The Stock Market Is About Money Flows Not Politics.

Has America endured a more disgraced sitting president than Democrat Bill Clinton or first family than Bill and Hillary? Perhaps not. Well you might be surprised to know that your IRA sprouted like fresh green weeds during the disgraceful decade of the nineties. Check out my chart below. Americans have a great history of remaining optimistic, even though the Washington elite can and do act, for extended periods, like thorough fools. … [Read More...]

Investment Risk: Greatest in My Lifetime

As we enter 2021 we start out with the most (potentially) incompetent, incoming president and vice president, and cabinet in history. Was the election digitally stolen? There should be jail time here over a broad landscape. Who is going to kick off the ball? Interest rates are criminally low. The Fed needs to be shuttered. The West Coast digital industry needs to be hit with anti-trust and racketeering. A wide swathe of the stock market has more of a casino look than a respite for retirement savings. I stick exclusively with dividend-paying blue chips of solid pedigree. And I am not a market timer. … [Read More...]

Exactly When Did the US Economy Hit Bottom?

There is no doubt that the exact low for our economy was April 2020. Since April, and thanks to the series of measures Donald Trump has taken to rebuild the hamstrung economy he inherited from an off-track Obama team, the US economy has had an exciting rebound. Let me show you. Four macro-economic series give you all you need to know. Manufacturers' New Orders for Consumer Goods and Materials bottomed in April 2020 at 109,714,000,000. It has since rallied all the way back to 137,131,000,000, just a hair below the pre-bust peak reading of 137,809,000,000. Construction Contracts bottomed one month later in May at 41,860,000. CCs have since rallied back to 59,430,000. New Private … [Read More...]

The Case for Individual Stocks: Now More than Ever

UPDATE 11.18.2020 from E.J. Smith: Has there been a company better positioned for the pandemic than the Home Depot? If your fire pit is more like your new outdoor living room, you know exactly what I’m saying. It’s almost impossible to find those neat outdoor heaters. The same goes for pressure-treated wood. We’re all trying to make our involuntary staycation one worth remembering. During a talk with Dick Young yesterday, he recalled graduating from Babson in 1963. Home Depot co-founder Arthur Blank also graduated from Babson that year. Their class has, as a whole, been most active in giving back to the school. Mr. Blank recently announced a $50 million gift to Babson. It will go towards … [Read More...]

Richard C. Young Helped ME Get Re-Centered

The latest from my son-in-law, E.J. Smith at I had a great talk yesterday with a prospective client who is ready to come aboard. He's a successful entrepreneur and triathlete coach. He said he doesn't just stand on the side and coach. He's in the pool, figuring things out with his athletes. I like that. For example, if he sees a problem with an athlete's swim stroke, he gets in the pool to copy the problem, and then he works on drills to correct it. It's a hands-on approach that puts him in the shoes of his customers. "I miss Richard C. Young's Intelligence Report," he said. "It's the reason I have the savings that I do." "I never get tired of hearing that," I … [Read More...]

Now Is the Right Time to Make Dividends Your Ally

For over five decades, the underpinning of everything I have written has been a foundation of dividends. It has served me well, and if you have followed my advice, it has served you well too. Shortly after the dotcom bust, I wrote a segment titled, “Make Dividends Your Ally.” In it, I said: Regarding dividends, corporate directors have deluded themselves for many years in two ways. First, they have been too concerned about double taxation. Many investors don’t care about double taxation because they are (1) saving in tax-deferred accounts or (2) need the dividend income in retirement. Second, directors believe that management can reinvest earnings so well that it just does not make good … [Read More...]

Stock Market Investing for a Secure Retirement

Here’s why I don’t follow the meaningless price or market capitalization stock market averages, especially the likes of the Dow and S&P 500. The S&P 500 Index: only 50 of the biggest cap names account for more than 50% of the total S&P500 Index. The Dow 30: only 10 of the highest priced stocks account for more than 50% of the total Dow Jones Industrial Average. No thanks to index investing in either the Dow or the S&P. Dick Young's Investment Rules Why savvy investors saving for a long and comfortable retirement should always follow RCY’s guide in crafting balanced portfolios: RCY: I rarely invest in stocks that (1) pay no dividend or (2) have not increased … [Read More...]

How You Should Invest Today: Part II

These two charts (below) on Dover Corp. and Procter & Gamble show you long-term compounded dividend and stock price growth for both. In both cases, the long-term trend shows a pattern of consistent annual dividend growth matched with long-term stock price appreciation. In Dover’s case, the dividend has compounded at an 8.9% rate of growth and the stock an even stronger and equally consistent 10.9%. For P&G the numbers have been 8.5% and 10.5%. What you are looking at in both instances is decades of consistency, stability, and comfort for shareholders. At our family investment counseling company, these are the only kind of companies we invest in for clients. Our master list of … [Read More...]

How You Should Invest Today: Part I

Charles Dow created the Dow Jones Industrial Average (DJIA) in 1896.  Originally the Dow had 12 companies: American Cotton Oil; American Sugar; American Tobacco; Chicago Gas; Distilling & Cattle Feeding; General Electric; Laclede Gas; National Lead; North American; Tennessee Coal and Iron; U.S. Leather; U.S. Rubber Not one of the original 12 DJIA stocks remain today as DJIA components. That tells you the first couple of things you need to know in becoming a successful long-term investor. First to remember, any stock average or index is not static, but is a revolving door. That is why I have never been interested in comparing my own investment record nor that of my clients against any … [Read More...]

US Dollar Craters vs Swiss Franc

Since last spring, my clients and I have been buying Swiss francs and lately Swiss franc denominated, dividend-paying equities. What’s behind the dollar’s collapse? Too many dollars relative to Swiss francs are being printed. It’s no more complicated than that. It is the Fed who is responsible for debasing the currency. The Fed’s “private club” was introduced by Woodrow Wilson, America’s worst president, in 1913. Since then, the Fed has increasingly muddled with the economy in total opposition to its original intent. I have written often that I would return the Fed to its founding principles prior to shuttering it for good. In the meantime, the dollar will remain on thin ice. … [Read More...]