The Financial and Personal Security Letter
When you work in the investment business for more than five decades as I have, you develop a nose for speculative excess. The level of stock market speculation today is disturbing as investors gobble up every overpriced IPO in sight. Moreover, the S&P 500, influenced by a group of names I do not consider investment quality, has advanced into a full-blown bubble. And brokers are pushing structured products like trigger securities to rake you over the coals. Using the same kind of misdirection insurance salesmen use to sell index annuities, they will offer you the opportunity to participate in the upside of the stock market with minimal risk to your principal. Sound too good to be true? It is, and I'll explain why in this month's issue.
Where can you turn in an overheated environment like this? In my five decades of investing, I have always remained fully invested in a broadly diversified mix of largely dividend- or interest-paying securities. I rarely make a sale. I have little inclination to share any of my long-term profits with the government via the tax route. As such, new cash flow is my concern regarding additional investments. This month, I'm adding two new stocks and two new ETFs to my Monster Master Lists. One of each is in the coal sector, while the others are in the gold sector. Far from the dead duck portrayed by many on the political and green fronts, coal use is on the rise all over the world. Meanwhile, gold miners have been beaten to a pulp, and the gold royalty and stream company I'm recommending has a diversified portfolio of cash-flow-producing assets, providing a dividend and probably more upside potential than a gold ETF with less risk than an operating company. 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.
April 21, 2014
Here you get a glimpse of the real estate market in Boston as reported by the Boston Globe. The price of living in the heart of Boston is fast approaching an average of $1 million, as condominium sales sizzle and values surge. Condominium sales in downtown Boston and surrounding sections -- including Beacon Hill, the Back Bay, […]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 »
Dick's advice to purchase Treasury STRIPS (in the '90s I think) was a big score for me. Counseling on the psychological end—to pull the trigger and fight inertia—has also been invaluable. [What I like best about Intelligence Report is Dick's] ability to slow me down, avoid churning, and speed me up, buy the proper stocks and bond funds, and hang on to them for long periods.