Investing in a chaotic world isn’t easy. You hope you’re doing the right thing. But hope is not a strategy. When I talk with investors like you on the phone, you’re telling me about the hours-long waits you’re enduring with custodians from Charles Schwab to Vanguard and, yes, even Fidelity. The phone tree is alive and NOT well. That’s unfortunate because you deserve more. If you’ve been with me through thick and thin, then you know the plan. You’re hunkered down collecting dividends and interest, in other words, getting paid to be in this market. If you’re not with me, I have no idea what … [Read more...]
Archives for March 2022
FRAGMENTATION: World Currency Order Precarious After Biden’s Russia Sanctions
The implementation of crippling sanctions on Russia's central bank may encourage other countries to diversify away from the dollar, lest they fall victim to the same pressure tactics in the future. Gita Gopinath, the IMF's first deputy managing director, suggests there could be "fragmentation," of the world currency market. Johnathan Wheatley and Colby Smith report for the Financial Times: Gita Gopinath, the IMF’s first deputy managing director, said the sweeping measures imposed by western countries following Russia’s invasion, including restrictions on its central bank, could encourage the … [Read more...]
Dream On! Fishing the Double Down in Key West
“Many go fishing all their lives without knowing that it is not fish they are after,” wrote Henry David Thoreau. But if it’s fish you’re after, then get yourself aboard the Double Down out of charter boat row in Key West and go fishing with captain Bryce Barr and first mate Shawn. You can tell them Your Survival Guy sent you, and you can thank me later. I promise. Aboard the Double Down is exactly where you could find us in mid-March at what I refer to as Summer Camp in Key West for our second trip in two years. We caught sailfish and an assortment of pelagic on both trips. But let’s get … [Read more...]
Stock Splits: Addition through Division?
"The perception is sort of the driving factor." It's a "psychological boost." These words spoken by directors at wealth funds refer to stock splits. Despite having little to no effect on the value of a company's shares, stock splits are popular with investors. Tesla recently announced it would seek to split its stock again. The Wall Street Journal reports: Tesla Inc. on Monday said it would seek to split its highly priced stock for the second time in two years. Already in 2022, both Google parent Alphabet Inc. and Amazon.com Inc. have unveiled plans for 20-for-1 splits. Stock splits … [Read more...]
Biden’s European Gas Promises Are Driving Up Prices in America
Joe Biden has promised European countries that America will fill in lost gas supplies banned by Russian sanctions by shipping LNG across the Atlantic. That promise has driven up demand for American gas, and prices with it. Ryan Dezember reports in the Wall Street Journal: The U.S. is shipping more natural gas than ever overseas, which is keeping domestic inventories lean and power prices high. Natural-gas prices usually decline into spring, when heating demand drops but before air-conditioning season begins. Gas producers and traders use the off-season to build up inventory for summer, … [Read more...]
Your Retirement Life: Make Retirement an Unforgettable Adventure
Your Survival Guy had a couple of meetings at our Newport, RI office Monday. In the first one, we talked about the resilience of dividend-paying stocks in times like these and about a recent extended stay in Florida fishing and enjoying the outdoors. In the second one, we talked about the importance of dividends during inflationary times and their steady stream of income. They just got back from Capitol Reef National Park and said it’s their favorite one of all. You can check it out here. Action Line: Everyone deserves an unforgettable adventure, whether it's a perfect day in Capitol … [Read more...]
Are Inversion Fears Overblown? FT’s Lex Says Yes
Portions of the Treasury yield curve have inverted, but the FT's Lex service downplays the risk of the current yield picture. They write: Wall Street is obsessing over the US yield curve these days. No wonder. An inverted US yield curve, in which short-term interest rates are higher than long-term ones, is widely seen as an ominous sign of looming recession risks. On Monday, the yield on 30-year Treasuries fell below that on five-year ones for the first time since 2006. That comes after yields in other parts of the curve — namely the five to 10-year and three to 10-year — inverted last … [Read more...]
ESG Creator: “It’s a Marketing Mania”
The ESG market is in upheaval after researchers at Morningstar recently stripped 1,200 funds of their ESG designations, and many major funds are suffering embarrassment over investments they had in Russia that are now coming to light. The coiner of the term, ESG, Paul Clements-Hunt has even called the ESG market "a whirligig, a frenzy, a marketing mania." Bloomberg's Saijel Kishan reports: After attracting trillions of dollars, the ESG fund industry is headed for a “shakeout” over the next five years, according to the man who coined the acronym. The finance sector has “sprinkled ESG fairy … [Read more...]
Stock Market Games Are Teaching Kids All the Wrong Lessons
You rarely encourage your children to take “extreme risks.” That, unfortunately, is what’s happening with stock picking games played by high schoolers around the country. To “win,” you have to earn the most and to do so, you must take on massive leverage and perform risky trades. Does anyone really think that’s the lesson kids should be learning about their finances? Jason Zweig of The Wall Street Journal reports on the counterintuitive lessons being taught by the stock-picking games at school, writing: Every year, more than a million high-school students across the U.S. learn about … [Read more...]
Bank of Japan’s Unlimited Bond Buying Sends Yen Tumbling
When a central bank offers to buy an unlimited number of its government's bonds, is it any surprise when its currency falls hard on the news? The value of the yen has dropped sharply on the news that the Bank of Japan will buy an unlimited number of 10-year Japanese government bonds to support the country's economic stimulus. The Financial Times reports: The yen dropped to a seven-year low on Monday as the Bank of Japan bucked the global trend for tighter monetary policy, stoking speculation that the central bank could intervene to prop up the currency for the first time since 1998. The … [Read more...]
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