It is universally agreed that international trade wars are bad for global economies. Tariffs increase prices on goods people buy. Consumers either buy less or they increase consumer debt. Tariffs hurt corporate profits, which is bad for stock prices.   However, President Trump has nevertheless decided to place tariffs on various imports — most notably…

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I recently attended a lecture with Roger Ibbotson, an emeritus finance professor from Yale business school, and had the opportunity to speak with him afterward. Ibbotson recently completed extensive historical research on the performance of bonds versus uncapped index annuities. Traditionally, index annuities placed caps or limits on upside performance. Uncapped index annuities do not…

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The S&P 500 consists of 500 of the country’s largest publicly traded companies. These companies include the following sectors: energy, technology, consumer staples, consumer discretionary, financials, health care, industrial, materials, telecommunication, utilities and real estate. At first glance, this seems like adequate diversification. However, the S&P 500 is market cap weighted, which means that the…

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In an effort to cut the trade gap and negotiate a more favorable trade agreement with China, President Trump recently announced tariffs of 25 percent on steel and 10 percent on aluminum. This means that the cost of purchasing these items from abroad will increase. This will ostensibly help American steel and aluminum companies become…

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