Covidnomics: Financial Economics Amid Covid Crisis With Fritz Meyer


Covidnomics: Financial Economics Amid Covid Crisis With Fritz Meyer
Tue, 13. October 2020, 04:00 PM EST - 05:00 PM EST
Created by:
Andrew Gluck



Skip RMDs And Convert To A Roth
The unprecedented election to skip RMDs by the end of the year, along with a conversion to a Roth IRA account, could stretch IRA accounts for clients. 

Advisors should be telling their retirement income clients about this year-end tax tip right now. However, it is a complex two step process since it involves the one-time CARES RMD provision and also a conversion to a Roth IRA. So you likely will not see this written in advisor email newsletters or blogs. Here's a video that tells clients the basics in about a minute. 





Is a A Surprise Under Way? 
The  computer model devised by the Atlanta Federal Reserve to predict quarterly GDP growth in real time is signaling the economy is growing 50% faster than expected by two independent surveys of economists. The latest consensus forecast of the economists polled monthly by The Wall Street Journal and the consensus of experts surveyed by Blue Chip Economics are both for a growth rate of about 24% in the fourth quarter of 2020 versus the GDPNow model designed by the Atlanta Fed.    





22-Minute Investment Commentary For Advisors 
In this in-depth commentary, Fritz Meyer, an independent economist whose classes receive rave reviews from fee-only investments advisors for many years, says:
- Americans banked CARES 1.0 and it was “colossal”
- CARES government transfers replaced the decline in employment compensation
- predictions by high profile bear pundits have been awfully wrong
- new businesses are being formed at the fastest rate in over a decade
- WSJ economist estimates as of mid-September approach normal in late 2021
- Ed Yardeni upgraded his forecast for returning to 4Q19 GDP peak
- full recovery – as if Covid never happened -- unlikely until 2024
- household leverage is hitting new lows
- financial obligations ratio settled near record low

Income Inequality Data For 2019 Analyzed  
The Census Bureau annually publishes a comprehensive report on income distribution and the poverty rate in the U.S., and Fritz Meyer's, an independent economist trusted by independent financial advice professionals, examines the newly released data through the end of 2019. The results show the U.S. is making progress in the fight against poverty. 

With this week's update, we inaugurate a new feature in Fritz's weekly update for advisors: a brief alert about new data advisors should be on the lookout for in the week ahead. Fritz will be publishing an economic calendar for advisors regularly in this space. 



Stock Selloff Continues

(Monday, September 21, 2020) Stocks sold off again today, extending the losing streak, following last week's weaker-than-expected retail, housing, and LEI releases.

Fritz Meyer's outlook remains the same, and he backs it up with the Fed's newly released central tendency forecast for 2020, 2021, and 2022.

Stocks have declined about 8% from the previous record high. As always, in the event of a 10% correction, Fritz wiill lead a special session. We'll keep you updated on that, if the extra class is needed.

A4A adds extra sessions whenever something frightening happens. Brexit, terrorism, and tax law changes triggered extra credit classes in recent years in A4A's professional education curriculum for priivate wealth advisors as well as 10% drops in the S&P 500. 

A4A members are CFA, CFP, ChFC, CIMA, CPA, CPA/PFS who manage diversified core portfolios using low-expense investments and add value with specialized private investments and strategic advice on minimizing income and estate taxes.                  


RIAs Must Keep Wealth Management Priorities In Perspective

Perhaps the most important job of an advisor is as a financial "choice decider." You set the agenda for clients, prioritizing what they could and should do to build their wealth.

As the financial choice decider, it’s important to tell clients that the best choice they could make right now is to pay attention to tax planning, amid the stock market’s attention-grabbing gyrations. 

The video on the right puts financial professionals in the role of choice decider in the current financial economic and tax situation. 



Questions from investment professionals answered
Questions from financial professoinals who attended a September financial economic update by Fritz Meyer are answered in this 21-minute update for advisors to high income earners and private wealth.  

Advisors4Advisors educates many of the smartest financial professionals in the U.S. about the impact of the pandemic on affluent and UHNWI Ameircans. This update from Fritz Meyer illustrates why thought leaders advising private wealth in the U.S. are members of Advisors4Advisors.   

 Covidnomics: Financial Economics Amid Covid Crisis With Fritz Meyer   
With the nation's financial future on the ballot in the November 3rd election, Covid remains a public health disaster and plagues the U.S. economy.
This class for CFA®, CIMA®, CPA and CFP® professionals comprehensively reviews the latest economic data and trends at a pivotal moment in history, including:
• what a Biden Administration means for stocks
• a short history of stocks, bonds, and politics
• this just in: strong ISM purchasing managers report 
• New jobs numbers were a disappointment
• what the Atlanta Fed's GDPNOW data is telling us- CARES 1.0 prevented a depression; an update on CARES 2.0 
• WSJ consensus forecast
• jobs recovery is years off
• a full recovery is unlikely to come before 2024 or even 2025
• Ed Yardeni's latest forecast upgraded GDP estimate 
• household balance sheets are in great shape
• S&P expected earnings and how they're currently valued 
• latest FAANGM valuations  
• DPI exploded in Mar and April; now reverting to mean
• Powell’s latest pronouncements  
• 0% rates as far as the eye can see
• Fed inflation capitulation
Fritz Meyer is an independent economist, not affiliated with an financial products. He was Senior Investment Strategist for over a decade at Invesco. Fritz's classes, sponsored by Advisors4Advisors since March 2011, have averaged a rating from attendees of 9.8 out of 10, and past performance is an indicator of future results. 

This webinar is eligible for one hour of CE credit towards the CIMA® and CPWA® certifications, CFP® CE, PACE credit toward the CLU® and ChFC® designations, and live CPA CPE credit.