New research from the IMF suggests that forcing investors to search for yield in riskier assets by targeting extremely low-interest rates is amplifying shocks in markets. Chris Giles reports for the Financial Times: Persistently low interest rates are encouraging investors to take dangerous risks in a quest to maintain their financial returns, the IMF said on Wednesday, raising concerns that even the current lacklustre performance of the global economy may not be sustainable. Policymakers should urgently seek to extend banking regulations introduced after the financial crisis to other … [Read more...]
Archives for October 2019
Your Retirement Life: Our Cabin on Kodiak, Alaska
I’ve been working with Dr. Lee for 16-years. He was only 53 when he became a client. Even back then he was the millionaire next door. But for about two weeks of every month, he doesn’t have any neighbors. That is unless you happen to have a cabin on Kodiak Island, Alaska. Even then you probably won’t see each other. Overlooking the water, his cabin is a fly cast away from world-class King Salmon fishing. He loves to fish. He also loves to share his knowledge and to keep learning. Before he retired he would sharpen his professional axe teaching university students about oral … [Read more...]
You’ve Read The Last Issue of Intelligence Report, Now What?
UPDATE: It's been two years now since the last issue of Richard C. Young's Intelligence Report, and the more things change, the more they stay the same. The Fed just announced it will begin buying $60 billion a month in T-bills. And the cycle continues. “I'm going to miss hearing from Dick Young every month,” said one long-time reader of Intelligence Report, “I’ve been reading his letter for 25 years. He was the best hands-down. He always wrote to me the way he saw things.” That’s a common refrain I’ve been hearing over the last couple of weeks. In an industry littered with opinions, you … [Read more...]
Are Investors Ready to Demand Higher Yields?
Worries about the future returns in bonds have heightened the possibility investors will begin demanding higher yields. Daniel Kruger reports at The Wall Street Journal: Recession worries and interest-rate cuts from the Fed have boosted bonds of all kinds this year. But worries that the gains can’t go on forever have led some investors to unusual corners of the market. Mr. Doty said he has added taxable bonds sold by states and local governments, which offer more attractive yields and stronger credit quality than most company debt or the tax-exempt bonds typically sold by … [Read more...]
Four Ways to Win the Investment Horse Race
In 1993, Julie Krone became the first, and still only, female jockey to win the Belmont Stakes. As Julie, riding Colonial Affair, rounded the first turn, they sat in sixth place. A horse named Antrim Road had dashed out way ahead, taking a big risk with a fast pace. As the horses came into the far corner, Cherokee Run took the lead, and still, Julie and Colonial Affair remained in sixth place. Then as they turned for home, Julie’s patience paid off. The five horses ahead of her had risked it all and gotten tired. Julie had conserved energy and came on strong in the end to win. Finishing … [Read more...]
US Blacklists Chinese Shipper: Bolsters American Crude Exports
Efforts to enforce American sanctions on Iran have led the U.S. government to blacklist COSCO shipping, the world's largest shipping company, and the owner of 6% of the world's VLCC (very large crude carrier) fleet. The fallout from the blacklisting has created a boon for American oil exporters who have picked up the slack. Costas Paris reports at The Wall Street Journal: Shipping executives say the U.S. action late last month over allegations that the vessels were tied to illicit shipments of Iranian crude has hit more than 40 tankers operated by a subsidiary of Cosco Shipping Energy … [Read more...]
Breaking News: Fidelity’s $0 Commissions Done the Right Way
Well, it’s not exactly breaking news that Fidelity has said it will offer free online trading. What is worth noting is they will not be making money off of your cash by lending it out as was explained here: You may have seen that Charles Schwab has reduced its commissions to $0. But when you dig a little deeper you realize there’s a catch. As it turns out it’s free but Schwab gets to use your cash, lend it out, and pocket-the interest you could have made. “Schwab doesn’t use money-market funds or short-term Treasury funds, which could earn nearly 2% at recent rates,” explains Jason … [Read more...]
Understanding Dividend Dates
If you are new to dividend investing, divided dates may still be a bit of a puzzle to you. There are many different dividend dates to remember including the declaration date, the ex-dividend date, the date of record, and the payment date. What are they? We’ll explain all of the important dividend dates and what they mean for you. What is the Dividend Declaration Date? The calendar of dividend dates is actually made up of a number of different events, and the first is the declaration date, which happens weeks or months before the dividend itself is actually paid. On the declaration date, … [Read more...]
Do Wealthy Americans Pay Their Fair Share in Taxes?
The 1% of Americans with the highest incomes pay an average federal tax rate of 33%. Meanwhile, the bottom 20% of households pay an average of 2%. In fact, once transfer payments are factored in, the bottom 20% of households pay -70% in taxes, earning $49 for ever $1 they pay in federal taxation. Bloomberg's Michael R. Strain reports: Contrary to the narrative that seems to be forming on the political left, the U.S. federal tax code is very progressive. According to the nonpartisan Congressional Budget Office, the lowest-income 20% of households have an average federal tax rate of about 2%. … [Read more...]
Your Retirement Life: Sweet Home Alabama
Whether you like golf, music, food, or all of the above, there are plenty of reasons to visit Alabama. Not least of which is Alabama's third-lowest cost of living in the United States! Here are some of my favorite destinations in Alabama. Robert Trent Jones Golf Trail Muscle Shoals Lucy Buffett's Lulu's Lucy Buffett is the sister of Jimmy Buffett. Lynyrd Skynyrd - Sweet Home Alabama - 7/2/1977 - Oakland Coliseum Stadium (Official) Originally posted on Your Survival Guy. … [Read more...]