The Intelligent Investor's
By Richard C Young
Editor, Intelligence Report
Dear friend and fellow American,
“It’s morning again in America!”
Maybe you remember the Reagan campaign ad? I certainly do. We were working our way out of the Carter recession, and our economy was showing signs of life. Little did we know it then, but we were at the beginning of a two-decade bull market for investors — a rising tide that lifted all of our ships.
Even before taking office, Trump was being compared to Reagan. A political outsider with a pro-business agenda and plans to stir things up to bring America back to prosperity.
And while I have every hope that we’ll see America made great again during the next four years under Trump, I must warn you: tread lightly, for now.
Trump has inherited a huge economic mess from Obama. And a pack of lies about the state of our economy. The challenges and obstacles he faces — and we with him — are greater than at any era in American history.
Since 2008, we “little guys” have been beaten down by Washington and
Wall Street insiders.
The political elite poured unprecedented profits into the pockets of their cronies on Wall Street — the same criminals who caused the 2008 crisis and who never spent a day behind bars despite destroying the lives of so many hardworking, responsible Americans.
All of this while Main Street still suffers. Take a look around your town. Are you seeing wealth and vibrancy? Or are you seeing empty storefronts and dilapidated buildings? Talk to your friends, peers, and others in your community. Are they doing better today than they were in the early 2000s, the 90s, the 80s? Do they feel more confident in the financial future of our once-great nation? Or do they feel fear and uncertainty for what tomorrow may bring?
We’re fed up with the lies. That’s why Trump beat Clinton at the polls — because we’re sick of it, and the last thing we want is four more years of what got us to this point.
For years now, we’ve struggled under the heavy weight of lies that destroyed good, hardworking Americans’ retirement dreams. Lies that ate away at the very livelihood of folks who did the right thing — worked hard, saved responsibly, and invested for their future.
These lies have eroded the very fabric of America — everything that once made us great. Today, we reject those lies.
It’s time for us to fight back. It’s time for America to overcome the lies and rise back up to greatness.Survive and Thrive…
Under President Trump
We’ve spent nearly a decade just “getting by” — now getting rich is the best revenge!
This special report is in two parts…
PART 1: The 4 Lies That Are Destroying America
Obama’s economic recovery is a sham — and these lies prove it. While better days are possible (and should be coming soon), these lies will be the biggest challenges Trump faces in leading us to real recovery.
Also... though I don’t know you personally, lie #4 in my list points to one of the biggest financial traps most Americans face today, and it may be damaging you financially, too. Importantly, I also reveal how to overcome this trap to profit through 2017 and beyond.
PART 2: How to Protect Yourself and Profit
Under Trump, I expect a new era of profits for investors. But you must protect your portfolio from turbulence as we clean up the mess we’ve been left. I’ll show you how, plus get your money making money again. Central banks have wreaked havoc on savers, so I’ll share alternative strategies.
I’ll show you how to fiercely protect everything you have — because the maxim “don’t lose money” is still the single-most important wealth-building secret you could ever come to know. And once your wealth is secure, I’ll share where to find double-digit income and triple-digit growth. This will be the surest route to growing your wealth for the next four years.
They took us to the brink of collapse — can Trump pull us back before it’s too late?
By the time you’re done reading this special report, you will have a very clear understanding of this one thing. Years of misguided economic policies have taken the U.S. and global economies to the brink.
The Fed and other central banks around the world used cheap credit as a way to fight back against the 2008 crash. It worked, kind of. Markets recovered, but real growth has been lackluster at best.
Interest rates have hovered at unprecedented low levels — brutal to those of us who once relied on CDs and savings accounts to provide real income. Debt has been rewarded, real investment and responsible saving have been punished.
Trump has promised a pro-growth, pro-business agenda. And he just might pull it off — and get the economy growing at 3% again.
Plus, the Fed has started to, slowly, raise interest rates. Which is a positive both for savers and for the economy as a whole. But it’s a double-edged sword. Because higher interest rates make it more expensive to hold all the debt accumulated when credit was cheap. Which, as you’ll see in a few pages, could be a very dangerous thing.
Want to help you enjoy safe and steady profits
through 2017 and beyond!
The next few years are NOT going to be easy. Especially when it comes to protecting your financial future. Thank goodness we don’t have to batten down the hatches for a Clinton crash, but Trump has a lot of work to do to get our economy back on solid footing.
Between now and then, there will be many risks to your wealth. If you want to come out ahead, you must manage your money for both protection and profit.
This report is a start. You’ll understand the risks we face, getting America back on track, and our economy roaring again. And how to protect your money from those risks.
You’ll also discover the best ways to get rich, using an investment strategy proven to make you richer every year — even through market crashes. An investment strategy insulated against both inflation and deflation. A strategy that can bring you profits in both bull and bear markets.
Let’s usher in a new era of greatness for America — starting
with your retirement account!
Simply by following the specific principles and guidance I lay out for you here, we can get richer together, throughout the Trump presidency.
I’ve been doing this for a long time. Since 1965. I’ve made my living in the investment markets — through every major boom and bust cycle — for over 50 years. Longer than many so-called market “experts” have been alive.
Although today’s market and economic situation is unprecedented, I’m not afraid. And you don’t have to be, either. As long as you follow the very important advice I have for you throughout this special report.
With that I want to express my deepest gratitude to you for reading. As well as encourage you not to let this become mere intellectual entertainment — but rather, something that you act on immediately, for your own good, and the good of your loved ones.
Is it morning in America once again? Maybe not quite yet, though I’m seeing signs of a new dawn.
The 4 Lies That Are Destroying America
LIE #1: Our Economy is Recovering
THE TRUTH: Cheap debt creates an economic “high” like heroin — and our economy is now a junkie!
Bear with me for a moment as I walk you through an edgy metaphor to help you understand the danger we still face.
When someone first tries heroin, it makes them feel good. It gives them an incredible “high.” And usually, that first “high” is not so bad for their health. In fact, the heroin made them feel so good that any ill feelings the next day are more than offset by the pleasure they experienced. So they try it again, going for that next high, and the next.
It doesn’t turn them into a junkie right away. In fact, they probably cope pretty well with their day-to-day life. Even as their craving and need for that next high just keeps increasing. It takes a while before they start to see the downsides of their usage. But by then, they have a full-fledged addiction. So they ignore the bad consequences in favor of their next fix.
By the time their usage has destroyed their life, they can’t help themselves. They need the drug so much they don’t care about the consequences.
Now picture a debtor going through the same process.
They borrow money for the first time, perhaps to purchase something that will make their life better today. It’s a little painful to pay back the loan out of tomorrow’s income. But the debtor quickly feels better once they remember the pleasure they got from buying the item before they could really afford it.Survive and Thrive…
Under President Trump
And so next time they have an opportunity to borrow to get something today that they don’t have to pay for until tomorrow, they go for it.
The easier it is to get access to credit — and the cheaper it is to carry debt — the more this cycle continues. And it can quickly get out of the debtor’s control. Borrowing more to pay for past debts becomes an easy way to push the consequences down the line.
Eventually, the debt grows so big, they lose control. They’re no longer able to afford the debt. And what seemed stable just days before suddenly falls into ruin.
America’s debt culture has become
a full-fledged addiction — and it’s going to destroy us!
In 1971, Richard Nixon closed the gold window, which meant that the U.S. government would no longer exchange dollars directly for gold. While we’d officially gone off the gold standard after WWII, this fully separated the value of the dollar from any real asset. The dollar became a 100% fiat currency. That opened up the possibility of all sorts of dangerous debt-based economic policies. It didn’t turn America into a debt junkie overnight — but we became a regular casual user.
Debt grew, and grew, and grew. America felt prosperous. Throughout the 80s and 90s, we experienced an incredible bull market in both stocks and bonds, the likes of which we’ll probably never see again in our lifetimes. The “high” of economic prosperity made our debt load feel okay. And so we kept using, and using.
Eventually the bull market ended with the dot-com crash, but before long we were back to cheap debt to get ourselves back on our feet again.
Then it blew up in our faces again, in 2008. This time, centered in the mortgage market, where cheap debt fueled reckless and unsustainable mortgage lending practices.
And what was the answer? More cheap debt. But like a junkie who needs ever-increasing quantities of their drug to get the same high, our debt-drenched economy has needed ever-more debt to see even a false recovery.
These 6 charts show just how bad
our debt addiction has become…
First, here’s our national debt…
Notice how it’s risen — almost straight up — since 2008? Under Obama, the debt basically doubled.
We have more debt than dollars that actually change hands every year in our economy. Just imagine if your credit card debt were bigger than your salary.
How long could that go on?
But that’s only one kind of debt. That’s PUBLIC debt. That is, money the government has borrowed, on our behalf.
The debt culture goes deeper.
Take a look at auto loans in the last few years…
After taking a hit in the 2008 crisis, auto loans have accelerated again, and have reached an all-time high of over $1 trillion dollars.
If this is what’s fueling automotive sales, can you call this a real recovery? I’m guessing you know my thoughts on the issue.
But let me tell you something this chart doesn’t show. Remember the subprime mortgages that consumers couldn’t afford — that brought down the housing market? About 22% of auto loans today are subprime loans. And 10% of those loans are delinquent — meaning, behind on payments. These numbers are getting dangerously close to where they were when the last crisis was triggered.
The last thing we need in America is another subprime crisis — and yet, we may get it by way of auto loans!
Now look at the trend in student loans…
Before the crisis, student loans outstanding in America represented less than half a trillion dollars in total debt. That amount has gone basically straight up since then, shooting past $1 trillion, and quickly approaching $1.5 trillion.
Consider what “going back to school” means for many. It’s an acceptable way to avoid getting a job, to avoid financial responsibility… and instead live off debt on the promise of future income.
There’s nothing inherently wrong with this — if there are jobs waiting once a degree is earned. But when this is simply an avoidance strategy against an employment market turned sour, well, then we’re talking real problems.
Even mortgages are on the rise again…
The mortgage market took the biggest hit in the 2008 crisis — as nearly every home in America lost value, and many who were underwater filed for bankruptcy and saw homes go into foreclosure.
Thankfully, the real estate market seems to be on the mend — but why? Well, if you’re guessing debt, you’re only half-right. Private home ownership is sinking (as you’ll see later on) as more and more families are forced to rent due to financial limitations. Investors have picked up the slack in the housing market — happy to buy your house only to rent it back. Wall Street wants to own the roof over your head.
But still, total mortgage debt is on the rise again, and barring another crisis, we’re likely to see Americans owing more for their homes than ever before in very short order.
Even still, most of these examples are considered “acceptable” forms of debt by most of society.
Here’s a look at total consumer credit in America…
This includes credit cards and other revolving debt. Once again, the trend is up… Up… UP!
We just keep borrowing more. It’s ingrained into our habits. It’s part of our culture. Buy now, pay later. Makes for a great marketing slogan — but it’s horrible for your long-term finances.
At some point, all this debt comes back to haunt you. It’s what happened in 2008. It’s happened before. And it will happen again. This time is not different — except, perhaps, in scale. The charts you’ve just seen represent the greatest debt bubble in the history of the world.
America became a debt junkie because we have easier access
to more cheap credit than ever before.
And what’s worse, is that it’s hard to find a corner of the planet that’s not in the exact same situation. The whole world is addicted to debt!
Central banks are the “dealer” feeding this habit…
Take a look at this chart. It represents the total assets of all Federal Reserve Banks — their balance sheets.
What does that mean? Well, it’s a way to measure money printing and credit creation. This number goes up when they “print” money (including using 1s and 0s on a computer) and loan it out in the form of cheap debt.
This is how they manipulate interest rates, juice the investment markets, and try to control the economy with their monetary policy.
Before the 2008 crisis, the total was rising slowly, and was less than $1 trillion in assets. That number went almost vertical with the first announcement of QE, and has continued to increase as the Fed has faked recovery. Today, the total balance is hovering near $4.5 trillion, as the latest rounds of QE proved this wasn’t working to create real growth.
Even so, all this cheap credit is still having an impact on our economy.
You see, banks practice “fractional reserve banking.” It used to be that in order to loan $1 to one customer, a bank had to have $1 on deposit from another. $1 in, $1 out. Today, a bank gets to loan $10 for every $1 they have on deposit. And it doesn’t matter if that deposit is from a customer, or is in the form of a loan from the Fed.
Which means the banks borrow $1 at basically zero cost from the Fed, and loan $10 to any fool who will borrow. Since banks have very little risk in this transaction and huge profit potential, they keep offering cheap credit and still make a fortune.Start Your Risk-Free Trial
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This only feeds the beast of our debt addiction!
Every additional dollar in credit can give a short-term high that makes it feel like our problems are gone. But the reality is that our problem only grows worse.
The more those charts I’ve just shown you keep going up, the bigger the potential crash when the drugs wear off and we can’t get another hit.
These trends didn’t automatically reverse course when Trump won the White House. While his pro-business policies could help us grow our way out of this mess, all this debt still represents a huge burden and risk to our economy.
Considering that Uncle Sam is the biggest debtor, this makes it hard for the Fed (along with all the other central banks) to raise interest rates fast enough to reload for the next crisis. When the cost of maintaining our debt gets too high, our government will literally collapse under the weight of it all.
LIE #2: Unemployment is Under Control
THE TRUTH: The government has manipulated statistics to hide the employment crisis in America…
Something has happened to employment in America. And there are a lot of things we can blame it on. Outsourcing American jobs. Increased automation and robotics replacing human labor. Or pure economic stress. Whatever the cause, this much is clear…
Less working age Americans have jobs, and the jobs available today are worse now than they used to be!
This is catastrophic. Too much of America is unemployed, or underemployed. Opportunities have vanished for American workers at a rapid pace. Trump needs to reverse this trend, pronto — or there could be serious problems. Take a look at the labor force participation rate…
What that graph shows is how many working age Americans have jobs. It hasn’t been this low since the 1970s.
Compare that to Washington’s “official” narrative on employment. The Obama Administration lied to the American people. They said unemployment went down after 2008. How can they say that, when this chart clearly shows that a significantly smaller percentage of Americans are working?
Simple: the “official” unemployment number is carefully contrived to ignore a huge number of people without jobs — so the political elite look better! By only counting “active” members of the labor force, they can conveniently ignore the millions of Americans who simply gave up on their recovery!
It’s no wonder America rejected these political insiders and their rampant lies!
Take a look at household incomes, too…
That’s real income, adjusted for inflation. It reflects actual purchasing power. There’s been a lot of up and down, but the definite trend since 2000 is down.
Americans are working less, and have less money to spend. Compare that to our debt — which just keeps going up.
It’s a recipe for disaster! And it’s certainly started to show up in a very important statistic.
Here’s the homeownership rate in the US…
Homeownership in America has absolutely tanked since the earliest days of the last crisis. It’s now at its lowest level since the government started tracking the data. With no recovery in sight. (Remember, Wall Street is taking all the homes.)
Of course, after the last crisis, we’d expect some kind of correction. But this is a catastrophe.
The American consumer is giving up. Throwing in the towel. Investors are happy to scoop up properties and rent them back to former homeowners. But American families are not buying. Why? Well, one good reason is probably that they don’t think they can afford it!
Want proof? Well, for one, Americans are even struggling to put food on the table!
Here’s how much Uncle Sam is doling out in “food stamps”…
That’s the total dollar volume of Supplemental Nutrition Assistance Program (SNAP) payments. Even before the 2008 crisis, it started spiking.
This is the 21st-Century version of bread lines and soup kitchens. Americans are out of work and broke, and to prevent chaos in the streets Uncle Sam is putting bread on their tables.
Does this look like a recovery? I think not!
Speaking of entitlement programs, it’s also worth noting just how much money Uncle Sam is passing out to Americans who can’t get by any other way…
Here’s a look at the growth over time of just how much money Americans get directly from the government…
Where is all this government money coming from? Well, our tax dollars, for one. Today’s tax dollars. But also, tomorrow’s — in the form of deficit spending.
Congress makes big promises of entitlement spending, and can’t back it up out of today’s tax receipts. So they borrow money to pay off those who voted them into office.
This feeds the debt addiction. And it’s reached the point where the high isn’t even fun anymore. It’s just necessary, to hold off the crash. By the time we get to that point, the addiction is out of control.
This will be Trump’s greatest challenge in his mission to make America great again…
LIE #3: American Companies’ Earnings Are Up
THE TRUTH: Companies have been using cheap debt to juice their earnings!
Check out this chart, based on data from Bank of America Merrill Lynch. It reflects the percentage of companies who are reporting “adjusted” earnings…
In the last few years, it’s risen from 70% (already a troublingly-high number) to a full 90% of companies.
What does that mean? In short, 9 in 10 companies have resorted to accounting gymnastics to make their quarterly and annual reports look good. Sometimes it can be a little fudging, to try to show a more accurate picture of the company’s finances without a genuine one-time expense, for example. But when it’s 9 in 10 companies, it’s because it’s become a culture of lies!
Why would they lie about earnings? Simple. To look good. If there’s one thing I’ve learned about humans, it’s that for the most part, we’ll work really hard to cover our butts. Especially in high-visibility jobs. Like government. Or running the books for a major publicly-traded corporation.
Investors and especially “make money today” Wall Street traders are finicky. They want to see earnings go up, up, up. And so when the numbers aren’t looking great, companies find a way to make it so, to appease Wall Street. When this happens once, it’s troubling — but mostly harmless. But when it becomes a bad habit, then you’re dealing with a market shell game.Start Your Risk-Free Trial
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Somewhere along the way, the economists at the Fed decided it’s a good thing for Americans to see stocks keep going up. They call it the “wealth effect.” If you see the stock market going up, it makes you believe you’re richer (even if it’s not true). When you believe you’re richer, you’ll spend more money. And that juices the economy.
And so not only does Washington essentially turn a blind eye on these major publicly-traded corporations lying to the public…
Today, Washington and the Fed are totally complicit in helping companies create the illusion of growth!
Here’s a look at total corporate debt…
That chart only includes nonfinancial companies. Companies that are supposed to produce a product or service at a profit. These are companies that, in a healthy economy, should not be going into ever-increasing debt. But they are.
This is only happening because of cheap credit. If interest rates hadn’t been so heavily suppressed by the Fed, they would not be able to afford all this debt — and as interest rates rise, they won’t be able to service it.
But what are they buying with all this borrowed money? We already looked at jobs — that money isn’t going into your salary. It’s also not going to investing in productive assets.
Companies are buying back their own stock!
This chart, thanks to SocGen, shows how much companies use debt to fund share repurchases.
But why would they do that? Simple. One of the biggest numbers that determines the market’s perception is earnings per share, or EPS. That is, the total earnings of the company, divided by the total number of shares out there.
There are two ways to make EPS look better. The first, most obvious way, is to earn more money as a company. If you make more money overall, your EPS increases as well. The second, more devious way, is to reduce the number of shares on the market. If earnings are flat, you can create fake growth in your EPS number by splitting your total earnings between fewer shares.
And how, pray tell, might you reduce the number of shares on the market? If you answered buybacks, you’re right! Companies are borrowing money to buy back their own shares, reducing the number of shares on the market, and making their EPS numbers look better.
The big problem with that? Well, what happens when all the debt they’ve added to do this becomes too hot to handle? That is, what happens when they can’t afford more debt, or even to service the current debt?
Take a look at the increasing amount of delinquent corporate debt…
Before the start of the last two recessions, the total delinquent corporate debt rose dramatically. And it’s happening again. Companies are getting behind on their debt. It’s a sign that not all is well with the system that’s driven the recent bull market. If the last couple recessions are any indicator, this could be a leading indicator that the economy is at risk again.
And in order to unload some of their debt, corporations are likely to start selling the shares they’ve been buying back to investors, which is a nice recipe for sending stock prices plummeting.
If this practice is so widespread, why haven’t we been warned about it before?
In short, most of the people who know enough to pull back the curtain on this charade are incentivized to keep it going as long as they can.
And I’m not just talking shareholders here. For many shareholders watching their stock going up, they’re happy. If shifting to more honest, defensible, responsible accounting practices (while the rest of the market continues with the fraud) would turn a winner into a loser… It’s a natural human reaction to want the company to stick to “business as usual.”
But the real player in this game is corporate management. Today, many publicly-traded firms have executive bonuses based on the same income they’re reporting to Wall Street. So, if the fabricated income looks better than the real income, they make more money in the C-suite by perpetuating the lie. Very few executives have the intestinal fortitude to stand up and make the essentially career-ending move of telling the truth about this.Click here now for a risk-free
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And since most of the mainstream and financial media are engaged in this same charade, they’re happy to run the corporate press releases and toss softball questions in interviews, and never get to the heart of the issue.
It takes independent media, independent thinkers, and independent writers like yours truly to stand up and call a spade a spade — to reveal what’s really going on. And importantly, to share what it means for you and your money.
LIE #4: You Can Make Money in the Stock Market
THE TRUTH: Relying on the markets to make you rich is one of the surest ways to end up poor!
Revealing this truth will not make me particularly popular among my peers in the investment newsletter space. After all, most investment newsletters sell you juicy promises of making money in the stock market.
I’ve published my monthly Intelligence Report financial newsletter continuously for the last 30 years. I’ve been an industry insider among industry insiders.
When I cared to pursue such opportunities, I was featured on the front cover of Money magazine for my writing of one of the “big five” investment newsletters in the world. (My newsletter was the only “A-rated” publication of the bunch — and has only improved with age, much like a good Burgundy wine!)
But, being the old curmudgeon I am, I no longer care much about what my peers think of me, when it comes to the truth. I tell the truth, as I see it. If you have a problem with the truth, the problem is yours! And here’s the truth…
The investment newsletter industry is full of slick marketers
who sell the dream of overnight riches!
Here’s the thing. I’ve seen the marketing numbers. Those pitches work. They can make tens of thousands of investors fork over hundreds or even thousands of dollars for the latest hot stock tip.
I’ve never done that. Like my investing, I’ve always played the long game. I figure that if I give you sound advice that grows your net worth (and protects it from shrinking), you’re going to want to keep coming back. And so I still have readers who’ve been with me from the beginning — decades. Who wouldn’t have half the retirement lifestyle they currently enjoy, if it weren’t for following my investment recommendations.
That’s because we take a different approach. My late friend, Richard Russel, summed up the difference in his Rich Man, Poor Man essay a few years back.
The Rich Man doesn’t need the markets. The Rich Man never feels pressured to make money in the market. The Rich Man focuses on income and compounding — and has all the income he needs. The Rich Man has patience. The Rich Man is an expert on values.
Based on this patient, values-focused approach to investing, the Rich Man makes smart decisions with his money. He’s far less likely to invest where he could suffer big losses. And he waits for smart opportunities to buy where he can enjoy healthy income and the potential for powerful long-term gain.
Compare that to the Poor Man. The Poor Man is always pressured to “make money” in the markets. He needs the markets to do something for him. The Poor Man resorts to gambling and chasing hot tips. The Poor Man speculates on bubbles, and is playing the lottery (often figuratively, sometimes literally).
The Poor Man is a GUARANTEED LOSER. He doesn’t understand value, so he buys high and sells low. He’s impatient, so he acts too fast, buying and selling when he shouldn’t. The Poor Man doesn’t understand compounding or money, so he relies on debt and is always struggling. The Poor Man would rather have the prospect of a 10-bagger (with a distinct possibility of losing it all), rather than a sure and steady 10% compounding gain.
The vast majority of individual investors follow the Poor Man philosophies —
and so they underperform the market!
Have you ever heard Warren Buffett say that most investors would be better off buying and holding a fund of the S&P 500 and never touching it, rather than trying to follow his strategies? If Warren Buffett’s strategies made him the richest man on earth (before he started giving it all away), why would he recommend against them?Take advantage of our iron-clad
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Simple. Ample research has shown that most investors aren’t very good at investing. Leading researchers from UC Davis and UC Berkeley analyzed dozens of studies on investor behavior and performance. And they found some shocking truths about how we invest:
- We underperform standard benchmarks (e.g. a low-cost index fund).
- We sell winning investments while holding losing investments (regardless of what we should do).
- What we buy is driven by our limited attention and past return performance, not opportunity.
- We engage in naïve reinforcement learning by repeating behaviors that brought us pleasure before, and avoiding those that brought us pain.
- We tend to hold undiversified stock portfolios that suffer devastating losses in a market shock.
All-in, these heavily emotion-driven behavior patterns “deleteriously affect the financial well-being of individual investors.”
In other words, we end up broke by trying to make money in the stock market!
This is the Poor Man’s plight. And it’s the very last thing I want for you. This is especially important today.
As long as the Fed has been juicing the market, it’s actually been pretty friendly to the individual investor. There’s been so much debt-fueled growth created in the markets, that we’ve seen an unprecedented bull run.
But let’s not be too short-sighted. We’d just experienced incredible bull runs leading up to the 2008 crash. And the 1999 crash. And pretty much every major crash before that!
One of the biggest mistakes an investor can make is to focus too much on the recent past, and assume it will go on forever. We’re better off taking a longer view, and seeing the market’s cycles. A good bull market always ends — and so does a bear market. The key is having a strategy to weather all markets. And not getting too caught up in the cycle’s extremes.
To discover how the Rich Man invests — protecting his wealth (in ALL markets, including today’s), collecting more income, and growing his nest egg — read on for Part 2: How to Protect Yourself and Profit…
How To Protect
Yourself And Profit
I Want To Show You How To Grow Wealthier Every Single Year, For The Rest Of Your Life…
I’m going to start this section of my Financial Survival Guide with another chart. This one, not of government or market data, but one derived from my own strategy.
Here’s a chart of the performance of my Dynamic Maximizers strategy, against that of the Nasdaq, since the year 2000…
You would have made money every single year by following my Dynamic Maximizers strategy.
Good years? You make money. Bad years? You make money. Even when the rest of the market was tanking, we were sitting quietly in the corner, growing our wealth.
During this time, the Nasdaq often beat my Dynamic Maximizers strategy on pure annual percentage gains. In fact, during most years you would have made more money investing in the Nasdaq than investing in my Dynamic Maximizers.
But in the end, we don’t get credit for our good years alone. Our retirement lifestyle is not dictated by our best years. Rather, it’s the end result — the sum total of our good and bad years — that matters.
Winning in the long run isn’t about winning this month, this quarter, or even this year. That’s a Poor Man’s approach. That’s the beast the Fed and Wall Street are feeding when they’re manipulating the markets with debt and lies. And it’s that short-term perspective that exposes you to HUGE losses when the market turns south.
Getting a little more ahead every year is a far superior long-run strategy to the coronary-inducing roller-coaster ride of double-digit swings. And that’s what makes my Dynamic Maximizers strategy so appealing, to the right kind of investor.
If you have a portfolio of at least $500,000 — or wish to— and you don’t like losing money, this is the perfect strategy for you.
Will it work if you have less? Yes. In fact, I think it’s even a smart strategy to teach kids and young adults — who have their whole life of compounding returns ahead of them.
But if you’re too focused on short-term gains and triple-digit windfall opportunities… If you’re prone to buy the investment newsletter with the juiciest stock tips… This will not be a good strategy for you. It will be something you try this year, only to abandon before the seasons change, and before its true magic can be revealed.
Because my Dynamic Maximizers strategy isn’t designed to give you the dopamine rush of high volatility. It’s designed to make you richer every year, for the rest of your life. Even when the markets go crazy. Through both bull and bear markets.Join Intelligence Report
Here’s why this is especially important TODAY…
Ealier, I laid out my case for why Trump may have more trouble than we’d hope in leading us to a real and sustained economic recovery.
While I believed a crash was imminent if Clinton had won the election, now I’m not so certain. All the same risk factors are still in place. Our debt addiction has the potential to eat us alive. Our jobs market is still in the toilet. The companies that used debt to juice stock prices are still at risk.
And yet, Trump’s policies to bring capitalism back to America full-force might just give us the boost we need to work out these problems without catastrophe.
Here’s the thing: we will see another recession. The stock market could swoon again. That’s the nature of business cycles. It’s inevitable.
But if the American engine of prosperity is revving up, any downside is likely to be short-lived, and simply an opportunity to pick up some good bargains on investments we want to own.
In the meantime, I’m happy to stick with the strategy that’s made us richer every year since 2000. And we can make money together whether the market goes up or down in the short term. Having been a professional investor since 1965, I’ve learned to never run from the market.
We don’t time the market — we invest in good values and reliable income streams, and stick with it through thick and thin…
The good news about investing in the Dynamic Maximizers is you can buy more when the market is up, and buy more when the market is down. When you keep making money, you just keep investing with confidence. The more you invest, the more your nest egg will grow. That’s our approach.
At this point you may be wondering…
What’s The All-Weather Money-Making
Secret Of My Dynamic Maximizers Strategy?
If I could sum up my Dynamic Maximizers strategy in just a few words, it would be, “We’re excited by boring investments.”
This sounds a little funny, I know. But when it comes to getting and staying ahead, this is what it takes.
My most conservative portfolio – the Dynamic Maximizers – is a fine-tuned derivative of our original maximizer portfolio. It invests in five funds, which together break down into…
- 70% Ultra-Safe Bonds. The debt market is a tricky place right now. In some regards, it’s as risky as investing in stocks — if not more so. With interest rates near zero and rising, the clearest path for the bond market to go is down. However, there’s an unconventional Vanguard bond fund I strongly recommend, that I consider to be one of the safest investments you could make today. In the crash year of 2008, when the Nasdaq tanked by 40%, this fund was up 7.2%.
- 25% Established Dividend Payers. In short, I like dividend-paying companies that sell products people will keep buying through thick and thin. But not just any companies. We’re looking for companies on solid financial footing with a history of rewarding shareholders. For that, specifically, we look for companies that have increased their dividends funds that invest in over many consecutive years, as well as passing other stringent criteria.
- 5% Gold. I’m not particularly a gold bug. But I recognize its utility in many circumstances. As a real asset and hedge against currency devaluation. As a form of insurance and crisis hedge. As a particularly appealing financial asset in times of uncertainty. The easiest way for most to invest in gold is SPDR Gold Shares (GLD). It is a gold bullion fund where shares are backed directly by physical gold held in storage in a secured vault in London. It’s the next-best thing to physical gold in your possession, but much easier and more secure.
I recognize this is a very superficial treatment of these investments, and so I’d like to send you a complimentary copy of my report, Dick Young’s Dynamic Maximizer Strategy. It goes over each investment in far more detail than I can here. I reveal the specific bond fund you should take a core position in, right away. You’ll get four specific stocks that are ideal buys for the consumer staples segment of your portfolio. Plus, you get an important consideration for buying GLD, based on your current tax bracket.
You can start a no-risk trial of my Intelligence Report monthly newsletter and you’ll get a free copy of my Dynamic Maximizer report with my compliments.
In fact, I have even more free gifts I’d like to send you, simply for trying Intelligence Report with no risk or obligation. Read on to learn more…
A note about dividends — and how to get 13.5% dividends from a boring stock currently yielding 3.1%, and turn every $10,000 into $43,599!
I apologize for the seemingly over-the-top headline, but it’s 100% true — as you’re about to see. McDonald’s is a consumer goods stock I’ve long-recommended to my Intelligence Report readers. And I think it makes a great example of the power of this strategy.
Today, McDonald’s yields about 3.1%. In 2006, their stock also yielded a little north of 3%. It’s a little better than the market average today, though nothing spectacular.
Let’s say you invested $10,000 in McDonald’s stock on September 1st, 2006, and simply held it for 10 years, until September 1st, 2016. When you purchased the stock, you opted to directly reinvest dividends.
At the end of 10 years, your 272 initial shares worth $10,000 total have turned into just over 377 shares, worth $43,599.
Not only that, now you’re collecting $1,351.57 in annual income from that 3.1% yield. Measure that against the $10,000 you initially invested, and your current yield is 13.5% on your investment!
This is the true power of compounding returns from safe stocks. And guess what. The numbers look even better, the longer you hold your stock. Before long, even a 3% yield can net you more in dividends in a year than you initially paid for the stock!
Now, I hate selling stocks for tax reasons. I’d much rather hold onto shares than hand my money over to Uncle Sam. However, even if tax weren’t a consideration, this is a darn good reason to hold onto this kind of stock for life!
“But wait,” you may tell me. “I want high yields NOW. I want my money to be making money today, not 10 years from now.” I understand. And if you’ll keep reading, you’ll discover that I have recommendations for that, too. However, I strongly encourage you to also remember the old proverb…
The best time to plant a tree was 20 years ago. The second best time is now.
Can I show you some of the best dividend plays today?
I’ve just updated a special report we offer to Intelligence Report readers, titled Pay Me Now. It includes some of my favorite income-oriented investments today…
- Low-risk opportunities to get paid consistently from your portfolio…
- The most rock-solid, “boring” stocks that I expect to continue increasing your income for decades like the McDonald’s example above…
- As well as an extremely attractive unconventional fund that will pay you 7% today…
Join Intelligence Report today and you’ll also get Pay Me Now with my compliments — so you can add these ideal income sources to your portfolio right away.
In a moment, I’ll share the details on what you get when you try Intelligence Report without risk or obligation. First though, I’d like to offer up yet another gift — yours free for simply deciding whether or not my newsletter is a fit for your investing strategy.
11 Ways To Make A Safe Profit…
My team and I are consistently on the lookout for the best SAFE investing opportunities for our readers and clients. We are the only publication of our kind, as far as I am aware, who use both the Macrobond database and a Bloomberg terminal (at a combined cost of nearly $60,000 per year) to track both market conditions and individual opportunities.
I’ve applied my over 50 years’ worth of investing experience to developing statistical models for identifying opportunities that meet my PPPPP criteria:
And every single month I share an updated list of my top 10 stocks to buy, based on today’s conditions, and my own analysis. This is the first place I encourage you to look when investing new money you’ve added to your investment portfolio.
There are also certain opportunities that remain more consistent from month to month. These are core positions in a safety-first portfolio, that you can buy today and expect them to return profits for years on end.
For these, I’ve put together a report titled 11 Ways To Make A Safe Profit…
If you regularly invest in funds, this report will have particular appeal. It reveals many of my preferred low-cost, high-income, and high-stability funds. The same prudent-yet-profitable Rich Man investing principles apply when investing in mutual funds, ETFs, and other similar investment products. With the caveat that you also must look closely at how the fund itself is managed.
This report doesn’t just cover funds, though — there are specific recommendations in energy and consumer food products in particular. From big, safe “Dividend Aristocrats” that pay you more every year, to smaller MLP energy investments with yields north of 6%, there’s a lot to like.
And like the others, I’d like to send you this report, with my compliments. It’s yours, simply for trying Intelligence Report with zero risk or obligation…
How to Get Your No-Risk Trial of
Richard C. Young’s Intelligence Report
I’ve been writing my monthly Intelligence Report newsletter continuously for three full decades — a rarity in this industry. Many of my earliest subscribers still read each monthly issue for one very important reason: it works. When you see your net worth continuing to increase year after year, I imagine you’ll keep coming back too.
As a subscriber, you get each month’s issue by mail, as well as by email and through the members-only website.
Each issue is packed with valuable content…
- You get the latest economic and political commentary, to provide context for where we’re at in the current business and financial cycle — as well as how that influences our investing decisions.
- You get broad market analysis, including my proprietary Market Tension Index (MTI), to help understand the risks and opportunities current macro trends are presenting.
- And most importantly, you’ll get actionable advice for where and how to invest, based on today’s market, my proven models, and my 50-year history as a professional investor. Including the 10 best stocks to buy today.
I’m not hiding a gimmicky stock picking system behind a curtain. I don’t wish to dazzle you with my wizardly prowess, or hype up my latest hot pick.
Rather, I want to help you become financially independent. To grow richer for the rest of your life. That includes giving you short-term advice for how to invest today, as well as long-term strategy and perspective that will serve you for the rest of your life.
In addition to each monthly issue of Intelligence Report, you also receive…
- A list of all my recommended Retirement Compounder stocks. These are companies that have consistently increased their dividends for at least 10 years — investing on that one factor alone has proven to help you beat the market. In addition, the companies on this list have passed my screen as being “best in class” among all dividend-raiser stocks. This is updated bi-monthly.
- Funds for building a Maximizer portfolio. For smaller portfolios, the best way to diversify is through funds, rather than stocks. Plus, funds can be the best way to invest in certain opportunities or market trends. You get a list of all the funds I recommend in the newsletter, updated bi-monthly.
- Economic analysis. Knee-jerk, fickle reactions to what goes on in the bigger economy can kill an investor. But that doesn’t mean you shouldn’t pay attention. Understanding economic trends is crucial to your investing success, and every month you’ll get the most important charts for you to see, to understand the analysis in the monthly issue.
And while the core of Intelligence Report has remained largely unchanged for decades, we’re always thinking about how to better serve you. So we’ve just rolled out a new feature covering Unloved, Forlorn, and Out-of-Favor stocks and sectors. These are a value investor’s dream — stocks that have been beaten down undeservedly, where margin of safety is overwhelmingly in our favor and the risk-reward ratio is so heavily in our favor that they’re near impossible to pass up.
I can say a lot about Intelligence Report, but the best way for you to really understand is to try it!
The cover price of a 12-month subscription to Intelligence Report is a bargain at $249. However, in exchange for your quick response, I’ll shave $150 off that cover price — and give you an immediate 60% savings.
I don’t want you to keep it though unless you’re 100% satisfied that it will help you protect yourself and prosper through 2017 and beyond!
Read every issue, cover-to-cover. Log into the members-only website, to review past issues, as well as the current portfolio of stock and fund recommendations.
Read the complimentary reports I’m including as your gift for giving Intelligence Report a try.
Take up to 6 full months from the start of your subscription to decide. If you’re not totally and completely satisfied, let us know. You’ll get a prompt and courteous full refund of every penny you paid.
Plus, you’ll get to keep every issue and every report you’ve already received as my personal thank you for considering how Intelligence Report can help you reach your financial goals.
Can I make you an
even more generous offer?
I know I’m not right for everybody. I’m a bit cantankerous. I don’t always fit in with the mainstream. I’m a bit curmudgeonly for much of the investment newsletter crowd — who’d rather chase hot stock tips and end up broke than follow the long road to lifetime riches.Save 60% on a 1-Year Subscription
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However, if you’ve read up to this point and you feel like Intelligence Report would be a good fit for your goals, I’d like to reward you for making a slightly bigger commitment.
Sign up for a 2-year subscription for just $189. It’s a $260 savings. You’ll get everything a 12-month subscriber would get, but for 24 months instead.
Plus, you’ll still have a full 6 months as a subscriber to evaluate Intelligence Report and confirm that it’s a good fit for you.
As a thank-you for making this bigger commitment though, I will go above and beyond for you. In addition to your price savings on your second-year’s subscription, I’ll also make sure you get these opportunity-specific reports with my compliments.
- Bedrock — precious metals investments for intelligent investors. After a 5-year swoon, the precious metals markets showed signs of life again in 2016. I wouldn’t want to be without them in my portfolio, and as opportunity knocks, I am getting asked more often what the best ways are for most investors to add them. The answers you seek are in this report.
- Food and Farms — the best investments in feeding the world. Food is one of the world’s most inescapable needs. It is the very definition of a consumer staple. It can also be a very strong industry for year-in, year-out gains and investment income. You’ll find my favorite food and agriculture investments detailed here.
- Shaking the Money Tree — the timber industry’s top pick. Timber is one of my most favored asset classes. It’s a renewable resource that grows in value as it grows in size. And it’s a hedge against both inflation and deflation. It’s almost literally as boring as watching grass grow, but that doesn’t bother me. This report reveals my top timber pick.
All three of these are yours, at no extra cost, for simply agreeing to try a 2-year subscription today. And again, you’re fully protected by your 6-month satisfaction guarantee.
Reply Within 24 Hours
For My Most Urgent Advice
Having published this newsletter for 30 years, I can tell you something about making an offer like I have today.
No matter how generous and one-sided I’ve made it in your favor…
No matter how much I reduce your risk and obligation for simply trying…
I have to overcome a lack of inertia.
Even if you decide right now that subscribing to Intelligence Report is the smartest thing you could do for your financial future, you must take action to get the results you want. And so in order to encourage your prompt action, I’d like to offer even more unique and valuable gifts with my compliments — but only when you reply to this offer within 24 hours.
- You Must Sell — a list of stocks to dump right now. In the next crash, there are many stocks that will fall further, faster than most. The surest way to destroy your retirement dreams is to be overweight in one of these stocks when it happens. A 50% loss requires a 100% gain to be back to even — and many of these stocks will fall even further than that. It should take less than 10 minutes to review this list and sell any you have in your portfolio — but that could be the most valuable 10 minutes of your life.
- 10 Mistakes That Are Killing Investors — common pitfalls and how to avoid them. A losing investor is more often defined by the mistakes he made than the opportunities he missed. Even one of these mistakes can have a devastating impact on your net worth. If “don’t lose money” is the #1 most important investing rule, this list of mistakes is a way to put that rule into action.
- 2017 Survival Plan — economic AND personal survival. Our current geopolitical and economic landscape is full of uncertainties. This report will help you weather both. Please make sure you read the part about EMP — or, electromagnetic pulse — dangers, and how to prepare for them. Personal survival and basic disaster preparation is a running topic throughout Intelligence Report, and this details one of the biggest risks we as a society face today, and what you can do about it personally.
This collection of reports is more than we’d normally offer for urgent response. But I think today’s uniquely challenging investment markets call for a little extra guidance.
If it weren’t for debt growing to unprecedented levels, we wouldn’t even have this so-called recovery. Our nation has become addicted to debt — no matter the long-term cost. And even if Trump’s plans will bring us back from the brink, there’s no guarantee it will be painless.
I don’t think you would still be reading at this point if you didn’t agree that our current situation is troubling, and there is no easy resolution. And further, that our path back to true stability and growth could present significant challenges and risks to our wealth.
My question: where would you rather be at the end of the Trump presidency?
Today, you have a choice. You’ve seen the evidence. Debt has spiraled out of control in America, turning our nation and many of its citizens into out-of-control debt junkies. While we may see new prosperity by the end of Trump’s first term, there’s no guarantee the next four years will be straight up for investors.Start Your Risk-Free Trial
of Intelligence Report Now!
You’re given two choices.
You can continue the course you’ve set based on the last few years, and hope that it carries you through the big changes coming in 2017 and beyond.
Or, you can protect yourself and get oriented for long-term profits through my Dynamic Maximizers strategy — the same strategy that has made money every year since 2000, including during the 2008 crash.
And in doing so, also begin to benefit from all that a subscription to Intelligence Report has to offer — and at zero risk or obligation.
To get started, simply accept your no-risk trial to Intelligence Report today. I look forward to having you join me as a reader.
Richard C. Young,
Editor, Intelligence Report
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- Plus, these 6 money-making reports, FREE…
- Dick Young’s Maximizer Strategy
- Pay Me Now
- 11 Ways to Make a Safe Profit
- Food and Farms
- Shaking the Money Tree
- 12 monthly issues of Young’s Intelligence Report
- Full access to my private members-only website
- Plus, these 3 money-making reports, FREE…
- Dick Young’s Maximizer Strategy
- Pay Me Now
- 11 Ways to Make a Safe Profit
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You’ll get a prompt and courteous full, 100% refund of your entire investment today. Your satisfaction is so important to me, I personally guarantee it!