Our Thoughts

FJY Financial News to Know #33

Prioritizing Holiday Shopping: Trump Delays Tariffs Postponing September 1st deadline

President Trump was planning to tariff all Chinese goods at the beginning of next month, starting at 10%. This could quickly have changed to 25%, forcing many companies to relocate their manufacturing. Now, Trump wants to make sure U.S. customers maintain their holiday spirit and spending. Read here to find out the rationale of this move from the Oval Office.

Banks are Approving SBA Loans at a New Record Since the 2008 Meltdown

The U.S. Small Business Administration applications are moving through:  a post-recession record of 28% approved at big banks, and 50% at small banks.  These results come in the wake of the Fed promising lowered interest rates.  Entrepreneurs with strong FICOs and other credit criteria are reaping the benefits of this trend.  However, credit unions haven’t been so lucky — with a record-low approval rating of nearly 40%.  Some of the reasons for their lending woes are member lending caps, lack of digitization, and outside competition.  More on the trend in this article.

Financial Planners Beware:  New Standards Are Being Issued to Protect Client-Investors

The Certified Financial Planner Board of Standards, Inc. said recently that it’s upgrading its scrutiny of financial planners and appointing a task force to review and enforce standard procedures.  The Wall Street Journal, has studied public records at a website run by the Financial Industry Regulatory Authority, found that 1000s of planners listed have been reported for customer complaints, financial complaints, and criminal activity.  The CFP plans on reviewing each renewing planner’s public records at the SEC website and at BrokerCheck — the online resource from FINRA.

What Does The USPS’ Weak Last Quarter tell us about The Shifting Shipping Landscape?

The USPS remains the best-loved federal agency, but it is struggling with a large loss for its recent quarter. The changing mail landscape sends us messages about the power of publicly traded competition against a government agency. The USPS retiree pension obligation is larger than similar pensions at UPS and FedEx. You see, the U.S. government began requiring the USPS to prepay retiree health-care obligations in 2007 (this isn’t required for privately traded companies). While investors can’t buy stock in USPS, what happens to the post office matters to investors, as it still remains a logistics company and that both drive healthy competition and partners with UPS and FedEx.