The Financial and Personal Security Letter
The Fed has not raised the funds rate once during the economic recovery. Long interest rates are in a trough, ending a three-decade-plus secular decline in rates, which has resulted in the bull market for bonds. Anyone making projections for investment returns over the next decade had better not be basing expectations on any historical performance. But I am afraid that this is exactly what most individual investors are doing.
In this month's issue, I explain the three biggest risks for your money. To frame risk parameters, I use inference reading—what I call outcome analysis—and on-the-ground anecdotal evidence. I exert minimal effort worrying about what I am going to make on my investments. I concentrate on dividends, portfolio balance, diversification, and compound interest—in other words, I know what I am being paid up front. So where does all this leave you? Depending on your risk tolerance, I have several allocation options to help you build a well-diversified investment plan consisting of equities, fixed income, precious metals, and foreign currencies—a mix that has historically provided consistent, positive, prudent returns. And if you're not a fan of metals, I've got a plan for you, too. No matter which one you choose, you can start with two foundation holdings you can add to with impunity through the years. More >>
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.
July 24, 2014
Richard Russell’s timeless Rich Man, Poor Man has been there for me when I needed some perspective. I hope it will do the same for you. RICH MAN, POOR MAN: In the investment world the wealthy investor has one major advantage over the little guy, the stock market amateur and the neophyte trader. The advantage that […]More »
Dick Young grew up in Shaker Heights, Ohio, graduated from Babson College in Wellesley, Massachusetts, with a B.S. in investments, began his investment career in 1964 with Clayton Securities in Boston, and founded Young Research & Publishing, Inc. in 1978 to publish Young's World Money Forecast. More »
Diversification, dividends and patience have proven to be the ticket for a solid portfolio that has allowed us to take out enough income and virtually maintain the principle balance over the past 12 years. We have held some of our positions since the beginning, and they have increased in value by as much as 240% while generating almost 6% annual income. [Intelligence Report] keeps me grounded and able to dismiss the 'experts' that seem to be lost in their own three-month cycle along with all the other so-called mavens of Wall Street.
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