• ABOUT – DICK YOUNG
  • YWMF – ARCHIVES

Young's World Money Forecast

Since 1978 With a 32 Year Vacation

  • DICK YOUNG
    • FROM RICHARD C. YOUNG
    • THE FINAL INTELLIGENCE REPORT
  • INVESTING STRATEGIES
    • RETIREMENT COMPOUNDERS®
    • DYNAMIC MAXIMIZERS®
    • GOLD & SILVER
  • DIVIDENDS & COMPOUNDING
    • MIRACLE OF COMPOUNDING
    • DIVIDENDS
  • GRAHAM & RUSSELL
    • BEN GRAHAM
    • RICHARD RUSSELL
  • THE DOW AND THE LEADERS
    • DOW vs. S&P 500
    • DOW vs. DOW DIVIDEND PER SHARE
  • WELLINGTON MANAGEMENT COMPANY
  • YOUR SURVIVAL GUY
  • BANK CREDIT & MONEY
  • THE PRUDENT MAN

Stock Valuations are Not Low

July 30, 2009 By Richard Young

Image Credits – © Sergey Nivens – Adobestock.com

How can I say this best? Stock market valuations are not low. If you are retired or saving in hopes of retiring, you must laser focus on having a consistent flow of cold cash to pay the tab for your weekly grass-fed-to-the-end beef, fresh-ground flax, coconut milk loaded with medium-chain fatty acids, and omega-3-loaded Country Hen organic eggs. In other words, you will want to rely on high-dividend yields for compound-interest power. The two most important words in investing are “compound interest.” Please don’t buy into the jive that trying to buy stocks cheap and then trying to dump them on the suckers has anything to do with a conservative compounding story.

The rubber hits the road with a consistent flow of one item – dividends. In my monthly Intelligence Report and at our private investment management company (www.younginvestments.com), I rely on the historical yield range and the DJIA as a conservative investor’s best gauge for assessing dividend value. When the Dow’s yield is between 4.5% and 6.5%, I gauge stocks as cheap. When the Dow’s yield is between 3.5% and 4.5%, it’s neither fish nor fowl. Below 3.5%, I’m not being paid well for investing in stocks. Well, the yield on the Dow, as I write you with ever-increasing concern, is a paltry 3.1%. No, stocks are not cheap, and values are lacking. And while I’m at it, intelligence in Washington is lacking even more!

image_printPrint Page

Related

Filed Under: Dividends & Compounding, Miracle of Compounding Tagged With: Compound Interest, Stocks

RSS New From Young Research & Publishing

  • Job Market Survival Advice for Graduates and for Those YOU Love
  • BULLWHIPPED? Inventory Overhang Could Slow Growth in Certain Sectors
  • BUY THE DIPS? Can You Catch a Ginsu Knife?
  • MARKET TURNING: Canada’s Housing Market Turmoil
  • “I’ve Been with Richard Young for Over 30 Years Now”
  • All-Powerful Money Managers Voting YOUR Money Targeted by Senate GOP
  • HORDING CASH: Funds Hold the Highest Level of Cash Since 9/11
  • COMMODITY CRUNCH: Will Tesla Buy a Cobalt Mine?
  • Young Americans Fall in Love with Farming, Again
  • Your Survival Guy: “Sell in May, Buy After Labor Day?”

RSS New From Your Survival Guy

  • Job Market Survival Advice for Graduates and for Those YOU Love
  • BUY THE DIPS? Can You Catch a Ginsu Knife?
  • “I’ve Been with Richard Young for Over 30 Years Now”
  • Americans Are Fleeing Cities for Land, Low Taxes, and This…
  • All-Powerful Money Managers Voting YOUR Money Targeted by Senate GOP
  • BE VIGILANT: The Rats Are Scurrying in These Rough Markets
  • Young Americans Fall in Love with Farming, Again
  • Your Survival Guy: “Sell in May, Buy After Labor Day?”
  • Is Your Financial Advisor Hiding the Truth About ESG?
  • CRYPTO: Has the Fire Gone Out?

Search Our Site

Richard C. Young & Co., Ltd.

–Client Letter Sign Up–

Sign up to receive email alerts when our latest client letter is posted on our website.

Copyright © 2022 · About Dick Young · Terms & Conditions

 

Loading Comments...