The Long Term Investor

So....on one hand we have the short sellers attacking the markets.....on the other hand we have this.

The market's 'fear gauge' just hit its lowest level since January 2020: Morning Brief

https://finance.yahoo.com/news/the-...nce-january-2020-morning-brief-100023019.html

(BOLD is my opinion OR what I consider important content)

"Wall Street's so-called "fear index" — the CBOE Volatility Index (^VIX) — fell to 12.73 Thursday, the lowest reading since January 2020.

As stocks snap a three-day losing streak and return to climbing the proverbial wall of worry, the VIX is signaling the most complacency in stocks since just prior to the pandemic.

It may not signal the all-clear, the low VIX reading does underscore the powerful rally U.S. large cap equities have mounted this year. While the rally was largely concentrated in growth tech names and mega cap stocks through May, cyclical sectors have joined the party since the last jobs report dropped in early June.

The VIX is perhaps most famous for its skyward spikes during periods of market turmoil. But sustained, lower readings are a hallmark of bull markets.

Former options market maker and current chief strategist at Interactive Brokers, Steve Sosnick, explains the dynamic between the VIX, which is derived from the options market on S&P 500 stocks, and the underlying stocks.

"VIX is a key tool for portfolio managers who want to hedge their risks. The low level of VIX tells us that there is not much demand for protection from institutions," writes Sosnick.

Yet, a similar gauge in the bond market shows a different story.

Above shows the BofA ICE Move Index (^MOVE), which has come well off its highs this year. However, it remains quite elevated relative to readings prior to the pandemic.

And comparing sentiment in the stock market to sentiment among consumers illustrates an even more divergent story.

The University of Michigan consumer sentiment index (blue, above), is coming off the lowest level since its start in 1977. The VIX index (orange, above) is inverted such that spikes lower indicate panic in stocks.

The chart shows that the last period of similarly low consumer sentiment came just after Lehman Brothers failed in 2008 during the Global Financial Crisis. It was met with a concurrent spike in market turmoil, as measured by the VIX (and the MOVE index as well).

So what does this suggest is in store for the present?

While this "gap" between the consumer and Wall Street remains stretched, it needn't necessarily close. However, it would be historically unusual to see the disconnect remain this large.

All of which suggests the consumer will finally cheer up and "catch up" to Wall Street complacency, or panic in stocks will "catch down" to depressed sentiment levels.

But not without a catalyst, which could be weeks away.

"We have put another FOMC decision and semi-annual testimony by the Fed Chair in the rearview mirror. At the same time, we have roughly another month until 2Q earnings season begins in earnest and few 'known unknowns' in the ensuing weeks,” writes Sosnick. “Smooth sailing, right?”"

MY COMMENT

I am not a fan of sentiment indicators. I see them as hindsight. BUT.....I do see this as a contradiction with the low VIX and all the short sellers popping up right now.

One explanation is the difference between a longer view and the focus on day trading for the short sellers. they dont care at all about fundamentals......what they care about is making short term money any way they can.

 

LOL......love it.....the cage fight.

 

I have been paying ZERO attention to the averages today. BUT....it seems like we are now backing off from the lows of the day.

WHATEVER.

I note that the media is now HYPING the FED again. I guess you run with what you got. I dont see any RATIONAL way anyone could care about the FED. No more hikes....one more hike....even two more hikes.....they are basically done. WHO CARES.

If you want to think about any issue it is SECOND QUARTER EARNINGS........that will impact the markets going forward.

 

I have been out of touch most of the day. But as of the close today....I was in the RED. I had a single stock Up today.....COST. I got barely beat by the SP500 by....0.06%.

A go nowhere day in a go nowhere week.

 

A very consistent week for ALL the averages......ALL down.

DOW year to date +1.72%
DOW for the short week (-1.34%)

SP500 year to date +13.25%
SP500 for the short week (-1.02%)

NASDAQ 100 year to date +36.15%
NASDAQ 100 for the short week (-0.83%)

NASDAQ year to date +28.91%
NASDAQ for the short week (-0.76%)

RUSSELL year to date +3.43%
RUSSELL for the short week (-2.14%)

Not too bad considering the negativity this week.

Year to date for my entire account as of the close today.....+31.44%. Year to date for my entire account as of the close last week......+32.41%.

 

Judging by the headlines it appears that some think having a down week is a BIG CRISIS. NO....that is just part of the normal stock market process....even during a BULL MARKET. There will be many more down weeks this year and perhaps even a correction. that is how the markets work over the short to medium term.

I am not going to get real excited since I am STILL.......+31.44%......year to date.

 

I think this is stating the OBVIOUS.

Consumers, Not Factories, Are Carrying the Global Economy

https://finance.yahoo.com/news/global-economy-leans-more-consumers-153315774.html

(BOLD is my opinion OR what I consider important content)

"(Bloomberg) -- The world economy shows increasing signs of cruising on one engine, relying on services for momentum as factories from Japan to the US slow production lines and struggle to clinch orders.

Surveys of manufacturing purchasing managers released Friday signaled contraction across major economies, with the US index hitting its low for the year so far. The euro-area equivalent for June slid more than economists anticipated, to the lowest level in more than three years.

With consumers shifting their focus to services, the goods side of the global economy is struggling with excess inventories. And the most aggressive interest-rate hikes in decades by the Federal Reserve and Europe’s central banks have made it much costlier to fund capital spending.

The news sent stocks sliding and government bonds climbing across global markets, after a notable run-up in equities stoked by enthusiasm over the booming AI industry. With central banks still signaling that they will keep raising rates to quell inflation, short-term yields fell less than longer-term ones — a classic recessionary signal.

Germany’s yield curve has reached its most inverted point since 1992, while UK two-year yields exceed 10-year rates by a magnitude unseen since 2000. US two-year yields offered more than a percentage point over 10-year ones as of Friday morning. Meantime, the S&P 500 Index was down 0.7% as of 10:38 a.m. in New York.

The gloom evident in the manufacturing PMIs and many financial assets contrasted with an assessment late Thursday by Treasury Secretary Janet Yellen that recession risks in the US have declined.

“My odds of it, if anything, have gone down — because look at the resilience of the labor market, and inflation is coming down,” she said in an interview in Paris.

Her judgment dovetails with that of many economists. A Bloomberg survey published Friday showed that the consensus now is that the US will dodge a recession this year — though underlying inflation will be faster than previously thought.

“We still forecast, for the near term, decent growth this year — 2.8% this year globally, 3% next,” Neil Brown, head of equities at GIB Asset Management, told Bloomberg Television. Still, “we see fragile growth. We need to be cautious about the risk of recession.”

The S&P Global US manufacturing PMI dropped to 46.3 in June, well below the 50 mark that signifies the dividing line between expansion and contraction.

“We don’t think this data has immediate implications” for the Fed’s July policy decision, Ian Lyngen, head of US rates strategy at BMO Capital Markets, wrote in a note. For that, he said he’d be looking at the June jobs and inflation reports. “Nonetheless, it was a disappointing print.”

What Bloomberg Economics Says...

“Amid the most rapid Fed hiking cycle in four decades, Bloomberg Economics has long forecast a recession in 2H23. With the economy exhibiting a bit more momentum at mid-year than anticipated, we now think a downturn is more likely to begin later in 2H than earlier.”

—Anna Wong, chief U.S. economist

China’s manufacturing PMI, due June 29, are also forecast to show a contraction, while Germany’s Ifo index of business sentiment is projected to drop, adding to evidence of a stuttering in global manufacturing.

A synchronized decline in the world factory complex as it enters the second half of the year would leave advanced-economy consumers ever more in the driving seat of global growth as they binge on services denied them during years of pandemic.

“An increasingly severe downturn in new orders mean factories are running out of work,” Chris Williamson, chief business economist at S&P Global Market Intelligence, said in a statement. “The question remains as to how resilient service-sector growth can be in the face of the manufacturing decline and the lagged effect of prior rate hikes.”

For central banks, it complicates the job of deciding how much further to go in raising rates.

“The Fed does want to see the economy slow, because only then can we see a slowdown in the inflation equation which is really the only component the Fed can control,” Lindsey Piegza, chief economist at Stifel Nicolaus & Co Inc. told Bloomberg Television. “We may not see an extremely deep or prolonged downturn in the US, but we do need to see that slowdown.”"

MY COMMENT

What's new? Do we even have any manufacturing left in this country....or is it all in china?

Obviously we have some but we are also obviously a CONSUMER BASED economy now and probably for the future.

Around my little area...people are STILL spending and buying....seemingly with abandon.

 

If you care about the markets today.....I dont....here you go.

Stocks sink as Nasdaq, S&P 500 snap lengthy win streaks: Stock market news today

https://finance.yahoo.com/news/stock-market-news-live-updates-today-june-23-2023-094710905.html

(BOLD is my opinion OR what I consider important content)

"Stocks fell on Friday, with all major averages ending the week lower as investors come to terms with the prospect of more interest-rate hikes ahead from the Federal Reserve.

The S&P 500 (^GSPC) dropped 0.76%, while the Dow Jones Industrial Average (^DJI) slipped 218 points, or 0.64%. The tech-heavy Nasdaq Composite (^IXIC) led the declines, falling 1.01%. The Nasdaq had its first weekly loss in the last eight, while the S&P 500 snapped a five-week win streak.

Fed Chair Jerome Powell doubled down on his view on Thursday that more rate increases are needed to temper inflation, joining a global chorus of hawkish central banks.

That's revived some worries about the potential hit to economies, though Treasury Secretary Janet Yellen said she now sees a lower risk of US recession. But a red-hot reading in a key gauge of Japanese inflation has underlined the pressures on policymakers."

• "Earnings on tap next week
• 
  The week ahead will provide an updated look at the consumer and the state of businesses severely impacted by the pandemic. Carnival Cruises is set to report on Monday, and Walgreens and Rite Aid, two companies still adjusting to the winding down of COVID-19 vaccine distributions, are set to report later in the week.
  
  Nike will headline reports next week, though. The nation’s leading athletic apparel company has made progress offloading excess inventory over the last several quarters. But while the company already signaled it reached peak inventory bloat, some Wall Street analysts are still concerned the inventory headwind could weigh on gross margin growth.
  
  Nike is expected to report after the bell on Thursday."

MY COMMENT

I will be very curious to see the NIKE earnings next week. the start of something new....or....the same old, same old?

As to this week......who cares. We have had an EPIC run up for weeks now and we start fresh next week without the FED overhang.

Why in the world anyone would care about what the FED is going to do now is beyond me.

 

HAVE A GREAT WEEKEND EVERYONE.

No shows for me this week. We are taking the weekend off since we will be in the studio all week next week.

So.....I will probably not be doing much posting during the day next week. I will leave each day at 8AM and return some time in the early evening.....Monday through Thursday. We will than do a little 150 mile road trip and play on both Friday and Saturday.

I will touch bases when I can and perhaps do some posting in the evening.

 

Good deal rg7803 with the bonus....sounds like you are killing it at work. I also like your stock picks for the long term.

Keep up the posts....you are the thread correspondent for Portugal and the EU.

 

Looks like a little BLACK SWAN has hatched in Russia. We will see if it gets out of the nest or not.

 

PLEASE NOTE

So.....I will probably not be doing much posting during the day next week. I will leave each day at 8AM and return some time in the early evening.....Monday through Thursday. We will than do a little 150 mile road trip and play on both Friday and Saturday.

I will touch bases when I can and perhaps do some posting in the evening.

SO.....you-all do some posting and have fun. MAKE ME SOME MONEY THIS WEEK!!!!!

 

The week starting tomorrow.

Inflation, consumer confidence, Nike: What to know this week

https://finance.yahoo.com/news/infl...ce-nike-what-to-know-this-week-155502982.html

(BOLD is my opinion OR what I consider important content)


"After Federal Reserve Chair Jay Powell's comments hinting at more interest rate hikes in 2023 sent the three major indices lower last week, investors will once again be focused on the Fed's next moves with inflation data, two checks on consumer confidence, and results from Nike (NKE) highlighting the final week of June and the first half of 2023.

The Personal Consumption Expenditures (PCE) index, the Fed's preferred inflation indicator, out Friday morning will be week's biggest economic data release.

Tuesday and Friday will bring consumer checks from The Conference Board and the University of Michigan, respectively, while housing data also dots the schedule.

On the earnings side, results from Nike, Carnival (CCL), Walgreens (WBA), and Rite Aid (RAD) will be key highlights.

Investors will look to close a strong month, quarter, and first half of 2023 on a high note after recording their worst week in months.

All three of the major averages closed the week lower with the Nasdaq Composite (^IXIC) experiencing its first weekly loss in the last eight, while the S&P 500 (^GSPC) snapped a five-week win streak. Stocks are still largely up in June, though.

Entering the final week of the month, the Nasdaq is up more than 7% while the S&P 500 has risen nearly 5% and the Dow Jones Industrial Average (^DJI) is higher by just over 2%. Through the first half of the year, the Nasdaq remains up more than 28% with the S&P sitting on gains north of 13%.

During two days of testimony on Capitol Hill, Powell called inflation "more persistent than we've expected," adding the central bank has a "long way to go" to bring inflation down. With limited data between now and the Fed's next policy announcement on July 26, Friday's inflation data will be even more closely watched.

Last week, Powell referenced "core" PCE as being particularly stubborn.

Data on Friday is expected to show "core" PCE — which strips out the costs of food and energy — rose 4.7% over the prior year in May, unchanged from April. The Fed targets 2% inflation, on average. Over the prior month, "core" PCE is expected to rise 0.4% in May.

"May core PCE inflation is likely to be softer (we project 0.29% MoM), but we expect non-shelter services inflation to remain stubbornly high in coming months," Citi's team of economists wrote in a note on Friday. "A resurgent housing market is raising further upside risks to 2024 inflation."

Data for new home sales and the S&P CoreLogic Case-Shiller U.S. National Home Price index are expected on Tuesday. Economists project home prices fell 2.6% year-over-year in April.

On the earnings front, Nike results will headline the list of the companies reporting. The nation’s leading athletic apparel brand has made progress offloading excess inventory over the last several quarters. But while the company already signaled it reached peak inventory bloat, some Wall Street analysts are still concerned inventory headwinds will weigh on gross margin growth.

Nike's report will provide a clearer picture of the state of wholesale retail inventories after Foot Locker (FL) warned of troubles during its most recent quarterly earnings report.

"Recent [North America] & Europe sportswear channel checks make it clear that demand for mass sportswear has potentially slowed, leaving a sizable inventory glut across the industry that is currently being promoted away...a potential headwind that could pressure NKE revenue & margin," Morgan Stanley equity analyst Alex Straton wrote in a note on Tuesday.

Broadly, markets might be searching for a new catalyst as the AI driven rally in tech stocks took a backseat to other momentum trades to end the week.

As Yahoo Finance's Jared Blikre pointed out on Friday, investors appeared to dump some recent winners to end the week, with semiconductors falling and Bitcoin hitting a new 52-week high.

Fundstrat head of research Tom Lee wrote in a note on Friday that the pull back last week was "overdue."

"The obvious question for everyone is whether this 2% pullback represents a local top (or even a major top) or is this a shorter term pullback that needs to be bought," Lee wrote.

Lee says stock market bears will point to more Fed rate hikes on tap, the potential for an earnings decline in the second half of the year, and a 1999-like bubble in AI. But Lee remains in the camp that inflation is cooling and believes that will play out in the week ahead with PCE and housing data.

"To us, this looks increasingly like an economy slipping into an expansion, not sliding into a recession," Lee wrote. "And this makes early cycle/risk-on positioning more appropriate."

MY COMMENT

Actually....a typical light week again this week. NIKE is my main curiosity. The FED stuff.....dont care.

The problem with these light weeks is the low volume. It allows the day traders and AI trading platforms to have WAY OVERSIZE impact on the markets.

 

I hope so.

Amazon may be the largest US retailer in 2024, according to J.P. Morgan analysts

https://finance.yahoo.com/news/amaz...ccording-to-jp-morgan-analysts-140145976.html

(BOLD is my opinion OR what I consider important content)

"Amazon (AMZN) is set to hit a major milestone in 2024: Becoming the largest retailer in the US, according to J.P. Morgan analysts Doug Anmuth and Bryan M. Smilek.

If this comes to pass, Amazon will be unseating Walmart (WMT) as the country's largest retailer. It would be a seismic shift, one driven by increased e-commerce penetration, faster delivery times, and the stickiness of Amazon Prime. J.P. Morgan estimates show that, in 2023, Amazon's gross merchandise volume, or GMV, will grow 11.6% year-over-over to $477 billion.

This kind of growth shows the sort of resilience that Wall Street has been hoping to see out of e-commerce businesses, which had a tough 2022. Though e-commerce businesses like Amazon saw major booms during the pandemic, last year saw a pullback. It was the first year since 2009 that US e-commerce grew less than 10%, the analysts noted, adding just 8.5% year-over-year, "likely driven by macro pressures, the resurgence of [brick-and-mortar] retailers, and the shift toward omni-channel retail following the pandemic," Anmuth and Smilek wrote on June 20.

This year, Amazon's GMV is growing due to "solid growth in under-penetrated categories" like grocery and apparel, "faster delivery speeds, with 2023 tracking toward Amazon’s fastest delivery speeds ever," and the "Prime flywheel," the idea that the company's much-discussed subscription service builds momentum at every step in the experience, the analysts wrote.

Amazon's e-commerce business will also benefit from increased business-to-business capabilities, new fintech offerings like Buy With Prime, and estimated growth in the number of third-party sellers operating in the company's marketplace, they added.

J.P. Morgan estimates that there will be about 300 million Prime members globally by the end of this year. In 2021, then-CEO Jeff Bezos said the company had "more than 200 million Prime members worldwide."

Amazon also has a massive grip on the e-commerce marketplace and, at the end of 2023, J.P. Morgan analysts expect the company's e-commerce market share to be 42.2%, an increase of 106 basis points year-over-year.

J.P. Morgan's bullishness on Amazon also ties back to the belief that the company will leverage generative AI in its e-commerce operations, suggesting that a "ChatGPT-style product search would create an interactive conversational experience" which the analysts believe would "enable Amazon other retailers to provide a more personalized customer experience" and that AI could also "could enable Amazon and other retailers to leverage a breadth of customer purchase history and data and enhance personalized recommendations."

Big tech government scrutiny

There's a catch, however: in recent months, so-called "big tech" companies, Amazon included, are seeing increased scrutiny from the federal government. Vermont Sen. Bernie Sanders said he is investigating what he called Amazon's "abysmal safety record" and, though it's far from the first time Sanders has gone after Amazon, it's certainly one of the most formal, and is unlikely to be the last.

Additionally, last week the Federal Trade Commission (FTC) sued Amazon, alleging that the company has been tricking customers into signing up for Amazon Prime and making it harder to cancel those subscriptions. The lawsuit is the byproduct of an FTC investigation that began back in 2021. For Amazon, it's a gut-punch of a lawsuit, alleging that the company violated several consumer protection laws and that the court should issue an injunction to stop Amazon's Prime subscription practices.

This new Amazon lawsuit comes on the heels of FTC actions against many of tech's biggest names, including Alphabet (GOOG), Microsoft (MSFT), Meta (META), and Apple (APPL)."

MY COMMENT

The last first.....the "prime lawsuit". I dont see this as going to mean much.....other than some little bit of media fear mongering.

Now what really counts.....Amazon's total dominance of retail. If the predictions in this little article come true regarding retail and eCommerce, and AI, and Web Services and DOMINANCE.......this company should be kicking ass. BUT.....so far they are NOT. If they can not go on a long term roll......than it is on management. If the current management can not do any better than they have been.....after being handed the most DOMINANT retail business in history......they should BE FIRED.

The company needs to wake up and do something soon.....a year or so.....regarding management before they squander what they now have.

The results lately for this company have been pathetic considering their DOMINANCE. Imagine 300MILLION Prime members that is predicted above......there is no excuse for NOT killing the earnings numbers going forward over the next 12-16 months.

If the numbers are not improving over the next 12-16 months....after all the initiatives by the current management....than something is WRONG......and...it is not the business model.

 

I have to take off in ten minutes......but.....I like this article. THIS is why you invest....for YOURSELF and your FAMILY.

Inside America’s retirement income crisis
Largest number of Americans in history reach 65 next year

https://www.foxbusiness.com/markets/inside-americas-retirement-income-crisis

(BOLD is my opinion OR what I consider important content)

"Americans close to retirement or recently retired are still not prepared, according to a new survey, "Americans Change Retirement Savings Strategies," from the Alliance for Lifetime Income (ALI), a nonprofit consumer organization that educates Americans on how to protect their retirement.

"There has been a seismic shift in retirement security from a time when many people could rely on a pension in retirement," said Jason Fichtner, a senior fellow and head of the Retirement Income Institute and chief economist at the Bipartisan Policy Center, both based in Washington, D.C. "Today, many Americans are facing a retirement crisis because they are at risk of running out of money in their retirement."

"Today, many Americans are facing a retirement crisis because they are at risk of running out of money in their retirement."

- Jason Fichtner, head of the Retirement Income Institute, chief economist at Bipartisan Policy Center
He also said that this is the first retiring generation in which more than half don’t have a pension to cover part of their retirement costs.

"That makes this the first generation where the majority must rely on their own savings efforts to prepare for retirement," Fichtner told FOX Business.

There’s another issue at hand that is affecting the retirement crisis: "We’re about to hit ‘Peak 65’ next year, a historic demographic event when we’ll see the largest number of Americans reach 65 in history, and far too many people still don’t have the savings and protected income they need to retire comfortably," Fichtner said, reporting that roughly 10,000 people a day are turning 65 and that number will increase to 12,000 a day upon reaching the Peak 65 moment next year.

The multipart 2023 Protected Retirement Income and Planning (PRIP) study, according to the ALI, is the only research of its kind that surveys both consumers and advisers simultaneously. The annual study examines the rapidly changing retirement income planning landscape, including shifts in consumer attitudes and behaviors toward retirement savings, a press statement said.

Americans Change Retirement Savings Strategies Highlights

• 51% of consumers between 45 and 75 feel they do not have enough retirement savings to last their lifetime.
• 32% are not confident they will have enough money in retirement to cover basic monthly expenses.
• 44% are retired currently or retired previously and have gone back to work.

Growing demand for protection and annuities

This survey also reveals how consumers want 80% of their retirement savings, which will cover their needs in retirement, to be invested in safer investments, and those protected by a pension and/or an annuity have a significantly more positive outlook on their retirement prospects, according to the survey results.

Also, consumer demand for annuities has skyrocketed to an all-time high amid concerns about unprecedented market volatility and falling retirement investments, according to ALI.
.
What is an annuity?

In simple terms, Fichtner said an annuity can be structured like a personal pension you can purchase from an insurance company to turn a portion of your retirement savings into a predictable paycheck.

"Depending on the type of annuity, you purchase the contract (as an individual or married couple) in either a single payment or with multiple payments over time," he added.

According to Fichtner, there are many annuity types available today, each with different features, benefits and costs, but they basically fall into three main categories:

• Fixed: Protects your principal from market downturns and offers a fixed rate of interest for growth and guaranteed monthly payments.
• Fixed Index: Protects your principal from market downturns, offers a minimum crediting rate with potential for additional interest based on market indexes, and guaranteed monthly payments.
• Variable: Offers the potential to grow your money through various market investments, but with the potential for market loss, and the option of receiving guaranteed monthly income payments.

Annuities can be a valuable part of a diversified portfolio. Fichtner said annuities may be a good choice if:

• Social Security isn’t enough to cover your basic expenses.
• You expect to live a long time and could potentially outlive your savings.
• You want to reduce risk and protect part of your portfolio.

Why is diversification so vital in your portfolio?

Diversification is more important than ever, especially when you are building a comprehensive retirement portfolio, Fichtner said, pointing out the need to think about the types of accounts you own – taxable, tax deferred (IRA, 401k) – as well as the types of investments you own – stocks, bonds, mutual funds, ETFs and annuities.

"Annuities are becoming more and more popular since many people do not have pensions but still want protected retirement income," Fichtner tells FOX Business. "And making our savings last is a big deal given we are generally living longer than prior generations."

How does risk tolerance and time impact investment decisions regarding retirement savings?

Peter J. Landry, the director of insurance and annuities for Wells Fargo Wealth & Investment Management who is based in Charlotte, North Carolina, explains that a consumer’s risk tolerance is arguably the most important consideration of all with respect to retirement savings.

"It would be inappropriate, for example, for a risk-averse consumer to invest their retirement savings in a product solution that provides a great deal of exposure to market volatility," Landry told FOX Business. "Above all, peace of mind is what is most important and why it is vital to understand the amount of risk a consumer is willing to absorb."

That said, inflation, which has been historically high as of late, can erode the buying power of the retirement dollars that the consumer is putting aside, Landry said.

"Younger individuals will want to carefully consider at least having some market exposure so that they can grow their retirement savings over time and work to keep pace with inflation," he said. "Additionally, having time before needing assets allows for the time value of money, essentially compounding interest, to work to provide for growth of the investments being accumulated for retirement.""

MY COMMENT

We are NOW at the start of one of the greatest social experiments in history.......the elimination of pensions for everyone that is NOT a government worker. Of course this has been imposed on the BABY BOOM generation by business and government.

Younger people will obviously NOT have a pension. Your retirement will be up to YOU. As you watch this experiment happen to the baby boom generation....learn the lesson.....invest for your future and comfort.

As to ANNUITIES......YES....they are a great retirement vehicle. BUT......I ONLY suggest income annuities....either immediate or deferred....that are for the lifetime of the holder and/or a spouse. I call these the "good annuities".

As to the other sorts of annuities......I have no interest. They are rife with HIGH FEES and all sorts of complex projections that may or may not happen. They are "sold" to the public.

If you are considering an income annuity...do your research as to the financial health of the company you are buying it from. Also structure your annuities according to your states insurance company guarantee program in the event of a company failure.

As to all the various NON income annuities.....DO YOUR HOMEWORK.