Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • Dick Young’s Safe America
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Dynamic Maximizers®
  • Retirement Compounders®
  • Free Email Signup

Janet Yellen: Investing in the Dark

October 25, 2017 By E.J. Smith

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 yield. So now what?

If Bernanke steps down when his term ends, his replacement could be Fed vice-chairwoman Janet Yellen. “I am worried that the approach that she and many others favor does over time allow the Fed’s anti-inflation credibility to erode,” said Alfred Broaddus, former president of the Federal Reserve Bank of Richmond. You can count me as “worried” too, to be kind.

My summer job when I was a kid was scooping ice cream at Oxford Creamery in Mattapoisett, Massachusetts. The price for a small cone, one scoop, was a quarter, two scoops 50 cents, and three scoops 75 cents. Today you’re lucky to take a family of four for less than 20 bucks. That’s inflation.

The Fed has a lot of heart saying inflation is under control. Where have they been the last 25 years? How about protecting the value of our dollars and calling it a day?

What’s scary about Ms. Yellen is that she not only believes that it’s the Fed’s job to control inflation, but also that it should manage employment. So the question becomes how much more Treasury bond buying and money printing will be going on under her leadership? Will she keep it going if inflation is still “under control” and unemployment is still above 6.5% in a couple of years? My guess? Yes, probably.

What should you do under Yellen’s leadership? I like the idea of investing in the types of companies we favor at Young Research. They are the huge, dividend-paying staples of the world economy. They’re not going away anytime soon.

Do yourself a favor and get away from companies that live or die by the sudden spikes in the stock market. Find the peace of mind and comfort you deserve. Because a sound, simple dollar policy is completely lost on the current operators at the Fed.

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • Janet Yellen & the Origin of the Populist Backlash
  • Can Money Buy Happiness?
  • Lawmakers, Guns and Money
  • Author
  • Recent Posts
E.J. Smith
E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris.

Please get in touch with E.J. at ejsmith@youngresearch.com
Latest posts by E.J. Smith (see all)
  • How to Avoid the Restrictions of a Target Date Fund - May 24, 2022
  • Watch Out for Your Worst Enemy - May 23, 2022
  • Job Market Survival Advice for Graduates and for Those YOU Love - May 20, 2022

Search Young Research

Most Popular

  • MARKET CHAOS: This May Take Time, Here’s How to Prepare
  • Your Survival Guy: “Sell in May, Buy After Labor Day?”
  • PRICES SOAR: Diesel Shortage Could Cripple America's Economy
  • The Power of a Compound Interest Table
  • All-Powerful Money Managers Voting YOUR Money Targeted by Senate GOP
  • Institutional Investors Fall in Love with Oil, Again
  • MARKET TURNING: Canada's Housing Market Turmoil
  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?
  • COMMODITY CRUNCH: Will Tesla Buy a Cobalt Mine?
  • HORDING CASH: Funds Hold the Highest Level of Cash Since 9/11

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Could this Be the Vanguard GNMA Winning Edge?

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

RSS The Latest at Richardcyoung.com

  • Harvard Professor Calls Homeschooling a “Threat to Society”
  • Biden IGNORES Americans’ Pain at the Pump, Touts “Green Transition”
  • The Virtue of Trump Supporters vs. Antifa and ESG Investing is Like This…
  • Why Does Joe Biden Put Americans Last?
  • PRIMARIES: Watch GOP Voter Turnout Tonight
  • The Supreme Court Must Always Protect the Constitution
  • Our Daily Bread Threatened?
  • Watch Out for Your Worst Enemy
  • Farmer Tells Steve Bannon Biden’s Inflation Is Ruining His Business
  • PARTY’S OVER JOE: Republicans Crush Democrats in Local Elections

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Copyright © 2022 | Terms & Conditions

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.