Why Financial Experts Hunger for Answers

All eyes are on the Federal Reserve this August as we await Chairwoman Janet Yellen’s announcement regarding potential adjustments to national fiscal policy and—experts hope—a long-awaited increase in interest rates. However, some financial experts, like long-time money manager and radio host Dawn J Bennett, believe that whatever Yellen announces this month, the odds aren’t likely to be in the nation’s favor. As Bennett states, a growing number of economic indicators point to the reality that the Fed has lost a handle on the economy as a result of its focus on exclusively finding solutions for the present, rather than the future.

Is Government Overreaching?

Regardless of whether the Federal Reserve increases interest rates and delivers the recommendation that the country has anxiously awaited, the larger problem at hand is the presence of the government’s ever-extending, unwarranted hand into economic outcomes. As Bennett points out, the economic upheaval and excruciatingly slow recovery from 2008’s recession was the product of a “wait-and-see” economic experiment by the Feds, not a method grounded in sound fundamentals.

Forgetting about Long-Term Gains

The performances of central banks around the world point to the consequences of this type of approach to economics; many are currently experiencing some of their worst numbers in over 2 years. While central banks are suffering the stock market is still holding up, but Bennett argues that this, too, is a deceptive cover for the manipulation that’s really at play. In fact, there’s a significant lack of real “volume” behind the stock market; the internal financial health of companies does not match up with the external sky-high values that irresponsible policies have propped up.

In fact, FactSet predicts that year-over-year declines in earnings per share will continue for the majority of companies on the market into the 3rd and 4th quarters. Yet, central banks and other large companies continue to make choices that improve conditions in the short term while ignoring opportunities for growth in the long term.

A Realistic Perspective

What can and should be done to prevent an impending market slump (an inevitable consequence of a market not backed by real volume)? According to Bennett, the government and central banks should first come clean and offer an honest, transparent forecast of the economy. There’s no denying that the odds aren’t in our favor. What’s done is done, but moving forward, we can improve our situation by holding a strong cash position, investing more heavily in gold, and hedging with short-term bonds.

We can only hope that (as unlikely as it may be) Ms. Yellen’s announcement will address these points.

Bennett Group Financial Services LLC, based in Washington, D.C., is a comprehensive financial services firm committed to providing opportunities to clients’ as they seek long-term financial success. Its customized programs are designed with the potential to help grow, lower overall risk and conserve client assets by delivering a high level of personalized service and skill.

For more information, call 866-286-2268 or visit http://www.bennettgroupfinancial.com

Securities offered through Western International Securities Inc. (WIS), member FINRA/SIPC. BGFS and WIS are separate and unaffiliated entities.

About Dawn Bennett

Dawn Bennett is CEO and Founder of Bennett Group Financial Services. She hosts a national radio program called Financial Myth Busting http://www.financialmythbusting.com

She discusses educational topics and events in the financial news, along with her thoughts on the economy, financial markets, investments, and more with her live guests, who have included rock legend Ted Nugent, as well as Steve Forbes and Grover Norquist. Listeners can call 855-884-DAWN a as well as take podcasts on the road and forums for interaction.

She can be reached on Twitter @DawnBennettFMB or on Facebook Financial Myth Busting with Dawn Bennett ordbennett@bennettgroupfinancial.com

 

The Buzz about Bitcoin

Have you been bitten by the Bitcoin bug? This virtual currency/monetary network, founded in 2009, has grown to be an increasingly popular global option for money management. Yet, while Bitcoin has blossomed, most still have little idea what Bitcoin is, and how it works.

That’s why financial expert Dawn J Bennett recently sat down with New York Times business reporter Nathaniel Popper to discuss Bitcoin on her radio show, “Financial Myth Busting with Dawn Bennett.”

According to Popper, Bitcoin seems to be gaining recognition among the U.S. government and major financial institutions like Goldman Sachs and Visa. This is largely due to the fact that millions around the world now participate in the Bitcoin network, as well as the new (concerning) ways that Bitcoin is being used. Founder of the contraband trading website Silk Road, Ross Ulbricht, was just sentenced to life in prison; his site raked in millions per month using the Bitcoin currency, which was not subject to taxes. While Ulbricht’s site was a “black market” use of Bitcoin, it has increased awareness about the power of this virtual entity.

For many, managing money through Bitcoin offers key advantages. Individual account owners are solely responsible for their money, not banks or other financial institutions. This naturally affords a heightened level of autonomy and flexibility for users, as there’s no longer a middle man. However, as Popper points out, this increased level of responsibility doesn’t always work out in a user’s favor; for example, should a user lose their Bitcoin account password, there’s no way to retrieve it, and money is lost.

Those considering moving money to Bitcoin should also keep in mind that the network is still young and vulnerable to volatility. Because Bitcoin is priced in other currencies (it is not backed by precious metals or a government) there can be a great deal of inconsistency when purchasing commodities that are sold to Bitcoin—another hindrance to its ability to emerge as a competitive currency. Popper actually finds that most recently, Bitcoin has evolved from a virtual “currency” to a network akin to PayPal. Individuals use the network to make quick and easy transactions that are immediately converted to another currency.

While Bitcoin may have its weaknesses, there is something to be said for the way in which it has allowed individuals without access to bank accounts the freedom to participate in money management. These individuals will continue to increase the value and power of the Bitcoin network, regardless of whether or not Bitcoin ever becomes a currency that could compete with the dollar.

Bennett Group Financial Services LLC, based in Washington, D.C., is a comprehensive financial services firm committed to providing opportunities to clients’ as they seek long-term financial success. Its customized programs are designed with the potential to help grow, lower overall risk and conserve client assets by delivering a high level of personalized service and skill.

For more information, call 866-286-2268 or visit http://www.bennettgroupfinancial.com

Securities offered through Western International Securities Inc. (WIS), member FINRA/SIPC. BGFS and WIS are separate and unaffiliated entities.

About Dawn Bennett

Dawn Bennett is CEO and Founder of Bennett Group Financial Services. She hosts a national radio program called Financial Myth Busting http://www.financialmythbusting.com

She discusses educational topics and events in the financial news, along with her thoughts on the economy, financial markets, investments, and more with her live guests, who have included rock legend Ted Nugent, as well as Steve Forbes and Grover Norquist. Listeners can call 855-884-DAWN a as well as take podcasts on the road and forums for interaction.

She can be reached on Twitter @DawnBennettFMB or on Facebook Financial Myth Busting with Dawn Bennett ordbennett@bennettgroupfinancial.com

 

The Importance of Free Trade

Is the U.S. a country that embraces free trade? Most would argue that while opinions are divided, the U.S. is far from embracing free trade. But, as Don Boudreaux, a Senior Fellow at the F.A. Hayek Program, argues, the advantages of free trade policies should be enough to change dissenting opinions.

Boudreaux recently spoke with Dawn J Bennett, host of the nationally-syndicated talk radio show “Financial Myth Busting with Dawn Bennett,” to discuss his take on the value of free trade and the future of free trade in the U.S.

Free trade has been a popular topic of late as a result of President Obama’s attempts to forge a Trans-Pacific Partnership with major economic players in the Pacific. While many on both sides of the Congressional aisle (and 80% of Americans) believe that such an agreement embracing free trade would undermine the “Buy American” effort and result in the export of jobs overseas, Boudreaux points out that as with many past trade agreements, the Trans-Pacific Partnership will ultimately give American consumers the power to more freely choose where they purchase goods and services. This is inherently a good thing, even if dollars are spent on imports. Why?

Whoever receives American currency will also have to spend it.

In other words, the Asian-Pacific companies that thrive off of selling Americans affordable products will increase their profits, and in turn be able to pay employees higher wages and acquire more capital to invest. This increased purchasing power in turn makes it more likely that Pacific consumers will purchase American goods and services, bringing spending full circle.

Boudreaux notes that the advantages of free, international trade aren’t a secret; they’ve been studied in economics classrooms around the world for decades. Outcomes continually demonstrate that free trade improves economic conditions over time for all players involved, and practically all major economists recognize this as truth.

Of course, one of the major reasons free trade has garnered such resistance and suspicion of late is the fact that the Obama Administration has made details of the Trans-Pacific Partnership unknown to the American public. While on the surface this may seem indicative of a bad deal, Boudreaux argues that the secrecy is a practical matter. Rather than have the negotiation process bogged down by requests and challenges from special interests groups, the Obama Administration is going forward with a closed-door policy. A full Trans-Pacific Partnership will eventually come before Congress, which still has the authority to accept or reject it. However, getting that bill to Congress becomes more expedient when special interests are left out of the picture.

Ultimately, Boudreaux emphasizes that free trade is inherently beneficial to economies around the world, and the Trans-Pacific Partnership, if passed by Congress, will prove this to be true.

Bennett Group Financial Services LLC, based in Washington, D.C., is a comprehensive financial services firm committed to providing opportunities to clients’ as they seek long-term financial success. Its customized programs are designed with the potential to help grow, lower overall risk and conserve client assets by delivering a high level of personalized service and skill.

For more information, call 866-286-2268 or visit http://www.bennettgroupfinancial.com

Securities offered through Western International Securities Inc. (WIS), member FINRA/SIPC. BGFS and WIS are separate and unaffiliated entities.

About Dawn Bennett

Dawn Bennett is CEO and Founder of Bennett Group Financial Services. She hosts a national radio program called Financial Myth Busting http://www.financialmythbusting.com

She discusses educational topics and events in the financial news, along with her thoughts on the economy, financial markets, investments, and more with her live guests, who have included rock legend Ted Nugent, as well as Steve Forbes and Grover Norquist. Listeners can call 855-884-DAWN a as well as take podcasts on the road and forums for interaction.

She can be reached on Twitter @DawnBennettFMB or on Facebook Financial Myth Busting with Dawn Bennett ordbennett@bennettgroupfinancial.com

True Free Market Capitalism – Can We Obtain It?

The elusive goal of obtaining free market capitalism seems extraordinarily difficult at times.  The level at which government is involved in the economy currently makes it seem almost impossible at times for it to be effectively extricated without causing major financial problems.  One hope for enacting real change could be the electing of candidates whose values truly align with free market capitalism.  This appears to be a possibility as candidates for the 2016 presidential race have begun announcing themselves.  In order to explore this issue of free market capitalism and a couple candidates which look promising Dawn J Bennett invited Jonathan Hoenig, a founding member of the hedge fund Capitalist Pig, to her radio show “Financial Myth Busting”.

Dawn J Bennett got right down to business and asked Jonathan who he was excited to see had thrown their hate into the race.  His two current favorites are Ted Cruz and Rand Paul.  Jonathan explained that the majority of politicians, even those on the right aren’t radical enough when it comes to dealing with the economy and implementing real changes.  He feels that despite many supporting capitalism it’s not in a purist sense of the form.  Jonathan even told Dawn J Bennett that he is worried that despite some of what Rand Paul says he may not actually truly hold those ideals.

Jonathan also believes along with a lot of others that repealing of the IRS, Medicare and Medicaid needs to happen.  So long as they exist a free market cannot truly exist because the government will be too deeply involved in the economy.  The problem with the IRS is the numerous loop holes and how it treats everyone unfairly.  The reality is the government could save money by repealing the IRS and having an equal flat tax on everyone.  The problem is a majority of people don’t believe this will work and have the mistaken view that true capitalism is a “dog eat dog” world.

Jonathan says in addition to abolishing those government agencies the minimum wage needs to be done away with, he claims the country’s most prosperous years were in the 1800s and late 1800s before government became so intricately entangled with the economy.  In regards to Hillary’s campaign Dawn J Bennett and Jonathan agreed that the news media is too focused on pointless matters like where she eats and what she’s wearing each day.  Once this dies down and people begin focusing on what she’s really about they will see wealth redistribution is what she’s about.  Unfortunately a lot of people in America currently believe this is the appropriate role of the government.

Dawn J Bennett also brought up Hillary’s comment about getting the money out of politics despite her plan to raise an estimated $2 billion for this upcoming election.  Jonathan conveyed that any candidate running will need to raise large sums in order to effectively advertise and get their name out there.  The real key to he says to removing money from politics is removing government from the economy.  When government policies are no longer affecting the economy like they do now, the desire to spend money on politics will be removed.  As it currently stands though government helps create monopolies and if a business doesn’t lobby they can be lobbied out of business by their competition, therefore not lobbying can lead to suicide of the company.

At the end the question we are left with is will the people of the United States continue being misled down this path which will damage us in the long term or will we return to our roots of a true free market.

Bennett Group Financial Services LLC, based in Washington, D.C., is a comprehensive financial services firm committed to providing opportunities to clients’ as they seek long-term financial success. Its customized programs are designed with the potential to help grow, lower overall risk and conserve client assets by delivering a high level of personalized service and skill.

For more information, call 866-286-2268 or visit http://www.bennettgroupfinancial.com

Securities offered through Western International Securities Inc. (WIS), member FINRA/SIPC. BGFS and WIS are separate and unaffiliated entities.

About Dawn Bennett

Dawn Bennett is CEO and Founder of Bennett Group Financial Services. She hosts a national radio program called Financial Myth Busting http://www.financialmythbusting.com

She discusses educational topics and events in the financial news, along with her thoughts on the economy, financial markets, investments, and more with her live guests, who have included rock legend Ted Nugent, as well as Steve Forbes and Grover Norquist. Listeners can call 855-884-DAWN a as well as take podcasts on the road and forums for interaction.

She can be reached on Twitter @DawnBennettFMB or on Facebook Financial Myth Busting with Dawn Bennett or dbennett@bennettgroupfinancial.com