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The action on my personal blog is heating up — to say the very least!
All this week, we’re getting our readers’ ideas on how to best structure the optimum growth portfolio for 2010. On Monday, most of our bloggers told us they’re bearish on U.S. stocks. So yesterday, we asked …
How would you rate FOREIGN stocks in the current environment?
Which countries do you feel will provide the greatest profit potential with the lowest risk in the first half of 2010?
Once again the wide variety of opinion and the depth of knowledge of our readers was impressive:
William W. is skeptical: “Nearly every investment pundit on the planet is touting the advantages of emerging market investments,” he writes. “That makes me nervous.”
Warren W., who says he is invested in Indonesia and China, is cautious: “Their fundamentals are better and the companies operate in markets with more potential for growth than the U.S. However, until foreign markets truly uncouple from U.S. markets, you’re stuck with ownership of good companies that cannot escape the gravitational orbit of the U.S. markets.”
Barry B. is cautiously optimistic as well: “I think foreign stock vitality depends upon where you are talking about. My overall view is that most of the emerging Asian nations will do best because:
1) They are not saddled with huge debt, either personally or nationally …
2) They are hard working with minimal expectations of what they are “entitled” to and …
3) They have a desire to become “middle class” as we once knew it, which equates to sacrifice and being long-term investment minded.”
Charles M. agrees, and points to the profits he’s making as proof: “I believe that China and India are the two best areas to be invested in right now. China is wide open and I have been following suggestions by Tony Sagami and doing quite well. In India, I invested in Tata Motors in March 2009 and have a 400 percent increase.”
Stephen A. expands on Charles’ theme: “The only place to be invested is where people have money to spend. That is no longer the United States. Demographically China and India have the largest growing middle class. Asia also has the largest manufacturing base. The best gains will be in those companies that produce products and materials for these growing giants.”
Don is solidly in the foreign stock camp and has obviously done his research: “Brazil, China and India are the best areas for growth … as well as resource stocks, oil, gas, minerals [Canada and Australia] and water resources. Also the demand for food will grow, so add fertilizers.”
Bill M. offers an intriguing possibility that few investors consider — PERU: According to Bill, “Peru is one of the strongest of the South American economies and is frequently overlooked as most focus on Brazil and Argentina. Peru has massive natural resources — lots of gold, silver, oil and natural gas.”
Overall, I’d have to say that the majority of our readers are bullish on foreign stocks — so on a scale of one to ten (with ten being most bullish), I’d say that …
The consensus seems to be that
foreign stocks rate about an EIGHT
as growth investments in 2010.
In other words, our readers are saying that they would likely prefer a portfolio that contained substantially more foreign stocks than U.S. stocks in this environment.
Now, on to my NEXT big question: What do you do for income?
More specifically, which fixed-income investments do you prefer?
Sure — the safest ones are paying bupkis right now. But for many — especially retired investors and those approaching retirement, the return OF their money can often be more important than the return ON their money.
So do fixed-income investments have a place in your portfolio? For income, safety or a proxy for cash?
And if so, what kinds do you own? U.S. Treasuries? Corporate bonds? Municipals? Short-, medium- or long-term maturities?
What other kinds of income investments do you like?
Your answers will go a long way towards helping me help YOU build a more profitable portfolio for 2010.
Just click this link and leave a comment to share your thoughts. Early tomorrow, I’ll add my own thoughts.
Good luck and God bless!
Martin
{ 324 comments… read them below or add one }
Hi Martin,
I have just strted trading about 4 weeks ago, I am a total newcommer studying and
obtaining expirience. However, I proud to have made a 12% gain on my initial tradings.
Unfortunately, I am not in the position yet to comment on your specifics.
Curt
Mandeep Singh Rai Reply:
January 28th, 2010 at 1:13 PM
Welcome Curt,
We hope that we can offer you useful information and analysis to help you make prudent investment decisions. Your initial gains are very good, but do keep in mind that markets are constantly changing and require due diligence to stay abreast of those changes. Stay tuned for more information Curt, and thank you for joining us.
Being retirement age, return of investment is more important than return on investment. That doesn’t mean that return on investment is not important, but it really is secondary. Much of my funds are in Fixed Indexed Annuities that have no downside other than inflation’s affect but in the index goes up the return can be reasonably good.
Mandeep Singh Rai Reply:
January 29th, 2010 at 11:39 AM
Thanks Jimmy Brumley –
A lot of folks have had annuities for years, and are facing much lower rates when they come due. So, for people that were living off the interest of these investments, they may not be able to cover the cost of living at the current re-invest rates being offered. For instance, I know that fixed annuities were paying in the realm of 5% a couple of years ago depending on the product, but now those numbers are unheard of for fixed products. That is cause for concern for a lot of folks looking for safety, liquidity, and income.
At the moment I am making most of my monthly income from our own foreign exchange type hedge fund, proprietary trading of the USD/EUR pair.
I have invested in the Pimco Total Return fund however I not sure how safe this fund is.
Jack
I like/need income…so I prefer quality dividend paying stocks that pay decent and consistant yields. I prefer stocks that are for “basic needs” like energy, utilities and consumer staples. If the stock prices decline the yields increase.
In my exploration of the ETF universe I found Wisdomtree International Dividends Ex-Financials (DOO). It seems to have exactly what the income seeking investor wants: the portfolio consists of the highest dividend-paying stocks from around the world, including the US, except for financials (which means these companies must make a PROFIT and then give some of that profit via DIVIDENDS to shareholders). What’s your opinion of this ETF?
Mandeep Singh Rai Reply:
January 28th, 2010 at 1:50 PM
Hi Coleman Glass – I took a peek at the ETF you mentioned, DOO, and noticed that it does have a nice dividend yield. In addition to dividends, the other return investors look for on dividend stocks is capital appreciation which is tied to the market. The holdings of DOO are in equities, albeit in dividend stocks which are generally less volatile, but are still subject to general market risk. Do you own fixed income investments? What are your thoughts regarding these types of vehicles?
Thank you for your response.
eft’s what’s good portfolio for agreesive inv.?
So do fixed-income investments have a place in your portfolio? For income, safety or a proxy for cash?
Yes.
And if so, what kinds do you own? U.S. Treasuries? Corporate bonds? Municipals? Short-, medium- or long-term maturities?
High-yield Corporate Bond Funds, Funds that own Convertible Secrurities, Foriegn and Emerging Market Bond Funds
What other kinds of income investments do you like?
I own a Senior Debt Fund.
Normally fixed income is a 50% weighting, am now down to only 10%. 5 in high yield and 5 in emerging debt. Got out of munis at the start of 2010. Treasuries are not an option as rates have to rise, I believe markedly. Corporates don’t have enough spread, so they will get clobbered too.
I prefer MLP’s, royalty trusts ( their attractiveness will gradually diminish as more convert to regular corporation status) and a handful of stocks. The coming wave of defaults in commercial real estate makes REITs awfully risky. The banks, by extend and pretend with the Feds’ blessing can probably postpone the day of reckoning, but I’m not willing to step in front of that bus. For short term money, a ladder of CD’s could work, but I wouldn’t extend out more than about 3 years. If the only penalty for early withdrawal is 1 quarters’ loss of interest, then in an emergency, it wouldn’t matter since it is near 0% that you get in a fully liquid account anyway. And if rates spike instead of just rise gradually, then it may pay to take that loss to roll over or invest elsewhere.
Martin Weiss Reply:
February 1st, 2010 at 11:27 AM
Denny, even though yields are low, I cannot agree with two of your comments, as follows:
1. Cutting down the allocation to fixed income is what the majority of investors have done, but it could be a trap. Instead of inadvertently following the crowd, you may want to seriously consider striking a more independent path with a much larger allocation to fixed income, favoring short-term maturities.
2. Treasuries may not be an option for yield. But I feel yield must not be your only goal. In an environment of continued high uncertainty, it’s liquidity, safety and capital preservation that are likely to be more important. — Martin
I use MLPs
Mandeep Singh Rai Reply:
February 5th, 2010 at 4:35 PM
Thanks for your input John – Nilus Mattive, our Dividend Superstars Editor is also fond of MLP’s as he explains in this column the benefits and risks: Nilus Mattive on MLPs a>.
I’m concerned about anything having to do with the stock market. They have seen a nice run-up but how long can that last? I’ll just keep investing in gold and silver. It’s been a bumpy ride this week but I don’t see the price of either of these staying down long and am simply using it as an opportunity to buy.
I have invested only 20% in stocks and of that 20% 12% in gold mining stocks and the 8% 6% in fxi which is not doing well and 2% in US. stocks my income comes from work and social security , the economy is so volatile that one does not know what will happend tomorrow , I prefer as yo said ro meke nothing on my treasury bills but to sleep soundly. ramon
I think investing in foreign real estate is the only way to go.. It will capture the appreciation in inflation certain to come as a result of fed flood, and it has the stability..
I like Belize because its language is English, its people are western in style and its government seems stable.
I am totally out of US treasuries. The FED will have to raise rates, however, even before that I believe foreign demand for our bonds will dry up. International bonds are an option. The US dollar should resume it’s slide in the 2Q10 thus inflating yields on international bonds. Only buy International Bond Funds with l.t. excellent management
For fixed-income investments, you should seriously take a look at peer-to-peer lending (Lending Club is my personal favorite). They beat traditional banks by a landslide, and for the investor/loan purchaser, they will continue to grow in popularity and dependability.
I really have difficulty investing in companies that I don’t understand. I know about real estate and am actually buying some very well researched deals out there. I also understand tangible assets like gold and silver. Something I can hold onto that won’t evaporate into thin air like so much of my stocks did last year. I was reminded of a valuable lesson that I never want to repeat. What the heck do I know about some company in China??
I am retired, but my wife is younger and works as a registered nurse and provides income and health insurance coverage.
Most of my cash and equities are in Canadian $. I lived in Canada for many years.
I feel that at present the CDN$ has some protection in that if the commodities boom continues and China continues to grow that this will support the CDN$. There is not the same degree of debt and financial crisis in Canada, there was not the same degree of housing bubble as in the US or UK. I don’t expect the Canadian $ printing presses to run all night as they might in the US.
As far as emerging markets go, I think that growth is going to be most pronounced in the BRIC countries, but what is the safest way to participate in this growth? Asian companies may offer great potential, but I am leery because I have no way of verifying what they say. China is not transparent, all manner of deception occurs, from baby formula to dog food to drywall to human rights. If Madoff can pull the wool over our eyes right here at home (along with other frauds), then imagine what can be going on in China! So I intend to stick to resource companies (to benefit from commodities) and companies like Suntech Power or CBAK that trade in the US and hopefully have more transparency.
I have a fair amount of capital, I don’t need huge gains and prefer to make decent gains while having less chance of losing the buying power that I have at present.
On Fixed Income Investing DO NOT RUN WITH THE PAC! as everyone looks ofr % yield and will take on risk via going for lower rated Corporate or MUNI’s or longer term maturity dates. This very BIG NO NO. Income starvation is part and parcel of the bull trap. Stay with US T-Bills primarily with secondary position in less than 2 year US T-Notes. Capital PRESERVATION main goal and investment Theme will pay off thru 2012. Forget ALL the other B.S. (Forex, Commodities, Precious Metals, Stock or equities both Foreign & Domestic Markets and lets not forget Real Estate too) CASH IS and will be KING. And that the US Dollar will be replaced as reserve currency… That’s a pipe dream and more BS for the a the very least the next 2 to 5 years.. which is an eternity in investing worlds… Remember that Old Line: “IF YOU RUN WITH THE PAC, YOU WILL END UP PISSING WITH THE PUPPIES”
Joey K
Connecticut
I have been afraid of investing since 2005. Since then I’m invested 50% in silver & gold bullion, (up 60%) 25 % in bank CD, 25 % cash in brokerage acount (both earning less than 1%).
Hi Martin:
I think that the China Bubble is beginning to pop and that all markets will be heading lower this year.
I think the inverse China Pro Fund -FXP at about $10.00 per share and the Inverse Real Estate Pro Fund at $ 8.00 Per Share are two worthwhile speculations.
Also, for the aggressive investor I like the MS Inverse Euro Fund DDR @ $43.00 per share.
Regards.
Even Steven
Sjschoen@hotmail.com
If you reference my ideas please use my pen name: Adam Smith, Jr.
I own corporate bonds for income. I also have an annuity-for-life with another 7 year annuity maturing in 6 years. I also own GLD. I am unsure of the corporate bonds, good or bad, as they mature mostly in the 2030’s. Also, with inflation the annuity-for-life could be a bad investment.
All of my retirement funds are in IRA’s and I am not sure if this is the time to roll them into my Roth.
We have two IRA’s for Weiss advice, but we have chosen to sell many of the stocks recommended by Claus as they don’t appear to be profitable to us. We are still listening and taking the Contrarian advice at times.
Dr. Weiss, to answer your querstion, My income is from ss and savings and return on stock equities.
I feel stock equities have the best return, from my 20 years experience. The problem I face is finding the equities with the greatest potential. Currently I am partly in cash and one equity, Chicago Mercantile Exchange. I am not experienced in foreign stocks and the risk that has been there in the past with intervention by gov’t regulation gives me pause. However, your promotion of the China, India, Brazil and Peruvian markets seems to open up some profitable potential.
Martin Weiss Reply:
February 1st, 2010 at 11:31 AM
Lou, everyone calls me Martin, and you can do the same. If safety and capital preservation are your primary goal, you have every reason to be leery of stock markets — whether domestic or foreign. Our recommendations for China, India, Brazil and other markets are strictly for funds you can risk with a modest portion of your portfolio. Moreover, the time to take some of that money off the table could be near.
Investment Income: Stocks and Bonds were good in 2009. 2010 is still a question mark.
Income – long term munis @5%, although I dumped the scary ones, plus a monthy
pension. Social Security almost here. It gets us by.
Forget decoupling, they’ll go down with us. Bob Prechter is right, dollar rising and hold
on to your shorts (also the ones you’re wearing) because it’s going to get ugly.
I am currently holding US Treasuries (Mutual Fund) long, medium and short term equally. I plan to move away from the long term and emphasize shorter term on these. This is a retiree nest egg account–not an IRA. A sure and steady (safe) income is important rather than greater returns.
I sold my companies in 2008 and now am employed by the buyer at about 25% of what I was making. To make up the difference, I have 4 annuities with Weiss A-rated companies that provide about 45% of my income. The remaining 30% comes from interest on money I have loaned to the trust that owns the land and buildings on which my old business is located.
There is at present no investment that I know of that will match the return I get on the above that is not market-influenced and suseptible to decline.
Hello, I am a Government employee, and traid and invest all I can on the side, I am currently invested in China, I have Gold stocks, and real gold in my hand, as part of my portfolio, and also many different diversified portfolios with many different companies some safe some risk, and high risk. I would like to retire soon, and find some place to put the bulk of my money where the return for interest will be great, and with little or no risk, to live off of what I have accumulated, While still investing some on the side for maximum return…For now I am investing in many areas that I have researced, Janus Twenty , T Rowe Price small caps, Fidelity Diversified, Vanguard Mid Caps, Vanguard Devel Markets index, and index plus, and Vanguard Balanced index, Dodge & Cox balanced , and bond index..Legg Mason Clearbridge, and as I said Gold and asian markets,with add ons of International Equity, Franklin, High yeild bonds, and Utilities. so I am well Diversified… any input of yours is appreciated..Thank You Bo
Hi Martin,
Since the monetary system is the only present aggregate that is moving along, I trade the forex market and invest 40% in gold.
Physical aggregates in the real world have collapsed as evdenced by the real unemployment numbers. There is no such thing as a jobless recovery.
On the the financial aggregates, there is too much fraud and cooking of books in the stock market and other financial instruments. In other words, the hyenas have already feasted among themselves since they are running out of victims in the middle class sector.
So sad to say, even if monetarism is the root of all evil, to survive, I use this market while it is still alive even though its more of a zombie if you will.
God Bless Us All.
Raul
There are some good Income stocks in Canadian Trusts — but the Canadian 15% witholding tax makes them un-viable dor retirement accounts. The BRIC area stocks do have potential, but aside from the Business Risk of Foreign Stocks there is also a systemic risk caused by the manipulation of the Dollar. I do feel that the dollar is currently being artificially propped up to make the current administration look good; but ultimately the dollar will drop llike a rock and will also take the foreign stocks down. Precious metals do provide a limited amount of downside risk; and I say limited because the panic of a downward investment slide will take everything down — because people will sell first (creating very high investment product supply-demand ratio) and will analyze later. Remember Golden Parachutes are only for the Rich & the Politicians. The poor will get poorer and the middle class will get poorer too — that is the classic end result of Socialism.
20% of holdings in municipal bonds. they are paying 4%, better than I can do with other traditional savings investments
Although I am not presently taking income form my portfolio,I keep the fixed income portion all either short term less than 18 months, or floating rate securities due to the threat of future inflation. I also have about 1/3 of the fixed income in international bonds and some high yield. I haven’t any long term bonds of either corporate or government.Tthe other option I would consider is good quality utilities for dividend yield, if the fundamentals of the utility are strong.
Individual high yield stocks that “should” be able to continue to pay the dividend; T, VZ, MO – MLP’s; PAA, KMP – Mortgage REITs; NLY, MFA, some bond funds; “PIMCO LOW DURATION” and total return — spread these out aka “diversify like crazy” — TIPS and the highest yielding FDIC insured savings accounts I can find for cash allocation.
Please provide your ideas – “what to do” to get some yield…
I am also short the EURO via double inverse etf EUO and short the 20 year via etf TBT
Bought the DXD yesterday morning and will hold with a stop loss @29.80. Im not optimistic about ant appreciation in the dow 30 or the sp 500. Randall
Fixed income I like New Zealand’s large company corporate notes, which yeild between 8 and 11% face value. But during the crises you could buy these notes for 50 cents on the dollar. I like these as we are in a deflationary environment and I don’t expect that to change anytime soon. Naturally you have to monitor the currency market and short the New Zealand dollar as appropriate.
I represent a company that packages and resales life insurance contracts. We are offering contracts in packages of 10 and will soon go to 20. Our program is market noncorrelated. Our risk is mortality. Mortality can be calculated more precisely than the market and our program targets 12% apr or 16.5% simple. If you begin laddering these portfolios you can either spend the gain or roll to a new portfolio. Principal seems to be pretty safe as most people will die and mortality rates are calculated with much more precision than you normal life insurance mortality tables. About a 98.5 % success rate has been experianced. We target a 7 year turnaround. Some contracts turn much faster. This and Dr. Weiss equity recommendations and intermediate bonds or inflation adjusted bonds seem to be an ok portfolio.
i use an indexed annuity.
Income? Master limited partnerships, REITS, dividend paying blue chips, bull put spreads and bear call spreads.
i did invest in ewz but that went down lately with a few others i still have faith in it but the ups and downs of the market isnt for anyone with a week heart.
I have two US government pensions that adequately take care of my retirement needs along with government health insurance.
In answer to what income producing investments i have ; unfortunately, except for dividend paying stocks, there are no others. I steer clear of anything to do with bonds or treasuries. How can trust be placed there one iota ? ? ? I’d rather have cash.
That is the extent of my income which is $3,500 after taxes and being single without debt I find this quite adequate.
About 30 years ago I bought several muni funds and own them all to this day. I have let all of the income stay in the funds through dividend reinvestment. Through good years and bad, I have never waivered, and have put more money into all of them as I felt them to be long term investments. Today those six muni bond funds represent over 30% of my total portfolio.
The problem with BRIC is that R & C are likely to confiscate private ownership again, so I am staying with Brazil & India. I am also in Australia. Although I am old enough for SSI, I am still working and laying up as many non-US investments as I can. I am in Money Markets, to be available to move fast when the need arises. Notice I no longer say if the need arises.
I am following Larry Edelston closely then doing my research. I am very pleased with my results.
Income—non-traded REITs, (multi-family, stand alone retail and healthcare), covered calls and cash-secured puts (on long and short ETFs).
For income: I am investing in high, safe yield stocks (BP, CAT, utilities, commodities, MLP’s, preferred stock in A rated banks, and short term treasuries
Martin,
After watching you all in action for a couple years, I do agree with a lot of your ideals, and management of money. My only reservation in all that you have been saying now is, can we afford to send all of our investment money over seas? I want this United States to survive this mess, and feel that sending all of our funds to other countries, will do little to prop up this great country we live in.
I am in the farm real estate business, and feel there are grass root ways of weathering this storm. You folks are conservative enough for my money, but sending all this to other countries seems like the wrong direction. Buy American, and think inside this box we call home. If I had a choice of making a gain of 100% in the U.S. of A., or sending it elsewhere and making 200%, I know where my money would stay. Thanks. Chuck G.
Martin Weiss Reply:
February 1st, 2010 at 11:33 AM
Chuck, I definitely do not recommend sending all — or even most — of your money overseas. I recommend you keep most of your money in a very safe U.S. place, especially cash and short-term Treasuries (despite the miserable yield), allocating only modest portion to overseas investments. I think the U.S. WILL ultimately survive and even thrive. But it must first endure a lot more pain. — Martin
Martin,
Income: Don’t need it now. Making a major conversion to a Roth this year so I’m looking to reduce my (Div) income –just sold MO. If taxes on Div’s go up significantly in 2011, I might look for growth w/o income stocks, ETF’s and gold. I’m in the upper 70’s, so I’m being convince to get more conservative.
Frankie
For Income – nothing. With interest rates this low both interest rate and business risk are very very high. There are no good income investments. Even though it pays no interest I keep funds dedicated for income in cash (US $) and Chinese Yuan.
Foreign Stocks: I rate these speculative, but am diversifying in ETF’s in Brazil, China, India, Australia Commodities stock and an emerging markets fund.
I agree with you and most of your readers that the U>S> economy is in deep trouble. As I am a retiree I must keep most of my assets in ultra safe locations. Mine are in Canadian income trusts and gold, although the latter hasn’t done much lately.
I have only been trading for about four weeks. I have positioned my money mainly in gold and silver and have traded in and out of some different stocks. Some winners some losers. I was doing fairly well until this recent downtrend. I think I am on the right track considering our spend happy govment. Last night pres. O. asked for another stimulus pkg. I think the dollar is doomed. I have lost a considerable amount of money. Any advice on the subject ?
thanks: wade
Martin’
My previous comment, Sorry I answered the wrong question. On foreign stocks,
I agree with the prior comments to look toward the China area, Latin Am and India.
Frankie
Martin, right now I am making good money with inverse ETF’s. Thanks to you and Mike I have done well with ETF’s ever since reading your book and taking Mikes service. As far as foreign stocks go I am a little concerned they may plummet soon? Appreciate all your advice, Craig
stock dividends and plus money market funds meet my normal income needs.
In India, dividends are not taxed in the hands of the recipient – so its useful to invest in dividend yielding stocks.
But overwhelmingly I have been relying on capital appreciation – given that short term capital gains are taxed at 10% and long-term at zero%. So I liquidate part of my capital gains every year to meet the shortfall in income that is not met by dividends or money market funds.
Most of all, I am frugal, frugal, frugal. About 80% of my dividends and capital gains go right back into investments – either stocks or fixed income. Plus I have zero debt – no car loans, no housing loans, zero balance on the credit cards. No bank has made money off me by way of interest.
Mandeep Singh Rai Reply:
February 1st, 2010 at 2:22 PM
Thanks Deepak, but keep in mind, even though you are not being taxed out of your pocket, the Indian company issuing the dividends pays a “Dividend distribution tax” which reduces your net dividend. Although not identical, it is similar to the double taxation system we have in the United States.
Being frugal and carrying zero debt is rare and highly commendable. In the US, using credit for purchases by individuals, households, corporations, and governments became the norm and played an enormous role in the economic slump.
Thanks for your comments, Deepak and keep up the good work.
My situation is basicly broke, 20 t0 30k in portfolio. Atempting to build cash, I do the unthinkable. In last year have raised a 7k invest to 3ok. Finding gold and energy shares at .0008 or.001 and buying 5m shares. Risks are huge, so be gains. One pt = $500. Eventually I hope to have 500k so I can invest with less risk. I think Brazil is the safest bet
As an European I believe strongly in the USD.
To make a living I use bear funds in USD too.
Best regards
René
I personally am invested in my small business. In addition, I am invested in oil and natural gas. I do not trust the American markets as I fear the Fed and the gov’t. is manipulating the market. I am even cautious of overseas markets. China’s currency is manipulated. I am not sure about India. Brazil would be a market I would probably consider. I also am invested in a commodities conglomerate domestically and a fund indexed to inflation. That’s about it except for a few thousand in gold and silver.
Martin –
What a treasure trove of ideas! I’m 65, retired for 10 years. I can afford not to make a lot of money in this scarey market, but can’t afford to lose it, so have my money scattered among many separately-chartered high-ranking banks all out of 1st bank in Denver with one-year maturities, taking it year-by-year since Nov. 2007 when I totally fled the US equity market. If the “second shoe drops” I’m FDIC safe for now, living off 1.7% and principle until the “smoke” clears. When to get back in????? Who knows??? Trend lines are up, but as you said, we broke thru support! I have played the business cycles in the past, making 90% of my money during the profitable 2nd and 3rd stages, getting into foreign funds before the crowd. With the gov. intervention, there is no business cycle so I’m out. But I like what some other readers’ take on this is too. THANKS!
Income is retirement pay. Unfortunely, I have previously bought municipals and short term US Treasuries mutual fund, neither of which are safe now. The US government plans on raising tax on interest income, capital gains and dividends.
My wife is retired and I am semi-retired (small computer business). We were fortunate enough to slowly build our “nest egg” in I-Bonds before the Feds inexplicably set a very low annual limit ($5K per individual) on their purchase – maybe Dr. Martin can wise us up why they did it. Since we are entering our 70s with modest requirements in the years ahead (no mortgages, no children, no grandiose aims), we depend on social security, medicare, and what fairly liquid assets we have aside from the “nest egg” (IRA CDs and liquid low-interest checking accounts) to keep us out of more speculative moods. But we do have some normal curiosity about the more adventurous alternatives that others are following. However, our own crystal ball burned out many years ago! Best of luck to those of you who trust in those more than we do.
Nuveen short term govt JGT
Evergreen Global oppurtunity EOD
They are extremely cheap right now and they are a steady dividend.
When ever the cash sweep gets substantial I buy ARVCF @ market. Nobody does nuclear like the french and while we were hiding in our man caves after Three Mile Island, the french did their homework and tuned the energy process.
My feelings on the blog responses is that they are very cynical, and cynicism has no place in trading and investing. Get over yourselves, settle your losses (I am still holding UNG per your reco five bucks underwater! So what!) And do the math.
VTY
Freddy Roy
Tampa Florida
My wife and I are both 88yrs young. We are very conservative, all our 66 yrs of marrage, and see no reason to change.
I do prefer my stocks to pay dividends, and that is a big part of how I choose them. However, that is not the primary focus of your question.
I hold TIPS for income with inflation protection, as 10% of my portfolio. (I am actually short other US securities through inverse ETFs.) I also hold a small amount of highly rated corporate bonds, again through an ETF, and a small amount of investment-grade foreign government bonds—you guessed it—in an ETF.
I am not thinking of these as income at this point, but as part of my total investment return, because I have a long-term outlook.
Martin Weiss Reply:
February 1st, 2010 at 11:34 AM
The perennial dilemma for income investors, Janet, is safety and liquidity vs. yield and return. You have to pick one. Despite some rare exceptions, you can’t have both. In 2008, there was a rush to safety; in 2009, a rush for yield. We recommend a mix of both, but with a strong emphasis on the safety and liquidity. — Martin
Foreign stocks – I tend to trust what you-all say about China, India and Brazil, but am beginning to think ETFs or mutual funds based in companies in those countries work better for me than stock in individual companies. I dislike getting stopped out which seems to happen fairly often now.
However, I have just signed up for Nilus Mattive’s ‘Protecting your Retirement’ program to learn more about long-term investing.
Fixed income – my cash is in a short-term treasury-only money market fund, as you recommended; I keep about half of my IRA there. I don’t have any confidence in bonds of any kind, anywhere. Don’t know what other fixed income vehicles exist that might be OK for me. The economic world does not seem to work like it used to.
Jeanette
I have very few foreign investments mostly mlp’s
Essential purpose tax exempt municipal bonds. 6o% of all municipal issues are the new Build America Bonds which is causing scarcity in tax free market. BABs are supposed to end in October 2010 but many think that the program will be extended due to their success. This could put and end to taxfree municipals altogether.
So do fixed-income investments have a place in your portfolio? For income, safety or a proxy for cash?
No, interest rates are too low on short-term instruments and
interest rates on longer term intruments are not large enough to offset the risk of principal lost from rising interest rates. The only debt I own is Ford convertible debt. It seems the government loves to subsidize the auto industry. This is not for income however, because Ford is delaying payment on the securities for about 5 years. This is more for capital appreciation. Right now I am using cash for capital preservation.
And if so, what kinds do you own? U.S. Treasuries? Corporate bonds? Municipals? Short-, medium- or long-term maturities?
If I were to own fixed income investments I would stick with short-term treasuries. If you are looking for safety, these are the best out of the group. The interest rates on anything else is too low for the risks being taken.
What other kinds of income investments do you like?
I like dividend stocks. The income isn’t fixed. The dividends change year to year but often times the dividends get higher. I prefer to stay away industries like financials and technology. I stay away from financials because it seems the government is always regulating and deregulating the industry. I avoid technology because it seems products become obsolete very quickly.
I must begin taking minimum withdrawal distributions from my IRA accounts this year, so I’ll be restructuring my retirement approach. I’m researching conservative dividend paying stocks with some international exposure in sectors with a potential for above average growth. I may also retain my contrarain fund account.
Sandra M.
We natural humans are herd animals, as natural beasts. History is never remembered, except by unreasoning emotions. We only see the fields ahead of us. For the past 9 months the fields have been green. So the herd thinks only of green pastures, and where is the next green field ahead?
But history repeats itself in nearly exactly the same way throughout the centuries. I ask only one child question. What happened last time the market went down in an epocal manner (2009), for the first time in nearly 200 years? In general, nothing stayed up, anywhere in the world. Regardless, of the admitted thriving of the Asian markets and of income investments in the past 12 months, what happened to all of them when the American market tanked in 1007 to 2009? Can this happen again? Our immediate future, for years to come, depends upon having a correct answer to this question. Just sniff the air.
So there is only one question to ask ourselves, anywhere in history. How do we time the markets? Most all respectable timing methods are just guessing at tea leaves and the way they appear in the cup. Our timing method is everything. And our timing method, history teaches us, must not be going according to the herd, which most all timing methods do, especially most cyclical methods do. [[ And ANY technical indicator that uses "time" as part of any math calculation will not make money over long term. This is proven by much computer back testing. ]] A child can understand that, simply because what does a parabolic curve mean in actual timing or height or depth? It is IMAGINARY, purely, according to herd emotions.
I admit, I have not answered your question, about what am I doing personally. But MY ANSWER must be related to what has been said here I give this answer to you, Martin, personally, because I have gained great respect for you in your work through the years.
I do not hold income or stock purchases.
h
Martin…….
Re: foreign stock markets, I think the only two which might do well during the upcoming depression are India and Brazil……Russia is still too crooked for my nerves and China is way too dependent on Exports……..once the majors stop buying their economy should slow considerably. But, Brazil is so rich in natural resources as well as oil, which I understand they have reduced their dependence on by about 90% indicating they also have some braines to go along with those natural resources. India…is……well……India……but I think they have learned well the mistakes from the good old US of A and are not getting into the same kind of mess we are in at the moment. China in the long run I think could take off at the end of the depression like the US did after about 1932……but that is a ways off…..so for my money I think India and Brazil offer the best bang for the buck as well as safety as we go down the drain.
With respect to income at the moment, I have my mother in MLP’s, oil pipelines, which are paying about 71/2-8% at the moment……also……Puerto Rico Municiple Bonds, which are at 5 1/2% totally tax free……the bonds are a little scary as once the depression gets under way and tourism crashes, these could easily take a hit. So…..I am in a quandry as to what to do. I would like to be 200% short one of the indexes in the very near future, if not immediatly. I am “hopping” for a dead cat bounce here to about 50% at which time I will be “long” the SDS beta 2 inverse S&P Calls.
And, finally, I have money in both BOA as well as PNC which makes me nervous…..but do not know where to put it to be safer in the Maryland suburbs of the DC Metropolotin area, where I have access to it. Hope this isn’t too long……but would love to talk to someone who can advise me of a “safe” and “short” strategy……
John Kent
Bethesda, Maryland
Yes, keeping fixed income which is safe and liquid is the way to go. I have about 10% of my assets in stocks, US and Foreign, and in ETF’s (Utilities, Gold, and Emerging Markets). The remainder of my assets are in 1-3 year U.S. Treasury Notes (iShares SHY) which are safe liquid, and yield about 2.7%.
For income I have been looking toward high dividend paying c. stock. I just began putting money into market in Jan10. Right now I am upside down on everything. Have sold half of the positions; and about ready to dump the rest. Not a good start. I missed your web call Wed and want to hear what you had to say. How can I?
I manage my mother’s money. Her income is generated about 1/2 from social security, and about 1/2 from CD’s that at this time still generate about 3-4%. She is frugal, and this is a safe way to generate income now with about 80% in cash. My parents’ frugality is the biggest assett: She doesn’t have to take risks because she saved enough (to live off not much interest on a fairly big nest egg, given their income over the years), and she is always willing to spend less if income drops. Real concern is fall in value of dollar/inflation.
I have moved most of my money to a local Credit Union account where I make 3.9% interest.
Credit Unions can do this because they are co-ops, so they dont have huge multimillion dollar salary guys at the top skimming the cream off the top.
My money stays LOCAL too for local smalll business loans wich ultimately helps my small business as well! Every dollar spent locallly keeps 45% in the locaal economy vs 15% doing business with nationals.
Currently, since I’m over 65 I draw Social Security. I have a about 5 dividend paying stocks which seem to be holding up at least for now. I have 1 bond fund which pays monthly dividends, some old U.S. savings bonds which I’m having to cash because they’re around 40 years old and have quit paying interest. The bulk of my money is sitting in the bank drawing about 2.5% interest. My wife is more afraid of taking risks than I am, so in order to keep peace in the family I mostly stay out of high risk investments.
Martin Weiss Reply:
February 1st, 2010 at 11:35 AM
Joe, I think your wife’s instincts and insights are on the right track. Keep her happy and I think you will be too.
click on my name for a website that will bring Cap and Trade and health care into a clear understanding as to why they want it . go to all the links on the site and read them .
I have structured our finances though investing in trends before they get going and getting out before the insane rush and crash.
Mostly Real Estate and Collector Cars. Things that are physically tangible.
Right now, we are in a No Debt, No expenses situation.
The last 5 years, any income has been converted to physical precious metals and 5% Cash.
I truly believe that it is a requirement of survival to lean down your outflow now. It is never how much you make, it is always what you DON’T spend that makes you wealthy.
I have no desire to take on the many problems large wealth confers.
Although after the upcoming Global implosion of the corporate infrastructure brought on by the cascading collapse of markets and illusory wealth, that won’t be a problem anymore. Many people have asked me, ‘What factor can you point to that will cause this?’ My response is always, ‘What factor could be put in place to stop it?’ It is already here, the Globalist structure is no longer functional. Always was Smoke and mirrors, now the mirrors are busted and the smoke is clearing fast. Governments are frantically stringing mylar and hoping it looks good enough to fool the masses. It cannot last and If you are not out and protected before that happens, You Are Done.
Investing in any of the ‘paper investments’ now is like being one of 3 fleas sitting on a Dead dog.
One takes his accumulated blood and hops off to hibernate until the next healthy dog comes along,
The second one is sticking with what he has always known. He knows it’s Dead as it’s starting to stink and bloat but he swears he will get out before the putrefaction kills him.
The third and last one is still sitting on the Dog trying to sell shares to other fleas they can entice to hop on. Knowing it will kill the newcomers but they have structured their company so that they cannot afford to leave the carcass.
Do yourself a favour… Turn off the machine, bunker down yourself and save your credibility for the next Dog. It’s time.
How is that for a 5 year strategy? LOL
JMO
My big problem is that I keep a lot of my investment money in T-bills (6 month) for SAFETY. I am retired and do not want to gamble, I invested in stocks and mutual funds years ago and took a beating in 2008, Took your advise and shopped for several banks with B rating.
If you remove all the badly performing countries including those with high debts it only leaves the sectors previously mentioned, Chine, Asia etc.
My capitol is tied up in a market yet to perform (property) and look forward to “cashing in” when loses are potentially reduced. That will release funds to “play” with you.
I’m thinking late this year.
OK so I might miss the boat. Unfortunately I caught the previous boat which is listing in all directions below the water line.
Donald.
click on my name again to read what the Co Author of the Science Czar to the US President John Holdren has to say about the Issue of Over Population . These guys are advising the President as are all the environmentalists that are writing these Overpopulation regulation proposals disguised as Climate Change legislation . And health care has regulations that will limit treatment to elderly we have already seen that with cuts in the Medicare .
read this too , from the Copenhagen summit ;
http://www.chinadaily.com.cn/china/2009-12/10/content_9151129.htm
I have been following the Dividend Superstars portfolio since April 2009 and have impressive gains in all of my holdings as well as a nice flow of income from the holdings that Niles Mattive has recommended. I am very impressed with his service. I also hold corporate bonds for large well-known corporations such as Verizon, Kinder Morgan Energy, and others that are paying a respectable rate of return and are related to stocks that have been recommended by my Weiss services. So far so good with this application. Also, the China Nepstar Drugstore recommended by Tony Sagami has maintained a gain position and a very impressive dividend.
income from SS, CD’s, Preferred stock, utilities, MLP’s,covered calls on some stocks,and where appropriate have stop loss orders to protect my gains.
Hello Martin,
I’m a retiree for 5 years now, having lost about 24 % of my SEPP as of late 2008, I’m trying to be very careful with the remainder, which I have in 4 CDs, one US Treasury fund, 11 dividend paying stock (utilities, energy, consumer staples, mobile phones, etc.) some of which have a degree of global exposure…so far, so good… I am a bit leary of our US stock , also of foreign stock, sorry to admit… I do thank you and your colleagues for all the valuable information you constantly disseminate to assist us, investors…
Vivian
Foreign stocks– The best of the BRIC countries is Brazil. Young Demographics. An Enlarging middle class. Plenty of oil. The main reason Brazil takes precedent over the others which have the same parameters is WATER. China has none. Russia’s is poluted. India’s main aquifer is almost dry. Brazil has the Amazon. My other choice is Canada for the same reasons.
I used to be heavily in “Canroys.” They were a really good deal until the halloween surprise.
I now am much more interested in wealth preservation than dividends. Gold, Silver, Canadian oil, Canadian mines, Canadian repositories. Tom
I’m trying to get out of American securities. I am attracted to your new program with the research facilities.. Tom
Long cash and phsical gold.
I am dismayed and a bit confused to learn Liberty Dollar is having so much difficulty.
Ping Pong and darts. World currency, FOREX. inner crowd offerings.
Its hard work.
Thanks, Thomas B Ryan TBR
I am invested in a stablevalue fund in my 401k/ Fidelity… The fund primarily invests in stable value contracts issued by banks, insurance companies and other financial institutions, often held in combination with a variety of marketable fixed income instruments including U.S. government and agency securities, mortgage-backed securities, asset-backed securities and corporate bonds. The average credit quality of the fund’s investments will generally be AA (or its equivalent)…unfortunately in our 401k we do not have many fixed income choices…Bill
What do I do for income? Well, I believe in multiple sources of income. So I have some coming in from a pension, some coming in from part-time work (I was “forced out” of a large corporation 10 years ago…), some coming in from US TNotes, some coming in from CD’s, and will soon have the rest coming in from Social Security retirement (if it is still there in a few months). The stock market can be “fun” at times, but (for me) it’s strictly “speculation”. I do “stocks” in lieu of going to Vegas, but I’m starting to think that Vegas might actually be better :)
Best,
Susan
At 72 and retired a second time I feel paralysed with respect to income. I have put all my funds into TIAA-CREF because I trust them and now live mainly on Social Security– not much. I don’t know how to play the market, I don’t even know how to trade. I have paid three f”Independent Financial Advisors” large sums but have gotten no real help from the– that I understand. I need a basic class in finance and some hadn holding so I can “try my wings” I have no sence of security and don’t know nor understand how to start. I put my held under my arm and odn’t spend– Meanwhile assests are decreasing rapidly. Where do you start? I have read books but don’t know how to start and who to trust.
I am 56. Have been semi-retired for 9 yrs. For income I have positions in an MLP, several intermediate bond funds, a fair amount of utilities and oil companies. I have always gone for the dividend paying stocks as a significant portion of my portfolio
I also have farm land which I rent as well as some apartments which are always fully occupied.
Despite what should be considered a diversified portfolio and relatively secure, I am nervous as hell about what is coming down the pike.
FOREX, inner crowd offerings, World currency
Thanks Thomas B Ryan, TBR
I have all my investment assets in short term cash making a whopping .57 to 1.49%. Otherwise I’m investing in the foreign currency market. Big risk, but its the only place to be able to earn large returns in a short period of time. I don’t have to wait days, weeks or months to know if I made the right investment decision. I invest my wife’s 401K in a combination of 10% US stocks, 50% foreign stocks, 40% cash.
I am invested in an annuity that guarantees a 5% lifetime withdrawal income or market value, whichever is best. I also have several ROTH IRAS, traditional IRAS in growth, value and balanced funds, a global fund, and cash. I agree that Brazil, China and India are great places to invest as well as Canada and Australia for resources. I think Thailand might be a place to watch.
I am cautiously optimistic on China, India, and Brazil and a little optimistic on Mexico. However, I own almost no individual stocks. I primarily have index connected funds.
I avoid U.S. stocks, especially old companies. I have only bought stocks that are related to new energy development and a few companies that I believe are necessary for recovery from the recession. I have sold all U.S. equity funds with the exception of one balanced fund. My portfolio is largely made up of Treasuries, cash, bond funds including funds investing in mixed medium maturity investment grade corporates, foreign Gov. bonds, municipal bonds. I try to only buy securities that pay dividends, which include the few individual stocks I own, which include utilites and communications. I am 74 years old and am content with a 4% to 6% yield. I believe anyone who is expecting to make more is delusional.
Martin, I was a member of your MDP/Claus Vogt. Lately I have seen no mention of the MDF and am wondering why. I do not have access to that portfolio at present.
You promptly refunded my money as stated when I became disatisfied. Thank you.
I am 70 years of age and have my assets in CD’s (dreadful return) and know that inflation and high interest rates are on the near horizon. If I am not wrong, my real estate value will rise as inflation rears its ugly head. So will mortage costs which are minimum at present relative to value. So will the rate paid on the CD’s.
So you tell me….What am I to do?
I am reminded of Cicero’s statement…..”Avarice, in old age, is foolish; for what can be more absurd than to increase our provisions for the road the nearer we approach to our journeys end? Forbes thought for the day Jan. 27, 2010.
I am tempted to heed the advice and read Cicero, Plato, Beck and Limbaugh and Mencken for treasures, rather than the WSJ, Forbes and the online subscription that I receive from people such as you and your ilk.
Were I to add the Bible to the list of readings then I think that I would perhaps be advantaged to a greater degree then if I were to continue reading financial advice.
Would you advise me to bury my cash in the backyard, or continue to pay you and yours for your advice?
Thank you
Hi martin, I am retired and I am a home gamer. I preper the etf’s because I feel there is a little more hedge against volitolity than in stocks. I see no reason to put money in bonds and other safe investments. Inflation eats up your return. No inflation? ha ha Right now I’m about 60% in cash waiting for the market to bottom again. I usually hold the metals of all kinds, mining, and companies of support, gold and silver. I have a small amount in solar. I like s. e. Asia, Canada and Brazil. I know this is not a deversived portfolio but I think its where the money is to be made.
For income, I use closed end municipal bond funds, Junk bond funds that have a long history, Bank cd’s, annuities, and stocks that pay a decent dividend. Normally, I only buy stocks that pay at least 2% of the stock price in dividends.
I seem to be a “closed end fund junkie”. Although retired, have my largest holding in Nuveen Muni Bond Fund (NMO)- yield is about 7%.
2) Morgan Stanley Corporate bond (ICB) – yield is 5.9% (nav 17.53 discount to nav 10%).
3) Western Asset Emerging Markets debt fund (ESD) – yield 8.1% (10% disc. to nav)
4) Aberdeen Global Income fund (FCO) – yield 3.8% (5% premium to nav)
5)Vanguard Natural Resources (VNR) – dividend increased to 8.2% – This stock caught my attention last October at around $15.85 when I bought it. Is currently above $23 and has held up admirably during the recent market downturn.
Dear Martin,
Dr. Weiss,
I am looking for the best
and also safest possibilities
to rebuild my portfolio
which currently is getting small returns,
largely from bank CDs ,
and some stock dividends.
The recent few days have taken 13% away from my stock holdings
which feature at least 10 Chinese stocks
and recommendations from you, Safe Money Report,
Mike Larsen and Crisis Opportunity ETF Trader,
Larry Edelson and Real Wealth and Uncommon Wisdom,
Tony Sagami and Asia Stock Alert and Uncommon Wisdom.
I also have in this portfolio at least 15 % invested in gold stocks
and gold mining stocks.
I am in the near to retired / retired category.
Thank you.
Sincerely,
Robert Kestler
Canada !! Stable democracy. Conservative fiscal management by both banks and gov’t.
Lots of natural resources. Oil ( dirty but lots of it )
Mostly Corporate bonds, some ginnemaes
Fixed income is very important as my husband and I are past mid-60’s. Vanguard short-term, high yield corporate, gnma, inflation-protected and Wellesley are important parts of our portfolio. I also like the foreign stocks, oil, gas and other commodities. Have ishares in Canada and Australia. Have a large cash portion, too. Will watch the market very closely in the next couple of months and may get out of everything then.
Martin Weiss Reply:
February 1st, 2010 at 11:35 AM
Nancy, glad you have a big cash position! And if you feel you’re overcommitted to stocks, I wouldn’t wait two months. I’d use any intermediate rally to reduce your holdings now. — Martin
Martin:
So do fixed-income investments have a place in your portfolio? For income, safety or a proxy for cash?
For safety and best income possible.
And if so, what kinds do you own? U.S. Treasuries? Corporate bonds? Municipals? Short-, medium- or long-term maturities?
CD’s short term. I currently own 2 Foreign Currency CD’s also 1″ BRIC” FOR A 3 Year term.
What other kinds of income investments do you like?
Limited amount of Gold Coins, Several Annuities with guranteed returns on the original investment.
I was terminated from my job last August. My income is a small pension and social security. Needless to say, I am scared with the market being what it is. What are good investments for someone like me? I am 74 years of age.
I actually still work productively for my base income. I also am developing a base income of dividends in the Canadian market.
I am highly skeptical of many emerging markets because of their inherent lack of integrity, spell that HONESTY. Numbers in a report are not what made America grow to what made us the economic powerhouse of the world. Currently, most “emerging nations” have a frightening lack of HONESTY in their dealings. Unfortunately, the US Government is beginning to follow these internationalists in decreasing its level of honesty. That is why I am diversifying into a more predictable environment as well as beginning to trade forex for a growth of income.
Investment is VERY closely related to TRUST! In this world today there is very little one can trust financially. As I see it, the best thing to do now is to protect the principal and get what interest is available.
Hi Martin, Well I am retired, however my current IRA is not that large but I am hoping to get the growth which you speak of. I just wish our market will settle down. I am expecting a rather large estate, so this has been play money but I want to do well. I do have two Mutual funds but to be honest, I don;t understand them. As far a other interest in investments I am interested in high interest dividend funds here or other countrys.
Hello, I think that China, Astrilia, HK, and Taiwan will be best place to go. I am continuing to trade ewa, caf, ewt, and ewh. not very good for these days and ‘ll com back, at least 5-16% annually Div. you’ll get by Dec 31.
xiao jie
I’m in trouble for income, My dependent adult son & I are struggling. We currently are trying to survive on my social security that I had to start drawing on at 62, his SSI, & Food Stamps, for less than $1700, our outgo is much more than that, especially after what happened with the credit cards, we have been living on the credit cards since I got laid off as an Underwriter for Countrywide Home Loans and the unemployment & 401K ran out.
I would like to become more involved with investments, especially since I am an old banker, but currently have no way to do so.
I run a Petting Farm. It does not bring in much money, but what little it does I would like to invest. As far as all of those other stock words, I have no clue what I am invested in.
I invest in MLP’s for high dividents and a tax advantage. I particularly like KMP, EPD and ETP. For foreign diversification I buy Canadian Trusts and foreign commodity companies , like PBR, & BHP. I like LFC in China because it is like a mutual fund holding a diverse group of chinese stocks. I buy midlle and junior gold and oil stocks. I am 72 and still a very agressive investor, with about 40 % 0f my holdings. I hold no bonds at this time and I am about 25 % in cash. My portfolio is still 20 % below its high point and my real estate is down about 35% in the last 1 1/12 years. Hey you only go around once and they don’t put luggage racks on a hearse!
Martin Weiss Reply:
February 1st, 2010 at 11:35 AM
I hear you, Jim. But it sounds like you’re investing more for fun than for results. Are you sure that’s right for you? Are you certain you don’t want to keep more in cash for safety and for emergencies? — Martin
Most of my investments are income producing, starting with short term treasuries, then closed end bond funds, MLP’s, Utilities and Dividend paying stocks.
Income and cashflow:
1. CD”s
2. sell puts and calls
3. sell investments that have increased in value.
simple!
I have my nest egg in t-bills, I-bonds, EE-bonds, bank cd’s, gold fund, gold and silver coins, and ready cash since 1982. Live on SS and a pension since 1995. Life is good on the lake. No losses in the market, just a 7% a year gain compounded since 1966.
I like good dividend producers with some appriciation to boot. Oil and Gas trusts are ones I like.
Also some shipping companies for goods like oil, chemicals, fertilizers. There are decent
dividends to be had beyond paltry bank rates and CD’s. Annunities can be hard to move so
I’m more cauteous with them . Gold, Silver, Oil , Diamonds have driven my portfolio last year
and probably will again this year.
As I said in other posts, I am totaly invested in 3 & 6 month T-bills that are paying squat. I want to wait now for either a large drop in the equity markets or a substantial increase in long term treasuries. Then I can plan my next 5-10 year investment strategy. I´ve learned the hard way when I was young that it´s not necessary to be invested all the time. I´ve parked money in short term treasuries sometimes for up to 2 years before I finally made purchases at bargain prices that then returned 50-200% or more over the next couple of years…………Patience Pays Dividends !!!!………….Good Luck !!!!!
my income for daily living expenses and travel comes from monthly retirement checks. I have not touched my IRAs since retiring in 2003. I got scared and sold all stocks in in 2005, thus I missed both the run-up in 2006 and 2007 but, also the crash in 2008.
Bummer, at the moment my wife and I have 0 income. We are 55 and 56 and all our money is holding place in Gold, Silver and Mining stocks. There is no yield out there anywhere. We will not touch the US, UK or Euro Zone Government debt. Some of the BRIC, Australia, New Zealand, Switzerland and Singapore countries seem like good bets, however, all countries are still playing the currency race to the bottom game. Dividend stocks are suicide as the stock price and dividend are both falling. Corporate bonds are dangerous and those Blue Chips in good shape may not stay in good health from now, thru 2011. We’re not looking at annuities as we do not feel we can trust the insurance companies here or over seas. It’s just ugly out there!
Hi Dr. Martin,
Almost 60% of my portfolio is in monthly income stocks giving me an average of 14.9% div. yield and has so far this year also given me a growth of 8%. All these companies have been continiously giving dividends for the past 5 years or more.
I’m retired and I have no worries at all, since I have never ever gotten myself into debt of any kind, since I always paid for everything up front in cash. House, car, appliances etc. etc. I’m a professional retired person and I was raised totally different by my parents and their golden rule was, never buy anything that you can not afford. My parents never even owned a credit card in their entire life. People in North America are like kids in a candy store since they want it now, every gimmick, gadget, toy that comes out on the marketplace. They never learned self discipline and frugality and living within their means. I can go on and on, but there is no point really.
I usually buy the stocks and write covered calls,
I short the stock and collect premium, if the stock is put to me write the covered calls.
I bought some dia. puts leaps, now they are working.dia.june 105-104 puts
June 44puts, eev.laz. I load them up. today I got stopped out of qqqrr
Thanks.
At the moment, I own no income securities. I have previous owned Healtcare REITs with some success. I own Fidelity mutual funds covering Latin America, Emerging Markets, the Energy sector, and the Natural Resources sector. Last year, as a group, they gained 33%. If I had to choose individual countries, I would choose Brazil, Chile, Columbia, Australia, Singapore, and, perhaps, Malaysia. Peru would not make my list. I have visited Peru twice (Arequippa each time). My understanding is that 30-40% of the people their living by thievery (not a huge recommendation for the country). China is a house of mirrors – you are not quite sure of what you are seeing.
the best “fixed” investment is to invest in your own labor and put in a large garden
My main income streams in 2010 come from the followings:
1. Rental returns from investment properties
2. Interests from CD, A$ is giving 6.25% to 8% depending on tenures.
3. stay away from corporate bonds in raising interest rate enironment
Dear Sir,
One of the things I do for income is invest in the municipal bond ETF’s, VMO and VGM. To cut down on the obvious risk, I watch them every day and have built in running stops of 10%. I also invest in other income ETF’s.
Dividend income from appropriate stocks and securities appears to have merit to me.
Fixed income investments are losers when the dollar (and other currencies) are depreciating. If you need income, buy stocks with large, safe dividends. Not only do you have the possibility that the dividends will increase but dividends are also tax-advantaged.
I sold my investment just before the big market crash thanks to your warnings. Last November I had finally the courage again to invest, realizing that the balance sheet is shrinking because my income shrunk due to low interest payments and I needed to transfer from my savings more and more due to the shrinking dollar.
So far I invested in higher dividend investments with hope of growth like BP, MO, PWE, RDSA, VZ, CPL, MTP, NSRGY. My brokers doesn’t agree with the Household Sector Weighting report I have, is says I am to have in Energy & Utilites, Materials & Telecommunication. I was happy with the growth stock I have till the last few days, when I lost almost all of my gains. I read a lot of suggestions from different newsletters, but they seem to be all for more aggressive, younger and long term investors. I need the money in the near future to support the old age era and be independent of our present government recommendations.
Dear Martin,I’m an owner operator trucker driver with fuel costing me 40 percent of my gross revenue so oil is a big concern. I put money in gold,natural gas,federated bond fund,cfl energia.I just bought a etf by vangard (vig). That is comsumer based commodity dividend fund.I have not seen Nilus recommend this but my broker did. My next move will be etf in china, india and what about russia they have a the most natural gas.I’m 44 and look foward to reading your info and being very successful when I retire. Thanks for all the insight you and your staff give out.
Cash is king. Short term treasuries even though they pay basically no interest. In an all markets deflationary cycle, cash for me is the place to be.
I receive Social Security, the maximum allowed when I retired in 2008.
I draw 4 % from my IRA, which should keep me financially sound.
I own several high dividend paying stocks.
I no longer hold any foreign investments, I believe there will be a correction in that area and I am keeping tabs on that.
The market is due for a correction as we have seen in the past few days.
I sold my investment just before the big market crash thanks to your warnings. Last November I had finally the courage again to invest, realizing that the balance sheet is shrinking because my income shrunk due to low interest payments and I needed to transfer from my savings more and more due to the shrinking dollar.
So far I invested in higher dividend investments with hope of growth like BP, MO, PWE, RDSA, VZ, CPL, MTP, NSRGY. My brokers doesn’t agree with the Household Sector Weighting report I have, it says I am to have to heavy in Energy & Utilites, Materials & Telecommunication. I was happy with the growth stock I have till the last few days, when I lost almost all of my gains. I read a lot of suggestions from different newsletters, but they seem to be all for more aggressive, younger and long term investors. I need the money in the near future to support the old age era and be independent of our present government recommendations. I wish someone would write a newsletter just for older, retired, moderate investors.
I would like to have some income as I am retired but I have not had much in recent times. I am about 70% in cash and it is in short treasuries and money market funds. I am going to buy some high grade long corporate bonds or bond funds soon but probably will not put more than 10% or 20% there.
I need to make some serious money!
I sold my investment just before the big market crash thanks to your warnings. Last November I had finally the courage again to invest, realizing that the balance sheet is shrinking because my income shrunk due to low interest payments and I needed to transfer from my savings more and more due to the shrinking dollar.
So far I invested in higher dividend investments with hope of growth like BP, MO, PWE, RDSA, VZ, CPL, MTP, NSRGY. My brokers doesn’t agree with the Household Sector Weighting report I have, it says I am to heavy in Energy & Utilites, Materials & Telecommunication. I was happy with the growth stock I have till the last few days, when I lost almost all of my gains. I read a lot of suggestions from different newsletters, but they seem to be all for more aggressive, younger and long term investors. I need the money in the near future to support the old age era and be independent of our present government recommendations. I wish someone would write a newsletter just for older, retired, moderate investors.
I dont have much, but would like something I can hold as 33% of my portfolio, I have used the 2 top Canadian Royality Trusts in the past. Would like some pointers on this VG.
I have about 25% of investment funds in a bond fund, 15% in US energy producers and a smattering of Asian stocks, primarily high-dividend telecoms. Looking to increase holdings of Asia for growth and some US and Asian high-yield stocks, all the while keeping a wary eye to inflation/falling bond values. Will go into comodities much more at some point.
Most of my investing is in the Canadian Market,no exchange worries.
I like to stick to Utilities and resource based stocks currently.
Utilities ie’ Transalta and Transcanada,both good dividend payers.
I have also gotten heavily into income trusts for the dividend income 10% +
Dividend income is preferred under Canadian Taxation laws.
Martin,
I’m finally obliged to respond. What do you do for income? Income from a “credit worthy” provider. I work as a financial advisor for a huge financial services provider organization.
I’ve been a “registered rep” for 33 years. My client base is in the gereactic catagory.
No risk, nothing long term. These people don’t buy green bananas.
Any ideas?
Glenn
own apartments and live off that. most cash is in CD’s but due to low rates I am now transferring to a no load, fixed (guaranteed no loss of capitol ) annuity of guaranteed 3%/yr interest that I can withdraw any and all money at any time with out penalty (this product isn’t sold any longer and I have had it for 7 years). sounds low but it is better than 0.25 % you are getting in a savings account (in fact 12 times better). the risk is no FDIC; however, this insurance company is rated in the top 10 of the world for solvency.
I am so confused about the conflicting reports re where to invest that I have simply sold all my gold, silver and foreign socks and have purchased Ginnie Mae bonds which currently pay 3.5% interest. Of course, I’m still retaining two-thirds in cash so I can jump back into the market should conditions point to a sound, sensible investment strategy.
Most of my retirement income comes from farmland rent. Have a mix of several small incomes from dividends (Canadian income trusts), oil and gas royalities, rent house and all the tax payers who contribute to our Socical security. Like to speculate in small cap and options, just don’t do it very well. My wife keeps her investments in CD’s and mutual funds.
TR Price international and Emerging markets bond both in IRA
USSA Bond fund also IRA
Too young to need spendable income from investments – MLPs and DRIP stocks are all 100% reinvest at this point
i invest in oil small companies, sir i like your approach
i have social sec & a pension for income (bad i know). age 72 (50k in a world bond) 40k in foreign & domestic stokes & bonds. 110k in cash.\\ make suggestions i need help// james
My largest investment is farm land in Western Kansas where we grow wheat and corn. So far the land has been going up in value. When interest rates go up the value will go down. So far a good investment.
I have investments in Capital Preservation and Inflation-Adjusted Bond funds.
Oil and gas trusts have been very good. Example: Whiting USA Trust 14.45% and EV Energy LP 9.71%. LNG shipping: Teekay LNG Part. 8.29%. Pipe line: Kinder Morgan Energy part. LP 6.68%. Others: GlaxoSmith Cline 4.85% and Chemtrade Logistics 10.6%.
First of all, thank you for trying to help me. I am completely new and am about to see light of day. I do seasonal work for just one company. I keep the grounds other than mow the grass. Mostly, pruning, herb garden, mulching, and pulling weeds. It really is all the work that I want to do and have free time.
I went ahead and subscribed thinking that I lost more money in the last few years what is 600 bucks for lifetime benefitial information. Already, I have learned not to trust the govt recos, or anything they might try to lie about. We (husband’s money) in Hartford from 401k is only about 25,000 currently; it took a hit, also. Plus, this is from a job he has held only about 5-6 years, now. We had everything into bonds maybe the last 2 years. However, I quickly learned to get them out of PIMCO (of all things), Sei Stable Assets, and Oppenheimer International Bond. We (or I) decided to invest into Templeton Foreign (20%), Aim Real Estate (10%-and this one I have my ruthers about, Thornburg Int Value (20%), Thornburg Value (10%), Thornburg Core Growth of 15%, and last Ivy Global Natural Resources (25%). Of course, I learned from the Weiss staffers, to invest in foreign rather than us and natural resources; so choices were primarily based on that information and the limited choices that the company allowed. Thanks a million.
Then we have an anuity with State Farm which took a big hit and this last statement it actually gained 16,000 and total is near 90,000 currently. We have about 9 years to go for its maturity. There is a payoff should the mkt go bust of 300,000. But what good would that be if the $ is worthless??? ha! This money I can not touch as it is husbands. Nor would i try to change it. But at least it is starting to grow again.
I have a question to ask; how do I get started in investing in the China market? Are there some ticker names in NYSE set aside for Tony Sagami”s choices? Or, a number to call a foreign broker in China that speaks English? Is Scott Trade a good broker to go with? Any info would truly help me.
Here is my situation. In Feburary we pay our son’s last semester of college; that means freeing up my money. It has really wiped us out but has kept him without any debt. We still owe on the house but am working on paying that off this year but will be toward the end of the year. But, even if i just invest say 500 a month until we become debt free; then grow our investments with increasing total amounts by the month.
We are mid 50’s have 9 or so years til retirement age; if America still exists! Thank you for all your help. Many thanks, Judy
Martin,
Followed your directions from day one and went short. Vanguard Short
Term Treasury Money Market and Vanguard GNMA. Looking forward for you to inform us as to what do do next.
Thanks!!!!!
At this time, I am thinking about foreign investments. However, it is a new experience, and seems that caution and study are important. Because of Canada’s strong position
in oil production, gold mining, and their export trade of grains, the nation has appeal. Also, investments in CDs (GICs) may provide low interest rates, but they offer investments in a less volitile currency than the dollar. Some American companies that deal in food and/or other basics may be good. I almost invested heavily (for me) in mutual funds, but did not because of the advice of Mr. Weiss just before the market
sharply reversed. Almost 50% of the investment would have been lost. Americans cannot drive to Switzerland, but the can drive to Canada.
I am about to sell my vacation home for $200,000 and will be making a profit of 40,000. I bought the house ten years ago. Now, when the sale is made, I plan to invest, or park, my money in a certificate of deposit until I am sure of what I should do next. I am researching. So, thus far, I have invested my money in real estate, where it has been safe.
Thanks,for this invitation,my portfolios still on three T ,ProperT,EquiT and commodiT,regards
I am retired so most of my income comes from my pension and social security payments. I also work part-time and receive enough from that source to pay for my health insurance through a flex-benefit plan plus our groceries each month. I do no need any income from my investments to live on; however I do have to take MRD’s from my IRA’s and my Personal Investment Plan which is a 403b.
Long time retiree – some sources of income running out. Need income now to counter ever increasing living expenses and property taxes. Starting to cash in recommended short term treasury mutual funds to buy short term low duration, high quality, corporate bond and mortgage backed mutual funds.
I will never again pay a CFP or broker to help me manage my money. I am saturated with disgusted about the rape of the public regarding Paulson, Geithener, the Fed and Goldman Sacks (of sh_t). They have made Madeoff look like an eagle scout by outdoing him with their Ponzi like TARP fleecing of the taxpayers. Tar and feathers for all of them would be a good start…
What I want to do is pick up more stocks (blue chips) that pay dividends. Preferably companies like McDonalds who do well when no one can afford to eat out in nice restaurants. Burger King has started serving alcohol in their S.Florida market. Nothing like a beer and a burger….. Plus, they pay dividends.
I don’t want mutual funds or anything that has hidden fees. Bought some GLD when Martin first suggested it. Have an MLP that just raised it dividends again. 38% since 2007. Yeah. Have a Treasury only MM with Vanguard. Some cash that will be going into short term treasuries.
I’ve tightened my belt and hope I’m diversified enough to hold on for the coming commercial real estate crash.
I like what daved is doing. Sounds good to me. All I need now is a little real estate in a growing neighborhood:
daved 01.28.10 at 1:52 PM
“I am 56. Have been semi-retired for 9 yrs. For income I have positions in an MLP, several intermediate bond funds, a fair amount of utilities and oil companies. I have always gone for the dividend paying stocks as a significant portion of my portfolio
I also have farm land which I rent as well as some apartments which are always fully occupied.
Despite what should be considered a diversified portfolio and relatively secure, I am nervous as hell about what is coming down the pike.”
again ,right now the market maybe have gone to far to fast since mars 2009.
keep your money safe with cash ,short term coupon bond, money market fund and some safe cie with dividend paying . if you want to be agressive do your DD before investing.
Some growth cie have higher p/e and maybe safe but only over the long run.
right now the timing maybe bad bad for chasing these stock ex.:(apple,goog).
look to repositionning your asset with your age ,your tolerance to risk and the situation of the economy.But remember like MR J. Siegel said over the long run dividend
paying stock beat the global market.Maybe its a good time to revisit them now.
take care its your money.
My NJ state teachers’ pension and social security
My teacher’s pension from the state of nj and my social security/ My wife and I share our pensions and social security. Bob
I’ve been in Canadian Energy Trusts & a couple other Canadian Trusts for the past 3 -5 years. Most pay 10%-15% qualified dividends plus they all have increased in value except one which is the same as when purchased. I am currently receiving about a 20% dividend return on my original investment. Most pay monthly. I like them.
Ralph
The world’s markets are just beginning the next major leg down. There are no markets that I would play long for 2010. I have spent the last month gradually loading up with short stocks, leap puts, and contra ETF’s. I expect this process to take several years before the risk is low enough to play on the long side. There will always be some stocks that buck the trend, but I’m not astute enough to pick them with any regularity.
Martin Weiss Reply:
February 1st, 2010 at 11:36 AM
In recent months, that posture would have done very, very poorly, as you well know. But now, it’s starting to make more sense for a modest portion of your funds. Just be careful to maintain good balance and avoid excesses.— Martin
I am currently unemployed, so I have pull out of the market, I’m in money markets, and a few small postion’s in oil (icenx) china (mchfx) ,over loaded with equity in my residence and working on unloading it. thinking about gold and emerging markets waiting for a pull back.
I wiil try again. FOREX and world currency along with the offerings of the inner group
are plenty for me. It is hard work with research thats demanding.
Keep up your interest and advice,
Thank you, Thomas B Ryan
My investments are mostly in mutual funds. For income, I invest in: Vanguard’s PRIME MONEY MARKET, TOTAL BOND MARKET INDEX FUND, iNFLATION PROTECTED SECURITIES FUND AND FIDELITY’S CASH RESERVES.
Income risk are to great where one does not a Pension as a base to work from. therefore an annuity product that creates a guarranteed stream of income to cover my necessary expenses and a moderate stock and bond portfolio weighted with good, solid dividend stocks to grow money for the future and provide for the “extras” is where my comfort level is.
Martin,
I am searching for a reliable source of income. I am mostly in CD’s that provide little in the way of return. I have funds in a money market fund waiting for a better place to invest. The current down turn in stocks makes me nervous about investing in dividend stocks. So that doesn’t leave many sources of income. I have an annuity tied to the SP 500 and pays a minimum of 3% but it ties money up longer than I like since I am 81 years old. Need a good source of income with a return 3% or better for now.
Dear Martin,
I appreciate all the informative e-mails that arrive in my in-box, about the markets and companies and how the economies are shaping up for purposes of advising us the public on whats best for our invetments to gain a profit.I read and learn but am ignorant.
Perhaps, you already surmise that I am not clever enough to handle such matters, as i dont know what to do or how to do it.
I undersdtsand that you do not invest for the public, though id like to trust youto invest my small savings that it may produce some yearly gains sufficient to just survive somewhat better and not having to be stressed always about money needs for monthly bills and minimal survival .
The govt. has suspended my drivers license and passport trying to force an age old court order for money that i do not owe them. Also, my livlihood has been taken by the suspension of my work license ever since 1992. I have been struggling ever since to put my 2 kids through school, because the social services havent helped me one aiotaeven though i had tried to apply so many times until i became so discouraged from trying again.
I have been using little savings i had in addition to some general ,whatever I can find work ,that i do sporadically.Basically im living by my wits, here in supposedly Toronto the good, but not in my eyes cause they are always broke and wasteful with money.
It is not easy for me to trust people after all these things have happened.
If i can gather $5 thousand dollars for investing , are you able to direct me to any honest person who can handle the investment on my behalf? i dont know anything about
I can not deal with any bank cause the govt, can grab the money as they have done before, even though it was small amount of less than $500 at that time.How petty of them to do that.
I apologize cause I know this is not the purpose of your blog here.
But you did ask “what do you do for income”
I pray you can help me.
God bless.
i have a lot shares in resource companies. gold, silver, coal, lithium, natural gas. they are almost all losing money. i buy and hold so i am not concerned now. my real money comes from rental property. i do not think that you can beat it. the 130k that i have now, i am going to split between gold stocks and physical gold while it is down. in 8 to 18 months when this batch of foreclosers comes full circle, i am going to buy 1 or 2 more rentals. if you figure out the rent versus interest on the same money, it does not even compare. i am a carpenter, so i do all repairs and maintenance myself. tom
Don’t forget about forgein income trusts. Pick carefully as usual but there are some gems out there – solid performers with a strong business model and good mangement. As a example – CANEXUS (CUS.UN TSX) Boring business but a solid performer. I’m mostly in cash but a few good income producers helps comfort me through the ups/downs of markets and currencies.
my father passed on about ayear ago leaving me with a Traditional IRA and two financilal advisors and because i have a mind of my own i sought out someone who could show me a way to avoid paying war taxes in particular. so with my permission this tax advisor (#3 in my advising team) and my families citi bank adviser have just moved my personal wealth management to TD Ameritrade Institutional(tdainstitutional.com) and as yet we have not had a meeting on our next move. i am most intereted in bonds but only if not affiliated with those who consider mother earth as just another woman to rob and pillage/from which is what i believe i see happening as we have not developed our under standing of why we are on this orb. i believe we were meant to be Stewards of earth/meaning that we should long ago figured out how to seek solitude long enough to be able to attract those with the answers of what the Creator demands from us especially as it concerns the demands of same Creator?!? Do you have any idea how to come up with a Solution?!?
So do fixed-income investments have a place in your portfolio? For income, safety or a proxy for cash?
About 30% of our portfolio is in farm land as a proxy for cash and about 7% is in gold (GLD) as a way to cope with the devaluation of the US $
And if so, what kinds do you own? U.S. Treasuries? Corporate bonds? Municipals?
Short-, medium- or long-term maturities? We have about 8% of our portfolio in cash (CD’s) .
What other kinds of income investments do you like?and about about 13% is in an annunity paying 7% interest on the highest investment principle (conservative investmented) with option to vacate after 4 years as a hedge or conversion to a fixed anuity for coping with market swings.
This leaves about 40% that is invested in the markets, our portfolio is fairly conservtively and highy diversified invested in things such as ETF’s and funds that trade in domestic and foreign industial (corporate) short term bonds with a line on high yields, to domestic stocks with a foreign content and foreign markets.
Hello Martin;
My portfolio consists of gold,silver and uranium stocks.I have also purchased an amount
of gold and silver coins.These are Canadian stocks and coins.
I do see a lot of potential in Asian stocks, but I do not have a large portfolio.
I very much appreciate Larry Edelson’s Uncommon Wisdom advice and his under standing
of the cycles. If I had the money I would love to subscribe to one of his options news letters.
John
would it be possible to invest in Van Jones and his ideas for true green jobs!?!
Fixed rate, short term cash for me; retired, so can’t afford any risk to capital. As bonds mature I move them into best available; no confidence in stocks etc, I’ll keep what I’ve got, thank you.
what is long cash???
In regards to the income question – in November last year I locked in a term deposit with the Commonwealth Bank (of Australia) @ 6% for 7 months, already this year, it is possible to lock in term deposits with some banks @ 6.5% (so interest rates appear to be creeping up). These deposits are guaranteed by the Australian Government.
In addition, our largest listed telco (Telstra) is paying dividends of 8 – 9 % and our banks 4 – 5 %; so there are ample opportunities to invest for income with little risk. Though there are many examples of listed resource and listed energy companies paying adequate dividends (2.5 – 3.5%), there is always the risk that the China may stumble (as history shows – the Chinese Tiger may smile sweetly but beware, as it’s teeth are rotten). However, I have more confidence in the Indian economy and the Russian energy story but I am very wary of the sustainability (and viability) of the “two-speed” Euro economy.
Thanks
Cliff
THAILAND Hi Martin, Im over in Thailand for 6mths of the year and keep a very close eye on whats going on here, There are many new built blocks and condos down here in PHUKET which ive seen built over the last 2/3 years NOTHING IS SELLING and many people are trying to sell there villas/houes etc and get out from the place ,1000s of property on the market with NO buyers here, Tourist numbers well down and i have friends with hotels and no bookings from mid feb onwards ? at the moment. I also spend time up north (Udon Thani ) home of all the red shirts (party) and there are still very many underlying problems between the red and yellow shirts here in Thailand which could flair up anytime soon ( this year ) i think? So anybody thinking of investments within Thailand be very carefull at this time and this part of the world
Johno
Hi Martin, For fixed income, I like a laddered bond portfolio, Fixed Indexed annuities, and royalty companies.
I believe the dji and markets will drop to a 9750 support level the next three weeks.
I believe the following dividend payers averaging 9/10 % are a good return for this market.
T, MO, SPH, NMM, SXL, BTE, WIN, CMO, NLY, BPT, ALA,UN, PEY.UN. SEEM COMFORTABLE
IF YOU JUST WANT TO FIGHT THE UPCOMING INFLATION.
I’m Canadian and don’t know much about investing in foreign stocks, so I stick to the TSX. I take a trading approach to investing in stocks, using Bollinger Bands to help me time my buy’s and sell’s. My favourite places to invest are in Canadian dividend paying resource stocks, there are many Canadian income trust’s that pay very lucrative dividends, many around the 10% range.
Tom
Tax Free M uni, Short Term Treasury and MLP plus cash. No CD at all. have some Convertible Foreign Bonds. That is my income portfolio.
As far as foreign stocks are concerned- First half of 2010 is “Peru, India and China.
Thanks.
GG
Foreign country first half is: Peru, India and China.
Invest in Short term treasury, Muni bonds and MLP for income.
Thanks.
Hi Martin,
My strategy is to not chase the market, be patient with good companies, never buy any stock that is touted in the media ( by then you are too late) and invest in countries that are still able to manufacture. Manufacturing is extremely powerful. I follow your reports and have saved a lot of money by taking your advice and getting out of the market in the summer of 2008. Many thanks and keep publishing.
Martin, I do nothing for income. Bought our home and 2 cars cash, so we can live on my 3 really small pensions plus SS. I’m about 50% invested mostly in foreign ETF’s : Australia (EWA) India (EPI) Malasia (EWM) Indonesia (IDX) Turkey (TUR) Brazil (EWZ) Russia (RSX) Taiwan (EWT) China (FXI) and some energy ETF’s . Furthermore Fidelity’s Canada fund and US financials ETF (XLF). I have been mostly in foreign funds for more than 3 years. I recently sold half my ETF’s but bought them all back this week. Scared stiff and in the starting blocks to sell again in case of trouble !
I immigrated from the Netherlands and now happy and grateful to be a US citizen, but I can’t afford to loose my savings, so I’ll wait before going into US stocks again, until Wall Street and our politicians get their act together.
The remaining 50% in have in money market funds, but ofcourse not happy with the “interest” And waitng for Bernanke to lay his interest rate eggs before going into meaningful fixed interest securities.
I have always been an extremely conservative investor, for decades having mainly Blue Chips, keeping them while they split and split, giving me ever-better dividends. Then the financial world changed and in terror I sold off a great number of them. I still retain some stalwarts, have gone heavily into commodities and since last year have attempted to supplant many of my lost dividends with Covered Calls. There are no guarantees, but I believe this year will prove profitable in this regard and that the returns will supplant the dividends I no longer obtain. I also have 1/4 of my portfolio in Treasuries (having followed your advice) and about 10% in gold. I also have a number of investments in China.
Hi Martin,
Overly the last several years I have built up a rather large municipal bond portfolio, as I firmly believe that an increase in taxes in on the horizon, which will be particularly painful for us higher income earners. However, the municipal market is now overheated, and far too many such bonds are now bid at premiums. I am maintaining that portfolio for its present income, which is averaging almost 5% for me (Federal tax free), but I am pouring everything into cash for the near future and accumulating a large cash position. At some point, the Fed WILL raise interest rates. Bond prices will fall, and I am hoping to swoop in for some bargains. I have come completely out of the stock market, having accepted the roughly 67% advance over the past year, shifting those gains again into cash. I hope the large cash position will give me flexibility when interest rates change and almost certain inflationary pressures develop.
i have done research on good corporate investment bonds in strong currencies that give good yields ( above 5% ) plus the appreciation of the currency vs the dollar or the euro,
What do you do for income? My function is part-time teacher of Science in Secondary School, part-time teacher of Human being, Nature and Technology at the A.P.K. and the University of Curacao. Furthermore I am a grower of herbs and vegetables.
How would you rate FOREIGN stocks in the current environment? I do not know because I do not have stocks.
Which countries do you feel will provide the greatest profit potential with the lowest risk in the first half of 2010? These countries are Curacao, Trinidad and Tobago, Brazil, Chili, Uruguay, South-Africa, Namibia, Indonesia and Madagascar.
The question is odd because the lowest risk will be run with investments in stocks which have a relation with food, drinking water provision and energy.
The best investment is taking care of yourself, of your beloved ones and of the people who care about you.
50% of 401K in fixed income to preserve capital and I just acquired a couple royalty trusts in the energy sector for monthly income, even though small at this time. A couple CD’s (such low rates!!!!) round out income or lack thereof!
Thanks Martin, for all the helpful info.
I struggle to find the words to express my horror at the “free” market which seems more controlled by the Wall Street fat cats and their stooges in Washington than being at all free. Mass media seems asleep, or maybe they are part of the cover up–we are being screwed. And screwed. And screwed. Besides that, we are SO screwed. Corrupt corporations, complicite government, rights destroyed. What do I do to make money? I am so damn scared and confused, I have felt paralyzed and not been able to act even on good advice. What do I do for money??? I work at Home Depot for $12.50 an hour. Ten years ago I was making $22.00 per hour as a mechanical designer. I am nearly 62 years old. Fortunately, I have a modest house and have it all paid off. What about the future? I tremble at the thought.
Martin,
I’m retired and live off of my IRA investments. My IRA total is down about 50% from two years ago. My financial adviser will be meeting with me soon and your advice will help me with any portfolio changes that should be made. I like the idea of investing in China, India and Brazil.
THE ONLY FIXED INCOME INVESTMENTS I HAVE ARE IN HIGH INTEREST SAVINGS ACCOUNTS AND LADDERED GICs (CDs) THAT I BOUGHT WHEN INTEREST RATES WERE REASONABLE. I HAVE AVOIDED BONDS BUT HAVE QUITE A FEW BLUE CHIP DIVIDEND STOCKS FOR REVENUE.
I am inclined to think of being out of the country at least for the next six months. Countries that interest me most are Turkey, Viet Nam, and Canada. MY income centers around Income Deposit Securities, and closed end funds, along with prefered stock. Mostly WLFCP, JNK, OTT, ZTR, ETJ, and TEG. Yes I am aware of the conflict mentioned in my first sentence.
Hi,I am Paresh.I am a Chartered Accountant and Certified Financial Planner from India,involved in Portfolio Management for HNIs from India and abroad.Here in India,our central govt securities offer bet 7.5 t0 10% yield,backed by Govt Guarentee and instant liquidity.As far as equities are concerned we are very optimistic about future and the valuations are still reasonable.Our research shows that our selected companies can still grow at 15-25% cagr over next 3-5 years led by consumer tsunami due to growing per capita income,growing discretionary consumption of burgeoning middle class,pension reforms,growing awareness of equity as asset class,high savings rate,policy reforms etc.The list is endless.BSE Sensex is trading at 15 times FY11 expected earnings,at median valuations,after a recent 10% correction.
Up to now, all income has been reinvested back into the basic stock from which it came. Right now, compounding is hard to beat. Over the past four years EPD – Enterprise Partners has given a return of a little over 25%. NLY – Annnaly is the next best thing to a money machine. The payouts just keep going up. Who said you have to settle for less than 5%? They just were not looking in the right places. The income trusts from Canada also give a good return, but have gone down since the Halloween massacre.
What do I do for income? Well that’s easy…. I WORK!!!
I rely on Municipal Bonds short & medium and CDs for income. Will look forward to your comments. Having problems accepting your termss and conditions. genif@q.com
I currently use several closed end stock funds utilizing master limited trusts in energy (TYY) (KYE)
Closed end stock funds of commodities (BCF)
Common stock using petro.companies
Closed end fund using utilities
Closed end fund using med. term foreign bonds
Closed end funds with med.term corp.bonds
Common stock of tele. utilites
I am doiing buy writes on a conservative basis; I try to sell options that are slightly in the money to give me some downside protection with a target return of 2 percent per month.
I am looking to compound this return in a tax deferred envelope by looking for a deferred annuity that will follow this strategy for me.
Hello Dr. Weiss:
What do I do for income? I blink my eyes! I have two pensions, the result of working thirty years for the local and state government. My wife and I also have underspent for decades and accumulated a nest egg. Housing is the only debt that we have allowed ourselves to have for most of our adult lives.
I lost very little, about 1%, of our savings in the crashes of 2000, and 2008. I did have a municipal bond ETF fund–Van Kampin, and watched it drop from $12.+ to $6.00. At eleven dollars, I pulled 2/3 of my money out, but sweated the other third for nine months and finally sold it when it reached $12. again.
I have had a thirty year U.S. treasury bond paying 8.5% interest since 1991. I wish I would have put substantially more money in that bond at the time. My principle has been repaid once and in four years, it will be repaid again from interest payments.
I agree with your other commentators, Brazil, India and China offer better investment opportunities then the U.S. Stock Market. My investment preference is real estate investments. I own three homes.
As I said in an earlier comment, at least I can sleep in the house, something the stock market would deny me.
Alan W.
I have been retired about a year. My first priority has been to reduce my income requirements by reducing debt. I have about 25% of my money subjected to market fluctuations with my major themes being gold, silver, oil, and utilities. The rest of the money is sitting around in treasury only money market, producing no income, and waiting for the depression to show its ugly face.
At this point, Being safe is more important than looking for high income.
According to Elliot Wave analysts, we are starting next leg down which could be more severe than first leg down we saw last year. Could be very dangerous times ahead.
I am mostly in short and intermediate term Treasuries and safe bank CDs for income.
Holding 10% of liquid assets in physical Gold and Silver for backup.
Short or Inverse ETFs or funds is the best way I see making money this coming year.
Im 79. My exsperience is 1, an industrial chemist 2, I became ill and had to go find a very physical job. ( by my doctors order ) I In spent the next 30 years working in the woods as a logger. At the last I was taken in to camp shop and went full time as a heavy equipment mechanic. I retired 1995 . Not because I wanted to but because our glorious government shut down all logging. Then it took four beg emotional hits and I came down with a heart attach. Getting over this my wife gets me course on commodity trading. Well that is all it took. I started with zero and It has been one long trip. I switched to the stock market three years ago and have done realy quite well.Wish I taken this up many years ago.
Im 79. My exsperience is 1, an industrial chemist 2, I became ill and had to go find a very physical job. ( by my doctors order ) I In spent the next 30 years working in the woods as a logger. At the last I was taken in to camp shop and went full time as a heavy equipment mechanic. I retired 1995 . Not because I wanted to but because our glorious government shut down all logging. Then it took four big emotional hits and I came down with a heart attach. Getting over this my wife gets me a course on commodity trading. Well that is all it took. I started with zero and It has been one long trip. I switched to the stock market three years ago and have done realy quite well.Wish I taken this up many years ago.
Actually my situation is a bit unique,I suppose-my income is from oil and gas overriding royalties coming out of the Baaken shale play in the Williston Basin of North Dakota and Montana.Mostly as a result of investing with senior partners in leasing 30,000 acres of mineral rights ,selling them and retaining a very tiny royalty from oil sales.Otherwise I’am actively trading about half of my IRA with the other half in CD’s
i still work for living i still thing that china and india are the places for growth but my concern is america because being world number one economy can still bring the rest of the world with it about your ? no i do not have any fixed income but by looking the american dollar going up i recon that the market is going to be on the downterm again for how much i do not know but at least 20 – 30% so i don,t feel at eas
I have gotten pretty liquid, with alot of cash. I am looking for inflation to kick in. In the meantime, I am in short term bond funds and intemediate funds like PCN. I look for yields above 6%
Things are heating up.( Oh I am a professional in a completely different field,but took a break to try my hands at something else) Its interesting to hear the comments on the emerging markets,and I am sure people are doing well in it,but some people suggest that the best way to invest in India for example,is through a fund that can own all their stocks that you otherwise cant buy ,eg(IFN).i am glad someone did well with TTM!For now ,its said “its like parking some money with GM in the first decades of the last century” but it will eventually become more valuable.
Having said all that,I think the tax consequencies must be considered,but for big time investors it will work out.
Most of my portfolio in in U.S. Treasuries right now, for safety. I have no munis. A small Templeton Global Income Fund. Most of my retirement income comes from a Swiss Anuity in Euros that I bought years ago.
I think that foreign companies should be looked at first based on
their fundamentals..,if good, then look at technicals and the country they are
headquartered in and its structure and stability.
For fixed income I’m using Pimco and their funds.
For “passive” income am using a manuf home park and other real estate
with many small leases ($350/mo) or so which minimizes risk of
defaults….etc.
35 years ago I’d never dreamed that 30 year mortagage and real estate
loan $$ would ever be as low as 6% let alone in the 4’s!!! Have almost always
bought the worst place in a nice neighborhood and benefited from
lottsa elbow grease. Built a good nest egg from1970 till now. Obviously a
big part of our success was due to ongoing inflation!! We’re backing off now but its
hard to resist real estate thats selling for 1980 prices . Our actual unemployment
rate in 3 contiguous counties is 14% + and has been for almost a year!!
We have equities in a Fisher managed Smith Barney account also. They move as
the vix does.
All in all its a diverse way to invest and yet be involved in something we
know intimately while leaving the areas we don’t to the pros.
Norbv
I’m doing some EFT based option spreads though the last few weeks hasn’t been great but OK otherwise. Also some US Tech stuff, emerging market ETF’s, and tried some of Tony Sagami’s recommendations about 1 1/2 months ago and not doing well so sold out of about half of it but as of the moment I’m still at over 45% cash 33% gold and the rest above. I’m also a small business guy that is in the process of closing my business down, due to state regulations not the real business model. Have some real estate not including residence. Would like to get a better feel for Brazil, Peru, and Asian stuff but when our market moves, so do they, sometimes worse.
I’m selling off real estate, have some annuities. small amt in bond fund (pimco)
& spending our SS checks. for now. thnx Gordon
John C
I am invested in various period term deposits with the Australian branch of the
farmer’s Rabobank until the bear market shows signs of bottoming globally.
Hi Martin,
For investment income, about 25% of my portfolio remains comprised of CD’s earning 3% to 4%. As my IRA’s mature, I have been re- investing them into short to intermediate term income mutual funds managed by Artio, Fidelity, Janus, PIMCO, and Thompson and have also been increasing my SPDR gold share holding. Combined, these more recent investments now account for about 50% of my rollover IRA accounts. Where to next???
My retirement income is augmented with “safe” US Govt bonds and local real estate investment rentals. I was fortunate to catch the initial fast downdraft in the US stock market over the last couple of weeks, and expect to have more opportunities in shorting its continuing slide. My favorite global market is India, and I will be watching to invest in gold and other natural resources when they regain their footing.
Dear Dr. Weiss,
I think a little of my history is appropriate sinc I am 79 years young. All my life I have trusted my parents, teachers, professors, employers and friends until 1989 when financial disaster struck my employer and the entire industry for which I was educated (BSEE-1959) and experienced (Aerospace Avionics 1951-1990). Suddenly after 29 years, I was informed that I was classified as a “highly compensated middle manager” and relieved of all responsibility. There were not any friends anymore. I guess all relationships with people are circumstantial. I took an early retirement with pension in 1990 and suplimented it with social security in 1992. I suffered a heart attack upon retirement and a stroke in 2007. I served 4 years in the Armed Forces during the Korean War (1950-54). So you see, I have learned the hard way to put all my faith and trust in my savior Jesus Christ. Today, I learned the government is planning to combine all IRA, 401K, Social Security and employer pensions so guess I don’t have to be concerned any more. But I am greatly concerned for my children and grandchildren.
Martin I am invested in Canadian resource funds and “blue chip” drips, just for giggles am looking into buying some “penny” stock as a gamble both for fun and education and potential for big gains, not large amounts though! haha. My main income is from my business which is a large Grain farm in Saskatchewan. The last several years have been decently profitable although with the latest USDA and World production numbers and carryouts we are looking at commodity market correction that may last a couple years which will require major belt tightening. Long term world population is growing and I feel bullish for food production. So.. Most of my investments are going into land, still relatively cheap here with a major upside and very safe longterm. Kinda different than most of the answers here I guess…lol Gary
I am in apartments, cash and gold coin. I don’t believe there is any safe place right now and that in the short run gold will drop but as the dollar turns weak again I will buy gold ETFs. All the indicators I watch point to a downward spiral coming soon that will hit every investment. Hope they’re wrong. Even cash is being damaged but at least with it you can pay your bills. The U.S. can be salvaged if we get rid of the present incompetents in government if they are replaced with fiscally prudent people. Otherwise Chile, Argentina, Brazil, China and India are promising but only after we are through the next drop and on a growth path.
Hello,
I like your commentary! Invested some in the past and want to buy a home and live more so to speak. Time goes fast and feel that I sacrificed some of it. Home will be my best investment right now. I like tropical climates and thinking about moving to Florida. Maybe south of Tampa.
New to your site. My idea is that I want the best people working for me to make good gains. Paid for recommendations are great but I’m short of funds to invest right now.
Have a 401k which about half is international and global, commodity accounts, ETF traded portfolio and currency/interest rate account. All are managed by a broker or manager and this reminds me about checking my allocation within my 401.
Someday I would like to see other parts of the world. South America, Thailand, Philipines and parts of Africa are on my list.
Keep up the good work!
God Bless!
John
Hi Martin, currently I am working in Iraq, I am 59 years old and at the moment don’t have any kind of portfolio towards my retirement. I had been getting your letter for sometime now and spoke with my wife about stopping by in Jupiter to discuss with your staff our best course of action to position ourselves in the path to a better living without money problems, once we retired. My wife is 61 and we are planning to stop by in May, hope to see you then and hope that you can assist us with our future plans for wealth build up. Thanks, Abilio.
Amber Dakar Reply:
January 29th, 2010 at 3:52 PM
Hi Abilio,
We welcome your visit and look forward to meeting with you and your wife. We do suggest however, for the purpose of your trip here (as detailed in your blog comment above), that you consider visiting our professional wealth management service company: Weiss Capital Management, Inc. For more information about the firm please visit: http://www.weisscm.com or call: 561.515.8558.
Best,
Amber
The comments regarding emerging markets are interesting but I think in reality pivot around bull/bear markets.
Looking at most markets, the pivot points – major highs/major lows tend to be comparable. If we have a major high, all markets will turn down, the more speculative (smaller) will turn down further than the major. If we are in the middle of a bull market the smaller will outpace the major so Emerging Markets, and even China, India and Brasil are still emerging, will perform the better.
It is not a question of whether EM will outperform majors in the long term, they almost inevitably will but whether you can stand the pain & volatility (using that word in its proper sense and not as a euphemism for a falling market) if we are entering into a major correction.
So, if we think we are entering into a major Bear and we don’t want to get caught by the Bear, the last place we should be in the short/medium term is in an Emerging Market. If we think we are in for a short term correction & the Bull continues we fill our boots with B, C & I. If we see nothing but roses equally we go to the races with Brasil, China, India, Vietnam and all points south and east!
most of my money is in u.s. treasurys,but i feel that is beginning to feel that may be the next bubble to burst or if its safe and by the time i use it; it won’t buy much-thanks to inflation.i,at times,feel i’m stuck in the corner-just waiting for destruction. it appears to me-one can not have income without risk,but i can not afford any more risk.
I am an aged pensioner from Australia with a very limited income & I can’t seem to get out of the rental house market .
I have a little savings & have bought some precious metals,that is why I follow your emails,but I am not game or experienced enough to try investing in stocks & I am also still a beginner on the computer.
Regards Russ.
30%@.3%…30%@ 11% last year.30% mutual funds…. now averaging 35%… after losing 25-30 last year…. I`m looking at some annuities…. for retirement…. 7 years out…. could someone educate me in their shortcomings….???.. Heather… with earnings of 5%… what do they charge to do that….???
Bill
Going forward bonds or treasuries of large countries will only pay back in peanut return, so for income it will be prudent to have best of world dividend paying stocks with reasonable valuation between 10 to 15 current PE, which will return in two folds like regular dividend and valuation
Mandeep Singh Rai Reply:
January 29th, 2010 at 1:37 PM
Thank you Tukaram Shetty
Your analysis is good. We have an editor, Nilus Mattive that writes a newsletter called Dividend Superstars (DSS) that gives fantastic insight into dividend paying stocks.
Also, buying on valuations is more difficult in an economy that has been propped up by government stimulus projects. I do agree with looking at fundamentals but that has caused many investors to stay on the sidelines as hope and emotion factor into markets.
I wish you the best of luck in your financial decisions. Stay tuned for more from Martin….
I am resident in the UK so probably not of much interest to your readers. For income I have invested in income producing asian investment funds. Also in US natural gas producer and royalty companies which can pay dividends over 6%. I think the latter are very good value even if their share/partnership prices do not rise. But it’s a good bet north american natural gas prices will increase in time too. Investment grade bonds of companies and governments denominated in the currencies of countries with low debt and large FX reserves too. Qatar and Abu Dhabi for example (not to be confused with Dubai which has no oil).
Amber Dakar Reply:
January 29th, 2010 at 12:58 PM
Hello Andrew,
Thank you very much for your response. Though you may feel Money and Markets.com readers have little interest in your comments as a U.K. resident; I can say that is most certainly not the case. It’s very informative to read about the steps investors from various nations are taking to generate income. Your comments are both astute and beneficial!
Best,
Amber
Fixed income investments, in my case, are not a choice.
I believe in cash and companies that consistently pay good dividends – in my case I don’t pay taxes on local dividends – only interest.
My foreign investment dividends are treated as interest locally and I pay tax on them – so I look for high-growth investments (3-5 years) and prefer to pay capital gains tax on them when sold.
I am looking at church bonds located in the Bible Belt currently paying 7.5% and will likely dabble in selected congregations. They are limited to 75% of appraised value of the property and the annual debt service cannot exceed 40% of last year’s average annual collections.
I’m 77 and the return of my money is most important. I have all my money in bank C D’s and money market . I took a loss in the stock mkt and bailed out. I also have money in insurance annuity , Which Clark Howard says are bad bad bad !!
My husband and I are 66 years old. He retired May 2009 and has approximately $300,000 in IRAs. I have about $15,000 in a 401K with my employer. I have been working for the State of TN for six years full time and am vested as far as my retirement goes. I plan to work until I’m 70 to make the 10 years worked in order that I can stay on the medical plans I’m a part of after I retire. We have our house and vehicles paid off and have no credit card debt. We need to keep what we have!
I have kept my 401K with very conservative funds. I have had distributions placed in Fidelity Retirement Gov. Money Market Fund – 50%; and ING Fixed – 50%. From 12/29/09 to 1/10, I have had a .48% increase. I have been putting $150 per month into my account and employer matches $25.
I am 20% gold – 20% SDS – & 20% EUO – for the next 3 months. The rest is cash.
Mr. Weiss,
Here is my story: I was force into retirement at the age of 65.
As an engineer, I enjoyed my work and would have worked until I reach seventy. Unfortunately a new regime move in and took over removing all the old timers out the door. During my working years I prepared for retirement and or forced retirement. I never believed in credit so that was no problem.
My wife and I lived within our means, therefore we invested in gold and silver when the price was 275$/oz for gold and silver was 5$,oz. We rented and save our money and when retirement came, we bought our home cash up front. This allowed us to live on SS comfortable and we received an income selling our recordings along with SS. I learned to do my own mechanical repair on our automobiles which are in good running order an twenty plus years old. Being an orphan at an early age during the depression taught me to respect money. We have no bills other than utilities and necessities. My advice is to get out of debt before retirement. Should the SS go belly up, we have our gold and silver to live on which is what it is for emergency. There are no easy steps from having an steady income right into retirement. Your life style will have to adjust to what your final income will be. The one thing I did right was to buy gold and silver and invested into a mining stock. The stock went belly up (my loss) and I walked away with the silver and gold (my gain). This does not entirely answer your question but it all depends on your age. Planning making money is one thing but planning for retirement is most important to be free of all debts. What good is your income during retirement being used to pay off your debts ???
Amber Dakar Reply:
January 29th, 2010 at 12:23 PM
Hello Mr. Kobal,
I couldn’t agree with your statement more “… planning for retirement is most important to be free of all debts. What good is your income during retirement being used to pay off your debts …” These are words of wisdom for those who are diligently working each day toward the goal of retirement and should be taken to heart. We wish you the very best during your well-deserved retirement years!
Best Wishes,
Amber
Martin Weiss Reply:
February 1st, 2010 at 11:37 AM
Peter, I did not live through the Depression like you. But I have lived in two countries that have experienced some tough times — Brazil and Japan. Moreover, I feel like I’ve lived vicariously through the 1930s through the many stories my father told me about his experiences. Perhaps that’s why your and my philosophies are so similar:
I personally abhor debt. My company has virtually none, except our normal obligations to deliver subscriptions to our customers.
Elisabeth and I have none either, except for one credit card that we use strictly as a payment vehicle, zeroing out the balances with each new monthly statement.
And fortunately, our son Anthony shares the same approach.
What do you tell those who DO have large debts? Here’s my primary response:
— Martin
I’m invested in MLP type equities which provide very high dividends (> 3%). Some as high as 17% at times, but these usually increase their payout every year. Frequently, even though the price of the equity decreases, the high dividend either almost covers the decrease in price, or slightly exceeds it. Also, most of these fall under a “K-1″ category for taxes.
i have some tax free municipals, two fixed annuities, and two rental properties that i depend onto live in retirement, which if any should i be concerned about in case the dollar dies and hyper inflation returns and where should i park the money , thanks jgs
Hello Dr. Weiss and associates–
Right now, I am invested in dividend paying stocks that should do well no matter what the economy–some of those are foreign (China Nepstar Drugstores). I also have a PERS retirement. I am seriously considering selling vegetables I grow at farmers markets, plus a few home-made items having to do with gardens. I would LOVE to work at my chosen profession–drug abuse counseling–but there is no money for treatment at this point because of the economy. So any work I do in that field will have to be on a voluntary basis. Thank you,
Lisa R.
Amber Dakar Reply:
January 29th, 2010 at 3:54 PM
Hi Lisa,
It’s good to see that you are taking prudent steps toward investing in your retirement. It’s also enlightening to read that you are thinking outside the box and using your gardening talents to supplement your income. We here at Money and Markets.com wish you the very best in your future endeavors. And as always please remember … investing in financial markets is risky, so only invest what you can stand to lose.
Best,
Amber
Only Buy when price is cheap and of good value at purchase point…..in my opinion, the USA is in a very dicey position, high unemployment an inept Fed, with inept Leaders, a Nation of a illiterate population, general apathy amongst said population, *** awaiting the Government to hand out more benefits……..My personal feeling is to load up on Gold & Silver and get as far away from the Mainland as one can afford, above *** keep your dealings simple and be ethical, always!
Martin, I use ATLIF, BLIAF, CSUWF, and INRGF, for income and augment with cash from my reserve.
I am a physician, a cardiologist,retired from private practice, working fulltime for a local medical school and the VA Hospital. I believe the greatest opportunity for stocks are outside USA. I will consider China,India,Brasil and Indonesia.I follow Tony Sagami investment letter.I am currently on money market accounts and have only 20% of my portfolio in the stock market.
Rene
Canadian Trusts(including those incorperating) – also MLPs
The Can Trusts and MLPs have had a great year if the ones picked are sound businesses
We are retired and rely on our investment income along with SSI. In the order of “weighting” and I think safety, our income is derived from individual municipal bonds (all triple A rated with stand alone safety), two bond funds (PTTRX and DODIX), 15 individual MLPs’, 8 Canadian Royalty Trusts, 8 closed end funds, a few preferred stocks, a few high dividend stocks, a power company stock, and rental income from a home we previously used for our personal vacations. The CRTs have to convert to regular corps by 2011 I do no know how that will play out just yet.
In retrospect…when we reached too high for dividends, that was when we wound up getting burned with several of those now having suspended their dividends (hopefully on a temporary basis). My lesson learned was twofold. One, do not rely on brokerage house ratings and recommendations. They are frequently tainted by whom they are currently raising money for and/or advising. Two, pick companies that have stable or growing dividends in good times and bad, have been around for awhile, and have solid balance sheets. In the long run lower stable and growing dividends probably do better than the high flyers.
For hedging against inflation we own gold, silver, gold miners and some foreign etfs’ as well as our oil and ng related holdings mentioned previously. We also own and follow the Weiss “million $ portfolio” which has done poorly thus far, but may yet prove itself as this year unfolds.
For income investments it’s a mix of equity investments that pay dividends through “individual” stock selection over equity fund investing geared for income, and bond “fund” investing over individual bond selections to gain diversification permitting a higher risk/higher return. This strategy incorporates funds that include corporate and country, investment grade non-investment grade securities, assuring that failure of a reasonable return affects the entire investment community over the less diversified selections, via super safe low return treasuries or junk bond high return/high risk. The caveat here is determining when the interest rate cycle is about to change so that there is less exposure to the fixed income segment of the market, specifically the bond market.
C.D.s that mature in 7 months, annuities and cash.
Mandeep Singh Rai Reply:
January 29th, 2010 at 12:04 PM
Some general advice to consider regarding CD’s and Annuities:
Consider the re-investment rates and the term options of your CD’s. If you are investing in a period less than a year, you may not be getting the Yield (APY). Instead, you may get corresponding Rate (APR), which banks do not advertise. Also check into the how interest is compounded, investors benefit most from accounts that compound frequently. Be sure you to check with your qualified investment professional.
Also look into the strength of the insurance company issuing the annuity, in just the last two year many companies’ credit ratings were downgraded.
Just some points to consider.
I live off of my dividends from mutual funds and ETF’s. I’m not afraid to sell when I get a signal to sell from you and a couple of other advisors I trust.
Dear Dr. Weiss, I’m your (paid) subscriber for a couple services for years, but now is just Real W. Report, because “no job, no money to invest” ! I’m investing like Larry Edelson has recommended in R.W. Report . I’m in Gold and Natural Resources Stocks.
I’ve learned a lot w/ your services. They’re perfect for any kind of investors .
Dr. Weiss, GOD BLESS YOU and your Team !!! RC
I currently have almost 45% in bank CD’s, about 25% of that will mature in 11/11. The rest in short term with a local bank, & Fidelity. I need income bad, since my S.S. & MRD doesn’t cover all my living expenses, & increasing non-medicare covered medical expenses. I have my own 2ndry medical coverage. I no longer trust our federal govt leadership one bit. They are too slick at living on taxpayers money,& don’t know the word frugal. I feel like I need to transfer $’s from my money markets to make up for Minimum Rqr’d Withdrawals. I don’t know which way to turn, but something tells me to stay away from domestic equities, US Treasuries..I feel like I need to make a move, but need to know how & where. I have just started a gold/silver coin collection, moved some money market $’s to a Precious Metals fund.Everett Kaminsky
For income, I have two rental houses that I was unable to sell when Martin said to sell. That being said, the income is nice. Plus I have several closed end funds that pay a monthly dividend (NCV FFC IGD EOS) plus some canadian oil trust that have since quit paying a dividend. I do have some US Savings Bonds that I could cash….but can’t stand the tax hit.
I like MLP’s
I have previous emailed the FCC (and complained to Chuck Butler a fe times) about my belief that the Fed is manipulating the (stock) markets. Today, Mr. Butler cited in his Pfennig a CNN/CA clip (which he says was NOT shown in the US) which included Charles Biderman, Trim Tabs Investment, saying the same thing. What is going on? I often see low volume moves after hours which simply do’nt make sense; the market acts irrationally. It certainly takes the fun out of puts, as well as profits. Don’t you have a HUGE interest in this sort of manipulation?
Thank you for asking Martin,
At present, I am solely interested in cash. Hence, trading the six Major FOREX Currency Pairs and redirecting a portion of capital gains into buying discounted Real Estate is of interest to me ; now. Excess rent income will also be recycled into the FOREX to accelerate the multiplier effect.
Have a fantastic year, Martin!
There are a lot of opportunities in foreign markets such as Asia, South America and other countries around the world. At this time I’m looking at the biofuel industry, Europe has the highest demand for this type of fuel, North America will follow, some of the biofuel products are a lot better than the fuels presently being used, especially in the aviation industry. The biofuel industry is about to explode giving North America the opportunity to be part of this market. The one biofuel that interest me the most is the Jatropha Curcas biodiesel fuel.
Good morning Martin,
I mostly invest in dividend stocks with a monthly or quarterly payout. CLX, FAX, JNJ, JPM, PG, PHK, QCOM, T, O, etc. I would invest anywhere that would improve my income for more spendable. I like your commom sense way of looking at things with no hype or smoultz. Thank you for all you do for us super seniors (80 +). Andy G
the only fixed assets i have are treasury bills with a maturity date of less than a year
Fixed income? Not into it. Reason is it is either too slow or perhaps unreliable.
That said I am no expert on this.
I do understand there is the concept of the optimum portfolio. My info upon optimum portfolios went missing in the turmoil of the last 18 months.
So ideas on the optimum portfolio I look forward to peruse. In fact I feel I should definitely apply some portfolio portion to fixed income. But what proportion and including what income sources I look forward to learning about.
My main income, however, is from a pension plus a few dividends and hoefully some profit from long term personal projects.
The future is uncrtain, so spreading the risk seems advisable. Not obvious that ahead foreign stocks will perform better than USA ones . What portion should be USA?
What portion should be foreign?
I am banking on EVERBANK to safely invest my money in mostly foreign currencies. They do all of the work for 3/4% and also have CD’s you can purchase and still invest that money in foreign currencies and at the same time draw interest on the CD’s.
This from an 87 Yr. old man. attempting to transition from “Buy and Hold’ equities to ETF’s and dividend paying equities ( and perhaps ETF’s) under guidance by you.
Primary income is social security, and have no debt. Prefer USA investments. [currency adjustments & foriegn relations add complications.] Uncle Sam is likely to take private gold (again) at a low price. I pray that our electorate will wake up and vote for patriots who can think.
Hi Martin,
I’m currently using short to medium term treasuries as a safe haven for cash as per your suggestion.
At this point I don’t need to draw from retirement investments yet, but I’m nervous about how best to proceed. I’ve heard that royalty trusts are a good way to geneate some growth as well as cash-flow. I’d appreciate your comments on that as well as suggestions for how to gereate income without depleating investment funds.
Thanks
A substantial part of my portfolio is invested in Canadian Income Trusts and those that have already converted to (High Yield) corporations. They offer a great combination of yield, price appreciation and a currency hedge and I consider them to be safer than most stock investments.
I am looking for a safe investment to earn some interest for income. Most unfortunately, I have been using principle for income now that interest rates have been so low. Thank you for your question.
Income is mostly from work :(
Apart from dabbling as mentioned yesterday, we’re 97% cash for safety and for deflationary scenario. Through 2010 and 11 I will scale in and out of whatever takes my eye. Inflation looks a looming threat in the UK so going into gold slowly. Not sure about foreign equities (in general), as markets are linked and if the US gets it, my bet is all markets will. However, other currencies might mitigate against western devaluations.
In more general terms, I’ve found it difficult to keep up with the curve, – just when you think you know everything, a different factor enters to skewiff you, and economics is a social thing not a purely logical one. I’ve also found it tricky to separate political / personal beliefs and “what should happen” from what actually does happen.
Happy investing everyone.
I have a pension and soc sec.and anything else is gravy,GS
What I do to increase cash flow even though it may be in small but steady amounts is to invest in companies that have long standing proven records of being profitable via stocks and with regular dividends. I always reinvest the stock and dividend returns so if I do not touch them, they grow slowly but surely. As I am also paying off my losses from past down years, I also plow more into additional proven winners. To me this is a lot better than playing the market and searching for winners who are not time tested and proven winners.
I was lucky !!! I saw the meltdown coming 2 years ago and moved every bit of my money into cd’s. My local Louisiana bank is paying 2.75% on 1 yr. cd’s.
Not making a fortune , but I sure sleep well at night !!
I retired from farming but , kept the farms and rent them out , That is better than gold or silver because of income plus gain in land value or keeps up with inflation.
Since most corporations have discarded dividends and replaced them with stock buy backs income isn’t easy. US treasuries, while safe, have low interest rates and even the low rates are taxable. Corporate bonds can pay decent rates but the underlying corporation should be the lure, not just high rates. Munis are good ( my personal favorite) because of their tax advantage. Do your homework on the entity behind the bonds and keep them short and mid range in case of inflation. 5.5% net is easily attainable.
I am looking for a safe income producing investment. I am currently using capital as interest rates have been so low
Retired Pension, Social Security and Investments.
If you want to make money, go get a job. I’ve invested retirement savings in mutual funds, and I have less today than was invested 15 years ago. Saving for retirement was the bigest disastor I ever made. I could have used the money and had some fun, now I just fret and stew over the decline. All we small investors do when we buy mutual funds is provide income for fund managers, and sales people who eat donuts and play golf. The whole system is a fraud from CEO’s and their fat wallets, to the preditory brokers. I’m done with the Vegas style gambling scene.
I favor tax free income and so would like to know more about what is safe there.
I recently bought Pimco total return, IYT a etf, SCHF , BRK-B, have many income stocks
that I have owned since 1986 to today (utilities, oil, drug companies, finance)
I forgot to also remind all these people to watch THE GLENN BECK and the DYLAN RATIGAN shows maybe they will learn some thing out it.
Martin-
I am recently retired & have about 62% of our investable funds in Short-term Treasury Money Market funds at Schwab & Vanguard, about 5% in a Natural Resources fund that is still down 40% & about 33% in the Vanguard Inflation-protected Securities fund. I don’t currently need income, but I am concerned about lack of any gains on the Treasuries & potential loss of principal in VAIPX when interest rates rise, which they will do at some point. What would you advise for someone who would be satisfied with 4% but wants little or no risk to retirement funds?
Well, my take is that China and now to a greater exent India, has been sucking us dry for years. Stop exporting those jobs to India and in fact bring a lot of the telemarketing and such back to the USA and that growth and prosperity in India will evaporate like the fog in the late morning of a bright and sunny day.
BTW…..you gold bugs out there ….I see gold has backed off some and if should fall back to the 900s and even high 800s I will not be crying one tear drop.
For, it is not the gold or commodity itself that creates wealth….but trade and manuacturing and the related human capital. For all of you who slept through World History in school I will remind you that in the early to mid 1500s Spain had obtained and captured much of the worlds gold in the “New World”…but over the next 50-100 years had squandered much of it on worthless conquest and castles while Great Britain, Holland and to a lesser degree France established trade and became the powerful nation states.
I’m not bearish on all US stocks, it is just that i expect the dollar to continue to decrease in value relative to several other currencies, so investing in foreign markets will have an added perk. Even in foreign markets i think a person has to know the company history before picking a stock but we all know that oil is not going anywhere but up over the longterm as it is supply driven and the demand is growing as well. As for gold and mining i’m skeptical, i think it is over bought and could dive but I’m no expert on gold & metal markets. I don’t trust Wall Street any more as who knows what all is off-SEC-regulation and even still, who trusts their work anyway. I’m waiting for an opportunity in the bond market and i’m in no hurry and don’t mind the sidelines right now. Guess at my age, i’m in a no-loss mode and missed all the 2009 gains by being careful. However, i also missed the earlier losses by being careful. Right now, i don’t know enough to read this market with any confidence or conviction and i like to know a person’s (pundit’s) reasoning/performance before i trust their judgment. Right now they don’t even agree on anything. We’re all over the map on projections … seems this is new territory for so many experts. I’m looking for a trend in sectors. There are a few.
GUIDE LINES
AGE OF THE INVESTOR, PERSONALITY OF INVESTOR
FAMILY STATUS, IF MARRIED, IS IT A JOINT DECISION, HOPEFULLY ONE MORE CAUTIOUS. PLEASE ALLOW THE FOLLOWING. OUR DAUGHTER WON,[INVESTMENT, CLASS], 7th, 8th GRADES, [PAPER TRADES] BEST $15M, TO $43M, I’M RED FACED.
NOW AS A FRESHMAN AT BAYLOR GENERATED [NOV.09 MELT], $14M WITH $36M INV.
HIGH SCHOOL SON TOLD DAD TO BUY GOOGLE 3C+, HE DIDN’T, RED FACED, DAD TOO CAUTIOUS. THIS INFORMATION IS TO SUGGEST DO NOT ELIMINATE THE YOUNG GIVEN A FOUNDATION AND REASONING, THEIR DECISIONS MAY BE ENLIGHTENING.
THIS FAMILY INVESTS IN RESOURCE RICH, LOW POPULATION, CANADA, PREFER 85%
RETAIN 10% CASH, [PRESENT CLIMATE, CASH 50%+]
THE REMAINING 5%, [BASED ON 500MM PORTFOLIO], CHINA, BRAZIL, INDIA, UK
INVESTMENTS CRUDE, NG, PIPELINES, COAL, METALS, TIMBER, FERTILIZER, ALL MUST PRODUCE DIV. FAVOR MONTHLY DISBURSEMENTS, FAVOR ONLY A FEW GROWTH STOCKS, EXPECTATION 300%, 3 / 5 YRS., BUT MUST PAY DIVIDENDS.
BASIS MUST BE ESSENTIAL FOR SOCIETY TO FUNCTION, CONSIDER LIFE SPAN OF THE INVESTMENT BASED ON MAJOR TECHNOLOGY ADVANCES
IN CLOSING, STOCK SAFETY THAT ONE MIGHT “FORGET” FOR TEN YEARS, PREVENT SPENDING GREAT AMOUNTS OF TIME, MUST PRODUCE WHEN WE WORK, SLEEP, PLAY
GOLD AND SILVER HELD AS AN INSURANCE HEDGE HOPEFULLY NEVER NEEDED.
DR. WEISS, THANK YOU FOR THE OPPORTUNITY ALLOWING RESPONSE
REGARDS, JOHN ROSSI
I have a portfolio of investment in land, equity (Malaysia, Singapore and UK) and foreign currency deposits. The year 2009 the return on my stock has been positive in UK, Singapore and to a less extent in Malaysia. The land investment in Malaysia has appreciates in value of more than 100%. I make some gain on the foreign cuurency deposit of higher interest rates and favourable exchange rates.
As an Australian retiree of some 8 years standing now I have developed a small portfolio of high quality Australian shares, however the bulk of our investment is with a number of diversified managed funds.These include some funds who specialise in foreign investment markets, a B.R.I.C. fund & Australian equities. I have a financial advisor who has served me well over the past 16 years, firstly in building our superannuation fund up & more recently, in maintaining the earnings at an acceptable level. At the moment, in addition to retaining my long term investments, I am holding a substantial sum in cash expecting another correction in the near future, which will then give me cheap entry to both equities & managed funds.
I work for, for earned income so far. I trade currencies, I like the USD at this time, my goal to trade currencies full time.
Ken
I work, for earned income so far. I trade currencies, I like the USD at this time, my goal to trade currencies full time. The company I’ve worked for 14yrs. is restructuring and I will more than likely be forced to early retirement at 64.
Ken
Hi I am retired and get a small pension and SS, The only thing I have is gold and silver coins 90% are all graded and in safe keeping. I am very interested in get into the market but have very little to work with.
PS we do have a 401K plan that my wife is in at work
The Federal Reserve’s Fiat money, printed without basis, and the virtually 0% loans to Wall St. banksters. Even if the banksters buy 3.5% bonds with this money they will still make 100’s of $millions. Suppose this money is used to create another Wall St.bubble as now seems to be the case. Rather than channeling the FedFiat money into capital for investment into the economy it is used for speculation rather than the good of society.This phantom Fial money, then creates profits based on speculation through market manipulation, a bubble. These are phantom profits created by fiat money has no real value, just phantom profits which in turn only serves the Wall St. banksters through huge bonuses resulting from phantom fiat money or the private good derived from public funds. Their is a proverb. if something can’t continue,it won’t. This is pure insanity and foreign investing using proven research techniques may be more reliable for investment purposes. As Ben Franklin answered when asked what he thought of the thenb new republican form of government,”it will last a couple of hundred years until graft and corruption destroys it”. Here we are.
California muni bonds are trading at historical lows to other states’ obligations. Most of my money is invested in 10 year or less California redevelopment agencies.
safe – profitable investment in North Amerika WILL NOT exist until dollar will collapse.
Base of any economy in the world is MANUFACTURING. Amerika has no chanse to stand up without strong manufacturing and following international trade profits that bring wealth to the country in modern knowledgeable world. All the countries have equal access to the information right away with no need for Spy Agencies, etc. Service – trade companies DO NOT create real wealth. Cheap product brought from Asia keeps demaging Amerika. There is no real profit from this trade, rather more damage to the economy. It started in 1980 and wrong action was taken in order to avoid real depression. Sooner or later we have to pay for it. Any investment in Amerika is going to be high risk until:
1. Dollar will collapse 2. Amerika will start manufacturing & trading
You are the only one I trust on the net. I am a recently retired registered nurse and would like to find some way to increase my savings (lifetime) and someone to advise me in investments. I do have 5000.00 to invest. When can I get started with you and I read all your internet mail and know that India may be a a good market to invest in. Can you help me invest.
I’m retired and depend on my investments for income. I have about 10% in muni-bonds,
I have another 10% in funds like Nuveen that provide a 6% return. I have about 35% in quality stocks that pay a strong dividend. Some CD’s Some treasuries not much. And some ETF’s that pay dividends.
I’m retired and depend on my investments for income. I have about 10% in muni-bonds,
I have another 10% in funds like Nuveen that provide a 6% return. I have about 35% in quality stocks that pay a strong dividend. Some CD’s and some treasuries not much. And some ETF’s that pay dividends.
Dear Martin:
I am 74 yrs. old and my income comes to me thru social security. I have T-bills, but the return is very low and will soon be heading into negative territory. I am in dire need of more income. I lost much of my money in the stock downturn in 2008. I need help in investing what I have left to generate more income. I do not know which way to turn. Please help!!!
the only thoughts i have are two| reit’s and drips. i like gov for the reit and need help on drips
I have no bonds of any kind. I have a cd instead of bonds though it just went from 4% to 1%. I have pipeline stocks and other stocks that pay a good dividen in case I need but so far have not had to use it. I like to know about safe stocks that pay a good dividend.
Almost 60% of my portfolio is in high grade corporate bonds. I ladder them: 85% are between 2-7 years. I have a a few bonds that are past 7 years. I am putting most of my money market in BND with a 2% stop. I am using the bonds primarily for stabilizing the portfolio. I haven’t found any good bonds over the last 4 months. Most of my bonds are offering 5.5-7% yield- they were picked up in April-June 2009. Current yields are now less than 5%. Current stocks are in ETF 20% and cash 20%. I was at 35% stock, but was stopped out recently with this drop in the market.
I have been retired over 3 years. Live off my pension, Social Security and a rental house. I have no outstanding debt. However the pension fund is underfunded, so I am not depending on that for more than 3-4 years. I lost about 25 percent of my nest egg in the crash but I am
still okay. I pulled most of my money out of a management company and put stops on my other smaller account.
Those items sold last week when the market droped 700 points, which is okay. I am readingthe
blog for ideas, and will reseach some of them in the next week. But will stay in cash and conservative stuff for the time being.
I think I am out of sync with you on this. My primary requirement is to build up my capital. I have been forced to buy out one of my siblings from a family owned business. I am presently using a bank guarantee, which I must replace as soon as possible. In UK our government has followed America. Gordon Brown has often admitted to a love for the US way of running their economy, so Britain is strapped for cash with a vast debt, and we will have to face up to higher taxes. At present Capital gain has a favourable regime, but income is a swift and easy target now 50% for those earning over £150,000, and probably more will follow. I use income investments as a way of funding your services and others, and trading for growth.
As we have been retired for over 15 years, and are living on less than the pensions by a significant margin, our investments are pure gravy, earning more than the total pension payments. Because most are increasing in value, we have increased our net worth. Makes filling out tax return a mess, but just once a year…
Like the farm comment by Mr. Speckman, increased assets are allowed to compound for the future.
We are also debt free for over twenty-eight years now. And intend to keep it that way. Like Mr. Buffett we invested for the long haul. Starting a year after buying a house we salted away excess money in very long term investments, and hold at present ninety percent of of our share purchases. We buy more with dividend reinvestment plans when possible.
We do not consider the house an investment! It is shelter, with a significant tax bill each year.
So far so good.
Most important is a medical care plan that takes care of all costs except dental work. About eight million subscribers in this plan are well taken care of for any and all medical problems for a modest five dollar co-pay for problems involving professional care.
We don’t buy a new car until the prior vehicle is completely worn out. And we have cash in hand for full payment on delivery.
I have a very high 6 figure portfolio. When I was younger, I invested only in companies that I researched myself because I had the means. I made a very healthy profit. I retired 22 years ago & switched to income. I have the whole spectrum, but favot Treasuries, but will not buy more until we see the coming double figure inflation rates that are sure to happen. I have a very well known brokerage firm & am unhappy with them. We were involved in 2 bankruptcies: Lehaman, which we lost nothing & CIT group. I read all 332 bankruptcy paged because my firm did not keep us posted, send voting applications or a final resolution. I am going to change, but am wondering if the 1099 is legal. We still have about 80% of our original investments in new bonds & stock, but nothing to prove it exceot monthly statements. In fact this Co. is not even mentioned on the 1099. In fact, other calculations are wrong. I am considering reporting this to the sEC, but very hesitant to choose anotherr firm. There is not a good one in this area. I will switch from Merrill Lynch & do transactions by mail. Can you recommend a high profile effecient co?
When investing in foreign or domestic stock one must examine the political atmosphere and the potential fallout from the prevailing winds. India, for example, the largest democracy on the planet, is not likely to get into a flap over the U.S. sending missles to Pakistan as the Chinese are with our relationship to Taiwan or Obama’s planned visit with the Dali Lama. Investing in Hong Kong, at present is a different story.
I personally have numerous investments and contacts in India and many Indians I know both here and there invest both in U.S. and Indian securities and ventures. South America is another area, I agree on with Martin.
As I’ve said before buying into debt is the goldmine of the future. Sheila Bair is the key player here. Once Obama (and Congress) gives her the green light. The ride upon us in 2010 is going to be very bumpy as the debt industry gathers “discount speed.” Several big bubbles are bound to pop…all this is necessary to get where we’re going. As Rita Coolidge and James Bond theme song “All Time High” So hold on tight let the flight begin.”(sp).
CJ
With tax rates on dividends going higher next year and a constant desire for income with limited downside one should consider Master Limited partnerships. Most are conservative vehicles that benefit regardless of the price of the commodity involved(oil/gas) and have a return of over 6%. The preferential tax treatment is what also is very attractive.
Question: I own Citizen’s Funding Trust Pfd 7.50 that just suspended its pfd dividend, my question is if the FDIC decides to take over this bank and sells it to another bank are the pfd’s wiped out or does the suceeding bank take over the pfd?
I invested in Canadian banks a year ago as they were beaten down by the the stories from the US banks. However, Canadian banks are much more closely regulated so are much safer investments. A year ago I obtained dividends of 5% and better but the banks I bought then have inreased in value 70-80% so returns today are a bit lower, but still solid, and the stocks will increase in value.
Check out TD Bank (TD:3.7%), Bank of Nova Scotia (BNS:4.0%), RBC Financial Group (RY:3.5%). These are all recommended by Edward Jones and have paid off handsomely for us.
Currently invested in high yield stocks including U.S.,Asia and Europe. I like ETFs and Utility stocks.
I am one of your subscribers and I just signed onto your blog for the first time. It is interesting reading. There are a lot of knowledgeable investors and exposure to their views and strategies is educational. However, I, look to you for insight because of “your” professional experience and knowledge and because you use the best available research and an accredited financial team to form your views and strategies. I hope that you are not going to slowly change direction from providing professional advice to providing a consenses of public opinion.
I would like your opinion on BRK-B shares. I bought some already and they have done quite well. I am considering putting about 50% of my portfolio in BRK-B and the other half has been in GLD and BHP for several years now. Do you see any downside to purchasing BRK-B shares? Thank you. Carol
Hi Martin;
I’m in Mexico now, have lots to tell you but have had technical difficulties with very low speed wireless internet and changing servers as not all work here in Rincon de Guayabitos.
I’m a Canadian and you have to look at things from my perspective which is not same as the “US view”.
My retirement portfolio is broken down as follows + – 5-10%:
- 50% Canadian Corporate bonds, 3B or better. No gov’t bonds at present, no
Municipal bonds either and no US Corp bonds except for Wells Fargo Canada $15,000)
United States government is broke. They cannot increase their income by raising taxes because they would create a double dip recession. They cannot pay their debt coming due but can only issue new debt to meet their obligations. If the present recession continues unabated they will dig themselves a deeper hole. I have never been able to conceive of our government going under because of their ability to tax. What has happened in the last two years make one wonder. It is inconceivable that an entity that has the ability to tax can go under. All that is needed is to cut expenditure in line with income. They cannot and will not cut expenditures and therefore they can go bust. If this should happen the only thing that would have any value would be physical assets. Due to the fact that we have a representative government it takes a considerable time for the representatives to act out the will of the people. A good example is the heath act. Seventy percent of the public do not want the health bill enacted. It may take the November elections in order to stop this unwanted bill. This is one of the weaknesses of a representative government. As you know the credit markets froze recently and this could well happen again. A couple of strokes on a computer can cause our county to go under.
Hi,
I am planning to rely on my combined work and Canadian government pension. In my RRSP account I am heavily skewed towards Oil & Gas income trusts (or those recently converted to corporations) and some medium cap stocks. In my margins accounts I have several small cap mainly resource stocks. I still have income from work (I am retiring in two years).
Tamar Kuperstein
I don’t have a plan for income. Am looking to set up one within this year. I’m the one who needs suggestions. At present, I have practically all individual stocks, many that pay dividends, some better than others. I have a couple MLP’s, but almost nothing in bonds.
What do I use for income?
non-leveraged REITS (o), MLP’s, utilities, pharmaceuticals provide a rising source of dividend income provide security. Safety of dividends are a priority
I am one of the few fortunate ones who turned 59-1/2 in July 2007 which allowed me to withdraw all my 401k money (invested in mutual funds) in October of 2007. I got out at the absolute peak just prior to the crash. I put all my money into CDs at several local credit unions. The yields were about 5.25% at the time. The bad news is since that time they have steadily dropped to a current yield of 2.75%. The good news is I haven’t lost one penny of principal. I just read your article predicting that long-term interest rates will rise. I have two questions: 1) Do you think interest rates for CDs will rise? 2) Are credit unions a safe place to keep all of my retirement money?
Martin Weiss, Edys and I bought gold and silver years ago and hold it to our joy.
We have interesting tax lots; not trading metal for any greenbacks, today.
We have traded currency for some years, no stocks or bonds on hand for a very long time. Diversification is not something we are concerned with.
Presently, we are doing the cross-pairs. As soon as the USD takes its next plung, we will buy the natural resource currencies. Thanks for your advisories.
dhece
I was in CD’s most of Last year, State Farm now has a Money market fund that pays 1.5 percent.
I started putting some money back into the market last oct, was up 10 percent in just over 2 months, then our fine president started talking negatively about creating new banking regs.
Within 3 days ,all profits gone and then some, even with some in emerging market funds. Once again, whip saw city!
I was in CD’s most of Last year, State Farm now has a Money market fund that pays 1.5 percent.
I started putting some money back into the market last oct, was up 10 percent in just over 2 months, then our fine president started talking negatively about creating new banking regs.
Within 3 days ,all profits gone and then some, even with some in emerging market funds. Once again, whip saw city!
Yes, For income I use closed end fund that are diversified over diferent sectors and that pay a monthly dividend.
As for investments I invest in options and ETF’s over the short to medium term.
And on a daily bases I use Futures.
Martin, I should have fixed-income investments, but I don’t. I am a new investor and feel most attracted to growth stocks. I have a small pension fund with deferred annuities, but other than that, I am motivated by the anticipation of growth rather than fixed income. Perhaps when I retire in earnest I will be more interested in fixed income investments.
I will retire some times this year I am now 68,I an very conservative, I have some in money market, fixed annutities @ 5.5%, 401 account, company stock and mutual funds. Not doing well as an investors, your help would be appreciated
Hi, i invested in realestate for a living, but when the market went down, i just settled into renting out rooms in my inner-city, nashville, home and lease out the other homes on a yearly basis. what i was wondering, because i have never invested, is if there isn’t something you can offer like what “the motley fool” is now offering? if i understand it correctly, they (the motley fool crew) pick your portfolia and you take the package to any broker to invest. since i have been following you for some time now, i would rather stay with you (i have followed them as well). Have you thought of allowing us to “tag” onto your investments, but in a way that we either pay you to do it, or you give us a package and keep it updated with changes? thanks, olivia
I have recently subscribed to Mooney & Markets, and started receiving your EMs. This is my first replyl
Re: Portfolio use.—Used for proxy for cash.
Re: Fixed Income.— Outside of my IRA, I have both a Money Market account (which is doing poorly) and a Junk Bond Fund (which is doing very well).
Fixed investments where a slow bleed, but that will turn into a hemmorage. I think Larry is right with commodities. I am a little concerned about the BRIC holding up, especially with the political climate deteriorating. I wouldn’t be surprised to see nationalism rearing it’s ugly head. Wait until the Chinese introduce their new car here this fall. I agree that currencies have a place in a portfolio, but I think that we need to look at the tradional recessionary plays. Also, we need to keep an eye on upcoming techologies. So, stocks and bonds-no; Bric and other foreign stocks-maybe; commodities and special situations-definitely. I remember silver/Hunts-I lost; go to the grocery, prices way up or package sizes smaller-inflation is already here.
I have moved into a long term variable annunity which gives me some protection from the market, but can grow, and a fixed income annunity with guarenteed growth. Some gold and a few bonds. I am looking for more options for what I have in a MM acct.
To answer your question, I am retired and have been of seven (7) years. My income is derived from two small pensions, from previous employers, real estate rental income and my social security.
I have an account with Fidelity and have had since 1986. I have a Roth IRA, an Individual Account and a Personal Account with them . I also have a Brokerage Account with Fidelity which allows me to go on line and buy and sell my own stocks, and ETF’s.
I have a Mutual Fund Account which is where my Roth IRA is. I trade in the Roth since that allows me to trade Tax Free. I do not have any fixed income accounts. At present I am primarily into commodities, where I have a substantial amount of Gold and Silver. Also some oil stocks, foreign stocks, a geotechnical stock. At present I am short in DOG, DXD and TBT. I am evaluating some mining stocks, which are foreign. I trade options from time to time and have done rather well with them. .
Martin:
I have appreciated your advice for many years; my mother always passed on her issues to me when she was finished, and when she died I picked up the subscription for myself.
I have never felt the need to ask you a question, because you provide clear explanations for all your recommendations. However, given our current economic climate, I do have need for some further comment. I have a modest portfolio of equities, ETF’s, and a very small position in options. The holdings are mainly in energy, natural resources, and utilities with hedge positions in gold/precious metals. I do have some small positions in steel and transportation. I also hold 8 months salary in 26 week TBills with maturities occuring every 30 days. I HOPE to be within 10 years of retirement, so have been gradually moving into high quality dividend paying stocks, MLPs, and Canadian Income Trusts. I am currently realizing monthly dividends around 40% of salary. Now, my question: I understand that you believe the equity markets are destined for another decline at some point in 2010 and are advising a defensive stance. Several of my holding are showing capital appreciation of 10% to 40% in addiiton to the dividends. Are we to set sell stops, realize the capital gains, forego the dividends, and buy back into the market after the decline? Or, are we to purchase contra-products as defense, hold the income-producing equities, and ride it out?
Thanks!
Dear Mr. Weiss,
You inquired where I put my income. I am 74 yrs of age and a conservative investor.
I am somewhat undecided how to invest my money. I have 47%of my income in
cash(CD’s and money market).11% in foreigh stocks, 30% in US stocks,and
12% in Bonds(one 10yr USTreasury, two munis, and one Franklin Templeton bond)
I appreciate you sending me the interesting and valuble information in Money and Markets.
I do not own any stocks. I’m afraid of the market.
Martin
what happened to AENY. It went up to 5 $ but has crashed to 1.70. do you think this is temporary or one should sell
sanjay
Hello Martin,
Ive been following your research for at least a year now, Im electrician in the aviation field. I do mods on helicopters, I travel alot. I am ready to rebuild my portfolio, lets just say divorce wiped me out… I’m buying gold this week, and looking into foreign stocks, like China/India/and asia. I’m liking exxon for natural gas…
I own just one income investment. I’m investing primarily for growth.
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