Tag Archives: dawn j bennett

Dawn Bennett Interviews Mike Pento Regarding an Incipient Global Recession

Dawn J Bennett, CEO and Founder of Bennett Financial Services and host of Financial Myth Busting, recently interviewed Mike Pento, founder and president of Pento Portfolio Strategies, and the author of the book, “The Coming Bond Market Collapse.” He also has published numerous articles, the most recent discussing out his forecast for recessionary symptoms in the United States in 2016 as well as his prognostications for 2016 trading strategies.

In Mike Pento’s interview with Dawn Bennett, he discusses incipient global recession, predicting that the S&P is going to fall minimally more than 20 percent. “50 percent of the S&P 500 has already dropped 20 percent, so it looks like unfortunately it’s going to come true a lot sooner than even I thought,” said Mike Pento.

He continued, “I’ll tell you this, the average drop of the S&P 500 in the last six recessions has been 37 percent. So if this coming recession is just the average variety, then I would expect the S&P to drop 37 percent, which puts us about 1300 on the S&P 500. So that’s a really big hit. But, as I wrote about in my piece that appeared on CNBC and Drudge, I don’t know what the Federal Reserve is going to do to pull us out of the next recession. In the great recession of 2008, the Federal Reserve took the Fed funds rate, which is the interbank lending rate, from 5.25 down to zero by the end of 2008. And that provided consumers and corporations, and even the federal government, with a lot of debt service relief. And that helped bring the economy out of the great recession, it also boosted asset prices, it boosted the stock market, it boosted bond prices, it boosted real estate. So the point is now the Federal Reserve is leveraged 77 to 1, they have almost no capital, it’s way more over-leveraged than Bear Stearns or Lehman Brothers or any of those financial institutions were before the great recession. But, more importantly, the Fed has no more room to lower the borrowing cost to the private and public sector. That is one of the main reasons why I fear this inevitable next recession. By the way, the U.S. has suffered recession for about every five years since the beginning of the Republic.”

Mike Pento states that the fact is, that asset prices can no longer be supported by incomes, and that is probably what is going to cause the great recession. Additionally, borrowing costs have increased dramatically, outside of the Fed’s recent 25 basis point rate hike.

“I want to open my eyes, I want to open my clients’ eyes to what’s happening,” he said.

Read more from Dawn J Bennet’s interview with Mike Pento here: http://www.releasewire.com/press-releases/dawn-bennett-host-of-radio-show-financial-myth-busting-interviews-mike-pento-founder-and-president-of-pento-portfolio-strategies-and-author-658992.htm

The ECB and How it Could Affect Us

In an uncertain economic and political climate, it’s sometimes hard to see the forest for the trees. We’re very concerned about our own instability, our lackluster recovery after the recession, and our security. And while we have plenty of reason to be worried about things close to home, there are some worrying trends abroad that could soon impact our economy dramatically; namely, the ECB (European Central Bank). This economy is unstable at the moment, and could possibly drag the rest of the world down with them if the wrong things happen.

Euro coin and graph

The ECB and the Stimulus

In the case of the ECB, various factors have pushed the banks to consider some drastic measures. What with failing or defaulting economies such as Greece, and uncertainty across the continent on issues such as refugees and immigration, the whole system has been under stress for years. Now, risks in emerging markets have led the bank to approve a stimulus program, which they are potentially extending at their March 10th meeting as more concerns arise. This may or may not be for the better.

Also, since 2008, the United States had assisted the ECB by means of several different policies and successfully helped them to “prop up” their banking system. However, according to financial analyst Dawn J. Bennett, any serious economic issues on the home front could destabilize that relationship and lead us to fend for ourselves. Regardless, the breakdown of the ECB would affect us heavily.

How This Could Affect the U.S.

While the ECB, like the U.S., has its own concerns, obviously outside economies will have their say and the effects will ripple. For example, a slowdown in China would harm anyone who was major trading partners with them. Not only would the U.S. feel the effects firsthand, but they would take a secondary hit when European markets were drawn low. And Europe is already on edge about the possibility of a Chinese slowdown.

In addition, we might be helping ourselves with our higher oil production prices and raised interest rates; however, with foreign markets struggling due to the oil and investors jumping ship due to our interest rate hike, any new monetary policies that the ECB enacts to deal with these problems may not be to our benefit.

Would assisting Europe and the ECB again through monetary policy help or negate the need for the stimulus? Or is it just patching the problem? And would the consequences to us be drastic enough to warrant such action? Undoubtedly, this year will bring some answers to these questions.

Gold and Silver: The Only Safe Investment?

When most Americans consider how best to invest their money, there are several obvious routes to take: stocks, 401Ks, buying a home (or possibly more than one), etc. There are also other options like college education and business ownership that, while they take time and are not the same kind of investment, still cost money and are meant to be worthwhile in the long run.

However, a lot of people are starting to speculate about whether or not these things will actually provide any returns anymore. With the economy still on shaky ground, and many of these investments far less than certain, it’s hard for people to make informed, confident decisions about what to do with their hard-earned money.

gold and silver bars

After all, many of these traditional investments have been struggling or outright failing in recent years due to the financial crisis. School loans have been putting students into extensive debt before they can even get a job, the value of many stocks has remained low, and the housing market has recovered some, but who’s to say what will happen if there is another collapse?

Those who are looking for a way to invest that offers some real security may have heard people talk about gold and silver. But isn’t that for nutjob conspiracy theorists? Well, as it happens, there is some evidence that precious metals retain their value when other non-tangible assets fall off. Chris Duane, a self-made millionaire and venture capitalist, recently spoke to financial analyst Dawn J. Bennett on the subject on her show, Financial Myth Busting. According to him,

“So an individual boomer back in the day remembers that gas was probably about 25 cents back then, meaning that a 25 cent silver piece would buy you a gallon’s worth of gas. But what’s interesting is if you look at the silver content value of that same 25 cent silver piece, it’s still worth about a gallon of gas, even though the price of gas has gone up and is now around $2.50.”

Duane claims to have been so financially successful during the recession by selling off all of his assets – which included a business, a house, and a number of stocks – and investing all of it in gold and silver instead. When everyone else lost their capital, the value of Duane’s assets stayed the same or went up, making him a millionaire by the time he was 30. This strategy could come in handy for people in the future, as Dawn Bennett and many other financial experts believe that we are either headed back into a recession or already in one. It’s clear that, no matter what investors do, they should proceed with caution and weigh their options carefully.

Dawn Bennett Discusses the Future of Social Security Disability Insurance

picture of wheelchairAccording to statistics from the Social Security Administration, their disability insurance sector will be out of money by the end of 2016. Veronique De Rugy has elaborated on this news and what it means for the future of seniors in her work for the Mercatus Center, at which she is a senior research fellow. Financial analyst Dawn J. Bennett recently talked to De Rugy about her findings, the causes of the problem, and what can be done.

The Situation

The social security administration used to operate under a pay-as-you-go system that took money directly from taxes to put towards benefits. When this system began to show strain, they updated it to include an IOU based methodology that took extra money and put it aside in a trust fund. The problems here began relatively recently in 2008 when payouts for disability insurance overtook the amounts that were coming in, forcing the administration to dip into those trust funds. Since people have been increasingly making more of these disability insurance claims, it has left the administration consistently in the red – and it’s only been getting worse.

The Problems with the System

One of the major issues with the system is that the eligibility standards for getting disability insurance coverage through social security were loosened in the ’80s. Some of the new disabilities included were difficult-to-verify conditions such as mental illness and back pain. This makes it easier for people to make claims without real evidence of disabling problems, and often can lead to an abuse of the system.

The Possible Solutions

The first and most obvious way in which this problem is likely to be addressed is with cuts to people’s disability benefits through social security. According to De Rugy, the government is most likely going to try to avoid this eventuality by either raising taxes or trying to borrow money to put towards the program.

However, De Rugy suggests that a better long-term solution to this problem would be to vet the system and start implementing more rigorous qualifications for eligibility. These would include things like putting limits on how long people without permanent conditions could stay on disability, and assessing whether people could truly not work at all or whether there might not be certain jobs that they could get.

If this were done, she postulates, it would be easier to stop exploitation of the system and keep unnecessary money from being paid out. However, this course of action is likely to be unpopular, and even talking about how to put people with disabilities to work is a touchy subject. Nonetheless, she stresses that this is a conversation we ought to be having.

Dawn Bennett on the Interference of the Fed and the Perils of Assisted Markets

Radio host Dawn J. Bennett recently reviewed the financial implications of Puerto Rico defaulting on a loan payment for the first time, and the likelihood that they would do so again in the future. Specifically, the government missed a payment of 58 million dollars of the 72 billion that they currently owe, and the governor of Puerto Rico indicated that they would be unlikely to catch up any time soon. While Obama has said that there will be no government bailout from his end, the Fed is basically telling everyone to keep calm, and that it will all turn out for the best, with very little evidence to support that stance. In fact, most indicators are pointing in the other direction.

The situation in which whole countries default and simply cannot pay, Bennett claims, is becoming all too common and possibly signals the coming of another recession. She cites the slowing of growth of several nations, low wage growth in the U.S., as well as stagnant growth in many industries that should be doing better. What’s exacerbating all of this? Central bank bailouts and unrealistic Fed promises.financial crisis concept

The fact that the whole system could rely on big government bailouts in the past few years has led people to invest where they perhaps should not have. This supports a vicious cycle in which whole countries can’t afford to pay their debts when things go south on the market. It has also led to a decrease in the types of full-time, industry jobs we need for growth, while encouraging low-paying, part-time jobs to thrive.

These results are, Bennett claims, a symptom of an inflated economy in which investors have never actually had to use basic caution. She likens these people to children who have never skinned their knees, while the Fed acts like parents who assure their children they can never get hurt.

According to Bennett, the solution to this problem is to go back to truly free markets and organic price discovery return. With a system that is not unnaturally upheld by bailouts and which can function according to the fluctuations of the market, the economy will finally find the balance it needs.

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