Why the Stock Market is Obsessed with Oil
The S&P 500 is now almost perfectly correlated to the price of oil, which is interesting because over the past decade they've had virtually no correlation.
Energy only makes up 3% of the economy.
So why the focus?
- Falling prices often signal softness in demand, which precedes an economic slowdown. But, most believe this is a supply glut, not weakened demand
- Cheap oil is causing US Oil production to cool off, hurting energy companies and states heavily dependent on oil
- The threat of Oil Loans imploding (raises the risk in the banking sector
- Russia, Venezuela, Brazil, and others that rely on oil exports could lead to an emerging debt crisis
- Fresh doubt about whether the Federal Reserve will be able to raise interest debt
Click here for the full article
Social Security Isn't a Nest Egg
I was recently interviewed for a magazine with the question "what are the biggest misconceptions about Social Security".
My conclusion, and the headline used, is that Social Security isn't a nest egg.
- Many people think it will pay out more to them than it actually will
- Many believe you have an individualized account, sort of a government-held savings account.
- A third misconception is that Social Security will be broke sometime in the future. Different yes, but gone no
My advice is to take control of your own retirement and not abdicate it to someone else, and most definitely not those in government that might have different objectives than you.
Full Article - Social Security Isn't a Nest Egg
U.S. Stocks were positive 73% of the time 
With an unmanaged stock market index going back to 1926, 73% of the time U.S. Stocks were positive. When you add in the "slightly negative" column of declines from 0 to 10%, that adds up to about 87% positive or slightly negative.
The future could absolutely be different, and you have to ensure it fits with your individual goals.
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Happy Birthday to Me - 47
I may be another year older this coming weekend, but due to my healthy diet and serious martial arts since this time last year, I look and feel about 10 years younger.
I plan on being around for decades, and am continually awestruck by how fortunate I am in my life.
All my love to my family, clients, and friends.
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