Imagine you’re a time traveler who is on the back end of a 2001 space odyssey. You don’t remember much from the journey, but today, 22 years later, you have a pile of money that, thankfully, was invested in the price-weighted 30-stock index Dow Jones Industrial Average. You have no recall of the gut-wrenching volatility. You’re a time traveler, preparing for tomorrow. As you ponder the past from the flight deck, you think to yourself, “What’s all the fuss? That wasn’t that bad.”
But today is always today, with no clear path to the unknown of 2045. Yet today, you have this pile of cash to invest right now. You need to act. The countdown has begun. You look at today’s treasury yields and see that they’re at levels you haven’t seen since takeoff in 2001. But as the rockets come to life, is loading it all up in bonds the right move?
Your Survival Guy’s in your ear. “All systems go, captain,” I say, knowing that predicting your future is another voyage altogether. Will you be able to handle the ups and downs? The volatility. Will you survive the ride? Even with a soft landing, what toll will inflation take from you? You and I spoke during flight prep, and we know no matter the rate, inflation turns your dollars into dimes.
Action Line: Good stocks have pricing power. Dividends could be a crucial part of your flight plan. Don’t get too caught up with what you see on the ground today. This is a 2045 space odyssey. When you’re ready, let’s talk.
Originally posted on Your Survival Guy.