In my conversations with you, we talk about the virtues of being a balanced investor. You can achieve this through a mix of blue-chip dividend payers and laddered bonds. To illustrate, I’ll use as a proxy Fidelity Balanced, Vanguard Wellington, and Vanguard Wellesley funds. In that order, they have roughly the following stock/bond allocation mix: 70/30, 60/40, or 40/60. (Note: Wellington and Wellesley are managed by Wellington Management in Boston, MA, not the Vanguard Group.) For more, read the P.S. below. With the Federal Reserve deciding to hold rates steady yesterday—they’ve made … [Read more...]
Archives for September 2023
Inflation Could Kill Social Security
At the Cato Institute, Romina Boccia explains how increasing Social Security benefits, pushed by inflation and excess benefits, are putting the system at risk. She writes: Here’s an unpopular opinion: Social Security benefits are growing too fast. And this excessive benefit growth is one of the key reasons the program is unsustainable. We’ve all heard that entitlement programs are suffering under the weight of a demographic shift. The American population is aging and living longer, as fertility has declined. Fewer new workers as the share of the senior population increases means fewer … [Read more...]
Will the Fed Hold Up Its End of the Bargain?
Looks like the Fed wants to keep interest rates higher for longer. Great. I’ll take it. But let’s not forget about some unforeseen black swan swooping in on their party, ruining their comfy projections, leading to rate cuts. Because in the real world, with live bullets flying overhead, you need to act knowing the Fed is an emotional beast. It could change course without warning. Be prepared. Look, we don’t need to go back too far to see how the Fed gutted rates after the financial crisis and during Covid saving (temporarily?) the stock market. What will it take for them to jump ship on a … [Read more...]
Should America Move Closer to the Saudis, or Push them Away?
Almost instantly upon entering the White House, the Biden administration began insulting the Kingdom of Saudi Arabia. Then, when it became clear that the Saudis weren't going to sit on their hands and take the insults without pushing back, the Biden administration began begging for their help in taming oil prices. At the Cato Institute, Jon Hoffman discusses the future of the U.S./Saudi relationship, writing: The U.S.-Saudi relationship is stuck. America’s policy toward the kingdom is rooted in flawed rationales and supported by a system of lobbying and influence designed to sustain the … [Read more...]
Don’t Ask Me When to Haul Your Boat
Your Survival Guy tried to reason with Hurricane Lee and lost. It never made landfall in my neck of the woods or sea. Just lots of wind and rain. No more boating this season. Thank you, Tom Sawyer, for another great one. It’s bittersweet. Because in my conversations with you, we talk about a feeling of relief when the season’s over, whether it’s boating or gardening. There’s comfort in knowing you don’t have to worry about not using the boat enough or if the garden’s going to float away from too much rain (a big problem this year). There’s always a punch list. Which brings us to … [Read more...]
Robot Warehouses Need Better Internet
Warehouse operations have undergone a revolution in technological advancement, integrating robotics in the process of fulfilling orders for online retail companies. But those warehouses are falling behind in one area—their internet connections aren't strong enough. Liz Young reports in The Wall Street Journal: The new robots, drones and other technology tools filling the country’s distribution centers are finding one thing all too difficult to reach: a fast and reliable internet connection. Robots that wheel through warehouse aisles to find and pick goods need a high-speed link to keep … [Read more...]
California Mandates Drive Diesel Truck Buying Spree
Trucking companies are buying diesel trucks now while they still can. Next year, new emissions rules will kick in, forcing companies to purchase "zero emission" vehicles. Paul Berger reports in The Wall Street Journal: Manny Carrillo has spent $1.5 million on two electric big rigs and a charging station at his truck yard in Chino, Calif., ahead of a new state emissions rule that kicks in Jan. 1. The chief executive of Talon Logistics is also beefing up his fleet with 20 diesel trucks, the kind that the new regulation is seeking to eliminate. Carrillo’s is one of many logistics companies … [Read more...]
Americans Are Not Happy with Bidenomics
In a poll released by Quinnipiac last week, 60% of Americans indicated they were unhappy with Joe Biden's handling of the economy. You, dear reader, are not surprised by this news, as you have read about the shortages and inflation in America since nearly the day Joe Biden set foot in the White House. Obamacare Is Now Bidenflation SHORTAGE: Biden Shortages Hit Kids’ Medicines Bidenflation Is Back at the Pump MAJOR WARNING ON FOOD SHORTAGES: Businesses Prepare for Violence DOWNLOAD: FOOD SHORTAGE: Crazed Hoarding Is not Preparing Bidenflation Has Eaten Up Americans’ Pandemic … [Read more...]
Paris’s Big Plans for the Champs-Elysées
In The Robin Report, Mark Faithfull describes how a new master plan will transform Paris's famous Champs-Elysées. He writes: However, with more optimistic news, Paris authorities have won approval to transform the famous Champs-Elysées into what Mayor Anne Hidalgo describes as an “extraordinary garden.” The ambitious renovation plans will likely cost over $250 million and by 2030 will transform a 1.2-mile stretch from Place de la Concorde to the Arc de Triomphe into a green corridor, designed by French architectural firm PCA-Stream. The plans include widening sidewalks, adding … [Read more...]
A Plan for Cutting Federal Government Spending
At the Cato Institute, Michael Chapman discusses GOP presidential primary candidate Vivek Ramaswamy's intent to cut federal government spending, and the detailed plan created by Cato's Chris Edwards. Chapman writes: In a recent speech, GOP presidential contender Vivek Ramaswamy outlined a multi‐year plan to reduce the federal workforce by 75 percent, slash regulations, and “shut down redundant federal agencies,” if elected. While Ramaswamy’s goals may seem fantastic, scholars at the Cato Institute have presented detailed policies for reducing the size of the federal government and its … [Read more...]