Current Issue - October 2015

In recent days, given the extraordinary volatility in the financial markets, mindset and association are especially vital concepts for investors. When the market is in disarray (as it was on August 24), ETFs can trade at wide discounts or premiums to the value of their holdings. The solution to this problem is a simple one: Don't sell equity ETFs on big down days in the market, and don't buy them on big up days in the market. When you are in the right place mentally, you can have no problem weathering volatility. Successful investing is a mindset based upon a master plan that allows an investor to find comfort through thick or thin.

In this month's issue, I'll tell you how to develop the mindset of a successful investor. In my own portfolio, I do an annual checkup only at tax time. When you are in for the long haul, short- or even medium-term volatility is of zero concern beyond being alert to any short-term mispricing that would allow you to add to your holdings at an even higher yield. In a retirement account, high yields allow you to easily draw 1% of portfolio value per quarter. The remainder of the dividend in your account is left to compound into the future. This month, I have a new pick for you with a 6.8% yield. The best part about it is that, while it's in the energy sector, the revenue stream is completely fee-based. There is no direct connection to the price of oil in its business. In addition, I'll tell you about another company I'm putting on my watchlist that has increased its dividend for 10 consecutive years, and today yields 2.7%. It's one of America's largest real estate networks, but its arrangement with its customers means it isn't subject to the cost-intensive maintenance responsibilities that cause problems for other companies in that space. More >>

Economic Analysis - October 2015

Each month, I provide you with an Economic Analysis supplement to the issue. This supplement provides you with a bird's eye view of the indicators that I monitor on a regular basis. The incisive, story-telling charts included in this supplement are updated every month and range from "The Leaders" to "World Currency Reserves/World Gold Reserves." There will always be great new material as well as timely reference dates, and my comments spell out the meaning of each chart for you. Download in pdf format.

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The Thing about Bubbles

October 02, 2015 The thing about asset bubbles is you never know what will cause them to pop or when they will pop. Valuations can tell you there is a bubble, but as a timing signal, valuations are not at all useful. The Biotech bubble has been one of the biggest in the market. So big in fact, […] More »