OK, Your Survival Guy’s November RAGE Gauge is in, let’s dig into this. For the first time in a long time, dissatisfaction with the country improved. But clearly, there’s a big mess to clean up, starting with inflation in grocery store aisles. You can thank Bidenflation for this holiday gift that, like Cousin Eddie, just won’t leave.
Yes, stocks are up in anticipation of better times ahead but at what price? Let’s be realistic about the massive amount of work to be done. Think about how you got to where you are today. Your success was a combination of your thrift and effort. You lived within your means and saved ‘til it hurt.
Relate your life experience to getting a handle on government. Reducing it is disinflationary, and to do it there will be pain. And stocks are no bargain.
Cash on cash returns are still good even after recent Fed cuts. The Fed is trying to engineer a normalized yield curve on the short end. Further out, not so much, as the curve tells a different story, again more disinflationary as prices decline. Continue to seek out yields you can sink your teeth into, and don’t seek out the perfect when good enough is staring you in the eyes.
When you’re in times like this, investing is still about evolution, not a revolution. Take care of your investments to fit your objectives, not the finance bros.
Action Line: Focus on return of assets, not return on assets. When you’re ready to talk, let’s talk. But only when you’re serious. Email me at ejsmith@yoursurvivalguy.com
Originally posted on Your Survival Guy.
