Happy November. Hope you made it a good month. When stocks are up 14% for the month, it’s hard not to. Why? Because it was the best month for the Dow Jones Industrial Average since January 1976, the same month Queen’s Bohemian Rhapsody topped the charts. That’s a lot of months in between then and now.
What does that mean to Your Survival Guy? Not much. Because when prices are untethered, it’s a perfect time to remain focused on being an investor, not a speculator. In other words, to be paid dividends to invest in stocks.
Look at what’s happening to the FAANG storyline, and you see what I mean.
This isn’t a game. Investing isn’t supposed to be fun. When it comes to being able to stick with your portfolio through thick and thin, it’s oftentimes your bonds that help you get that done. Sure, prices are down, but as I said above, I’m not in it for short-term prices—I’m in it for the interest.
You can sink your teeth into these yields with two-year Treasuries yielding 4.5%. Yes, rates have jumped that high, that fast, over the last three months—the most since 1994 (and 1984 for 10-year Treasuries).
Action Line: In times like these, you need to get out of debt and get your investment house in order. This is no time to sit around and wait for something to “look” good. Let’s talk.
E.J. Smith - Your Survival Guy
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