Bob Brinker Says Cut Taxes To Help Economy

Today Bob Brinker gave his advice to president Obama and the congress about how to help the economy. His advice was

#1 Cut corporate tax rate from 35% to 25% so US corporations are paying the same taxes as most other industrialized nations.

#2 Allow same year expensing of business investment.

#3 Postpone plan to increase taxes in January.  He got pretty worked up over this:  "This is no time for a country that is dealing with a slow growth economy like this and a housing malaise..... to be raising taxes.... NO TIME TO BE RAISING TAXES."

Brinker says all three would be positive for the economy. 

FWIW, I agree but I would settle for #1 and #2 and let the president save face by increasing taxes on those making over $250,000 in exchange for cutting the corporate tax.  That would bring more jobs into the US in exchange for a higher tax on those who already have a good job.

Since 12/31/98 "Kirk's Newsletter Explore Portfolio" is UP 152% (a double plus another 52%!!) vs. the S&P500 UP a tiny 1.4% vs. NASDAQ  down 3.8%!!!   (All through 6/30/10)

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In 2009, "Kirk's Newsletter Explore Portfolio" gained 33.5% vs. the DJIA up 18.8%
For 2010, as of 7/15/10, the explore portfolio is up 2.3% YTD
vs. DJIA down 0.7% vs. S&P500 down 0.7%!

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Brinker Says BUY: Market Attractive for Purchase

Bob Brinker just now said on the radio that he thinks the market is in a correction. He also said he thinks the market is "attractive for purchase" in the neighborhood of the June 30th low which he said was SnP500 1030.

Here is a list of Bob Brinker's other "attractive for purchase" levels with dates. Note that he has not identified an "attractive to sell" or "attractive to take profits" since the summer of 2000.

Brinker 2008, 2009 and 2010 Buy Levels

• January 4, 2008, SnP500 at 1411: Mid-1400's "Gift horse buying opportunity"
• Feb 10, 2008 SnP500 @ 1331: Low-1300's
• Aug 5, 2008 SnP500 at 1285: 1240 or less
• Sept 2, 2008 SnP500 at 1282: Low-to-mid 1200's
• September 16th -- rescinded low-to-mid 1200's (recommended dollar cost-average only)
• January 2009 SnP500 at 931: “ bear market bottom range of 750 to 850.
• Feb. 2009 SnP500 at 826: “low-to-mid 800’s.
• March 5, 2009 SnP500 at 696: waiting for a bottom and a test of that low. No dollar cost average or buy levels near the very lows!
• April 3, 2009 SnP500 at 798: 676 benchmark low in. Short-term weakness is buying opportunity. He gave up giving specifics. SnP500 Target: 1000s to 1100s in next 12 to 18 months. (we got there in 5 months!)
• July 2, 2010  SnP500 at 1030:  Attractive for purchase.  Confirmed on Moneytalk on July 11, 2010.

Click graph for full size image

Brinker returned to "fully invested in March 2003 and has stayed that way ever since.

Bob's guest today was Suzanne McGee, author of the book Chasing Goldman Sachs: How the Masters of the Universe Melted Wall Street Down . . . And Why They'll Take Us to the Brink Again


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You can listen to the Sunday Moneytalk broadcast for free at the KGO Archives (1 - 4 PM PST) for the week following the show.  After listening, the ReplayAV software will let you copy the file from your computer's memory to a permanent place on your hard drive to upload to a portable MP3 player.

Best CD Rates Survey

The top CD annal percentage yield (APY) this week is at Pentagon Federal Credit Union for a 7-year certificate of deposit currently paying 3.51%.   From my survey of six months ago, this same certificate was paying 4.5%! 

With rates so low, banks will try to sell you their annuity products. Make sure you read my article: Beware of Annuities. 

The table below shows the best CD rates for other terms. If that table is hard to read, then try Very Best CD Rates.

"Highest CD Rate Survey + Current US Treasury Rates"

Term	Highest Rate (APY)	Where? (Click link for Full Rate Sheets)
Vanguard Daily	0.09%	Vanguard Prime Money Market Fund
Vanguard Tax Exempt	0.11%	Vanguard Tax Exempt Money Market Fund
FDIC Daily Savings	1.40%	Best Savings Account Rate Survey
6 Month CD	1.23%	Aurora Bank
1 Year CD	1.55%	Sallie Mae Bank & 1.50%@ Discover Bank
1 Yr US Treasury	0.29%	US Treasury Rate Quote
18 - Month CD	1.71%	Aurora Bank
2 Year CD	2.00%	Stonebridge Bank & Bank of Internet USA
3 Year CD	2.50%	newDominionDIRECT
4 Year CD	2.92%	Bank of Internet USA
5 Year CD	3.06%	Astoria Federal Savings Bank
5 Yr US Treasury	1.83%	US Treasury Rate Quote
7 Year CD	3.51%	Pentagon Federal CU aka PenFed
10 Year CD	3.50%	Discover Bank
10 Yr US Treasury	3.04%	US Treasury Rate Quote

Vanguard Money Market Rates shown for Reference  

With rates so low, banks will try to sell you their annuity products. Make sure you read my article: Beware of Annuities

Historical CD Rates: 
Click charts to see full size images

1-Month CD Daily Chart

6-Month CD Daily Chart

Related information:

• US Treasury Rates at a Glance
  
• World Stock Markets at a Glance