Young Research & Publishing Inc.

Investment Research Since 1978

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5,000 Jokers

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You deserve the peace of mind and comfort that a trustworthy investment advisor brings to you. Unfortunately the investment business is loaded with scammers and crooks. Even when brokers are expelled from a firm they can somehow find work in the same industry. That was the case with Kenneth Dwyer who lost more than $85 million for his investors. “Mr. Dwyer is one of more than 5,000 brokers who were still licensed to sell securities earlier this year after working for one or more firms that regulators expelled between 2005 and 2012, according to an analysis by The Wall Street Journal of a … [Read more...]

The Energy Evolution

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The "Estimated Energy Costs per Million BTUs" chart from Young Research & Publishing gives you a quick comparison of oil, natural gas, coal, and uranium. As you can see, natural gas offers good value compared to oil. Over time good ideas will find their way in the marketplace at the right price and tend to evolve over time rather than an overnight revolution. Cheap natural gas will find a home. Kinder Morgan is expanding its pipelines into Mexico. Don't speculate on short-term natural gas prices but do understand the unique long-term value it offers today to companies that move it. … [Read more...]

Dividend Paying Stocks and Taxes

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This year the tax on dividend paying stocks for the highest wage earners, thanks to Obamacare, is 23.8%. One way to avoid this tax altogether is to invest in dividend paying stocks in your tax deferred accounts. If you have a 401k collecting dust in a corporate account somewhere then now is the time to do an IRA Rollover to Fidelity or Vanguard. Don’t let inertia get the better of you. Set-up a brokerage account and construct a portfolio of high yielding dividend paying stocks tax-free. If your investable assets are around $2 million and want to speak with me directly about how to do this, … [Read more...]

Janet Yellen: Investing in the Dark

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My thoughts on Janet Yellen from May of this year. You can be sure there’ll be a price to pay for Federal Reserve Chairman Ben Bernanke’s easy-money policies. Retirees are already feeling the hurt with his 0% interest rates. There was a time, not too long ago, when savers and retirees could depend on Treasury bonds. Not anymore. Not only is the Fed keeping rates on Treasuries near zero, it’s also creating a false sense of demand with the $1.8 trillion it’s hoarding on its books. Simply put, the higher the demand for Treasuries, the higher the price, which for bonds means the lower the … [Read more...]

How Vanguard Wellesley Won the War

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You want to keep this chart on your refrigerator because there's been a lot of talk in the press lately about 2008. Looking back five years later is always easier than living through it. What the press fails to explain is the emotional and financial toll 2008 leveled on so many retirees. There's a breaking point for every investor. For those (there's more than you think) that had too much in the stock market that point was clearly met five years ago this month. Too many sold at or near the bottom and have never fully recovered. I have a feeling those that got out are now back at it again, … [Read more...]

The Destruction of Money

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If you think the Federal Reserve’s struggle with its tapering problem is bad, stay tuned because you ain't seen nothing yet. Take a look at my chart series below and in a matter of seconds you get a feel for exactly what the Fed has done for the stock market. There isn't a shade of doubt about the direct correlation between the advance in the Dow Jones Industrial Average and the expansion of the Fed’s balance sheet. The advance in stocks undoubtedly provides investors with a false sense of security. But when I walk around downtown Newport, RI it doesn't feel like a vibrant economy to … [Read more...]

Buying A Home

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It’s not getting any easier when it comes to buying a home. Take a look at the spike in mortgage rates on my chart and its impact on buyers like Amy and Ted Wilder. Amy and Ted Wilder lost out in the bidding for several Seattle-area homes during the past six months, even with offers well above the asking price. After May’s sudden spike in mortgage rates, the Microsoft Corp. consultants put their search on hold. “We fell in love with a house for about $400,000 and thought we could afford it, and then we discovered it was $300 more a month than what we would have paid in February when we … [Read more...]

High Yield Risk

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I was listing to WEEI sports radio last week when I heard an advertisement pushing structured settlement investments. The juicy 5%-7% yields are hard to ignore in this low interest rate environment as is the annoying sales pitch. But you want to stay away from this toxic waste. There's a reason they sound too good to be true. This article from 2010 helps sum it up for you. What are the potential dangers in buying your very own high-yielding hunk of a lawsuit? High yields, but unsuitable for most investors. First is the lack of liquidity. Imagine you expect to hold one of these annuities … [Read more...]

False Downside Protection

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You don’t want to fall into the trap of using stop/losses. They look good on paper but not so much in reality. With a stop/loss you set a floor price for a stock. If it’s reached a sell order is placed. The problem becomes finding a buyer. Just because you place a sell order doesn’t mean there’s a buyer at your price. The eventual price you get may be far lower than the level you set as the floor. For the first time this year the Dow and S&P 500 have been down on four consecutive trading days and are down 9 of the last 11 trading days. Investors may think they’re protecting their downside … [Read more...]

Conflicting Advice

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An investment advisor is required by law to act as a fiduciary for his client. A stock broker, or “wealth manager” as they refer to themselves, are not. Brokers follow a less stringent “suitability” rule. The difference means that investment advisors must avoid conflicts of interest, whereas a broker should simply disclose them to you as this article points out. Make sure you work with an investment advisor. … [Read more...]