Young's World Money Forecast

UPDATE 9.28.2020: I have outlined further my current strategy for investing in individual stocks here.  Originally posted March 27, 2020. I subscribe to both Value Line and VL’s conclusion on stocks. Two weeks ago I began a formula-based buying program that I plan to continue throughout 2020. My formula is devoted 100% to stocks. I continue to build my counter-weighting fixed-income portfolio and continue to add to three fund positions. I first started buying the funds in the early 1970s. (about 50% fixed income). Today, I avoid most funds and all index funds. THE CASE FOR INDIVIDUAL STOCKS HAS NEVER BEEN STRONGER The battle with the coronavirus is having an incredible impact on … [Read More...]

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...]

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...]

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...]

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...]

My charts (the Fed’s EKG) on high powered money and M2 growth point clearly to undisciplined chaos at the Fed. Do you see any instance of such chaos in preceding decades? No! Indeed, payday will arrive. The table indicating my own program of gold buying gives you a look at one of a number of moves I made last spring to balance myself for the inevitable comeuppance. At our family investment counsel firm, we emphasize ongoing strategy discussion, featuring new issue corporate bonds, dividend-paying Swiss franc denominated stocks, and currency and especially high US dividend-paying blue chips. Our laser-like concentration is on companies that have increased their dividend for … [Read More...]

Today we have a situation where the Fed has forced individual investors with life-time savings to subsidize corporate buybacks, acquisitions, and Wall Street banking industry borrowing and speculating. It’s what I call de facto robbing and stealing. In reality, the Fed is nothing more than a private club to favor corporate and banking elites. When the Federal Reserve was first established in 1913, Congress directed it to “furnish an elastic currency, to afford means of rediscounting commercial paper” and to establish a more effective supervision of banking in the U.S. The Fed’s duties should have been left there. But no … On 27 October 1978, President Jimmy Carter signed into law the … [Read More...]

The Fed has created a disastrous asset bubble that will extend for years. Read my series on Ron Paul to gain the full flavor for what is transpiring. I devoted a large section of my 1987 book to inflation, gold, and Switzerland. Through the decades, I have been a big investor in both Swiss assets and gold. In the month of August, 100% of my personal investing will be in Swiss Franc-denominated assets. Click here to view my Swiss chart pack. The Swiss Way I have written in the past of the Swiss Confederation and its weak central government form (the presidency is a ceremonial office and rotates). The office has no powers above the other six members of the Swiss Federal Council. The … [Read More...]