The TreeceCo Report
By Tony Treece
RSVP today for BBQ with Tony at our new location in north Concord!
On July 10th at 7:00 PM, we will meet at the Country Inn and Suitesoff Dale Earnhardt road off Interstate 85. Click here for a map.
Come eat FREE Gary's BBQ and hear Why Your Assets Should Be Protected from another Stock Market Correction.
Space will be limited to the first 50 people to RSVP.
If you're not a BBQ eater, we'll have our usual Starbucks Coffee and Desserts
Call 855.534.4653 or Email info@TreeceCo.com
to Reserve Your Spot Today!
We are in a recession. I’ve not digressed from that belief since the housing crisis that began the Great Recession in 2007. Many people would have you believe that our economy is recovering, and they would point to our record-breaking stock market earnings to prove it. At the outset this may seem logical, but let’s take a closer look at this argument.
A few months back David, my son, came to me with a situation that had frustrated him. He’d bought several shares of a company’s stock, and he had recently logged into his account to find that he had fewer shares than he had bought. The company is in dire financial straits and had done what’s called a “double reserve stock split.”
Basically when a company is struggling and they want to take market shares out of the market they split their stocks. This gives the illusion that the company’s share price is stable, but really it has gone down. They do this to avoid the appearance that their company is not a good buy.
Another trick that companies often use is simply buying their own stock back. Wal-Mart recently spent $5.8 billion to repurchase 77.9 million shares. And in 2013 collectively companies have spent $500 billion to repurchase their own stocks.
The only buyer of stocks has been the Federal Reserve, and with the Federal Reserve beginning to taper it begs the question of what the continual effect will be. Will these factors create further weakness? I believe the answer is yes.
The Federal Reserve met this week and stated that next month quantitative easing will be reduced to $35 billion per month, yet Chair Yellen stated that the previous projections on where the market are fell short of what the Fed had anticipated.
I would be remiss if I didn’t mention the onslaught of inflation that has mainly shown itself in food prices. With the Middle East conflict stirring, our current gas prices will look like a bargain in a few months.
Clearly, I do not believe our economy is recovering. With that belief being the centerpiece of our financial advising, it is pertinent to have savings and investing tools that will weather harsh economic storms. Call our office to schedule a free consultation to speak more about these types of savings and investing tools.