Our Thoughts

FJY News to Know #26

Trump Threatens To Bounce Fed Chair

President Trump is meeting with White House lawyers to render the possibility of removing Federal Reserve Chair Jerome Powell.  The latter is proposing a rate cut as early as July, which goes against previous policy.  Despite the president’s threat, Powell says he will remain loyal to his office and position.  Trump is due to meet Chinese President Xi Jinping at the upcoming G-20 summit in Japan to discuss their ongoing trade war.  Click here to get more perspective on the tension-filled scenario.

 

Bank Policies Cause the Dow and the Shanghai Exchange to Jump

Signs of shifting central bank policy last week spurred a global bond rally, driving yields to record lows. Stocks surged from Shanghai to New York, with the S&P 500 hitting a record.  The latest rally began after ECB President Mario Draghi signaled new stimulus measures, including a reduction in interest rates. It accelerated a day or two later after the Fed held rates — but signaled a possible cut in the months ahead.  Find out more about the rally here.

 

Apple Plans to Move Some Production Out of China

Apple has asked its major suppliers to evaluate the cost implications of shifting up to 30% of their production capacity from China to Southeast Asia.  It’s part of a larger plan to restructure its supply chain.  Apple doesn’t want all its capacity ‘eggs in the China basket’.  However, suppliers complain that moving production elsewhere will take time — and China is still likely to remain Apple’s most important manufacturing base. Foxconn, Apple’s main smartphone assembler said it would be ready to help Apple shift production beyond the world’s second-largest economy if asked.  Read here to learn more about Apple’s production infrastructure changes …

Low-tax States Are Creating More Jobs Than High-Tax Ones

Due largely to the Tax Reform Act of 2017, job creation in the nation’s 27 low-tax states has doubled that of their high-tax peers through May of 2019. Overall, the 27 low-tax states saw private-sector job growth of 3.2% in the 18 months following the federal tax cut, with manufacturing payrolls growing 3.0%. Before the president’s tax cut, low-tax states saw only a modest job growth advantage in the 23 months before the tax code reform — 1.9% on an annualized basis compared to 1.4% for the high-tax states. Click here to read about other trends in the nation’s job growth.

 

Policyholders Should Read the Fine Print of Their Long-Term Contracts

Do you have a loved one or know someone that may need home caregiving?  If you do, it might be time to review the contract for the claims paying process (or restrictions).  Oftentimes, many insurers won’t approve of ‘outside’ caregivers — especially if they’re not licensed in that state or country.  Making claims for this situation after the fact can be dicey at best, and extremely frustrating at the worst.  To read more about the possible consequences of ignoring a policy’s details, click here.