You may have read about my client Dr. Lee earlier this week, how we’ve been working together for 16 years, and the story behind the homemade “Thank You EJ” sign in the picture. I want you to read his response to my post and share it with everyone whose financial security you care about. Part of my effort on your behalf is to help you avoid inertia, get into the compounding game, and always be prepared for the worst. Always think about your risks first and realize the success you and your family deserve. It’s that simple. Here's what he wrote: Well said. Hope people listen. It’s not … [Read more...]
The Worst Chinese Economy in 30 Years
Economic growth has slowed down in China, with the country record only a 6% increase in GDP last quarter. That would be magnificent growth in a developed nation, but for China, that's the slowest growth in 30 years. The FT reports: China’s economy grew at 6 per cent in the third quarter of 2019 compared with a year earlier, its slowest pace in about 30 years, delivering another blow to global growth and underlining many of the challenges facing President Xi Jinping. The country’s trade war with the US, slowing income growth and cooling manufacturing investment took a toll on the world’s … [Read more...]
Boston Pulls $248 Million from Fisher Investments
The city of Boston's pension board will join Philadelphia and the state of Michigan in divesting from Fisher Investments reports Bloomberg's Janet Lorin, writing: “Boston will not invest in companies led by people who treat women like commodities,” Mayor Martin Walsh said in a statement Wednesday. “Reports of Ken Fisher’s comments and poor judgment are incredibly disturbing.” The city’s pension board will pull $248 million. Fisher Investments is seeing a growing backlash since the firm’s founder made offensive comments about women, spoke of genitalia and then failed to immediately … [Read more...]
Can Boris’ Brexit Deal Pass?
With the announcement of a Brexit deal agreed to between Boris Johnson and the EU, the only question left is, can the deal make it through the House of Commons? Johnson's coalition partner, the Democratic Unionist Party, has said it will not back the deal, which means it will have a very hard time passing the House. James Blitz reports in the FT: James Forsyth in The Spectator has a good assessment of where the problem lies. He says Mark Spencer, the Conservative chief whip, calculated last night that if the DUP backs Mr Johnson, the government will win on Saturday with a majority of just … [Read more...]
Doing Business with Fidelity (Not Schwab)
Yesterday Schwab reported third-quarter earnings. During the three months ending Sep. 30, the e-broker made 70 cents a share up from 64 cents a year earlier while revenue increased $132 million to $2.71 billion. Guess where the money was made? “For Schwab, net interest revenue made up 60% of overall revenue during the September quarter,” reports the WSJ. Do you know what net interest revenue is? It’s when Schwab lends your cash out, keeping the profit for itself. “Schwab and other e-brokers make a significant portion of their profits by sweeping cash daily from customers’ brokerage … [Read more...]
Are Low Interest Rates Amplifying Market Shocks?
New research from the IMF suggests that forcing investors to search for yield in riskier assets by targeting extremely low-interest rates is amplifying shocks in markets. Chris Giles reports for the Financial Times: Persistently low interest rates are encouraging investors to take dangerous risks in a quest to maintain their financial returns, the IMF said on Wednesday, raising concerns that even the current lacklustre performance of the global economy may not be sustainable. Policymakers should urgently seek to extend banking regulations introduced after the financial crisis to other … [Read more...]
Your Retirement Life: Our Cabin on Kodiak, Alaska
I’ve been working with Dr. Lee for 16-years. He was only 53 when he became a client. Even back then he was the millionaire next door. But for about two weeks of every month, he doesn’t have any neighbors. That is unless you happen to have a cabin on Kodiak Island, Alaska. Even then you probably won’t see each other. Overlooking the water, his cabin is a fly cast away from world-class King Salmon fishing. He loves to fish. He also loves to share his knowledge and to keep learning. Before he retired he would sharpen his professional axe teaching university students about oral … [Read more...]
You’ve Read The Last Issue of Intelligence Report, Now What?
UPDATE: It's been two years now since the last issue of Richard C. Young's Intelligence Report, and the more things change, the more they stay the same. The Fed just announced it will begin buying $60 billion a month in T-bills. And the cycle continues. “I'm going to miss hearing from Dick Young every month,” said one long-time reader of Intelligence Report, “I’ve been reading his letter for 25 years. He was the best hands-down. He always wrote to me the way he saw things.” That’s a common refrain I’ve been hearing over the last couple of weeks. In an industry littered with opinions, you … [Read more...]
Are Investors Ready to Demand Higher Yields?
Worries about the future returns in bonds have heightened the possibility investors will begin demanding higher yields. Daniel Kruger reports at The Wall Street Journal: Recession worries and interest-rate cuts from the Fed have boosted bonds of all kinds this year. But worries that the gains can’t go on forever have led some investors to unusual corners of the market. Mr. Doty said he has added taxable bonds sold by states and local governments, which offer more attractive yields and stronger credit quality than most company debt or the tax-exempt bonds typically sold by … [Read more...]
Junk Bond Yields
What do junk bonds yield today? The table below lists the yield of the Merrill Lynch junk bond index (High-Yield index), as well as the latest SEC yield on some of the top junk bond (high-yield) dedicated funds. A note of caution when you are looking at yields on junk bond funds; Like all SEC yields, these yields are based on the last 30-days of income generated by the fund. They are not directly comparable to the yields on the Merrill Lynch junk bond indices. Junk Bond Fund Description Symbol Yield as of 8/31/2019 Yield as of 9/30/2019 Merrill Lynch U.S. High-Yield … [Read more...]
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