Global Investing

MAKE SURE YOU HAVE SOME DEFENSIVE HOLDINGS IN YOUR PORTFOLIO

May 3, 2019

MAKE SURE YOU HAVE SOME DEFENSIVE HOLDINGS IN YOUR PORTFOLIO

  • Ward’s Choices: Counter-cyclical stocks like utilities and cell tower companies
  • Individual Investors’ Choices: Defensive non-stock assets like cash, Treasury bonds, gold …

Watch the related WEALTHTRACK episode.

HAVE FAITH IN THE RESILIENCE OF THE U.S. ECONOMY

April 27, 2019

HAVE FAITH IN THE RESILIENCE OF THE U.S. ECONOMY

    Contractions are caused by:

  • Excesses in important sectors of the economy
  • Overheating and “irrational exuberance”
  • Prices and inflation spike
  • Federal Reserve tightens monetary policy

Watch the related WEALTHTRACK episode.

OWN SOME U.S. TREASURIES

March 29, 2019

OWN SOME U.S. TREASURIES

  • Safe haven asset class in recession eras
  • U.S. rates higher than other developed markets
  • Longer maturity = more dramatic price moves
  • Every 1% decline in yield:
  • – 2-yr Treasury note value + 1.9%
  • – 10-yr Treasury note value + 8.6%
  • – 30-yr Treasury bond value +19.1%

Watch the related WEALTHTRACK episode.

TAKE ADVANTAGE OF THE HIGHER INTEREST RATES AVAILABLE IN CASH

February 16, 2019

TAKE ADVANTAGE OF THE HIGHER INTEREST RATES AVAILABLE IN CASH

CASH COUNTS

  • Best performing asset class 2018
  • 3 month T bills +1.9%
  • Cash can provide a positive return
  • Competitive rates available

RAISE YOUR OWN RATES

  • Higher rates available than savings accounts at commercial banks and most brokerage firm cash accounts

YIELD BOOSTERS

  • Savings accounts at online banks offer +2% yields, Federally insured up to $250,000
  • Short term U.S. Treasury yields are +2%<

Watch the related WEALTHTRACK episode.

NO MATTER HOW TEMPTING, AVOID MARKET TIMING

February 8, 2019

NO MATTER HOW TEMPTING, AVOID MARKET TIMING

MISSING OUT

  • If out of U.S. stock market for 25 best days between 1970 and 2015 returns reduced from +1,910% to +371%
  • If out of UK stock market for just 2 quarters since 1900 cumulative real returns reduced by + 50%
  • If out of U.S. market for just 2 quarters since 1900 returns reduced by + 66%

Watch the related WEALTHTRACK episode.

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