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Young Research & Publishing Inc.

Investment Research Since 1978

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Archives for May 2016

Worthy Reads: Are Dividends Too High and Investment Too Low?

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The Number of Million-Dollar Homes in the U.S. Has Doubled in Four Years (Bloomberg) EPA Proposes Requiring More Ethanol in Gasoline in 2017 (WSJ) Drop in U.S. jobless claims boosts hopes of economic rebound (Reuters) Why Some Frackers Look Good After the Oil Bust (WSJ) Pacific Rim trade deal gains questioned (FT) Are Dividends Too High and Investment Too Low? (WSJ)   … [Read more...]

Looking Back at a Random Walk Down Wall Street

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Burton Malkiel has released a new edition of his book A Radom Walk Down Wall Street. In it he recommends substituting a part of a bond portfolio with high-yielding stocks. This is rotten advice and will likely get his followers into some trouble down the road. Yes, bond yields are low, but bonds should always be in your portfolio. I’ve called out Mr. Malkiel in the past on his tendency to offer up poor recommendations while talking up his book. For example when he talks about China: But, a couple of years ago, in late 2010, Malkiel recommended overweighting China. The following year, … [Read more...]

Worthy Reads: Billionaire Investor Loads up on Gold, Buys Stock Insurance

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Billionaire investor loads up on gold, buys stock insurance (ZeroHedge) Ending the Fed’s Inflation Fixation (WSJ) The real problem with negative interest rates? They are a stealth tax (MarketWatch) A Cheese Glut Is Overtaking America (WSJ) Two Fed Presidents See Two or Three 2016 Rate Hikes (Bloomberg) Investors Should Take Trump More Seriously (WSJ) Sugar Industry Braces for an Open Market With Fewer Protections (WSJ) Can Hackers Attack the Global Financial System? (Money) … [Read more...]

Pensions in a Load of Trouble, Part II

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The state of Rhode Island has been a big-time investor, through its pensions, in hedge funds. Retired teachers who depend on this money for retirement should not be invested in hedge funds. It’s as simple as that. Unfortunately in the world of public pensions big committees and chest thumping rule the day. Egos and resume building cloud judgement. And performance takes a hit. It’s no surprise that hedge funds are coming under attack. Assets are heading out the door. This could have been avoided. Read more here on Pensions in a Load of Trouble Part I FLASHBACK: RI Pension … [Read more...]

Worthy Reads: Buffett Heirs Bet on Apple

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Buffett Heirs Bet on Apple (WSJ) This is No. 1 financial regret of older Americans (MarketWatch) Online Loan Pioneer Boomed, Then Tripped (WSJ) Bull Market Losing Big Ally as Buybacks Fall Most Since 2009 (Bloomberg) Autonomous-Driving Startup Takes Aim at Heavy Trucks (WSJ) U.S. consumer prices post largest gain in three years (Reuters) … [Read more...]

How I Built My Survival Cache. It’s Never Too Late to Start Building Yours

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No one likes to lose money. That’s why when I started building my survival cache over ten-years ago I started with gold. Back then, I spent little time (same as I do today) worrying about where I felt the short-term price of gold was headed. What I wanted to do was build a physical hedge for my cash. Cash is king! Try selling that one to your spouse. But cash is pretty powerful. You never know when you’ll need it. Like when there’s a Wi-Fi outage that shuts-down businesses. No Wi-Fi, no credit cards. No Pizza. Cash is powerful to an empty stomach. But predicting an outage is as … [Read more...]

The Monday Melee: Saudi Treasury Holdings Exposed

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Saudi Treasury Holdings Detailed for the First Time in Decades After four decades of secrecy, the Treasury Department has released a report including Saudi Arabia's holdings of treasury securities. Bloomberg reports: The stockpile of the world’s biggest oil exporter stood at $116.8 billion as of March, down almost 6 percent from a record in January, according to data the Treasury disclosed Monday in response to a Freedom-of-Information Act request. The tally ranks Saudi Arabia among the top dozen foreign nations in terms of holdings of U.S. debt, and compares with China’s $1.3 trillion … [Read more...]

Worthy Reads: China Doubles Down on Real Estate

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When All Economics Is Political (WSJ) These boots are made for walking (The Economist) Retail Troubles: It Isn’t Just About Amazon (WSJ) The hedge-fund model is under assault (MarketWatch) Why Joe DiMaggio’s Streak Is So Enduring (WSJ) OPEC signals greater oil glut in 2016 as its output surges (Reuters) Amazon Will Expand Its Private-Label Offerings (WSJ) The Fed may surprise markets in June: Strategists (CNBC) China Doubles Down on Real Estate (WSJ) … [Read more...]