• 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

  • When Your Spouse Asks: How’s Our Money Honey?
  • Walmart Taps John Furner to Drive Growth and AI Transformation as New CEO
  • Wholesale Natural Gas Hike Sends Industrial and Power Sector Prices Up Significantly
  • IRS Updates 2026 Retirement Contribution Limits for 401(k), IRA, and SIMPLE Plans
  • Early Signs of Optimism as Bolivia Shifts to Pro-Business Policies
  • 100% in Stocks?
  • No More Orange Fingers: PepsiCo Launches Dye-Free Snack Line
  • Australia’s Liberals Abandon Net Zero 2050 Goal, Citing Cost Concerns
  • Puerto Rico’s Power Reliability Boosted with DOE Action
  • IEA Warns of Critical Mineral Risks Amid Rapid Clean Energy Growth

RSS New From Your Survival Guy

  • When Your Spouse Asks: How’s Our Money Honey?
  • Your Survival Guy and a Balanced Portfolio
  • Luke Combs in Newport: Back 40 Back
  • 100% in Stocks?
  • “Study Says…” Oh Brother…
  • The Case Against Mamdani’s Socialism
  • Financial Armadillo: Are You a Compounding Machine?
  • Investing Habits of the Fairly Wealthy: #6 Armadillo
  • Don’t Miss the Boat By Being Late to the Dock
  • Further Demarcation at the Fed

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.

Disclaimer:

The information contained here is for informational and educational purposes only. It is not intended nor should it be considered investment advice or a recommendation of securities. Past performance is not a guarantee of future results. It is possible to lose money by investing. You should carefully consider your investment objectives and risk tolerance before investing.

Copyright © 2025 · About Dick Young · Terms & Conditions

 

Loading Comments...