Coronavirus Infects Stock Market: Part L With casinos slowly reopening (sorry, most buffets are still closed), it looks like gamblers found a home with Nasdaq. While the world, as we know, has basically come to an end, the tech-laden Nasdaq is up a couple percent year-to-date. Welcome to Planet Hollywood. One is reminded of the dot.com bust especially when Shopify), a Canadian tech company, trades at a larger market cap than Royal Bank of Canada. Pop quiz: One was founded in 2004, the other in the 1800s. Recently, I was asked about robo-advisors: You set-up an account with a low … [Read more...]
The Highest Yielding Dow Stocks
For investors looking for high-yielding dividend stocks to buy, the highest dividend payers in the Dow Jones Industrial Average (DJIA) is a common starting point. Below is a list of the 10 highest yielding Dow stocks. Today, the average yield of the 10 highest-yielding Dow Jones Industrial Averages stocks is 5.2%. You can see their individual yields in the table below. Click the company name for more information on each stock. To view the entire list of Dow stocks ranked by yield, click here. Highest Yielding Dow Jones Industrial Average Stocks Company NameDividend YieldDow … [Read more...]
How to Deal with a Crisis You Can’t Predict
Do you consider yourself well-prepared? There’s no predicting some scenarios— the so-called Black Swans. Below is a troubling illustration I wrote some time ago of just how bad facing the unexpected can feel: Knock, Knock It’s 1:30 a.m.—pitch black on your suburban porch. A woman whom you do not recognize is at your front door, while an unfamiliar car idles in your driveway. Peeking out, you talk through a side window to the interloper, who explains that you had called her, and here she is. Your 1911 Handgun You, of course, had not called her, and, as a phone call goes into the police, … [Read more...]
Goldman Sachs Strategist Called Out for Embarrassing S&P 500 Prediction U-Turn
Brian Sozzi of Yahoo! Finance took time today to call out Goldman Sachs strategist David Kostin for the quick reversal in his predictions for the S&P 500. Sozzi wrote: My oh my how a two-week long bear market rally and unprecedented stimulus actions by the Federal Reserve could change one’s thinking on stocks still dealing with the bruising coronavirus pandemic. Somewhat under the radar on Monday, veteran Goldman Sachs strategist David Kostin said his “near-term downside” scenario for the S&P 500 of 2,000 is “no longer likely.” Kostin’s call was initially made on March 22, the day … [Read more...]
My Three-Week-Long Investing Program
I am ramping it up over the month of April into May. Our Young's Dynamic Maximizers portfolio (a fixed income alternative) is actually up 2.5% YTD, or an annual annualized 7.5%. I find this performance most encouraging. My own largest fixed income holding (individual bonds, while clearly a superior option are not ideal for me as I am on the road and out of touch at annoying times) a full-faith-and-credit-pledge GNMA’s-centric fund is ahead by 3.0%, or an annualized 12.0%. I am happy with this. GLD, one of my gold proxies is ahead by 6.5%, or an annualized 26%. My Swiss currency … [Read more...]
Work to Make Money/Invest to Save Money
Originally posted October 17, 2017. With the exception of the large sums of money that I invested in zero-coupon treasuries (Benham Target Funds) in the 1980s and 1990s, I have never invested based on how much money I expected to make. I work to make money. And I save to keep every dime of the money I have worked a lifetime to earn. There was a day when I had darn few of those dimes. Those days made an indelible impression on me, and will so forever. I invest with a rolling 10-year average annual return portfolio target of a balanced 4+%. This modest target is based on the normalized … [Read more...]
Coronavirus Snapped the Cord on the Market Elevator
For the past ten years, the stock market has been an elevator that has only gone up. Now the cord has snapped. What floor are you falling from? Here’s how I explained what I call “elevator investing” some years back. I wrote: Elevator Investing Where do you want to be when the cord snaps? I often think of risk management with a simple elevator analogy. In the investment process, I quantify risk first. Then I evaluate potential gains. Just envision, if you were in an elevator and the cord snapped, where would you be better off? Dropping from the second floor or the 10th floor? Makes your … [Read more...]
Never Bet the House
Investing is not betting. There are people who buy stocks to invest in them, and people who buy stocks to bet on them. Never be the latter. After the crash of 1987, I compared that to the surprise defeat of “sure thing” Sonny Liston by Muhammed Ali. I wrote: “Bet the house on Liston…it’s a sure thing.” Once again, what could never happen, happened. Once again, the underdog defeated the favorite. And once again, people learned — many the hard way — that there are few “sure things” in life. The lead quote appeared in a provocative Wall Street Journal ad run by FGIC (municipal bond … [Read more...]
Invest with Balance
Diversification and patience are essential to long-term investment success. Put all your chips on one stock and you risk financial ruin if that stock ends up being the next Enron or AIG. Buy without providing time for the investments you select to work out and you may experience the same outcome. A diversified portfolio that includes stocks and bonds is ideal for retired investors and those approaching retirement. Balanced portfolios are less volatile and less risky than all-stock portfolios. Balanced portfolios also help those investors who no longer have the safety net of a regular … [Read more...]
Richard C.Young’s Old Line “4% Rule”
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