Professor Spencer addressed the group speaking about the current state of the financial markets and what he believes to be coming next. Professor Spencer, a graduate of Bentley College, who also has his Masters in taxation from Bentley, and his JD from Suffolk University Law School, is an Attorney and CPA in the state of Massachusetts. He began his career as a tax consultant at Ernst & Young and later became the founder, treasurer, chief financial officer and director of AdvantageHealth Corporation, which is now a publically traded company on the NASDAQ. Given his extensive background in business and finance in particular it was great to hear his perspective of the markets as a whole, as he has great insight on numerous topics.
According to Professor Spencer, the word “Finance” can be defined as “Finding money, protecting it, creating a safeguard, multiplying it, and then ultimately creating more money”. He spoke about how he was a consultant to the Red Sox, and how his idea of implementing luxury boxes in Fenway Park would do just that for the owners of the team. Implementing luxury boxes would, and did, allow them to expand the number of seats available, ultimately bringing in more cash flow, and allowing for tax breaks.
“High Risk leads to high reward” was the view seen be most investors, but now, with the market in its current condition, is it advantageous to even enter into the markets given its extreme volatility? According to Professor Spencer, Goldman Sachs number one Analyst has announced to stockholders that it is now “time to get out of the market”. But why? The markets have rebounded from their fall in late 2008, but with much speculation about what the coming months are going to bring, many people have lost all of their trust in not only the markets, but Wall Street as well. Many people held the belief that the investing in the government was a safe bet, but the US government is currently over $16 trillion dollars in debt, so how can this be. Another “safe” investment is in a hard asset like gold, yet gold’s worth is totally undefined; basically based off of what people are currently willing to pay for it. Municipal bonds on the other hand, are a much better investment according to Professor Spencer, because not only are they guaranteed by the state government, but they are also not taxable by the federal government. So what is a safe investment? Looking at the vast uncertainties that lie ahead of us, it is hard to tell, but what is certain is that the expectations for change are already being forecasted onto the markets. Professor Spencer had great insights not only on our markets, but on his career path and his personal experiences as well.