In mid-November, we published our “crash” issue, writing…
In a few short months, the longest-running bull market ever will turn 10 years old. And after the recent market volatility, we wouldn’t blame you for being skeptical on stocks.
As we’ve mentioned when we talked about the Melt Up – what goes up eventually comes down. So, should you be worried? And will this running bull get pushed over the edge?
Since then, the S&P 500 Index is down nearly 15%.
But please don’t blame us… we’re simply watching, writing, and asking questions. And hopefully, we’re also giving you some ideas to think about and improve your financial future.
Today, the market is a few points away from a 20% decline from its recent highs, which triggers what financial commentators call a “bear market.”
So what will happen next?
We don’t know.
Some folks on Wall Street warn that this is only the beginning of the end… while others – including President Donald Trump yesterday – say it is a “tremendous opportunity to buy.”
We suppose we’re more optimistic than most.
Our portfolio is smaller today than it was last week… but it’s a lot bigger than it could have been thanks to one investment that I discovered on a recommendation from American Consequences feature contributor Dr. David Eifrig.
It’s described in detail on page 143 of his Big Book of Retirement Secrets. He wrote that this investment is “one of the safest income-paying securities” he knows about.
I bought a few of this type of investment some time ago.
And now each month, I receive a handful of payments to my brokerage account. It’s not a huge sum of money. A few hundred bucks. But it feels better than most checks I receive for three reasons…
First, these payments are incredibly consistent. They come every month… perfect for anyone looking for a safe, dependable income stream.
Second, they’re super safe.
And finally, they’re 100% tax free…
What are these mysterious payments?
They’re regular interest paid by municipal bonds – or “munis.” These are loans that investors make to cities or states to build things like toll roads, water pipes, or schools and other public buildings.
In return, the government promises to send investors regular interest payments, plus return of the initial investment, called the “principal,” at the end of a set period of time.
And there’s a bonus…
If you own mostly stocks, then buying bonds will help balance out some of the ups and downs of your portfolio. The prices of muni bonds usually move independently from stocks. And their consistent history of paying steady dividends can help you sleep at night.
I don’t know if muni bonds are right for your portfolio or not. But they’re in mine.
And if this type of little-known investment is interesting to you, I hope that you received my note last weekend about Dr. Eifrig’s book.
You can get a copy of his book, the Big Book of Retirement Secrets, shipped to your door for $5. It’s filled with tips, strategies, and ideas for optimizing your health and your wealth.
As I wrote you this weekend:
At over 500-pages… and jam-packed with over 100 ideas… this book is perfect for anyone in America who is retiring or thinking about retiring soon.
He’s even offering to ship the book FOR FREE to all American Consequences readers for a limited time at this link here.
Buying this book (for just $5) is probably the single smartest thing you could do to set yourself up for a successful 2019.
I’ve NEVER seen Doc offer copies at this price, and I doubt I will again.
So if you haven’t ordered your copy yet, click here for more information.
Now here are some of the headlines we’re reading…
A few of Doc’s articles we’ve featured in our American Consequences magazines…
The key to great wealth is remembering one truth… No one cares about your wealth as much as you do.
Today, when we talk about “America’s heartland,” we often have in mind this stretch of land expanding out from the Hillbilly Highway. But the truth is, the concept of our heartland is less about a geographic location and more about a group of people defined by their social and economic circumstances.
This is one of the easiest ways to shelter assets for your children or grandchildren… and save a bundle on taxes while doing so.
If you have a long-term view, one company is as close to a guarantee for investing success as you can get…
Wall Street is scared stiff… but folks on Main Street are confident and buying.
U.S. consumers spent over $850 billion this holiday season, according to Mastercard. The figures suggest a stock-market swoon and partial government shutdown haven’t curbed consumer confidence and spending.
And suddenly folks in California are reminded of the downside in relying on high stock-gain taxation…
The state’s top 1% of personal income tax earners — roughly 164,000 tax returns — generate about half of the personal income taxes in California. A good chunk of the income from the wealthy comes from capital gains…
No surprise here from our “friends in the Middle East,” the Saudis…
“It’s still absolutely crazy that this could happen,” Multnomah County prosecutor Shawn Overstreet said. “I can’t even imagine what it must feel like for the family who lost their 15-year-old daughter.”
And this time of year, it’s worth looking back to what the folks at Reason call…
“When I show this graph in Asia, the audiences love it, and seem to take it as an aspirational road map… But when I show this graph in Europe and North America, I often receive more ambivalent reactions. ‘We can’t just keep growing forever!’ some say.”
And let us know what you’re reading at [email protected].
Publisher, American Consequences
With P.J. O’Rourke and the Editorial Staff
December 26, 2018