• 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®
    • 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!

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

Compensation was paid to utilize rankings. Click here to read full disclosure.

RSS New From Young Research & Publishing

  • May RAGE Gauge: Survive
  • US May Ease Global AI Chip Export Limits
  • Energy Dominance: DOE Outlines FY2026 Budget Under Trump Directive
  • Manufacturing Shines Amid Broader U.S. Productivity Decline
  • Ghost Ships on Radar: China’s New Tech Mimics Entire Navy Fleets
  • “Investors Need to Beat Back This Mighty Foe,” Dick Young
  • China Cuts Rates to Offset U.S. Tariffs Ahead of Trade Talks
  • Trump Administration Pauses Fossil Fuel Limits on Federal Buildings
  • Amazon Unleashes Vulcan: A Robot That Feels
  • HELP: I’m Caught in the Tariff Crossfire, Part 2

RSS New From Your Survival Guy

  • May RAGE Gauge: Survive
  • Investing Mistakes to Avoid: #2 Tomorrowland
  • “Investors Need to Beat Back This Mighty Foe,” Dick Young
  • Why the Push for Low Rates?
  • Investing Mistakes to Avoid: #3 Back 40 Back
  • Can China and the BRICS Defeat the Dollar?
  • Why Is Harvard Crying?
  • The Magic of Warren Buffett
  • Sell In May?
  • Investing Mistakes to Avoid: #4 Mr. Happy Yappy

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 © 2025 · About Dick Young · Terms & Conditions

 

Loading Comments...