Savers are Terrified

July 17, 2009
Despite pockets of strength, the bear market in stocks staggers on, eyeing, with an increasing daily concern, the RPM’s (Radical Progressive Movement) sweeping program of socialism and quasi central government nationalization. The stock market hated the Bush-fronted neo-con disaster, and rightfully, is even more scared of the “Chicago Cabal.” At mid-year, the Dow Industrials are down 4.8%, the Transports are down 9.9%, and the Utilities are down 4.4%. It’s a negative clean sweep for the blue-chip industries despite misleading strength in the more speculative market sectors. Savers continue to be terrified as the yield on the 3- month T-bill and the 3-month CD (low volatility safe havens) hang around 0.2%. Savers know that even a 5-year Treasury yields only a scant 2.2%. My long-term draw percentage for retirement is an inflation-adjusted 4% on the value of one’s original retirement nest egg. It’s clear that 0.2% and 2.2% cannot get the job done. I write regularly in my monthly Intelligence Report about my absolute focus on dividends and the power of compound interest. And you know that this focus is the foundation key for my Retirement Compounders Portfolio. Today the yield on my Retirement Compounders model portfolio is 5.1%. If you are a conservative, retired or soon-to-be-retired investor you can follow along with me monthly in my Intelligence Report or, if you prefer, make an appointment with my family investment company at younginvestments.com.