Bull market since 1982

On August 19, 1986, I landed at JFK Airport, and my father’s old classmate James picked me up. After a few days with him and his family he drove me to college in Montclair, New Jersey.
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Coming to the United States was a new beginning for me. Going to college was like immersing myself in a whole new world where I had to figure out something new every day. It made me gradually understand how everything works.
And so many things that are so obvious today … back then it was so hard to figure it out on your own. For example, I did not know how to dress for cold weather, and, as a result, in winter almost all the time froze.
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What is happening in the stock market reminds me of that time, because today most people are completely confused. If you do not have the experience and knowledge of how markets work, you will make all the wrong decisions.
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And in 2017, you may miss something that could change your life …

This is an important thing – the bull market.

And I’m not just talking about a new major stock market that will raise the Dow Jones industry average to 50,000 … and beyond.
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I believe that when this bullish market is over, the Dow could easily be 100,000.

I know many of you think this seems crazy. However, back in 1982, which was the beginning of the last major bullish stock market. People were pessimistic about the future of our country.
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One of the easiest ways to measure the negative mood of that period is to look at one of the most popular magazines of the time: Time.

Issue of September 6, 1982 Time featured a new bull market that was just beginning.

Inside the issue were doubts similar to those of people today about the stock market:
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Nobody predicted that. No one can explain it. No one dreamed it could go on day after day. But last week, Wall Street continued one of the most incredible stock market crashes in financial history … Madness broke records and then broke them again … Is it a rally of suckers or the beginning of a stable bull market? Why was the momentum so strong when the prospects for economic recovery are so uncertain?
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Now, when you go back to 1982, you will find two incredible similarities with 2017.

First, there was the incredible technology – the personal computer was just beginning to become a huge economic force in our economy.

Secondly, you have matured a generation of baby boomers, the oldest of whom has just turned 34 years old.

And today we have the same two things happening.
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First, we have this incredible technological development – the Internet of Things is beginning to revolutionize how our world works in everything from our roads to cars to our health and every part of our lives.

Second, we have a millennial generation – the largest generation in US history – 92 million people.

Amazing bull market rally
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The Dow Jones industrial index rose from 770 in August 1982 to 11,750 in January 2000, an increase of 1,426%.

In other words, if you put $ 10,000 in the Dow index at the beginning of this bull market and just hold on, by the end of it you will have $ 14.2 million. Incredible, phenomenal, amazing profits solely through buying at the beginning of the bull market!
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Now I understand that many of you may be skeptical of what I just told you.

However, I spent a decade exploring the bull and bear markets in history. And it’s a combination of major technological change and the coming of a new generation as close as you’re going to achieve a certain thing in terms of a formula for forecasting a new big market. And that’s what I put my credibility and reputation on.

You can also buy a targeted exchange-traded fund (ETF), for example SPDR Dow Jones Industrial Average ETF (NYSE: DIA)to benefit from this major new bull market.
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However, if you want to make a life-changing profit that can give you financial freedom, you need to find individual stocks with a growth potential of 300%, 500%, 1000% or even more. This is the focus of a new service my publisher is launching early next year. Keep checking here if you are the type of investor who wants such profits.
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Such earnings may seem unthinkable today, but remember that in the last major bull market we had incredible winners, such as Home Depot, which rose from $ 0.15 per share to $ 52 – an increase of 34,567%. The coming years will be amazing winners, as will Home Depot.
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Review – AbleTrend – Identify and analyze market trends for trading success

In this 268-page hardcover book, Dr. John Wang, creator of the award-winning, best-selling trading system called AbleTrend, reveals many of the secrets of his reward system. The book, however, is not a duplicate of the confidential information presented at Dr. Wang’s expensive seminars.
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What you get from the book is a scientific, objective way identify market trends. The old adage that the trend is your friend is no less true today than it was when it was first uttered by an ancient Japanese or Chinese rice trader many centuries ago. As elementary as it may seem, identifying a trend in the early stages is not as easy as determining with some degree of accuracy the point at which the trend ends.
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However, this information is crucial to your trading success because the trend determines which side of the market you should be on, long or short, where the buy / sell prices and stop loss should be directed, the location of support prices and resistance and finally the amount of risk you need to be objectively willing to take in any deal.

Trend analysis is even more complex because individual traders work in different time frames. A day trader who wants to earn a few points or points has a completely different view of the trend than one who adjusts his 401 (k) portfolio to retire in 10 years. The principles presented in the book have universal application in any market and at any time, making them equally suitable for the scalper and the investor.

Many readers also enjoy Dr. Wang’s account of the philosophy underlying his successful trading method. Discipline and sound risk management are just as important to your success as a trader than any computer algorithm. His philosophy is cleverly woven into the basic principles of the AbleTrend trading system, so that even a novice trader can see how the points of support, resistance and stop loss should not be arbitrary or emotional.

Some readers have criticized the book because it smells like the AbleTrend adware software package. I suspect this may be more of an expression of frustration that Dr. Wang’s trading software algorithms were not designed for everyone to be able to see and copy.

If you are looking for a trading book that you can add to your library that can give you an in-depth understanding of how to objectively determine the beginning and end of a trend in stocks, commodities, foreign exchange, ETFs, electronic minis and mutual funds, then you are more likely above all, this book will be useful.


Cryptocurrency is the way forward and opportunities

Cryptocurrency is getting better every day. This continues to increase your wealth as well as your viral messages on social media. A contagious financial tool for a good portfolio and a catalyst for growth. An interesting fact is that there are over 5,000 cryptocurrencies.

2021 was a fantastic year, but where do we go?

Let’s increase the situation here. Both Bitcoin and Ethereum have touched higher performance bar. This is the hope of long-term investors. By the time you read this article, there may be more great news about cryptocurrency. I will try to present here the future possibilities of cryptocurrency.

New rules are currently in place. They are under the carpets. Measures are being taken to minimize the risk of cybercriminals. The goal is to make these investments a safe tool for people. For example: in September, China announced that all cryptocurrency transactions were illegal. Clear rules eliminate all obstacles to make trade safer.
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How will the new rules affect investors?

The IRS will find it easier to track tax evasion. Investors can transparently keep track of transactions. For example: recording any gains or losses of capital on crypto-assets will be easier. On the other hand, the price of cryptocurrencies will also affect a fluctuating market.

ETF approval is an important factor to consider

The Bitcoin ETF debuted on the NYSE. This will help investors acquire cryptocurrency from existing investment firms. Due to the growing demand, both in the stock markets and in the bond market this is the case. Let’s look at it from an investor’s perspective. Easier access to cryptocurrency assets helps people acquire them without problems. If you plan to invest in a Bitcoin ETF, remember that the risks are the same as in any other cryptocurrency. You have to be willing to take risks. Otherwise, investing your money is useless.
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What does the future hold?

Bitcoin is the best crypto market. It has the highest level of market capitalization. In November 2021, its price rose to $ 68,000. In October, the exchange rate was $ 60,000, and in July – $ 30,000. The market is experiencing large fluctuations in rates. Experts suggest keeping market risk for cryptocurrencies below 5% in the portfolio. When it comes to short-term growth, people are hoping. Bitcoin price volatility is a factor to consider. If you want to play long, short-term results should not affect you.

Watching it from an angle to increase your wealth is a bad decision. Stick to traditional investment instruments other than cryptocurrencies. For example: if you want cryptocurrency to be a tool for saving for retirement, it’s time to reconsider your decision. Keep your investments small and diversify them. This will reduce the risk factor. At the same time you will have more time to think about cryptocurrency.

You need to spend your money wisely and then invest in cryptocurrency. It is necessary to assess the associated risk factor and make a decision. Hopefully this article will help you.

Benefits of the Panaesha Capital Exchange (PCEX).

The cryptocurrency market boomed in 2017-2018; Last year, the total market capitalization of cryptocurrencies reached $ 700 billion. With the huge market potential offered by cryptocurrencies, digital currency trading is booming, and several crypto exchanges have been launched during the year, and even more are under development. Crypto exchanges are platforms where traders can exchange cryptocurrencies for other cryptocurrencies or fiat money.

Panaesha Capital Exchange (PCEX) is a cryptocurrency trading platform that will be launched in the 3rd quarter of 2018. PCEX is secure, fast, provides high liquidity and uses a brokerage channel for added security. The platform is a universal trading solution; offering both cryptocurrency for cryptocurrency exchange and cryptocurrency in the fiat currency exchange.

Benefits of PCEX

Multifunctional sharing platform

Many cryptocurrencies, even well-known platforms, only support crypto-crypto-transactions, forcing traders to operate on multiple exchanges. Crypto traders first buy cryptocurrency for fiat money on a specific platform and then distribute currencies across multiple trading platforms to provide liquidity and profits. In order to convert digital currencies into fiat, traders have a choice of only a few platforms. PCEX is a comprehensive solution that offers high liquidity; crypto traders can conduct all their trades on one platform and will also provide significant profits.

High liquidity

To increase the liquidity of digital assets on PCEX the platform embodies all the key attributes of fast exchange;

Easy user interface to simplify the transaction process. PCEX built a similar format to the National Stock Exchange for reference.

Low transaction fees (PCEX insists on very small commissions for trading on the platform).

Sophisticated buying and selling procedure with the best matching mechanism. Trade orders will be quickly matched on the platform.

Coincidence of high caliber order

Users at PCEX are offered a limit trading procedure so that they can buy or sell assets at the price they set; the matching mechanism will try to boost sales by matching users ’trade with the best price for a limited time. The time limit will be set by traders, after which the trading order will be removed from the platform. PCEX has the ability to quickly match orders with the best order selection mechanism.

Fees are available

To trade on PCEX, crypto-traders will charge only two commissions: a transaction fee and a withdrawal fee. The transaction fee on PCEX is much lower than the fee on other platforms that offer similar services. Much of the transaction fees go to PCEX brokers and sub-brokers; the platform will get the smaller part of the cut.

Broker and sub-broker channels

Brokers and sub-brokers for crypto-trading are a unique feature of the PCEX trading platform. Traders on cryptocurrency platforms typically face poor customer support and slow response times. PCEX eliminates this shortcoming by using a fleet of brokers and sub-brokers to personally assist traders in each trade. For traders on PCEX will be assigned a single point of contact, which they can contact at any time for help. No dark period of irresponsibility will ever be associated with PCEX.

Through a brokerage channel and exceptional services PCEX seeks to build long-term relationships with users. The broker channel also adds a level of security to the platform.

High security

By the way, PCEX has several layers of security. The platform has a Clark-Wilson security architecture model to ensure data integrity. The security system will check the acceptance of PCEX information so that data burglary can be prevented. Secure platform operations require auditors to cooperate; devices and IDs in place to protect the website. PCEX provides crypto-traders with an impenetrable level of security and protects the identity of traders and digital assets from hackers and accidental loss.

All users, brokers and sub-brokers on PCEX must complete the KYC / AML protocol; PCEX prepares in advance for any rules that may arise in the future. Traders can also be assured of legitimate behavior on the platform.


Cryptocurrency trading is an unstable atmosphere in which prices peak and fall almost daily. Price volatility depends on country or state regulations, security, acceptance of digital currencies by suppliers, major players, etc. Cryptocurrency trading provides a much higher return on investment than a traditional stock exchange; the first cryptocurrency investors earned millions in profits in 2017-2018.

To support the growing demand for digital currencies and platforms for digital currency trading, PCEX uses an advanced structure with a full range of services. Everything that a crypto-trader needs for uninterrupted and easy trading is available on PCEX. In fact, PCEX goes the extra mile.

Check out the new and exclusive crypto exchange at http://www.pcex.io.

7 ways to invest in gold

There are many options available to people interested in investing in gold. Investments can be made by purchasing and storing physical gold, purchasing items that represent ownership of gold, or buying shares.

7 ways to make gold investments № 1 – gold coins

Governments of several different countries issue gold bars as legal tender. The value of gold coins is determined by their smallness, or the ratio of the actual gold content to other materials in the coin. Demand and supply can also affect the price. Common coins include the American Golden Eagle, the Canadian Golden Maple Leaf, the South African Krugerrand, the Australian Golden Nugget, the Austrian Philharmonic, the Chinese Golden Panda, the British Sovereign and the French Coq Gaulois.

7 ways to invest in gold № 2 – gold bars

Gold bars are the most traditional form of investment in gold and are sought after by many central banks around the world. Ingots are available to investors in a variety of sizes such as one pound, ten ounce, one ounce, ten gram and 100 gram. One of the most popular gold bars is the London Good Delivery bar, which weighs 400 troy ounces. In general, bullion has lower price premiums than gold coins, but investors should always be wary of counterfeits. Bars should always be purchased with a certificate.

7 ways to invest in gold № 3 – ETFs

Exchange-traded funds, or ETFs, are traded similarly to stocks on major stock exchanges. For gold ETFs the American Stock Exchange is the main place to trade. ETFs buy a lot of gold and keep it in storage. They then issue stocks that match the price of the bars. If prices rise by 5%, then individual ETFs will also rise by the same 5%. ETFs allow investors to easily trade and buy in small quantities. ETFs may require a small storage fee annually.

7 ways to make gold investments № 4 – Certificates

Certificates represent ownership of gold without requiring the investor to actually store the bullion. Dedicated certificates are associated with the possession of certain ingots, which are stored in individual banks. However, unallocated gold certificates do not guarantee equal exchange for ingots if the gold of the issuing bank is retained. Certificates have historical significance in the United States, where they were considered legal tender from 1882 to 1933.

7 ways to invest in gold № 5 – accounts

There are five types of accounts: allocated, unallocated, gold pools, electronic currencies and gold accumulation plans. Dedicated accounts allow investors to own ingots or coins stored in a vault managed by a recognized depositary or ingot dealer. Unallocated accounts do not represent ownership of certain bars. Gold pool accounts allow people to invest very small amounts. Electronic currencies allow investors to make payments online using a currency pegged to accumulated gold. Then the accumulation plans are similar to savings accounts in which investors purchase a fixed amount for each month.

7 ways to invest in gold № 6 – derivatives

Derivatives include options, futures and forwards. These financial instruments can be traded on multiple exchanges around the world or through private trading. Gold futures are most often traded on the New York Mercantile Exchange and on Euronext.liffe in the US

7 ways to invest in gold № 7 – mining companies

Buying shares in a mining company is another investment option. As the price rises, the mining company’s profits are expected to rise, leading to an increase in the company’s share price. There is some market volatility associated with mining shares, but many companies will hedge the price in advance to reduce these fluctuations.

The collapse of the market is an ominous sign

During the market crash on Friday morning last week a friend sent me an instant message.

“Almost all the stocks I’ve watched this week are trading overbought (i.e. 14-day RSI above 70) and it’s been over a week. I wonder if there is a filter we can use to see how many shares of the S&P 500 have been repurchased. ” (RSI stands for Relative Strength Index, a key indicator of stock momentum growth.)

But my friend came across something. A few minutes later I launched the filter in question. He was right: much of the S&P 500 grew much faster than usual … almost 40% of firms in the index in late January.

It made me think. What do the historical fluctuations in the share of S&P 500 firms with high RSI tell us?

What I found is sinister.

Too much good

Sometimes the momentum is bad … too much of it suggests that the market can be irrationally optimistic. A historical look at the RSI suggests that this is one such point.

The stock’s Relative Strength Index (RSI) compares the value of recent gains and losses over a given period – most often 14 days. In essence, it measures stocks impulse, up or down.

Technical analysts use RSI to assess whether a stock is being repurchased or resold. RSI values ​​of 70 or higher indicate that the stock is overbought or overvalued, and thus is at risk of adjustment. An RSI of 30 or below signals the opposite – oversold or undervalued. It can be a profit opportunity.

The key term is “attitude”. RSI measures speed changes in the average stock price. If the RSI is high, it means that during this period there is an unusual amount of purchasing activity compared to “normal” conditions.

How big is the RSI party?

There is nothing unusual in high RSI for individual capital. For example, when a market learns that a company is the target of a merger, buyers want to own its shares before it happens, leading to a high RSI.

Similarly, we can see high RSI rates for a group of stocks in a sector – such as energy – if the market thinks the sector will boom.

But given that the S&P 500 has 500 individual firms covering all sectors of the economy, it is unusual for most of them to receive high RSIs at the same time.

There was a percentage of firms in the S&P 500 whose average RSI was over 70 in the previous month, from 1990 to the present. I’ll call it “market RSI”.

The average seems to be between 5% and 10%. But the RSI market level could go much higher.

For example, after the 1990-1991 and 2001-2002 recessions, 30% to 40% of S&P 500 companies had an average monthly RSI above 70. This makes sense because we expect stock prices to rise rapidly if we exit the recession .

In contrast, during sustained economic growth, the level of RSI in the market ranges from 5% to 10%, with regular jumps of about 20% during quarterly earnings reports.

In contrast, RSI market levels tend to be lower than usual when investors seek returns in other ways. It happened during the boom of the initial public offering (IPO) before the collapse of the dotcoms, and again when Americans, like crazy, overturned homes and refinanced during the 2008 financial crisis.

We live in interesting times

At the end of 2016, two historically unusual conditions began.

First, every “low” figure in the RSI market is higher than the last. This suggests that the average monthly RSI level in the market tends to be higher over the long term. There has been nothing like this in previous decades.

Second, the January surge in the average monthly RSI market level is the highest ever since coming out of the recession.

When we move on to Fr. daily average RSI market level, we see regular fluctuations between about 5% and 25% since the end of 2016.

But since the end of last summer, we have again seen a steady growth trend.

We also see a surge in the RSI market level – by almost 40% – just before the big pullback last week.

RSI: good for trees, bad for forest

High RSI for individual stocks? Good. Too much at once? Dangerous.

Here is my interpretation. Since the end of 2016, two things have happened.

  • Optimism about Trump’s presidency has blown small clouds of caution hovering around investors, even in the bull market. As this sunny prospect grew, it slipped into a snowball – sorry if I mix metaphors – revealing part of the “euphoria” of the market cycle. We seem to have reached the peak of euphoria in late January, when the average daily market RSI reached almost 40% … shortly before last week’s rollback.
  • The massive growth of exchange-traded funds (ETFs) over the past few years has distorted the average market levels of RSIs due to rising stock prices of “unworthy” firms included in sectoral ETFs. The rising tide of the ETF has lifted all boats … preventing RSI market levels from falling to historical norms.

No matter how you look at it, people, it’s abnormal. And if the story is a guide, it will not end well …

Што ваш саветнік не сказаў вам пра інвестыцыі даходаў, адказы на пытанні і адказы

Адной з самых вялікіх памылак інвестараў з’яўляецца ігнараванне часткі сваіх інвестыцыйных партфеляў “прыбытак”… многія нават не разумеюць, што такое павінна быць. Другой найбольшай памылкай з’яўляецца вывучэнне эфектыўнасці прыбытковых каштоўных папер такім жа чынам, як і каштоўныя паперы (акцыі), якія “з мэтай росту”.

У наступных пытаннях і адказах мяркуецца, што партфелі будуюцца вакол гэтых чатырох вялікіх сродкаў мінімізацыі фінансавых рызык: усе каштоўныя паперы адпавядаюць высокім стандартам якасці, прыносяць той ці іншы даход, з’яўляюцца «класічна» дыверсіфікаванымі і прадаюцца пры дасягненні «разумнай» мэтавай прыбытку.

1. Чаму чалавек павінен інвеставаць для атрымання даходу; ці не лепш механізмы росту акцый?

Так, мэта ўкладанняў у долевы капітал – вытворчасць “росту”, але большасць людзей думаюць пра рост як павелічэнне рынкавай кошту каштоўных папер, якімі яны валодаюць. Я думаю пра рост з пункту гледжання колькасці новага «капіталу», які ствараецца за кошт рэалізацыі прыбытку, і нарошчвання даходаў, калі гэты новы капітал рэінвесціруецца з выкарыстаннем размеркавання актываў «на аснове выдаткаў».

Большасць кансультантаў не разглядаюць прыбытак з такім жа цёплым і невыразным пачуццём, што і я… можа быць, гэта падатковы кодэкс, які разглядае страты больш прыхільна, чым прыбыткі, або прававая сістэма, якая дазваляе людзям падаваць у суд на кансультантаў, калі заднім часам выяўляецца няправільны паварот магчыма, былі ўзятыя. Па праўдзе кажучы, дрэннай прыбытку не бывае.

Большасць людзей не паверыць, што за апошнія 20 гадоў партфель 100% прыбытку “перавысіў бы” ўсе тры асноўныя сярэднія паказчыкі фондавага рынку па “агульнай прыбытковасці”… выкарыстоўваючы ў якасці кансерватыўнага гадавое колькасць размеркавання ў 4% : Прырост у працэнтах за год:

NASDAQ = 1,93%; S & P 500 = 4,30%; DJIA = 5,7%; 4% Партфель закрытага фонду (CEF) = 6,1%

  • *УВАГА: на працягу апошніх 20 гадоў падаткаабкладаемыя CEF на самай справе давалі каля 8%, вызваленыя ад падаткаў, крыху менш за 6%… і тады былі ўсе магчымасці прыросту капіталу з 2009 па 2012 год.

Паспрабуйце паглядзець на гэта так. Калі ваш партфель прыносіць меншы даход, чым вы здымаеце, што-небудзь трэба прадаць, каб забяспечыць выдаткі. Большасць фінансавых кансультантаў пагодзяцца з тым, што пры выхадзе на пенсію неабходна не менш за 4% (аплачваюцца штомесячнымі крокамі) … без уліку паездак, адукацыі ўнукаў і надзвычайных сітуацый. Толькі ў гэтым годзе большая частка гэтых грошай павінна была прыйсці ад вашага дырэктара.

  • Падобна асноўнай праграме фіксаванага ануітэту, большасць пенсійных планаў прадугледжвае штогадовае зніжэнне асноўнага доўгу. З іншага боку, праграма прыбыткаў «да выхаду на пенсію» пакідае асноўную суму для спадчыннікаў, адначасова павялічваючы штогадовыя выдаткі пенсіянераў.

Якая частка інвестыцыйнага партфеля павінна быць арыентавана на прыбытак?

Прынамсі 30% для ўсіх ва ўзросце да 50 гадоў, затым растуць размеркаванні, паколькі выхад на пенсію становіцца ўсё большым… Памер партфеля і патрабаванні да выдаткаў грошай павінны дыктаваць, якая частка партфеля можа быць пад пагрозай на фондавым рынку. Як правіла, не больш за 30% у акцыях для пенсіянераў. Вельмі вялікія партфелі могуць быць больш агрэсіўнымі, але ці не з’яўляецца сапраўднае багацце ведама, што вам больш не трэба ісці на значныя фінансавыя рызыкі?

У якасці дадатковай меры бяспекі ўсе інвестыцыі ў долевыя сродкі павінны ажыццяўляцца ў акцыі інвестыцыйнага класа і дыверсіфікаваную групу акцый CEF, што забяспечвае ўвесь час грашовы паток з усяго партфеля. Але ключ з першага дня заключаецца ў тым, каб зрабіць усе разлікі размеркавання актываў на аснове кошту пазіцыі замест рынкавай кошту.

  • УВАГА: Калі цэны на акцыі вельмі высокія, фонды акцый CEF забяспечваюць значны прыбытак і выдатную дыверсіфікацыю ў кіруемай праграме, якая дазваляе ўдзельнічаць на фондавым рынку з меншым рызыкай, чым асобныя акцыі, і значна большым даходам, чым нават паявыя фонды з прыбыткам і ETF.

Выкарыстанне агульнага «абаротнага капіталу» замест бягучых або перыядычных рынкавых коштаў дазваляе інвестару дакладна ведаць, куды трэба інвеставаць новыя дадаткі партфеля (дывідэнды, працэнты, дэпазіты і даходы ад таргоў). Гэты просты крок гарантуе, што агульны даход ад партфеля з года ў год павялічваецца і значна паскараецца да выхаду на пенсію, паколькі само размеркаванне актываў становіцца больш кансерватыўным.

  • Размеркаванне актываў не павінна змяняцца на аснове рынкавых або працэнтных прагнозаў; прагназуемыя патрэбы ў даходах і мінімізацыя фінансавых рызык, гатовых да выхаду на пенсію, з’яўляюцца асноўнымі праблемамі.

3. Колькі існуе розных відаў даходных каштоўных папер, і

Ёсць некалькі асноўных тыпаў, але варыяцый шмат. Каб было проста, і ў парадку ўзрастання рызыкі, ёсць даўгавыя інструменты ўрада і агенцтва ЗША, каштоўныя паперы штата і мясцовага самакіравання, карпаратыўныя аблігацыі, пазыкі і прывілеяваныя акцыі. Гэта найбольш распаўсюджаныя гатункі, і яны, як правіла, забяспечваюць фіксаваны ўзровень даходу, які выплачваецца раз у паўгоддзе або штоквартальна. (Кампакт-дыскі і фонды грашовага рынку не з’яўляюцца інвестыцыямі, іх адзіны рызыка – гэта разнастайнасць “магчымасці”.)

Каштоўныя паперы з пераменным прыбыткам уключаюць іпатэчныя прадукты, REIT, пайавыя трасты, таварыствы з абмежаванай адказнасцю і г.д. А яшчэ існуе мноства незразумелых спекуляцый, створаных Уол-стрыт з дапамогай «траншаў», «хэджаў» і іншых стратэгій, якія занадта складаныя для разумення. у той ступені, якая неабходна для разумнага інвеставання.

Наогул кажучы, больш высокая прыбытковасць адлюстроўвае большы рызыка ў каштоўных паперах асобных даходаў; складаныя манеўры і карэкціроўкі павялічваюць рызыку ў геаметрычнай прагрэсіі. Бягучая даходнасць вар’іруецца ў залежнасці ад тыпу каштоўных папер, фундаментальнай якасці эмітэнта, працягласці да пагашэння, а ў некаторых выпадках і ўмоў у пэўнай галіны… і, вядома, IRE.

4. Хколькі яны плацяць?

Кароткатэрміновыя чаканні працэнтных ставак (IRE, адпаведна), парушаюць бягучую прыбытковасць і падтрымліваюць цікавасць, паколькі даходнасць па існуючых каштоўных паперах змяняецца з «адваротна прапарцыйнымі» рухамі коштаў. Прыбытковасць значна адрозніваецца паміж тыпамі і зараз складае ад 1% для фондаў грашовага рынку «без рызыкі» да 10% для нафтагазавых MLP і некаторых REIT.

Доля карпаратыўных аблігацый складае каля 3%, прывілеяваных акцый каля 5%, у той час як большасць падаткаабкладаемых CEF прыносяць каля 8%. Неабкладаемыя падаткам CEF даюць у сярэднім каля 5,5%.

  • Даволі шырокія магчымасці для атрымання даходу, і ёсць інвестыцыйныя прадукты для ўсіх тыпаў інвестыцый, узроўняў якасці і працягласці інвестыцый… не кажучы ўжо пра глабальныя магчымасці і магчымасці індэксаў. Але без выключэння закрытыя фонды плацяць значна большы даход, чым ETF або ўзаемныя фонды … гэта нават не блізка.

Усе тыпы індывідуальных аблігацый каштуюць дорага купляць і прадаваць (надбаўкі па аблігацыях і прывілея для новага выпуску не трэба раскрываць), асабліва ў невялікіх колькасцях, і іх практычна немагчыма дадаць да аблігацый пры падзенні коштаў. Прывілеяваныя акцыі і CEF паводзяць сябе як акцыі, і імі лёгка гандляваць, бо цэны рухаюцца ў любым кірунку (г.зн. лёгка прадаць для атрымання прыбытку або купіць больш, каб знізіць кошт і павялічыць даходнасць).

  • Падчас «фінансавага крызісу» даходнасць CEF (неабкладаемая падаткам і падаткаабкладаемая) вырасла амаль удвая… амаль усе можна было прадаць некалькі разоў, з прыбыткам «за адзін год наперад», перш чым яны аднавілі нармальны ўзровень у 2012 год.

5. Як CEF забяспечваюць гэтыя больш высокія ўзроўні даходу?

Ёсць некалькі прычын такога вялікага розніцы ў прыбытковасці для інвестараў.

  • CEF не з’яўляюцца ўзаемнымі фондамі. Гэта асобныя інвестыцыйныя кампаніі, якія кіруюць партфелем каштоўных папер. У адрозненне ад узаемных фондаў, інвестары купляюць акцыі ў самой кампаніі, і колькасць акцый абмежаваная. Паявыя фонды выпускаюць неабмежаваную колькасць акцый, цана якіх заўсёды роўная кошту чыстых актываў (NAV) фонду.
  • Цана CEF вызначаецца рынкавымі сіламі і можа быць вышэй або ніжэй NAV… такім чынам, часам іх можна набыць са зніжкай.
  • Даход узаемных фондаў засяродзіцца на агульнай даходнасці; Інвестыцыйныя менеджэры CEF сканцэнтраваны на вытворчасці марнавання грошай.
  • CEF збірае грашовыя сродкі праз IPO і інвесціруе даходы ў партфель каштоўных папер, большая частка даходу з якіх будзе выплачвацца ў выглядзе дывідэндаў акцыянерам.
  • Інвестыцыйная кампанія можа таксама выпускаць прывілеяваныя акцыі з гарантаванай стаўкай дывідэндаў, значна ніжэйшай за тое, што яны ведаюць, што яны могуць атрымаць на рынку. (напрыклад, яны маглі б прадаць выпуск прывілеяваных акцый на 3% і інвеставаць у аблігацыі, якія плацяць 4,5%).
  • Нарэшце, яны дамаўляюцца аб вельмі кароткатэрміновых банкаўскіх пазыках і выкарыстоўваюць атрыманыя сродкі для куплі доўгатэрміновых каштоўных папер, якія плацяць большыя працэнты. У большасці рынкавых сцэнарыяў кароткатэрміновыя стаўкі значна ніжэйшыя за доўгатэрміновыя, а працягласць крэдытаў настолькі кароткая, наколькі гэта дазваляе сцэнар IRE…
  • Гэта «пазычанне з рычагом» не мае нічога агульнага з самім партфелем, і ва ўмовах крызісу менеджэры могуць спыніць кароткатэрміновыя пазыкі, пакуль не вернецца больш стабільнае асяроддзе працэнтных ставак.

Такім чынам, рэальны інвестыцыйны партфель змяшчае значна большы капітал, які прыносіць даход, чым той, які забяспечваецца даходамі ад IPO. Акцыянеры атрымліваюць дывідэнды з усяго партфеля. Больш падрабязна чытайце мой артыкул «Інвестыцыі пад купалам».

6. Што наконт ануітэтаў, фондаў стабільнага кошту, прыватных REIT, ETFs даходаў і ўзаемных фондаў пенсійнага даходу

Ануітэт мае некалькі унікальных асаблівасцяў, ні адна з якіх не робіць іх добрымі «інвестыцыямі». Гэта выдатныя коўдры бяспекі, калі ў вас няма дастатковага капіталу, каб самастойна атрымліваць належны даход. Разнавіднасць “зменнай” дадае да раўнанні рынкавы рызыка (за пэўныя дадатковыя выдаткі), пагаршаючы першапачатковыя прынцыпы ануітэт з фіксаванай сумай.

  • Яны «маці ўсіх камісій».
  • Яны спаганяюць штрафы, якія, па сутнасці, блакуюць вашыя грошы на тэрмін да дзесяці гадоў, у залежнасці ад памеру камісіі.
  • Яны гарантуюць мінімальную працэнтную стаўку, якую вы атрымліваеце, калі яны вяртаюць вам вашыя ўласныя грошы на працягу вашай “актуарнай чаканай працягласці жыцця” або фактычнага тэрміну службы, калі ён большы. Калі вас збівае грузавік, выплаты спыняюцца.
  • Вы можаце заплаціць дадаткова (г.зн. паменшыць свае плацяжы), каб прынесці карысць іншым або запэўніць, што вашы спадчыннікі атрымаюць што-небудзь пасля вашай смерці; у адваротным выпадку страхавая кампанія атрымлівае ўвесь астатак незалежна ад таго, калі вы выйдзеце з праграмы.

Фонды стабільнага кошту гарантуюць вам мінімальны прыбытак, які вы можаце атрымаць на рынку з фіксаваным даходам:

  • Яны ўключаюць у сябе аблігацыі з самай кароткай працягласцю, каб абмежаваць валацільнасць коштаў, таму ў некаторых сцэнарах яны могуць прыносіць менш, чым фонды грашовага рынку. Тыя, у якіх папера з крыху больш высокім прыбыткам, уключаюць страхавую «абгортку», якая гарантуе стабільнасць цэнаў за дадатковыя выдаткі для атрымоўвальніка рэнты.
  • Яны створаны, каб падмацаваць памылковы акцэнт Уол-стрыт на валацільнасць рынкавай кошту, бяскрыўдную і натуральную індывідуальнасць каштоўных папер, адчувальных да працэнтных ставак.
  • Калі стаўкі грашовага рынку калі-небудзь вернуцца да «нармальнага», гэтыя кепскія прадукты, хутчэй за ўсё, знікнуць.

Прыватныя REIT з’яўляюцца “бацькам усіх камісій”, неліквідных, таямнічых партфеляў, значна саступаючыя разнавіднасці публічна торгуемых па шэрагу спосабаў. Знайдзіце час, каб прачытаць гэты артыкул Forbes:
“Інвестыцыйны выбар, якога варта пазбягаць: прыватны REIT” ад Лары Лайта.

ETFs даходаў і ўзаемныя фонды пенсійнага даходу – гэта другі і трэці лепшы спосабы ўдзелу на рынку з фіксаваным даходам:

  • Яны забяспечваюць (або адсочваюць цэны) дыверсіфікаваныя партфелі асобных каштоўных папер (або ўзаемных фондаў).
  • ETFs лепш, таму што яны выглядаюць і адчуваюць сябе як акцыі і могуць быць куплены і прададзеныя ў любы час; Відавочным мінусам большасці з’яўляецца тое, што яны створаны для адсочвання індэксаў, а не для атрымання даходу. Некалькі, якія, здаецца, даюць больш за мізэрных 4% (толькі для інфармацыі і абсалютна не рэкамендацыі), гэта: BAB, BLV, PFF, PSK і VCLT.
  • Што тычыцца ўзаемных фондаў пенсійнага даходу, то самы папулярны з усіх (VTINX Vanguard) мае 30% акцыянернага капіталу і дае менш за 2% у рэальных выдатках грошай.
  • Ёсць па меншай меры сто «дасведчаных» неабкладаюцца падаткам і падаткаабкладаемым прыбыткам CEF, а таксама сорак або больш акцый і / або збалансаваных CEF, якія плацяць больш, чым любы даход ETF або ўзаемны фонд.

Больш пытанняў і адказаў у частцы II гэтага артыкула…

How to invest in gold in today’s market

Here’s how to invest in gold

Are you wondering now how to buy gold? Many people want to invest but don’t know where to start. The simple truth is that there are many methods to start investing in gold. Here are some of the most common ways to purchase gold, as well as the pros and cons of each, as well as tips.

1. Physical gold

Of course, buying physical gold is one of the most common ways to spend money on gold. As for how to invest in gold, there are many things to understand about buying physical gold. Here are a few:

How to do it

Buying psychic gold is actually easy because it sounds best. You purchase gold items such as jewelry, coins, collectibles and almost other things. The goal of most investors is usually to keep their mental gold and then sell it to a gold dealer or other buyer.

People have a number of options as to where they can buy physical gold. They can purchase them at the store or online. Whenever they find gold, they will have to keep it until they are ready to sell it at a higher price. As gold prices rise, investors may consider selling their shares.


The first plus is that physical gold can be a tangible asset, and history shows that gold tends to increase in value over time. Very few investments are sensitive and also have a high probability of rising, even if the economy is not very good. If you want to get a great investment that you can easily keep, see, keep in your possession, then look no further than investing in physical gold.

The second plus – physical gold is impossible to crack or erase. Nowadays, people have countless assets in which they can invest and are usually stored online. The golden piece of your hand does not require internet or electricity to work or anything like that. This is a really reliable investment in terms of protection against hackers.

The third advantage of buying physical gold is that you just don’t need to be a professional. Perform a quick survey of gold price tags and then research gold traders. You can then find the gold items you want to keep and then sell them when you are ready. It’s that simple.


First, buying mental gold can be costly. Depending on where you buy it, you can pay a commission. Even if you buy it from a private seller, you can bet that gold will probably be expensive. If spending large amounts of cash ahead is not for you, then you may want to think twice about buying gold, but overall gold is usually definitely worth the investment.

The second disadvantage is the storage of gold. No matter which gold pieces you get, if you purchased them directly, then you are responsible for storing them. You must be careful before storing it, otherwise you may risk theft, damage and even loss.

The past major downside is that physical gold, if stored in you, won’t attract interest. You have to secure the gold until you decide it’s a chance to sell it. If you want to get a little interested in your gold products, then buying physical gold and storing it yourself is probably not the best option.


Buying physical gold is pretty simple. It’s also simple. Just make sure you need to do as much research as possible with gold traders before deciding what type to do business with, and make sure you research current gold prices because you need to try to find good deals on gold pieces . All of this can be seen as common sense advice, but trust us as soon as we say it will come in handy when it comes to buying gold.

2. Gold futures

Gold futures are contracts that have been standardized and are usually traded on certain exchanges. Gold futures allow investors to get a unique amount of gold (such as 100 troy ounces) at a price that has already been predetermined. However, delivery will take place in the future.

How to buy gold futures

The first thing you need to do is open a brokerage account. You will find brokers who specialize in futures trading, so choose them. Next you can trade gold futures, and as it works, you need to contribute an absolute minimum of money so you can open the situation. If the price goes in the right direction, you will generate a profit, but you will generate a loss if it goes in an unacceptable direction.


First, you just don’t have to store anything. As mentioned earlier, when buying physical gold you need to find a place to store it. With gold futures this is not a problem.

Second, smaller amounts come to mind with the gold of the future. At the time of the transaction you will be asked to pay only a certain amount of cash. The rest pay immediately after signing the agreement.

Another great thing is that there is a good amount of liquidity. In addition to this, however, you can trade futures for gold. This means that there are prospects to regularly make and withdraw profits.


There are only a few downsides. One is that there is a great risk to trade anything, and gold is no different. The risk of default may leave the most experienced traders in the trenches.

In addition, gold prices can fluctuate greatly daily. Making money is easy, but you can easily lose it. Remember that the price of gold may be attractive at the time of signing the agreement, but it may decrease once the supply is made.

One third of the disadvantages are volatility from the market. One day the markets may be good, and the next it may collapse. A phase may soon come as markets do not move strongly.


As for tips, it’s all about opening a trading account with a great broker. You can find dozens and many brokerage accounts, so compare as many as possible. Find one that will give you good advice on trading gold futures and then one that does not charge a number of fees. The more brokers you compare, the more effective.

Also, research gold prices for a few weeks before making investments in gold through futures. If prices seem stable, go ahead. If over the past couple of weeks there has been excessive volatility in the markets, think about waiting until things get more stable.

3. Gold ETFs

Gold ETFs are a fantastic replacement for gold futures. You will not own contracts, but will buy shares of any ETF. In turn, you will be open to gold, so they can be called gold ETFs.

How to do it

You can get a brokerage account through a broker that allows you to trade gold ETFs. You will then be able to choose the gold product you want to purchase. It’s elementary.


One of the best reasons for gold ETFs may be like hedging against inflation. This is usually true with a lot of gold-based investments. If you own gold ETFs, then they are used to protect your assets from inflation and currency fluctuations. Gold is definitely a safe investment, and if you buy the right ETFs, then you will do yourself a great favor.

Second, trading gold ETFs is an extremely simple task. You will only need to invest one unit of gold, that is, against a gram of gold by weight. Alternatively, you can trade ETFs through your ETF fund manager or even your stock broker.

The third advantage is that you can look at stock exchanges and find out how much gold is sold. This can be done at any time. If you think the prices are high, then go and buy something, otherwise you can wait until the prices become a little more attractive.

Another advantage may be the tax side of the case. The only taxes you spend are capital gains tax in the short or long term. Long-term is gold that is stored for any year or longer, and short-term – less than a year.


One downside is the fact that ETFs can be expensive. In fact, they may be more expensive than other investment styles, but they are often more profitable. You need to decide whether to buy gold ETFs. This is actually the only serious trick involved in buying gold ETFs.


If you can, consider investing large amounts of capital or get into the habit of trading regularly. The reason is that ETFs tend to be more profitable than other types of gold investing. Basically, you can create a lot if you are willing to trade regularly or invest large sums of money.

Another useful tip is to usually never choose a fund manager or product ETF since the fees are the same. Do a little research to find out exactly what the show has looked like over the past few years. If all goes well, choose this fund, otherwise keep looking for another fund manager.

4. Purchase of gold mining enterprises

This may be the best way it may sound. This requires the acquisition of gold mining companies. You are, in fact, buying shares of gold mining companies.

How to make it happen

You can get a stockbroker or investment firm. They can pick up your funds and invest them in a gold company of your choice. Another way to do this is to join a platform to trade stocks online and spend money on businesses with gold listed on the platform. You buy a certain number of shares and then sell them when you make a profit.


First, buying shares of gold mining companies is easy and therefore selling them. All you do is buy the number of stocks you would like and then sell them when you are ready. In addition, you can invest in multiple companies and increase your chances of making a profit often.

Second, fluctuations in retail prices can be huge, but they usually occur over a period of time. If you are patient, then you can definitely sell when these swings happen. Remember that if a company is doing well and doing everything right, its shares can certainly rise, if the price of gold is also high, then you can act adequately.

Third, buying stocks is convenient for beginners. It doesn’t take much knowledge to break down money, but it usually requires research by gold mining companies. Just do a lot of research in a few companies and find out what financial reputation they already have before investing in them.


The risk is high because gold mining companies carry a lot of risk, which can lead to a decline in their shares, regardless of whether the price of gold is high or not. Also, remember that gold miners are putting themselves in danger, and what they usually do can also affect a company’s stock price. Investing in gold mining companies is just as risky as buying almost all other types of stocks.


Only one specific tip should be remembered. You need to explore the different platforms of stock trading and make sure the ones you use have stocks of gold mining companies. Better yet, research gold mining companies and set them up before looking for exchange trading platforms. Then you could find out if these platforms offer shares of these companies.

Here’s how to spend money on gold. As you can see, you can find the pros and cons of each form of investing, so you can consider all the different methods of investing. Then you can of course choose which technique to try.

Fed rate cut – will they help stocks?

Last month, the Fed took a decisive step to cut the rate twice by 125 basis points. And with a fall of 225 basis points since last fall, what does that say about the likely return on stocks? Let’s look at historical data.

Since 1950, the Fed has cut 11 times by more than 200 basis points in an attempt to simulate a shaky economy. Economists believe that the reduction will take six months to take effect, which should last up to three years. So I studied the one- and three-year returns of the S&P 500 and the Fama / French Small Cap Value benchmark portfolio for each rate cut period.

After a reduction of 200+ basis points, the average annual return for the S&P 500 was 13.5% with two negative payback periods. The average three-year return for the S&P 500 was 31.8% with one negative profit period.

However, the Fama / French Small Cap Value benchmark portfolio performed better. The average yield for one year is 34.5% without negative returns. The average yield for three years was 100.5% with only one negative profit period.

Periods of rate cuts S&P500 S/V* S&P500 S/V*
of 200bp or more 1y ret 1y ret 3y ret 3y ret

Oct 1957 - Mar 1958 32% 64% 55% 106%
Apr 1960 - Jan 1961 11% 23% 25% 47%
Apr 1970 - Nov 1970 8% 12% 10% -1%
Jul 1974 - Oct 1974 21% 34% 25% 149%
Apr 1980 - May 1980 -19% 46% 46% 175%
Jan 1981 - Feb 1981 -14% 10% 20% 131%
Jun 1981 - Sep 1981 4% 25% 143% 141%
Apr 1982 - Jul 1982 52% 96% 78% 174%
Aug 1984 - Nov 1984 24% 31% 41% 39%
Sep 1990 - Mar 1991 8% 29% 19% 89%
Sep 2000 - May 2001 -15% 19% -11% 57%
Average 13.5% 35.4% 31.8% 100.5%
*S/V = Fama/French Small Cap Value benchmark Portfolio
Data sources: Federal Reserve, Kenneth French data library

Historical data show that lowering the Fed’s rate does not guarantee earnings on stocks. However, they increase the chances of doing so – especially with low stock prices. (Note: The probability of losing money with the S&P 500 index in any year is about 30%).

Martin Zweig once said:

Don’t fight the Fed!

How wise was his advice!

Where is the world’s silver?

Given that the price of gold fluctuates almost 67 times higher than silver, the logical conclusion should be that silver is much richer and easier to buy than silver. On the contrary, the evidence suggests otherwise. In fact very little silver can be found.

Known overhead silver reserves in ounces

Silver ETF SLV 295,313,780

US Eagles minted 240,418,077

Warehouses COMEX 114 102 049

Estimate of private ingots (not eagles and maples) 120,000,000

Central Fund of Canada 75 209 103

LBMA Estimated Stocks 75,000,000

Canadian maples minted 21,303,000

Silver ETF ZKB – SWISS 7,397,885

BMG Bullion Fund 5,033,609

Total 953 777 503

Gold is almost twice as much as silver in the form of ingots and investment grade coins, and this ignores the fact that 52 percent of the world’s gold is stored in jewelry. While terrestrial silver is 953 million ounces, terrestrial gold bullion is estimated at 1,803 million ounces.

It is important to note several structural differences in gold and silver funds. About half of the land gold bars are in governments. There are no known silver reserves held by governments. Although governments have historically sold their gold to fund their budgets and maintain the price of gold, there is no such easily accessible organization that could sell silver bars. Investors in precious metals often store their precious metals for periods of time measured in years, decades and lives. Most private investors will not sell their bullion with 10 percent or perhaps even 100 percent profit. So even if there is nearly 1 billion ounces of silver, the question remains as to how much of it is actually sold at prices close to today.

The cash dollar value of all silver bullion is small compared to gold or other assets. In fact, measured in dollars, silver is 1/127 gold. Many mutual funds have more than a silver market of $ 16.88 billion, however gold is more affordable to buy in big dollars. Silver may be one of the most neglected and unloved values ​​of this century. Perhaps the reason why silver is so cheap, ironically, is that it is too rarely invested by asset managers. Is that so?

Retirement Income Portfolio Management: A Plan

The reason people take on investment risks in the first place is the prospect of achieving a higher “realized” rate of return than is possible in a risk-free environment … i.e. a FDIC-insured bank account with compound interest.

  • Over the past ten years, such risk-free savings have been unable to compete with riskier funds due to artificially low interest rates, forcing traditional “mortgagors” to enter the mutual fund and ETF market.

  • (Funds and ETFs have become a “new” stock market, a place where individual stock prices have become invisible, questions about the company’s fundamentals are met with empty eyes, and media executives tell us that individuals are no longer in the stock market).

Risk comes in various forms, but the main concerns of a middle-income investor – is “financial”, and when investing for income without proper thinking – “market” risk.

  • Financial risk includes the ability of corporations, government agencies and even individuals to meet their financial obligations.

  • Market risk refers to the absolute certainty that all marketable securities will experience fluctuations in market value … sometimes more than others, but this “reality” needs to be planned and fought, never feared.

  • Q: Is it the demand for individual stocks that drive ETF funds and prices, or vice versa?

We can minimize financial risk by choosing only high-quality (investment grade) securities, properly diversifying and realizing that changes in market value are actually “harmless to income”. With an action plan to combat “market risk,” we can actually turn it into an investment opportunity.

  • What do banks do to get the amount of interest they guarantee to depositors? They invest in securities that pay a fixed rate of return regardless of changes in market value.

You don’t need to be a professional investment manager to professionally manage your investment portfolio. But you need to have a long-term plan and know something about asset allocation … often using the wrong and misunderstood portfolio planning / organizing tool.

  • For example, the annual “rebalancing” of a portfolio is a symptom of dysfunctional asset allocation. Asset allocation should monitor every investment decision throughout the year, every year, regardless of changes in market value.

It’s also important to recognize that you don’t need high-tech computer programs, economic scenario simulators, inflation estimates, or stock market forecasts to properly match your retirement income.

You need common sense, reasonable expectations, patience, discipline, soft hands and an oversized driver. The “KISS principle” should be the foundation of your investment plan; the compound yields an epoxy resin that keeps the structure safe during the development period.

In addition, focusing on “working capital” (as opposed to market value) will help you go through all four major portfolio management processes. (Business majors, remember PLOC?) Finally, a chance to use what you learned in college!

Retirement planning

Retirement Income Portfolio (almost all investment portfolios eventually become retirement) is a financial hero who appears on the scene just in time to fill the income gap between what you need to retire and guaranteed benefits that you will receive from your uncle and / or past employer.

How powerful the superhero power is, however, does not depend on the size of the amount of market value; in terms of retirement, it’s the income earned inside a suit that protects us from financial villains. Which of these heroes do you want to top up your wallet?

  • A million-dollar VTINX portfolio that yields about $ 19,200 in annual costs.

  • A CEF portfolio with a well-diversified million-dollar income that yields more than $ 70,000 annually … even with the same distribution of capital as the Vanguard Fund (just under 30%).

  • A million-dollar portfolio of GOOG, NFLX and FB that doesn’t give out money at all.

I’ve heard that 4% raising from a retirement income portfolio is about normal, but what if that’s not enough to fill your “income gap” and / or more than the amount the portfolio produces. If both of these “what ifs” turn out to be true … well, that’s not a pretty picture.

And it gets more disgusting pretty quickly when you look at your real portfolio of 401k, IRA, TIAA CREF, ROTH, etc. and understand that it does not bring even about 4% of the actual income spent. Full return, yes. Realized expenditure income, ‘I’m afraid not.

  • Sure, your portfolio has been “growing” in market value over the last ten years, but probably no effort has been made to increase the annual income it generates. Financial markets live on market value analysis, and as long as the market grows every year, we are told that everything is fine.

  • So what if your “income gap” is more than 4% of your portfolio; what to do if your portfolio produces less than 2% as a Vanguard Retirement Income Fund; or what if the market stops growing by more than 4% a year … while you are still depleting capital by 5%, 6% or even 7% ???

A less popular (only available in selected portfolios) approach to a closed-end income fund has been around for decades and covers all “what if”. They combined with investment grade equities (IGVS) have the unique ability to take advantage of market value fluctuations in any direction, increasing portfolio returns with each monthly reinvestment procedure.

  • Monthly reinvestment should never be a DRIP (dividend reinvestment plan) approach, please. Monthly profits should be pooled for selective reinvestment, where you can get the most profit. The goal is to lower the share price and increase the return on positions … with one click.

The retirement income program, which focuses only on rising market value, has been doomed from the start, even at IGVS. All portfolio plans require a profit-oriented asset allocation of at least 30%, often more but never less. All individual security purchasing decisions must support an operational asset allocation plan “growth target versus revenue target”.

  • The “Working Capital Model” is an automated pilot asset allocation system that has been tested for more than 40 years, which largely guarantees the growth of annual income when used properly with a minimum profit distribution of 40%.

The following points apply to an asset allocation plan with individual taxable and deferred tax portfolios … rather than 401,000 plans because they usually cannot generate adequate income. Such plans should be distributed with maximum certainty within six years of retirement and submitted to a personally managed IRA as soon as possible.

  • The distribution of “profit” assets starts with 30% of working capital, regardless of the size of the portfolio, the age of the investor or the amount of liquid assets available for investment.

  • Starting portfolios (less than $ 30,000) must not have an equity component and no more than 50% before reaching six-figure figures. From 100 thousand dollars (up to 45 years) to 30% of income is acceptable, but not particularly income-generating.

  • At age 45, or $ 250,000, move toward a 40% income target; 50% over the age of 50; 60% at the age of 55 and 70% of securities intended for income starting at age 65 or retirement, whichever comes first.

  • The revenue side of the portfolio should be maximized, and all asset allocation determinations should be based on working capital (i.e. based on portfolio value); cash is considered part of equity or “growth goal” distribution.

  • Equity investments are limited to seven years of experienced CEF and / or “investment-grade stocks” (as defined in the book “Brainwashing”).

Even if you are young, you need to quit smoking and develop a growing income stream. If you continue to grow income, the growth of market value (you have to worship it) will take care of itself. Remember that a higher market value can increase the size of the hat, but it doesn’t pay the bills.

So here’s the plan. Identify your retirement salary needs; start your investment program with a focus on profits; add stocks as you age, and your portfolio will become more significant; if retirement is approaching or the size of the portfolio becomes serious, make the distribution of your income serious too.

Don’t worry about inflation, markets or the economy … asset allocation will allow you to move in the right direction, while it focuses on increasing your income every year.

  • This is a key point of the whole “retirement income” scenario. Each dollar added to the portfolio (or earned by the portfolio) is redistributed according to the distribution of “working capital” assets. If the income distribution exceeds 40%, you will see that profits magically grow every quarter … no matter what happens in the financial markets.

  • Note that all IGVS pay dividends, which are also divided according to the distribution of assets.

If you’re no more than ten years of retirement age, a rising income stream is exactly what you want to see. Applying the same approach to your IRAs (including a 401,000 carryover) will bring in sufficient income to pay the RMD (required mandatory allocation) and will give you the opportunity to say without reservation:

Neither a stock market correction nor an increase in interest rates will have a negative impact on my retirement income; in fact, I will be able to increase my income even better in any environment.