The Financial and Personal Security Letter
There is an increasingly disturbing trend in the stock market that has profound implications for your portfolio. Traditional investors who are motivated by profit are being replaced by three groups of investors who couldn’t care less about getting fair value: High-frequency traders are only interested in scalping the next penny or two from buyers and sellers. ETF investors are buying without any consideration for company or stock market values. The corporate sector repurchases shares to reduce share count and ramps up buying when prices are high. And the market share of all three adds up to an overwhelming majority of stock market trading volume. It’s a whole new ball game, with new players.
To navigate this new market structure successfully, patience and focus on your own individual objectives (as opposed to the performance of broader stock market indices) are key. In this month’s issue, I will give you five great reasons why gold investments, starting with a package of top-quality gold miners, should become your insurance policy and part of your counterbalancing strategy. I’ll tell you the best way to invest in this sector with proper diversification. While your counterbalancing insurance policy waits for hard times to shine, you'll get paid for your patience. My top-down portfolio strategy for you is to be able to draw 4% annually from a retirement portfolio without cannibalizing capital. I'll tell you how to achieve this using my Retirement Compounders, starting with the names from this month's Top 10. 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.
October 22, 2014 It was reported by the Treasury Department recently that Federal receipts have crossed the $3 trillion mark for the first time ever in fiscal 2014. But even with the highest receipts in history (much of those receipts caused by onetime tax avoidance measures), a budget surplus is out of reach. 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 »
I have been a subscriber of Intelligence Report since 1992. I began investing for retirement using guidelines from Intelligence Report. I followed Richard's advice and switched everything to Vanguard in 2006 and wish I had done it sooner. With about 35% Retirement Compounders and the rest in Vanguard GNMA and Vanguard Short-Term Investment-Grade, I was able to fly through the recession. Average return for the last 5 years was 5.7%.
I retired from dentistry in 2010 after 43 years in my office, and since that time we are living off my investments and Social Security. We have about as much to live on as when I was working, because I don't have to pay those high taxes. I stick with the program and have not had to use any principal for living expenses.
I am glad that I stumbled upon your letter in 1992, because I was able to develop a philosophy for investing and a plan to stick with through thick and thin. It has paid off very well. Thank you.