Tag Archives: bonds

Over the longer term, some of history's top strategists actually say that inflation is a big reason to buy stocks – not to avoid them. Foremost among them is Warren Buffett. His inflation research goes way back. In 1977 – just before the U.S. was about to enter into one of the worst inflationary climates in history – in a column for Fortune magazine he said, “stocks are probably still the best of all the poor alternatives in an era of inflation – at least they are if you buy in at appropriate prices.” Words: 664

Investing is often described as the process of laying out money now in the expectation of receiving more money in the future. Investment possibilities are both many and varied. There are three major categories 1) currency-based investments, 2) gold bullion and 3) investment in productive assets, and it's important to understand the characteristics of each. [Let me explain the differences and why I choose the latter.] Words: 1780

Instead of gold, people commonly think of paper money as the only medium of exchange and as a store of value; cash is after all their unit of account. They see the gold price rising when they should be seeing the value of paper money falling.

Dividend Paying Stocks are Not a Safe Substitute for Bonds! Ever! DIVIDEND PAYING STOCKS ARE NOT A SAFE SUBSTITUTE FOR BONDS! EVER! EVER! Did I write that big enough? Maybe not. Let’s try again: DIVIDEND PAYING STOCKS ARE NOT A SAFE SUBSTITUTE FOR BONDS! EVER! EVER! Here's why.

The current credit-bubble boom in stocks and bonds is getting long in tooth after 34 years of relentless expansion, and the rise of securities to 400% of GDP is reaching extremes that are increasingly difficult to support, much less push higher. As such, a reversion to generational lows is inevitable, and a valuation level around 50% of GDP for stocks is a fair target. This implies a 75% decline in both stocks and bonds within the next decade, if not sooner.

There is literally nowhere for the bond market to go except down and, when this bull market turns into a bear, it will create chaos and financial devastation all over the planet.

Asset allocation is one of the most crucial aspects of building a diversified and sustainable portfolio that not only preserves and grows wealth, but also weathers the twists and turns that ever-changing market conditions can throw at it. However, while the average [financial] advisor or investor spends a great deal of time carefully analyzing and picking the right stocks or sectors, the basic and primary task of asset allocation is often overlooked. [According to research by both Wainwright Economics and Ibbotson Associates and the current Dow:gold ratio, allocating a portion of one's portfolio to gold and/or silver and/or platinum is imperative to protect and grow one's financial assets. Let me explain.] Words:1060

This article provides you with an excellent understanding of what bonds are, the advantages of owning them and how to go about trading them.

To make sense of stocks, bonds and currencies, you need to discern some of the madness (convincingly irrational behavior by policy makers) that’s unfolding in front of our eyes. We assume no responsibility if you turn mad yourself in reading this analysis. Here it is.

Some market commentators are touting gold as a great portfolio diversifier, convincing investors that the precious metal could benefit their portfolio but there may be better alternatives than gold if the motivation is to find a hedge for economic uncertainty or political unrest.