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Investment Research Since 1978

November RAGE Gauge Tells Me Investors are Too Comfortable

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My goal for you with my monthly RAGE Gauge is to provide you with a quick reading of how risk is being perceived right now—how risk is being interpreted.

In my line of work, there is never enough attention given to downside protection—keeping what you have—too much energy is wasted thinking about keeping up with the other guy.

In that world, the grass is always greener because of: How much “they” have, where their kids go to school, what they do for a living, and where they live. “They,” take up an enormous amount of energy.

A more efficient use of energy focuses on what you do to protect what you have and how you keep your family safe. I believe that is what connects you and me, and why you’re reading this.

With that in mind, we need to know how “they” are measuring risk. It helps us protect what we have because “they” can create a lot of problems in the world.

With that in mind, “they” are simply not paying enough attention to today’s risks. It’s why this month’s reading—the lowest on record—is reading low risk. “They” are not factoring in enough risk, right now.

You and I are living through a crisis in yield. We need to recognize that risk, and prepare accordingly. “They” are certainly not paying attention.

Originally posted on Yoursurvivalguy.com.

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E.J. Smith

Editor-in-Chief
E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zilldjians. He grew-up worshiping Neil Peart of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@youngresearch.com.

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