Leonesmoneymonitormonthly's Blog

Contact Information: leonee@vzw.blackberry.net

By Edward Leone Jr. DMD MBA CFP RFC

In a previous blog, I discussed the desire of many—those particularly in retirement, to create an income flow. Of the options presented, one was annuities. There has been so much sales pressure regarding this product that I thought it worth some time to share further information. Annuities do offer life time income flows, some tax benefits and principal protection base on the financial soundness of the vendor. Annuities do also limit return potential, access to invested funds can be a problem and fees can be high. These factors must be considered before a commitment is made to an annuity product. For those who want an alternative to US Treasuries due to very low yields, products such as Pimco Total Return ETF, SPDR S&P Dividend ETF and Shares Floating Rate Bond ETF may be worth investigating based on suggestions from FA-mag.com.
It is very important for readers to be aware of the variety of tax benefits which will end as of the conclusion of the 2013 tax year. Future planning regarding the following tax benefit issues which will be eliminated must be under consideration: home energy efficiency remodels, electric vehicles, state and local sales tax deductions, IRA distributions to charities, mortgage insurance premiums, transit benefits, forgiven debt on home exclusions and the teacher class room credit.
Other bothersome issues revolve around attitudes an philosophies adopted by some central bankers. The concept that inflation must increase to grow the economy is troubling since money is a measure of value just as the number of inches in a yard stick and their value. It is clear that current central bank policies will lead to excess inflation pressures in the future which will compromise currency utility. History has demonstrated this lesson over and over again. The weak dollar policy regarding international currency exchange over past years has some benefits regarding trade balances, but has its costs regarding lack of stability in business cycles and market bubbles involving commodities and real estate. QE 2 will keep interests rates low for government borrowing, but will distort credit markets reducing capital available to business which will expand the unemployment condition. The continued government interference with the business climate in the form of tax burdens and regulation explosions will hurt economic recovery into the future. Each of these issues may appear to have a short term-benefit, but surely has a long-term cost or penalty. We need to move in the direction of a stable currency, moderated tax rates and a lesser volume of rules and regulations.
Another area of concern has to do with the pay back of principal on HELOCs (home equity lines of credit). Many of these loans are reaching the time where principal must be retired. Will this create another real estate bubble?
You the reader, may gain a sense that I am quite concerned about economic factors which impact our lives. There are so many unknowns here that future planning for individuals and family is quite challenged since the progress of acceleration in the business cycle is much handicapped in my opinion.

For The Record:
DJIA 16086.41
NASDAQ 4051.89
S&P500 1805.81

Suggested Reading: “Profiting From Monetary Policy” By Thomas Aubrey

By Edward Leone Jr. DMD MBA CFP RFC
Contact Information: leonee@vzw.blackberry.net

It is time to do some 2013 income tax planning taking into account ATRA (American Taxpayer Relief Act) of 2012. This legislation made many of the tax laws by which we work permanent until the Congress determines that they are not and also added some considerable increases for some tax payers. The ACA legislation (Obama Care) will also add tax burdens for many of us. Work with your tax expert ( CPA) on these issues.
Many are challenged to generate cash flow in retirement from their investment portfolios which is consistent and reliable give the level of interest rates and the volatility in equity markets at this time. There are several ways to over come this challenge all of which have positive and negative aspects to their adoption. The following are all possibilities depending on the retires’ circumstances: Purchase of individual bonds held to maturity: Annuities; Reverse Mortgages; Rental Properties. Seek the advice of a Certified Financial Planner before engaging any of these suggestions.
It is clear that we are engaged in an economic recovery which has extended at a slow pace for a significant period and will continue to do so into the foreseeable future. Such issues as the true unemployment level which is calculated at over 13% by the Federal Reserve Bank when the unemployed, partially employed and those who have given up seeking employment are included in the calculation. The level of unemployment for youth and the black population are significantly higher for sure. The effects of inflation (CPI is extremely misleading if considering true inflation) on purchasing power of the population is a significant factor along with depressed income levels compared to historic data. 70% of economic activity is the result of consumer activity. Is it a mystery to any reader give the conditions I have describe, that economic recovery is slow and that the more assets government removes from the populous, the less resource the private sector has to invigorate the economy? Many benchmarks on which we depend to make judgments on our decisions regarding investment and consumption are faulty. How do we know what to do and how to plan? Credible economic statistics and government fiscal policy which is favorable to workers and businesses is the key along with a viable global economy. It is my judgment that the European Union is pulling out of it’s problems very slowly. Many emerging markets are advancing after experiencing some challenges and China is an unknown regarding its continuation of GDP growth. Our US assets revolve around energy, technology and innovation in my opinion. We need to exploit these advantages in order to maintain the global economic dominance which we have historically enjoyed. In addition, some discipline regarding the stewardship of our currency is imperative in maintaining our credible status as a global reserve currency and control of the inflation factor.
I am very concerned for the future well being of the retired and the potential for prosperity of following generations. Thing will have to change, the longer we wait, the more disruptive and painful it will be to society and business.

For The Record:
DJIA 15,746.88
NASDAQ 3,931.95
S&P 500 1,770.49

Suggested Reading: “Barbarians At The Gate” by Burroughs and Helyar

By Edward Leone Jr. DMD MBA CFP RFC

Contact Information: leonee@vzw.blackberry.net

I came across a most disturbing bit of news in the October 7th issue of Forbes Magazine in an article written by Steve Forbes. It appears that Polish law caps national debt at 55% of GDP. Given the status of the European economy, Poland has experienced economic slow down and excess national debt as a result of political strategies to grow the economy by government stimulus funded with borrowed money. In order to comply with Polish law regarding national debt limits, the government has announced a recall of government bonds held in private pension savings plans and has nullified the value of these bonds. Rather than trying to get the populace to elevate the debt limit, this strategy gets government debt bellow the legal limit at the expense of citizens’ retirement savings. There was an attempted confiscation of bank account savings in Cyprus earlier this year. Is this a trend that may spread to the U.S. some day? After all, our President tried to institute a limit on retirement savings by capping tax deferred retirement accounts at $3 million. What could be coming our way next?
It is important to note that according to Robert Delucia CFA of Prudential, U.S. GDP falls short of forecasts bellow the 2.2% average experienced over the past 4 years. It is expected that over the next 2 or 3 years that GDP will rise to 3.5-4% as this slow economic recovery progresses. Much of this will be influenced by monetary and fiscal policy along with the progress in a global recovery.
Another challenge to us regarding tax code adjustments is a potential for the elimination of the deduction for charitable contributions. What will this mean to those organizations which count on such donations?
To create further concern in your mind, let me share with you the status of the U.S. consumer whose spending represents 70% of economic activity. According to Bloomberg Business Week, median household income has declined from $55,280 in 2008 to $52,133 in 2013. This is a decline of 5.7% while according to the Bureau of Labor Statistics, consumer inflation is up 7% over that period. It is imperative that steps are taken to accelerate economic growth and improve the availability of quality employment opportunities!
I woke up this morning and learned on the TV news that our government was involved in a partial shut down of non-essential services. My day was no different that so many others. The rhetoric I heard through the media was quite disturbing in that it appears that this is all about politics and no about we the citizens. If non-essential services really exist, I need to know why. I also need to have a definition of a non-essential government service and a list of such functions in order to judge the validity of such action. I believe that the reporting on this issue is very faulty. Most of us do not have a clue what is really going on. Our representatives in Washington DC don’t seem to have a grip on the key issues either. What is going to happen and how will this impact our economic progress?

For The Record:
DJIA 15191.70
NASDAQ 3817.98
S&P 500 1695

Suggested Reading: “Learn to Earn” by Peter Lynch

By: Edward Leone Jr. DMD MBA CFP RFC

Contact Information:  leonee@vzw.blackberry.net

     I find much of the information available to the population regarding the strategies for retirement savers as misleading and week in describing the discipline required in such a savings effort. One of the major 401k administrators reports that for every $1,000/ month in needed retirement income that a 25 year old would have to save $160/ month for 30 years assuming a 5.5% return on investment. This is misleading in that it does not appear that an inflation factor has been considered. If the average inflation factor of 3%/ year is introduced, the amount needed in 30 years to match the purchasing power of $1,000 today is $2,420. The 25 year old needs to save $384/ month to meet the desired goal in a tax deferred 401k account. Do you see what I mean?

     Many concerns are expressed regarding monetary policy conducted by the Federal Reserve Bank and the eventual end of such stimulation to the economy along with when this will occur. In order to wind down this strategy, it must be accomplished slowly and only when the economic growth as measured by GDP increases is evident. The experience we are having with slow economic growth may persist for a while due to the protracted deleveraging cycle we are in. History tells us that this is what happens after a credit bubble. A rapid rise in interest rates would put the economy into a tail spin defeating the purpose of the QE strategy to begin with. Monetary easing will become a tightening policy, but in a gradual and tapered effort over time if done adequately. It will be quite a relief to fixed income investors when this occurs since the interest rates received on these investments will increase. Another element in the mix is a concerted effort by government to engage in a measure austerity in order to reduce the burden on economic growth along with tax structure modification which is all a part of fiscal policy.
There are many statistics available to give us a panorama regarding changes in life, work and opportunity. In 2003, the average student loan balance for a 25 year old was $10,648 while today it is $20,326. The average cost of a wedding in 2012 was $28,427—WOW!! $80,900 was the average 401k account balance at the end of Q1 2013.It is obvious to me that we are victims of many factors including the barrage of advertising we are experiencing from day to day. It is extremely difficult to ignore all of this in the process of distinguishing needs from wants. This task is a stress in many households in the form of emotion and budget discipline. Look for cost increases for 2014 in the following areas: health care costs and health insurance premium levels; property and casualty insurance costs; accounting and auditing costs for business; fuel costs; rents; travel and entertainment costs; freight and shipping rates. How can inflation stay low and under control even with the excess capacity our economy exhibits in manufacturing and labor?
We face many unknowns for the near future. The challenge of personal planning and business planning will remain as a problem for most all of us.

For The Record:
DJIA 14,930.87
NASDAQ 3,649.04
S&P 500 1,653.08

Suggested Reading: “Profiting From Monetary Policy” By Thomas Aubrey

By Edward Leone Jr. DMD MBA CFP RFC

Contact Information:  leonee@vzw.blacberry.net

According to a Pew Research Center study, 40% of all households with children under the age of 18 have the mom as the primary source of income. This compares to 11% in 1960.  5.1million of these ladies are married and have higher income than the spouse, while 8.6 million are single mothers. There has clearly been dramatic changes in the work force over these past 52 years. It is also evident that social changes regarding the marriage commitment are a strong trend. Families lead by a single mother have a median income of $23,000.  What does the future hold for these families and for our society in general?

The argument over growing the economy by instituting government austerity or allowing government to stimulate the economy by increasing spending goes on. By my observation, increasing government spending has not worked well in Japan for 2 decades. This stagnant economy had a national debt of 67% of GDP in 1990. It is now 212% of GDP. The countries known as the PIIGS have increased government spending by 6% in the period between 2008 and 2011 and are still struggling. Is the U.S. approach to economic problems going to increase economic activity or produce further head winds against economic growth? The dollar has experienced a 30% decline against foreign currencies from 2002 to 2008. It is now stabilizing due to the fact that the U.S. is viewed as a safe haven along with a very slow but positive direction in economic growth. It is important to note that the planned U.S. deficit for 2013-2014 will be at about $650 billion which is much less that it has been in recent years. We are doing better that most national economies, but should we embrace the status of best of the worst or be a leader in stimulating economic growth?

For those looking for some good news, Cabela’s, the sporting goods store chain has seen shares of stock increase in price by 95% in 2012. It appears that an increased volume of firearm sales has been a strong contributor to the company’s performance.

It is clear now that the Congress is in a summer recess, that not much regarding budget issues, tax reform and debt limit issues can be worked out prior to coming deadlines. In addition, Social Security continues to be ignored regarding its financial staying power. Those born between 1946 and 1964 (Baby Boomers) are retiring and becoming qualified for Social Security benefits at a rate of 10,000 per day. This trend will extend on for some 17 years. By, 2040, the total portion of the U.S. population over the age of 65 will increase from 40 million to 80 million. We also recognize that longevity is increasing. When will we address these matters or is it too late? It is clear that many who are retired or are contemplating retirement in the near future understand that creating an extended comfortable retirement environment revolves around saving more, spending less or working longer.

Be aware of the impact that tax law changes established earlier in 2013 will have. Do your tax planning early. You may be subject to some of the following:

1. 39.6% marginal tax rate over $400,00 income ($450,000 filing jointly)

2. capital gains rate of 23.8% not 15% for this same group

3. many will experience lower phase out levels for deductions if income is over $250,000 ($300,000 filing jointly)

4. 3.8% surtax on investment income for those earning over $250,000/$300,000.

For the Record:

DJIA                  15,658.36

NASDAQ            3,689.59

S&P 500             1,709.67

Suggested Reading:

“On the Other Hand” by Herbert Stein

By Edward Leone Jr. DMD MBA CFP RFC

Contact Information:  leonee@vzw.blackberry.com

The rhetoric as reported in the media is creating significant concern by me. The Affordable Care Act is more a tax legislation than it is an attempt to improve health care access for the disadvantage in our society. In fact, it is this community as a result of limited access due to legislative mandates who will suffer the most.  It’s impact regarding the reduction of unemployment in our country is negative. It appears that by my investigation, those who will pay for the intent of this legislation are the elderly in the form of reduction of the Medicare budget, the high income earners in the form of much higher taxes, and the young in the form of coverage mandates. It appears that everybody is a loser. The reduction in the opportunity for employment is staggering as a result of  the actions of this legislation.

These are all negative factors in the attempt to grow our economy out of what has been a 5 year trough in the business cycle at this time. Along with all of that, initiatives announced by the executive branch of government this week will further inhibit economic growth which is the salvation of our economy and the status of the US internationally. It has been my opinion for an extended period of time , that our exit from the financial troubles generated by the federal government and the financial industry will rest with energy resource expansion, IT innovation and the enhancement of the manufacturing infrastructure in this country as a result of available cheap energy along with the export of energy resources.

There are two avenues by which our federal government can influence the business cycle, but not control it. Monetary policy which under control of the Federal Reserve Bank has been effective ,but over done as a result of lack of effective fiscal policy by the Congress and the Executive. They (Congress) are going in the wrong direction with tax policy, in my opinion. This is not a time to increase taxes. Instead, money need to be put in the hands of consumers by reduction in the tax burden. Consumption is a 70% factor in economic growth. Government, get out of the way and let it happen.

It is also evident that many factors which guide the international economy (we are a part of a global economy and cannot escape that dynamic) are troubling. It is clear that leaders in the  EU from France and Germany clearly do not get along. It is a question in my mind regarding the continued existence of the EU into the future. Other emerging economies in Asia and South America along with Australia are experiencing short term challenges. The US seem to be a leader in global economics because we are less troubled by past government and finance industry activities. We should be leaders and not best worst. The tenth and sixteenth amendments to the US Constitution put restrictions on such negative financial activities which are not being enforced by the Congress. Let your representatives at the Federal level know that they need to take the Federal Government off auto pilot regarding spending even if it reduces their campaign contributions. It appear to me that many of them are bought at the expense of benefit to the entire country and it’s valuable and out standing citizen population.

For The Record:

DJIA                   14909.6

NASDAQ            3403.25

S&P500              1606.28

Suggested Reading:  “Obama Care Survival Guide” By Nick J. Tate

By Edward Leone Jr. DMD MBA CFP RFC

Contact information: leonee@vzw.blackberry.net

We must understand that capital is a resource. Economics is the study that tells how society allocates by supply and demand. Individuals put their savings and borrowed capital at risk by investing in businesses and expect a return on investment for the risk they are taking. These returns create more capital for reinvestment growing the business climate. This is the dynamic of wealth creation which has enhanced the standard of living for all in this country. The 330 million people in this country have produced 25% of the global GDP and control 1/3rd of  all global capital assets. Some studies tell us that up to 1.2 billion people on  this earth still live without electricity. Clearly, our social and economic environment is beneficial to all economic classes living in the US. We must learn to protect this great dynamic from external influences and spread the message to those of minimal or limited existence around the world. Governments must learn from history  and the examples we demonstrate. Our own government has  the tendency lately to get in the way of the execution of our successful dynamics. They must understand that they work for us. We do not work for them. Our social fiber and intent is good but becoming distorted by those in power who want to pander to their constituents without regard for the good of the entirety. A great example is the Affordable Care Act. Why not set up a system which offers catastrophic coverage for health issues while avoiding the burden of first dollar coverage for which individuals should be responsible and can shop around on their own to discover value and avoid needless mandated process. A second example, which is clearly slowing our economic recovery in the business cycle, has to do with fiscal policy–the changes to occur in the tax code which will reduce the availability of capital. In 2013, a marginal tax rate of 39.6% will be imposed on those with AGI of $400,000 ($450,000 if filing jointly), a capital gains tax of 24.8% is imposed on  this same group, effectively higher marginal rates for those with AGI of $250,000 ($300,000 for those filing jointly) since phase outs for itemized deductions have been modified, and the 3.8% surtax on investment income for those earning $200,000 ($250,000 if filing jointly). Other proposed changes in the rules regarding tax differed retirement savings will not only harm those who are or will be retired, but also further squeeze the availability of capital for investment. When will we learn. What do you think of all of this?

For The Record:

DJIA                  15001.2

NASDAQ           3410.07

S&P 500            1613.72

Suggested Reading:   “The 15-Minute Retirement Plan”  By Fisher Investments

By Edward Leone Jr. DMD MBA CFP RFC

Contact Information: leonee@vzw.blackberry.net

After the content of the April blog with focus on the Federal Reserve Bank, I was not alarmed over Steve Forbes recent claim that the FED in its stress test function is playing a little politics. Banks must pass the stress test in order to conduct stock repurchase and establish dividend levels. Of the 18 banks tested, 4 fail. Three of these failures were in part due to bank officials’ public criticism of Obama policies effecting their industry. I find it also interesting that globally, central banks are requiring member banks to hold no reserves against government debt but are increasing reserve requirements against business debt. I thought the FED functioned independent of the government!! What don’t we know about government corruption in the area of pay offs for programs and favors?

The Obama budget proposal has been released. Key elements which will impact retirement are: chained CPI (including lower cost substitution of products and services in calculation of CPI); retirement account limits (above $3 Million, tax deferral ends); mandate auto enrollment in IRAs for employees; higher premiums for high income Medicare beneficiaries; new elevated Medicare co-pays. The Medicare proposals make some sense if the program is going to sustain. This chained CPI is a problem since it may further distort the true measure of inflation. For the year 2011, CPI was stated at 1.1%, but Consumer Expense Inflation was 2.7%. It is true that CPI does not really measure inflation’s impact on the elderly since the pressure of elevated medical costs for this group is not included currently and will not be accommodated with chained CPI. The budget proposal is complex and continues a trend of increased spending and taxation levels. Congress and the Executive need to get together on appropriate and effective fiscal policy changes. It is my suspicion that we will have to wait until after the 2014 election of the Congress.

PPACA has been in the news lately since we are getting closer and closer to full implementation in 2014. Talk of doctor shortages is on the front burner. The addition of a potential 30 million people to the patient pool will put pressure on doctors to accommodate.  Concern over new ACA mandates are also a factor. A Deloitte 2013 survey of US Physicians show that 6 in 10 doctors will likely retire early due to the practice environment which will likely occur upon ACA implementation. On the consumer side of the issue, insurance premium levels are a matter of concern. Premium structure for under writing purposes related to age, gender and health status are severely limited in ACA. This means that all policy holders will pay more to share the risk involved with these mandates. The Aflac Work Forces Report states that both employers and employees are not ready for ACA and do not understand their responsibilities and benefits under this complex legislation. There is much still to be learned about what it will take to comply.

It is evident to me as a result of my reading along with every day encounters with people in the business environment that many Americans are concerned and unhappy over their economic status. They are also in a squeeze over a lack of discretionary dollars. It is my judgement that along with the influences of inflation and declining earning power, many have a problem identifying the difference between wants and needs. The average household income for 2010 was down 5% when compared to 2000. The inflation factor for that decade was 27.6%. We are earning less and our money busy less yet we still consume of many frivolous items and services. Consumerism is a 70% driver in the economy. Solid economic growth for an extended period is the only true way to earn more, quiet inflation and accommodate additional consumptive habits.

For the Record:

DJIA                  14712.55

NASDAQ            3279.26

S&P500              15 82.24

Suggested Reading:     “The Alchemists” by Neil Irwin

Contact Information:

leonee@vzw.blackberry.com

By: Edward Leone Jr. DMD MBA CFP RFC

I had the honor of speaking at a meeting of a local investment club last Thursday evening. My subject was ” The One Hundredth Birthdays”. Just today, I opened my latest issue of Forbes Magazine. Steve Forbes did an article on the very same subject. It is very well done and deserves your review. I would like to present my view on these birthdays so here we go!!

The Centennial Anniversaries which we may celebrate this year are those of the IRS and the Federal Reserve Bank. In February of 1913 with 3/4ths of the 48 states supporting the 16th amendment to the US Constitution, the IRS was born under the Department of the Treasury. In October of 1913, the Revenue Act of 1913 became law setting up tax rates of 7% for those earning $500,000 or more per year. The lowest rate structure was at 1% for individuals earning $3000 and joint filers earning $4000 ($3000 is $68,612 in today’s dollars). Less than 5% of the population paid income tax under this new law. Things have changed quite a bit over the last 100 years. The IRS has significant influence over fiscal policy and our economy. In 2011 234 million returns were filed yielding $2.4 trillion in revenue (at a rate of $1 million per month, it would take a little over 83 years to reach $1 billion and over 83,000 year to reach $1 trillion).

After the passing of JP Morgan in 1913, President Wilson began the process of establishing a central bank for the US. On December 23rd 1913, the Federal Reserve Act became law. The FED has evolved into an entity which is designed to stabilize the financial system; manage the money supply; stabilize prices (inflation); maximize employment and moderate interest rates. The FED is the lender of last resort and sets monetary policy through open market operations. The FED Board of Governors is composed of 7 people appointed by the President. There are 12 regional banks whose presidents compose the FED Open Market Committee. The Board of Governors and 4 FOMC members vote on FED policy. With the FED monetary policy we have still experienced many boom and bust cycles over the past 100 years. You would need $23 today to have the same buying power as a dollar in 1913. We must question the stewardship of our currency as performed by the Treasury. We are also constantly faced with adjustments in the definitions of statistics which our government provides on economic matters. Such factors as unemployment and inflation are constantly being redefined making it difficult to judge where we are compared to historic data. We need to institute a discipline in management of the currency and reportable data!!

The IRS and the FED have significant influence over our economy.

For The Record:

DJIA                       14,578.84

NASDAQ                3,267.52

S&P 500                 1,569.19

Suggested Reading:

“The Concise Encyclopedia of Economics” by Milton Friedman

By: Edward Leone Jr. DMD MBA CFP RFC

Contact Information: leonee@vzw.blackberry.net

It appears that in many business environments the concept of independent contractor as opposed to status as an employee is becoming more and more popular since the business owner has less administrative and cost issues depending on services performed. The W-2 employee may receive some fringe benefits from the employer as a result of job status and the employer is responsible for payroll tax and other tax withholding functions while the 1099 independent contractor accepts all of these responsibilities relieving the business owner of many burdens. Before a business owner engages an independent contractor, the 20 factor test must be met. Google this subject to learn what represents safe territory in the eyes of the IRS. Other work place issues which are presenting have to do with the generation mix in the work environment. It is not unusual to find Baby Boomers who are maintaining a position in the work place due to economic issues resulting in a delay of retirement performing with Generation X and Y employees. The challenge in creating inter-generational harmony revolves around establishing an environment of mutual respect for skills, talents and knowledge regardless of the workers’ ages.

A strategy being employed to enhance portfolio returns is the investment in dividend yielding stocks. A corner-stone of traditional value investing discipline, this can be accomplished in an effective and low-cost way by using dividend ETFs. Wisdom Tree, Power Shares, First Trust and I Shares are some ETF fund families which can provide such investments.

There is much concern over creating a steady flow of adequate income from the fixed income side of a retiree’s portfolio. Given the obvious trend for interest rates to increase at some point in the future resulting in a decline in the market value of fixed income holdings, it may be wise to hedge against this potential with a portion of the fixed income mix dedicated to floating rate funds. These funds invest in short duration variable rate vehicles which float when market conditions change. There is definitely some credit risk associated with investing in these funds so do your home work first.

Since my comments in the February Blog, I have done some reading which further encourages me to believe that our economy will improve in the future. Information Technology and Energy resource development and extraction are going to be the drivers which will increase production, manufacturing and exports for the US. Once again, there is a pressing need for government at all levels to come to consensus on the variety of issues surrounding this dynamic to promote activity rather than inhibit progress. We will have to wait and see how long this will take to happen. The revelations of the sequester are coming our way right now. The rhetoric generated over this action depending on your prospective can be threatening or laughable. Time will tell us the out comes and force remedies I suspect.

For the Record:
DJIA                    14089.66
NASDAQ               3169.74
S&P 500                 1518.20

Suggested Reading: “The ETF Book” by Richard Ferri CFA