I am ramping it up over the month of April into May. Our Young's Dynamic Maximizers portfolio (a fixed income alternative) is actually up 2.5% YTD, or an annual annualized 7.5%. I find this performance most encouraging. My own largest fixed income holding (individual bonds, while clearly a superior option are not ideal for me as I am on the road and out of touch at annoying times) a full-faith-and-credit-pledge GNMA’s-centric fund is ahead by 3.0%, or an annualized 12.0%. I am happy with this. GLD, one of my gold proxies is ahead by 6.5%, or an annualized 26%. My Swiss currency … [Read more...]
Archives for March 2020
Coronavirus Infects Stock Market: Part XXI
How are you holding up? Other than the fact that today feels like yesterday, you’re telling me you’re OK. If you had a well-diversified, balanced investment plan—your retirement plan is still intact. Retirement planning isn’t fun. It’s not supposed to be fun. But, putting the fun aside, aren’t you glad you spent time thinking about your retirement many years ago? Whether through our conversations or Richard C. Young’s Intelligence Report, you began understanding the importance of a well thought out strategy. Based on the performance numbers for balanced portfolios, you’ve been able to … [Read more...]
Coronavirus Case Growth Update
Below are updated coronavirus case daily growth numbers through yesterday. Growth in cases in Italy continues to slow which offers hope for the U.S. and other countries still seeing too rapid case growth. South Korea’s numbers have ticked up, but still look under control. There have also been downticks in France, Germany, the U.S., and Spain, but it may be early to judge if those are real trends or testing constraints. … [Read more...]
Trump Resolutely Fights Two Pandemics: Health and Economy
President Trump is fighting hard for America on two fronts, both against the health pandemic of COVID-19, and against the economic pandemic following in its wake. Donald Devine explains at The American Spectator, writing: The only possible solution is President Trump’s insight that there are two pandemics, one for health and another for the economy, and that “we can do both.” In a recent two-hour press conference, in which he answered every question from the media, the president was repeatedly asked if he would promise to obtain the approval of National Institutes of Health infectious … [Read more...]
Coronavirus “War” Spending Could Spark Higher Inflation
At Barron's, Randall W Forsyth explains that "war" spending in the battle to fight the effects of the coronavirus could spark higher inflation. He writes: Wartime finances that balloon budget deficits and that are covered by money-printing have proved inflationary throughout history. At the same time, globalization—already in retreat in the trade wars—will be curtailed further, as supply chains are relocated to avoid crossing borders, rather than to maximize comparative advantage. That will raise the cost of internationally traded goods at a time when prices of services already are moving … [Read more...]
Easyjet Grounds its Entire Fleet
Graeme Paton reports for The Times that Easyjet has grounded its entire fleet of jets in response to coronavirus. He writes: Easyjet has grounded its entire fleet because of the coronavirus pandemic as speculation mounted that crisis-hit airlines will seek Treasury bailouts to avoid complete collapse. The budget airline, which carried 96 million passengers last year, said that it would park all 344 of its planes and temporarily lay off cabin crew to remove “significant costs”. It said that there was “no certainty” for the date of restarting commercial flights. Easyjet is the first of … [Read more...]
Coronavirus Infects Stock Market: Part XX
Yesterday we entered a bull market with the Dow advancing 20% from it’s most recent low. Big deal. We are certainly seeing price discrepancies, especially in the fixed income market and have tied down some attractive yields for potentially years to come. The key to investing in markets like these is to stay focused, be patient, and always be ready to make a move when the research begins to show some real values. I have no interest in worrying if the coast is clear. That’s not investing. But seeking values certainly is. You have spoken and I have listened. Here’s what you told … [Read more...]
Gold Please
Below is a chart of the Federal Reserve’s balance sheet. The Fed has gone into money-printing overdrive. Over the last month, the central bank has conjured over $1 trillion out of thin air to buy Treasury bonds and mortgage-backed securities. The Fed is printing at a pace of up to $125 billion per day. Once the stimulus passes, the Fed will be given about $500 billion in capital that can be leveraged up to 10X to buy more assets. The source of that leverage is newly printed money. We are talking about an additional $4.5 trillion. Meanwhile, the Federal Government is likely to run a … [Read more...]
Richard C. Young Explains: How to Invest Like Einstein
Originally posted October 23, 2018. When asked to name the greatest invention in history, Albert Einstein responded, compound interest. Over three decades ago I started our family investment counsel firm focusing on the miracle of compound interest to help retired and soon to be retired investors just like you. My short and quick goal was, as it remains today, safety of principal and a consistent flow of income through investors’ long and peaceful retirements. In J.R.R. Tolkien’s The Hobbit, when the wizard Gandalf asked Bilbo Baggins to take part in an adventure, the Hobbit told … [Read more...]
Work to Make Money/Invest to Save Money
Originally posted October 17, 2017. With the exception of the large sums of money that I invested in zero-coupon treasuries (Benham Target Funds) in the 1980s and 1990s, I have never invested based on how much money I expected to make. I work to make money. And I save to keep every dime of the money I have worked a lifetime to earn. There was a day when I had darn few of those dimes. Those days made an indelible impression on me, and will so forever. I invest with a rolling 10-year average annual return portfolio target of a balanced 4+%. This modest target is based on the normalized … [Read more...]
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