Your Survival Guy

Preparing your investments and family for when disaster strikes.

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September Rage Gauge Update: High RISK ALERT

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If you’re paying attention to what’s going on in Afghanistan and here at home with COVID you have reasons for concern. Let me remind you, my Rage Gauge right now is at full tilt, high RISK. Clearly those in power seek a different future than what you and I may have in mind for our families and loved ones. A future where they decide how you live your life. A great RESET is in the works. Pay attention. Now, is when you prepare accordingly not when more danger arrives at your doorstep. Your Survival Guy talks with investors like you every single day. Don’t let inertia ruin your future when you know in your gut it’s time for a change.

September RAGE Gauge: Your Survival Guy’s Cash ADVICE

By CashGuy @ Shutterstock.com

OK, my September Rage Gauge is in, and it’s not pretty. Risk perception continues to be at an all-time high. I get it. And as an investor, you can’t afford to keep your head in the sand. This may be a perfect time to make some adjustments to an often overlooked area of your portfolio. I’m talking about your CASH. As I wrote to you yesterday, I think about cash in three ways:

  1. You have your emergency stash on hand that you hope to never use.
  2. You have cash in your investment portfolio as part of your strategy. To buy stocks when others are selling, for example.
  3. You have a pile that’s getting bigger and bigger at your bank. You know, the cash you used to use to buy CDs. Remember them? Well, that’s your sleep well at night cash, and quite frankly—it’s gotten lazy. Chances are you have too much of that cash sitting around doing nothing.

Right now, I want to talk about your LAZY cash that typically goes into CDs or T-Bills, which, by the way, yield 0.06%. How much cash is lying around in your bank account doing nothing? Probably too much. I’m guessing some of that money could be working for you.

Let’s say you have $100k more than usual in cash, and your back of a napkin portfolio allocation targets 50/50 between stocks and bonds. Don’t you think some of that $100k in cash could be generating above-average yields in dividend-paying stocks? It’s worth thinking about.

Action Line: Take a look at the chart below. My interest isn’t so much about the price, which has been outstanding, it’s about the earnings. As in earning dividends. Get that LAZY cash off the couch and give it something to do. I’d love to talk with you.

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.