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...]
The Grid Pushed to Its Limits
The editors of The Wall Street Journal explain the perilous state of the Texas electric grid, writing: Summer is two months away, yet the Texas power grid is already swooning. On Friday the Electric Reliability Council of Texas (Ercot) asked power generators to postpone scheduled maintenance early this week “to help alleviate potential tight conditions” as temperatures rise into the not-so-sizzling 80s. The grid typically has excess power-generating capacity in the spring owing to mild weather. There’s also an abundance of solar and wind power. This is why plants go off-line for repairs in … [Read more...]
Your Retirement Life: Newport Is Buzzing
Based on Your Survival Guy’s boots-on-the-ground view of Newport, it’s only April, but it's safe to say the city by the sea is buzzing. USA Today recently named Newport one of its Top 10 Coastal Towns in the United States. The top 10 were: Stuart, Florida Saugatuck, Michigan Key West, Florida Gulf Shores, Alabama Pismo Beach, California Newport, Rhode Island Sandusky, Ohio Cape May, New Jersey Washington Island, Wisconsin Long Beach, Washington Of Newport, USA Today wrote: This Rhode Island town has a little something for everyone, from breweries and … [Read more...]
“Happy I Found Richard C. Young’s Intelligence Report”
“Happy I found Richard C. Young’s Intelligence Report all those years ago,” you told me yesterday. “Because we wouldn’t be talking this morning about investing if I hadn’t. Your father-in-law’s monthly letters kept us on track. He kept us focused on saving and compound interest.” That wasn’t the first time I’d heard that. And what many of you tell me is how much you loved the opening paragraph and how that kept you interested. I know how much time and effort Dick and Debbie put into the opening because I was around the house when they were working on it. It was usually said with excitement, … [Read more...]
Want to Make and Keep Generational Wealth?
Want to make and keep generational wealth? Read this from Daniel Rasmussen in The Wall Street Journal, who writes: After the spectacular blowup of his hedge fund in 1998, Victor Haghani spent years studying the question of controlling risk. In “The Missing Billionaires: A Guide to Better Financial Decisions,” he and James White offer a smart and sophisticated primer on quantitative risk-management techniques. Today the authors are principals at Elm Wealth, a multibillion-dollar wealth-management practice. They argue forcefully for a broader adoption of the “Merton share,” named after the … [Read more...]
Your Retirement Life: Watching The Masters and More
Happy Monday. I hope you had a nice weekend catching some of The Masters from near and far. I remember like it was yesterday, now 25-plus years ago, how Becky and I, newlyweds, enjoyed having it on while getting dinner ready. Watching it this weekend, it’s hard to believe how fast time goes by. It’s a reminder of how investing is a study in time—making it work for you and how investing, not speculation, requires patience and avoiding the big mistakes. One step in front of the other. When you have shared experiences, it makes your life so much easier and more enjoyable. We were having dinner … [Read more...]
Fight Food Inflation with Gold
Simple. Fight food inflation with gold. Don’t want to lug it to your car, pay storage fees and insurance? There are plenty of ETFs that will do the heavy lifting for you. Costco has been selling up to $200 million worth of gold bars a month. The Daily Mail's Neirin Gray Desai reports: Costco is now estimated to be selling up to $200 million worth of gold bars a month - but have Americans who bought them made a profit? Those who bought them last year or earlier this year before gold jumped in price will have made a profit, DailyMail.com research shows. Those who bought them more recently … [Read more...]
Your Retirement Life: A Living Income from Savings
You want a forward-looking indicator? Look at the stock market or 10-year Treasury bond—both flashing warning signs this week. But how about years from now? What will the decades ahead—your retirement life—look like? What if we’re going back in time? You and I, we’re in the business of patience. With so much attention paid to what the market did this week or who won last night’s game, it can be difficult to remember that investing is an endeavor in b-o-r-i-n-g. At least until you have enough to retire on, and then it’s fun. Saving money takes time. Every day you’re taking baby steps … [Read more...]
Don’t Underestimate Government’s Ability to Get it Wrong
In October of 2001, Under Secretary for Domestic Finance at the Treasury Department, Peter Fisher, explained that the United States would stop issuing bonds in 30-year maturities because short-term debt was so much cheaper. At the end of Q3 2001, 30-year Treasuries had a yield of 5.42%, while 10-year bonds yielded 4.6%, and and the government could borrow for 12 months at 2.49%. The spread between 30-year and 12-month Treasuries was 2.93%. CNN Money reported at the time: NEW YORK (CNNmoney) – The U.S. government said Wednesday it no longer will issue 30-year Treasury bonds because they don’t … [Read more...]