State of the Market and Economy Report

2018: State of the Market and Economy Report

We are halfway through January, and this week the Ty J. Young, Inc.  Annual “2018 State of the Market and Economy Report” will be released as a “LIVE ONLINE EVENT.”  If you registered for the event on 1/18/18 and watched it online, or you watched it after-the-fact as a recording by request, then you heard the CEO’s talking points on (I) the index annuity industry, (II) the market and the economy, and (III) what to do for 2018.

I. State of the Industry

Despite the unprecedented upward surge in the stock market, more and more people are choosing principal protection products, such as the index annuity, for their portfolio.  Whether they (A) are moving some of their winnings over the last several years off the table; or, (B) they rightly fear that markets eventually change directions, and better to be safe with some, or all, of their money than sorry. They are now realizing we are in a mature bull market, and that at some point they need protection for their portfolio.

The Index Annuity industry, therefore, is showing strong and robust numbers given the market environment:

  1. $96.9 billion in annuity business in 2016 … over $100 billion in 2017.
  2. A.M. Best – the insurance rating agency – shows some of the strongest numbers recorded for the leading insurance carriers in the industry.
  3. Index annuity business has increased 4% or more each of the last 5 years.


II. State of the Market and the Economy

This beaten horse has long been dead – but the news is so good it bears repeating

The Stock Market has been going up for years since the 2008 banking collapse, but nothing like the first year of the Trump Administration:

11/22/16                              –              Dow 19,000         –             2 weeks after the election

1/25/17                                –              Dow 20,000

3/1/17                                   –              Dow 21,000

8/2/17                                   –              Dow 22,000

10/18/17                              –              Dow 23,000

11/30/17                              –              Dow 24,000

1/4/18                                   –              Dow 25,000

1/16/18                                –              Dow 26,000         –              Although it may have slipped back below 26K by the time we went to print.

  1. It is the GOAT of all bull markets: the Jordan, the Bird, the Andretti, the Brady, it’s Babe Ruth … by the numbers, it is the GREATEST OF ALL TIME!
  2. It has seen a 340% gain since 2009. Bigger than the 267% gain from 1946-52 … Bigger than the 229% gain from 1982-87 … Bigger than the 302% gain from 1993-2000.
  3. And it is not just the Stock market screaming upward, it has also been US GDP and the American economy! A) GDP is up; B) Imports up; C) Exports up; D) Earnings up; E) Revenue up; F) Employment up; G) Regulations down; H) The Tax Reform Act will lower your tax bill … don’t you just want to say, “It’s Morning in America” again!


III.       What to do for 2018?

With such great economic data, the market is just calling for you to put more money in … right?

Maybe, but as we are seeing with index annuity premium each year, not just our clients but nationally, people are intuitively realizing they need a safe option for a large portion of their portfolio – one where you go participate in the gains of the market, but none of the losses.

There are “3 Unique Investing Strategies” to help you achieve your portfolio protection plan:

  1. Buying Low and Selling High. This seems obvious, but it is unique because hardly anyone ever does it.  Most get caught in the “irrational exuberance” of the market – the herd mentality that drives you to keep buying even though the market has been going up for some time.  A good index annuity has out-performed the market in the last 10 and 20-year periods – isn’t it time to take some profits off the table while you are still … profitable?
  2.  Applying the ‘Rule of 100’ to your money. Most people are out of cash, they are FULLY invested in this bull market.  Many are buying bitcoin, watching the talking heads and looking for the next run up to Dow 35,000.  Hedging, asset allocation, even diversification … forget it, let’s roll the dice!   The second unique” strategy returns to fundamental principles of safety, with a reasonable rate of return.  That means applying the “Rule of 100” to your portfolio.  It’s a tried and true formula that is only unique because, like ‘buying low and selling high,’ no one ever does it anymore.  Whatever your age is, subtract from 100, and that is the percentage of your portfolio you should have in safer investment vehicles.  CD’s, Treasury bonds are safe, but the one with best historic average rate of return in the GIC – the “Guaranteed Insurance Contract” – known as the Index Annuity.
  3. Taking advantage of the ‘Bonus-on-Bonus’. The third and final unique strategy for 2018 is for existing Index Annuity account holders, and that is getting the “Bonus-on-Bonus!”  This strategy is simple – a client takes their available 10% penalty-free withdrawal from their index annuity and opens a new account with it, one which offers a bonus when funded.  That means an extra 4-5-7 even potentially a 10% bonus on your money (depending on the type of account opened).  The tried and true is always the best bet:  safe, simple, with a reasonable rate of return.

 2018 has started with the market and the economy continuing their flight to the moon.  Now is the time for unique strategies that are the safe, simple way to grow your money, with a reasonable rate of return.

Call 877-912-1919 to speak with our expert advisors at no cost or obligation!

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