Young Research & Publishing Inc.

Investment Research Since 1978

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The Maximizers

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“Meltdown? Absolutely baked into the cake as I write to you, and becoming more of a deep midterm concern for me as time passes,” wrote Dick Young in Intelligence Report back in July 2015. And here we are a short way into 2016 and the speculative NASDAQ index is down over 8%. As Dick notes, “In recent issues, my goal has been to work especially hard at providing you intelligence that will keep you safe and dividend-centric during what I consider the inevitable coming meltdown.” Safe and dividend-centric—sort of has a ring to it, does it not? It does to me. Those words have been pounded into … [Read more...]

Is Your Broker Giving You the Best Advice?

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Once again a Wall Street brokerage has been caught red-handed passing off puff pieces on the stocks and bonds of companies it has an investment banking relationship with as unbiased “investment research.” In the latest case, a Deutsche Bank analyst was caught publishing a positive rating on a stock he covered that wasn’t consistent with his outlook. That shouldn’t come as a surprise to savvy readers of this site. The big Wall Street banks have and always will be in the business of distributing securities. Wall Street research is nothing more than a euphemism for advertising. And even when … [Read more...]

Roger Babson Quoted in Book: 1929

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Here’s a reminder about the markets, emailed to me by a client from the Greatest Generation over the weekend. What she sent was not only relevant because I went to Babson College, named after Roger Babson. The quoted passage below shows that with open eyes, a heavy dose of skepticism and abundant caution, you can prepare your portfolio for hard times, or “reef your sails” as Babson says. “Fair weather cannot always continue. The economic cycle is in progress today, as it was in the past. The Federal Reserve System has put the banks in a strong position, but it has not changed human nature. … [Read more...]

What Not to Do in 2016

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In the February 2016 issue of Richard C. Young's Intelligence Report Dick Young wrote: This month, I have a master list of things you do not want to do in the New Year. In this regard, I asked our management company's E.J. Smith to put together a list of the no-no's that he, Matt, and I had been discussing in recent months. I have reduced the master list to a "baker's dozen." Enjoy and benefit. Do not use stop-losses. Why? Because you get taken out at the market's price (not your price), and then it's a guess when to get back in. Instead, focus on wise words from Vanguard founder Jack … [Read more...]

The Fright of Squandered Capital

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In the December issue of Intelligence Report, Dick Young wrote about helping investors protect and preserve their capital acquired over a lifetime. My focus, first and foremost, is on keeping you out of trouble. I do not write to needy investors—those who require the financial markets to make something happen to save their bacon—nor to novice investors or rank speculators. If you have been with me over the decades, you know that my primary concern is your comfort and security in your retirement years, whether today or in the future. In other words, my aim is to help you protect and preserve … [Read more...]

What Lies Ahead for Markets is Not Clear

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In the December issue of Intelligence Report, Dick Young writes: The rigged (check with the Fed) financial markets are increasingly imperiled by the domination of high-frequency trading and highly leveraged derivatives. Serious investors look on from the outside and make up but a small, insignificant component of daily trading. In other words, you and I are but interlopers. Those that have generated impressive performance over the last four or so years are the ones prescient enough to have projected that (1) the Fed would, for the first time in history, sit on its hands regarding interest … [Read more...]

Adam Smith and the Prudent Man

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From the WSJ: Adam Smith, “The Theory of Moral Sentiments” (1759): The prudent man always studies seriously and earnestly to understand whatever he professes to understand, and not merely to persuade other people that he understands it; and though his talents may not always be very brilliant, they are always perfectly genuine. He neither endeavours to impose upon you by the cunning devices of an artful impostor, nor by the arrogant airs of an assuming pedant, nor by the confident assertions of a superficial and impudent pretender. He is not ostentatious even of the abilities which he … [Read more...]

Your Best Bond vs Stock Portfolio Balance

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In the November issue of Intelligence Report, Dick Young advised investors that his primary motivation is keeping them out of trouble. My focus, first and foremost, is on keeping you out of trouble. I do not write to needy investors—those who require the financial markets to make something happen to save their bacon—nor to novice investors or rank speculators. If you have been with me over the decades, you know that my primary concern is your comfort and security in your retirement years, whether today or in the future. In other words, my aim is to help you protect and preserve the capital … [Read more...]

Investing Lessons From my Father’s Father

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Do you remember your first job? I forget what my father’s first job was, but I know he started working at a very young age scooping ice cream, pumping gas, and later selling Fuller Brushes. In addition to that, he was responsible for collecting rent from a number of his father’s rental properties in New Bedford, MA—where my dad was taught the most important lesson of all about money: compound interest. The rental properties, according to my dad, were not in the best neighborhoods and sometimes he was knocking on doors to collect late rent. My dad was instructed by his father to never knock … [Read more...]

The Next 5,000 Points for Stocks

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I have no idea if the next 5,000 points for stocks will be up or down. But I do know your ability to stick with your plan will be tested in a 5,000 point drop. Don’t forget how easy it is to lose money. It may have been a while since some of you have worked, but remember how hard it was to save your money. Next, think about how you felt the last time the stock market took a big hit. Were you able to stick to your plan? Remember, you can’t control the market. But, you can control how you deal with it. In my experience investors discover they can’t tolerate losing money until after … [Read more...]