x#37 Cars Social Security IRS

DISCLAIMER:  This broadcast is intended

for educational purposes only and does not constitute investment advice or an

offer to buy or sell any security or insurance product. All information

provided here is for educational purposes only and does 

not constitute investment, legal or tax advice, an offer to buy or

sell any security or insurance product; or an endorsement of any third party or

such third party's views.  All examples are hypothetical and for illustrative

purposes only.  Please contact us for an assessment of your personal

financial circumstances and to obtain personal investment advice

INFLATION AND YOUR CAR:

Once-depreciating vehicles are rising in value, and some recently

purchased ones are worth more now than their original price.

With car companies still trying to resume normal levels of factory

output, dealers have been left with a scarcity of new vehicles to sell at

stores, pushing many buyers into the used-car market where they are also encountering

limited options.

Used-car prices rose 40.5% in January from a year ago, according

to data released Thursday by the Labor Department, a jump that helped

accelerate U.S. inflation to an annual rate of 7.5% last month, a new

four-decade high.

Cars that were $25,000 new three years ago are $25,000 today.

The average price paid for a new 2021 model-year vehicle in April

was $38,585, according to J.D. Power. In January 2022—nine months later—that

same model-year vehicle was selling for an average of $48,765 as a slightly

used vehicle.

SOCIAL SECURITY:

Retirees can start Taking Social Security benefits any time

between ages 62 and 70, but for every month of delay, the payment increases.

Benefits are also adjusted annually to reflect increases in the Labor

Department’s CPI-W, a measure of inflation affecting blue-collar workers.

For example, someone born after Jan. 1, 1960, who is entitled to

$2,025 a month at age 62 would receive $3,587 before cost-of-living adjustments

by holding off on claiming until age 70. With a 5% inflation adjustment, the

benefit available at age 70 would be about $5,300.

Cost-of-living increases start at age 62, whether you claim or

delay, and continue for as long as you live. Based on the rise in third-quarter

inflation, the increase for 2022 was 5.9%, the largest since 1982, according to

Social Security Administration data.  BUT, inflation was up 7.5% last

year.  So even though S.S. payments went up 5.9%, the buying power of S.S.

payments declined by 1.6%.

A person who postpones benefits until age 70 instead of 62 would

have to live to 80½ years old to come out ahead.

TIPS

When inflation exceeds expectations, prices of ordinary bonds

typically get hammered. That is when Treasury inflation-protected securities,

or TIPS, tend to do well. 

Backed by the U.S. government, TIPS are bonds with principal and

coupon payments that adjust to keep pace with the consumer-price index.

The bond market currently expects inflation over the next decade

to average about 2.46%. That is the difference between the minus 0.51%

inflation-adjusted yield on the 10-year

#37 Cars Social Security IRS

DISCLAIMER:  This broadcast is intended

for educational purposes only and does not constitute investment advice or an

offer to buy or sell any security or insurance product. All information

provided here is for educational purposes only and does 

not constitute investment, legal or tax advice, an offer to buy or

sell any security or insurance product; or an endorsement of any third party or

such third party's views.  All examples are hypothetical and for illustrative

purposes only.  Please contact us for an assessment of your personal

financial circumstances and to obtain personal investment advice

INFLATION AND YOUR CAR:

Once-depreciating vehicles are rising in value, and some recently

purchased ones are worth more now than their original price.

With car companies still trying to resume normal levels of factory

output, dealers have been left with a scarcity of new vehicles to sell at

stores, pushing many buyers into the used-car market where they are also encountering

limited options.

Used-car prices rose 40.5% in January from a year ago, according

to data released Thursday by the Labor Department, a jump that helped

accelerate U.S. inflation to an annual rate of 7.5% last month, a new

four-decade high.

Cars that were $25,000 new three years ago are $25,000 today.

The average price paid for a new 2021 model-year vehicle in April

was $38,585, according to J.D. Power. In January 2022—nine months later—that

same model-year vehicle was selling for an average of $48,765 as a slightly

used vehicle.

SOCIAL SECURITY:

Retirees can start Taking Social Security benefits any time

between ages 62 and 70, but for every month of delay, the payment increases.

Benefits are also adjusted annually to reflect increases in the Labor

Department’s CPI-W, a measure of inflation affecting blue-collar workers.

For example, someone born after Jan. 1, 1960, who is entitled to

$2,025 a month at age 62 would receive $3,587 before cost-of-living adjustments

by holding off on claiming until age 70. With a 5% inflation adjustment, the

benefit available at age 70 would be about $5,300.

Cost-of-living increases start at age 62, whether you claim or

delay, and continue for as long as you live. Based on the rise in third-quarter

inflation, the increase for 2022 was 5.9%, the largest since 1982, according to

Social Security Administration data.  BUT, inflation was up 7.5% last

year.  So even though S.S. payments went up 5.9%, the buying power of S.S.

payments declined by 1.6%.

A person who postpones benefits until age 70 instead of 62 would

have to live to 80½ years old to come out ahead.

TIPS

When inflation exceeds expectations, prices of ordinary bonds

typically get hammered. That is when Treasury inflation-protected securities,

or TIPS, tend to do well. 

Backed by the U.S. government, TIPS are bonds with principal and

coupon payments that adjust to keep pace with the consumer-price index.

The bond market currently expects inflation over the next decade

to average about 2.46%. That is the difference between the minus 0.51%

inflation-adjusted yield on the 10-year...