The Fed has begun the battle against double-digit inflation. CNBC reports they are raising interest rates (very slowly) and announced: “Officials “generally agreed” that a maximum of $60 billion in Treasuries and $35 billion in mortgage-backed securities would be allowed to roll off, phased in over three months and likely starting in May.” CNBC adds: […]
Inflation
The Only Tech Sector to Invest in and One Stock to Own in It
The Russian invasion of Ukraine has brought to the fore the importance of many sectors, especially in the commodities space. But it has also reinforced the importance of one tech sector in particular: cybersecurity. In early April, news broke that Russian hackers had launched a cyberattack on the Ukrainian power grid, along with parallel attempts […]
Costco Is A Strong Buy During Inflationary Periods
With fears of recession, keep an eye on Costco Wholesale (COST). With a dividend yield of 0.61%, Costco sells the types of products that consumers need, no matter how well or how poorly the economy is doing. After all, even in times of chaos, consumers need food, soap, toothpaste, toilet paper, etc. Costco also just […]
Why “Beating” Inflation with Your Investments Isn’t What You Want
I get a lot of questions about investing to beat or mitigate inflation. I think that is the wrong way to think about your investment strategies. While inflation is a consideration, your investment choices should generate steady returns to help offset the rising cost of living. One concept to grasp is that the effect of […]
The Fed Wants to Crash the Stock Market
With inflation hitting 8.5% in the Tuesday report (a 40-year record)… The Federal Reserve IS NOT going to slow down their plans to raise rates and sell off their bond holdings. So far, we’ve seen many tech stocks down 30%…50% if not more. However the S&P 500, the Nasdaq and Dow are still hanging around […]
Income and Inflation For Those Already Retired
Just when you think things can’t get crazier, they do. The US pulls out of Afghanistan, leaving people and weapons behind unnecessarily. Russia invades Ukraine because they are threatened by NATO. China is rattling the saber over Taiwan. The Canadian Prime minister governs against the will of the majority; all because he wants to save […]
Why Last Week’s Inverted Yield Curve is Not the End of the World
Last week, the financial news media went crazy when the Treasury yield curve inverted. If you listened to the news, you likely thought that the economy was sitting on the verge of a recession. But let’s talk about what the current yield curve really has to tell us. The Treasury yield curve plots current Treasury […]
This Dividend-Paying Fund Stands to Be a Big Winner From Inflation
Higher inflation has been rough on all of us. Gas, food, and housing costs are through the roof. Consumer inflation was up 7.9% year over year—the worst it’s been in about four decades. As it turns out, inflation wasn’t transitory after all. As noted by CNBC: Allianz Chief Economic Advisor Mohamed El-Erian: “The characterization of […]
Grow Your Dividend Income Despite Inflation and Rate Hikes
Dear Investor, High inflation has become a driving force in our lives. It’s challenging to invest for income and keep up with inflation, especially outside of commodity-focused investments. It takes an extra step to ferret out investments that will perform well while inflation stays high. We need higher interest rates. But one category of income […]
What Will Eventually Cause the Collapse?
Subscriber Steve F. asked Chuck Butler and me what we meant when we said the Fed and government is destroying the economy and wealth of the nation: “That seems like a subject the average Joe can get his or her head around. Why not put together what that would really look like for us?” We […]