What is purchasing power? Well, if you bought your house in the 60s or 70s, you know exactly what it’s not today—it’s not power. It’s more like weakness. Take a look at the median income and median real estate sales through the years, and you tell me what’s happened to purchasing power (weakness). Remember, the “median” eliminates the big outliers that can skew the average. Median is the middle number. For example, in a sample of 30 houses, the 15th house is the median. You can see on the chart that from 1963 on, the growth of the median price of a house has outpaced the growth of the … [Read more...]
There Are Plenty of Ways to Invest in This Market
You have plenty of ways to invest in this market if you’re A) dividend-centric (I am) and/or B) looking for a proxy to some of your bonds. Take a look at the charts below and understand what’s happening in the market today. Stocks by Dividend Decile Here you see a breakdown of stocks by dividend yield decile. The 8th Decile, not the tenth, had the better performance from 1975-2020. Caitlin McCabe reports at The Wall Street Journal on today's bull market: A greater number of stocks have been propelling the U.S. market higher lately, a signal that—if history is any … [Read more...]
Prices Are Going Up
Consumer products giant Procter & Gamble has announced it will be raising prices on its products this fall. Sharon Terlep reports in The Wall Street journal: Procter & Gamble Co. PG +0.55% this fall will start charging more for household staples from diapers to tampons, the latest and biggest consumer-products company to announce price hikes. The maker of Gillette razors and Tide detergent cited rising costs for raw materials, such as resin and pulp, and higher expenses to transport goods. The announcement, which came as P&G disclosed its quarterly financial results, follows … [Read more...]
How Did You Save So Much Money? I Really…
When I ask you, “How did you save so much money?” your answer tells me a lot about you. Because, when you respond, “I really don’t know, to tell you the truth, just hard work and saving like crazy,” I know it’s not what you did to save money, but what you didn’t do. Yes, you had to work. How else were you going to put food on the table? And yes, it would have been easier to do nothing. But that’s not how you roll. Yes, winning the lottery would have made things easier for sure. But, most of you made your money slowly, year after year, and it never got easy. After a while, you realized … [Read more...]
NJ Deli $35k in Sales, $100 Mil Valuation
In times like these everyone looks like a winner. What could possibly go wrong? Investors have driven the market valuation of an over-the-counter traded company that owns one deli in Paulsboro, New Jersey to $100,000,000. The deli only generated sales of about $35,000 in the last two years. Recently, hedge fund manager David Einhorn used the stock as an example of the mania taking place in markets today. CNBC's Jesse Pound reports: The Paulsboro, New Jersey-based Your Hometown Deli is the sole location for Hometown International, which has an eye-popping market value despite totaling $35,748 … [Read more...]
TIPS Not the Best Inflation Hedge Today
By Noska Photo @ Shutterstock.com There are better places for investors looking to avoid inflation pressures in their portfolios than TIPS. Alexandra Scaggs reports in Barron's: Investors in search of ways to protect their income against inflation may need to look further than they think: The market created for that purpose may not be a great choice, for either income or returns.Treasury inflation-protected securities, or TIPS, have attracted investor cash this year as investors bet that a mix of economic reopening and U.S. government stimulus will drive prices higher in the U.S. Funds … [Read more...]
Work to Make Money/Invest to Save Money
The U.S. government must finally wise up and put an immediate end to the insane double taxation of dividends. The government, facilitated by the Fed, is in an ongoing war to destroy the value of the dollar by printing money beyond any reasonable rate of expansion. Simply take a look at real estate prices to witness the explosion in liquidity. Do not let the government destroy the value of your retirement. Demand that the government ends the double taxation of dividends! Originally posted October 17, 2017. With the exception of the large sums of money that I invested in zero-coupon … [Read more...]
The Vanguard Wellesley Way
Vanguard Wellesley is a fund we have long admired at Young Research. It was once a go-to fund for clients, readers, close friends, and even dear family members. What gave Vanguard Wellesley Income so much appeal? Wellesley is the more conservative and younger cousin of the Vanguard Wellington Fund—the nation’s oldest balanced mutual fund. Over its almost 51-year history, Wellesley has invested an average of 65% in bonds and 35% in stocks. The bonds are primarily intermediate-term investment-grade corporates; the stocks are dividend-paying blue-chip names. Wellesley’s Baptism by … [Read more...]
The Three Bubbles Threatening Your Portfolio Today
OK, it’s time to talk about bubbles. Investor Jeremy Grantham of GMO fame has called a few bubbles over his stellar career. He sees three today: Bonds, stocks, and real estate. Your Survival Guy, not famous at all, fought through the live-fire of managing client money during two brutal bubbles already in this young century. It wasn’t easy, but we got through it. That’s what I see today. Knowing how to survive the worst of times is an acquired skill, and I’ve seen my share of it. When I think about a real estate bubble, I think about you. What can you do today or in the next few years to ease … [Read more...]
Turkey Bans Bitcoin
The WSJ reports that Turkey has moved to ban Bitcoin payments as Turks lose confidence in the lira. This is a preview of what Bitcoin enthusiasts are likely to face over coming years. Countries with the least stable currencies will move first to ban Bitcoin, but developed countries are also likely to act. The bottom line on Bitcoin is that it is a threat to fiat currencies and therefore central banks and ultimately fiscal authorities running massive deficits. Turkey will ban the use of cryptocurrencies as a form of payment following months of economic turbulence that spurred locals to swap … [Read more...]
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