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Archives for May 2016

When the Wi-Fi Goes Out: The Eagles Take It Easy

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Losing your internet connection or Wi-Fi can be pretty annoying. Lately we’ve been experiencing spotty Wi-Fi connectivity at our house. Last night our internet was completely out because a cable was accidentally cut by a “third party” construction company.  It’s not the end of the world. But it doesn’t help, especially when your teenagers are trying to do their homework. It’s ironic, now that I think about it, we had the Eagles, Their Greatest Hits (1971-1975) spinning on our record player. This is by far our most played album over the last six months. It’s a perfect early-in-the-week album. … [Read more...]

Learning from the Stock Market Crash of 1929

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Here you get a glimpse into what really caused the stock market crash of 1929 from the Cato Institute’s Alan Reynolds courtesy of his 1979 article in National Review. [gview file="https://www.richardcyoung.com/wp-content/uploads/2016/05/reynolds_speech_19791109.pdf" width="640px" save="1"] … [Read more...]

The Monday Melee: Is Europe Really Dependent on Russian Energy?

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A Relic from the Past Tim Boersma and Michael E. O'Hanlon of The Brookings Institution call "The notion that Europe is weak and dependent on Russian natural gas is a relic from the past." They write: For many years, analysts and policymakers have debated the question of Europe's dependence on natural gas from Russia. Today, this problem is largely solved. Russia provides only one-third of Europe’s gas. Importantly, Europe’s internal infrastructure for transporting natural gas in all desired directions has improved greatly. So have its available storage options, as well as its possibilities … [Read more...]

Do We Really Need to Convert to a Roth IRA?

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So you’ve created a Roth IRA because: “My accountant suggested I convert to a Roth IRA.” I get it. Sure it could make sense long-term if the growth of the portfolio is good, and if the law remains the same. That’s too many ifs for me. To feel more comfortable I’d prefer you didn’t have to deal with the issue all together as I pointed out here: Chris [Edwards] is Cato Institute’s Director of Tax Policy Studies and editor of DownsizingGovernment.org. If you’re looking for a way to help advance the principles of individual liberty, limited government, free markets and peace, you’ve found it in … [Read more...]

This is Why You Buy Bonds

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Investing in the bond market has been a tough slog over the last few years. Zero percent policy rates and bond buying by the world’s major central banks has kept yields at some of the lowest levels on record. Investors have long had an aversion to the bond market. Bonds don’t offer the glamour and hope that many crave from their investments. And bonds don’t provide the kind of long-term upside that stocks can. Add today’s ultra-low yields to the investing public’s natural bias against bonds, and the result is a move by some investors to load up on stocks in an effort to boost income. Higher … [Read more...]

Lost Decade for Chinese Stocks

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Over the last decade, China has been viewed as the world's economic growth engine. And rightly so if you believe the country's economic statistics. Nominal GDP has more than tripled over the last ten years. How have Chinese stock investors fared over this period? Not so well. Chinese shares have gone almost nowhere since year-end 2006 (12/31/2006 = 100 on chart). Growth ≠ Returns. … [Read more...]

Investing in the Forlorn, the Unloved, the Out-of-Favor, Part II

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Dividend paying stocks may not always get the recognition they most certainly deserve (they are now!). But they some how have a knack of paying you to be invested. And that’s enough recognition for me. Don’t be afraid of investing in the forlorn, the unloved, or the out-of-favor. They tend to be the one’s that surprise you when they grow-up.  In the March 2016 issue of Richard C. Young’s Intelligence Report, Dick Young wrote: The Great John Neff John Neff, in his Vanguard Windsor fund days, was an outstanding proponent of investing in the forlorn, the unloved, the out-of-favor. John was … [Read more...]