If voters can’t control government spending, maybe higher interest rates will. In the Wall Street Journal, columnist Andy Kessler, whom I’ve followed for decades, writes: We are now an economy of logistics, online sales and electronic delivery. Manufacturing economies such as China and much of Europe are much more interest-rate-sensitive than the U.S. Higher interest rates may matter, but for an increasingly smaller portion of our economy. The Fed’s interest rates are a blunt instrument anyway. Bureaucrats now try to control the economy by tinkering with the money supply and paying … [Read more...]
China Poised to Wreak Devastating Blow to U.S. Infrastructure
Josh Marcus of the Independent reports that China wants to target critical infrastructure like water facilities and energy grids, the FBI director said. He writes: Chinese state-sponsored hackers have conducted widespread cyberattacks on critical American infrastructure in recent years, intending to give the country the ability to cause “a devastating blow” against the US, according to FBI Director Christopher Wray. “The fact is, the PRC [People’s Republic of China] targeting of our critical infrastructure is both broad and unrelenting,” he told a security conference in Nashville on … [Read more...]
“What Do You Do If the Market Crashes?”
“What do you do if the market crashes?” a new client asked me last week. “Good question,” I said. “I get that one a lot.” And it’s one of the reasons I’ve been writing to you, valued reader, on my efficient frontier study. The efficient frontier is a visual expression of my phrase, “It’s not what you invest in, but how you invest that matters most.” In other words, in a diversified mix of stocks and bonds, what was the risk and reward? How does Your Survival Guy get through tough markets? I listen to those who guide me with their decades of experience, like my father-in-law Dick … [Read more...]
Costco Gold Bars Sell Out Despite Premium Price
If you can’t get your gold at Costco, consider an ETF that invests in gold. The Gagnam Times reports: Costco, a well-known warehouse discount store in the U.S., is experiencing explosive popularity for a product that has been selling out for several consecutive days. This product is none other than the gold bars sold at Costco, which were launched in the U.S. last year and quickly sold out. Costco is expected to generate ten times more revenue this year than last. Surprisingly, these gold bars are sold at 2% more than the market price. Despite the higher price, there’s a reason why they’re … [Read more...]
A Wise Man’s Take on the Boston Bruins Playoff Chances
The Boston Globe’s Dan Shaughnessy recently spoke with Harry Sinden on the Bruins playoff chances: “They’re definitely a contender,” says the 91-year-old Bruin-in-Winter. “I’m not on top of the team, but from what I’ve seen, they are a reasonable contender. I think they have a good chance to advance. I couldn’t call them the No. 1 team, but they’re going to give anyone a heck of a time.” A player, head coach, general manager, and Boston Garden king of hockey, Sinden first came to the Bruins organization as a player/coach in Kingston, Ontario, in 1961. Today he watches games on TV from his … [Read more...]
Is Your Retirement Life a Mess? Let’s Talk
“Is your retirement life a mess? Then call 1-800-get-HELP.” No, this is not a commercial promising to change your life. This is about my conversations with you. Let’s take last weekend for example. Your Survival Guy was tired of pulling into my garage and looking at the mess it had become and did something about it. That was a Saturday. It was raining. What else was I going to do? One fellow northeasterner commenting to me on all the rain said animals are lining up two by two in his garage. So, I got to work. And when it was done, I felt good. And when I pull into the garage it’s … [Read more...]
Your Survival Guy Learns from Marie Kondo
You can read here how Your Survival Guy cleaned up his garage. You can learn a lot about organization from Marie Kondo. … [Read more...]
Don’t Be Left High and Dry
Don’t be left high and dry wishing you had a proper bond allocation for your retirement life. You know from my efficient frontier how important it is to focus on how you invest and not necessarily what you invest in. Big pension funds are looking at today's rates and deciding they'd like to lock them in. Heather Gillers and Charley Grant report in The Wall Street Journal: Stock portfolios at large pension funds had a blockbuster run. Now, managers are cashing out. Corporate pension funds are shifting money into bonds. State and local government funds are swapping stocks for … [Read more...]
April RAGE Gauge: Real Gold Prices
Your Survival Guy’s April RAGE Gauge is in, and the real mover is gold. But is it too high? Here’s an interesting look at an inflation-adjusted view of gold prices. In real (inflation-adjusted) terms, this isn’t the highest gold has ever been. It’s just catching up on an inflation-adjusted basis. My RAGE Gauge remains at 100, with Americans acutely aware of the risks they face at present. Action Line: Learn more about fighting inflation with gold here. Click here to subscribe to my monthly Survive & Thrive letter. And if you want to talk about gold, inflation, and your … [Read more...]
This Is about Your Survival, Not Anyone Else’s
You don’t want to let the perfect get in the way of the good. Specifically, when it comes to your retirement life, you want to get paid to be in the markets. You don’t want to miss out, hoping to get in at the “right” time. When looking at the current interest rate environment and the risk-free rate of return on T-Bills, it’s hard to ignore what the two-year is paying—close to five percent as of yesterday. Getting five percent on your money locked in for two years is nice, considering how far we’ve come from a zero-interest rate policy. Finally, rates have normalized where money isn’t free, … [Read more...]