(Washington)

Wealthy people living in the US may have a natural apprehension to the idea of Bernie Sanders becoming president. The self-described socialist aims to greatly raise taxes and redistribute wealth as is common in socialist agendas. However, to get some context on how Bernie’s policies may actually play out, it is useful to look at the only functioning socialist democracies in the world—Scandinavia. What is very interesting about the Scandinavian countries is that they actually have the highest percentage of billionaires per capita in the world. The same also applies for those with a $100m net worth or more, and even those with $30m or more.

FINSUM: These countries have the highest percentage of wealthy per capita by a wide margin, so it appears socialist democracy does end up having some wealth concentrating effects.

(San Francisco)

Apple has been deeply wounded by the coronavirus panic. The stock fell as much as 16.5% through the weekend before good gains on Monday. The reality is that this is great time to buy Apple, as shares are offering a big discount just before the next iPhone super cycle begins. According to Wedbush, a leading Apple analyst (and referencing the coronavirus sell-off), “we believe this will be short lived as the longer term 5G super cycle thesis and services re-rating remain the crux of our bull thesis on Apple for the next 12 to 18 months.” Wedbush believes that some 350m of the nearly one billion iPhones out there are “in a window of an upgrade opportunity”.

FINSUM: Apple has a good shot at selling over 200m iPhones in the 12 months starting September 2020, likely breaking its highest sales ever. This is a good time to get ahead of that.

(New York)

Variable annuities can be a fantastic product for long-term income security. However, they are complex products and buyers need to make sure they understand what they are buying. In particular, here are a few key points to remember when purchasing. Firstly, providers often have unique policies for how benefits are paid out once one spouse dies, so make sure these are understood to avoid accidentally disinheriting someone. Secondly, make sure clients understand the differences between the different value measurements of a variable annuity, such as cash-out value, death benefit, or “annuitized” value, as these can potentially cause some shocks. Finally, be careful when exchanging an older annuity for a new one, as older versions can be significantly more generous and are worth holding onto.

FINSUM: Variable annuities can be great long-term income streams, but it is integral to understand exactly what one is buying.

(New York)

How about some stocks with good income that should stand up well to the coronavirus scare? Sounds good. Well, take a look at the most obvious sector for such: healthcare. Healthcare stocks have great dividend yields right now and should be impervious to coronavirus by definition. Plus, they have a tailwind that only really arrived yesterday—a resurgent Joe Biden, who does not want to tear up the status quo of US healthcare. A couple good funds for this are the SPDR XLV or HGHAX.

FINSUM: This seems like a very good call—good income and a natural defensiveness to the virus scare. Plus, Biden’s resurgence should be positive.

(New York)

Storied research firm Bernstein Research has a recommendation for you, and it is a brave one—buy stocks. The firm says that on a tactical buying basis, it is time for investors to re-enter the market. Bernstein acknowledges that they have no idea when the coronavirus situation will clear up, but that given the general decline in indexes and that fact that sentiment has swung negative, it only makes sense to buy because the market has become too bearish.

FINSUM: We have to give Bernstein credit here for a bold call. Most analyst teams tend to hide or vacillate, but this is a strong call.