 |
|
|
||||||||||||||
 Rare New Speculation
(Posted Aug 30)
Wall Street has been in a bear market so long that some pundits are predicting the end of equities as an investment. The doom and gloom was palpable at the MoneyShow in San Francisco, Aug. 19-21. However, financial journalist Roger Lowenstein noted in yesterday's New York Times magazine that stocks now are selling at a reasonable 12 times earnings. In other words, while Treasuries are paying out a measly 3% a year in dividends, the average S&P 500 stock is paying out 8.5% in earnings.
 Government policy is hurting the economic recovery. In the face of protracted high unemployment and prospects of a double-dip recession, the Fed officially acknowledged the economic slowdown and announced a willingness to buy more government securities and expand the money supply, if necessary. Where to invest now? I still believe that the majority of your funds should be in income-producing investments. Something interesting has been occurring with Annaly Capital Management. High Income Goes Higher Commodity prices fell last month in line with the global slowdown. Gold fell below $1,200 an ounce, and silver dropped below $18 an ounce. I’ve written a new pamphlet on sound money called "A Tale of Two Dollars." Most Americans don’t know it, but the United States government mints two different kinds of legal-tender dollars, a paper dollar and a silver dollar. Actions to Take This Month |
|
|
Home | Privacy Policy | Subscribe
Copyright © 2010 Eagle Publishing, Inc. All Rights Reserved.