Richardcyoung.com

The Online Home of Author and Investor, Dick Young

  • Home
  • How We Are Different
  • About Us
    • Foundation Principles
    • Contributors
  • Investing
    • You’ve Read The Last Issue of Intelligence Report, Now What?
  • Your Survival Guy
  • The Great Reset
  • COVID-19
  • My Rifles
  • Concentrate on Dividend Record and Compounding
  • Your Security
  • The Swiss Way
  • Dick Young
  • Debbie Young
  • Key West
  • Paris
  • Dick’s R&B Top 100
  • Liberty & Freedom Map
  • Your Health
  • Ron Paul
  • Bank Credit & Money
  • Freedom Force
  • Dick Young’s Safe America
  • Bank for International Settlements

The Yield Curve Inverted: Time to Panic?

March 29, 2019 By Richard C. Young

By El Nariz @ Shutterstock.com

If you have been reading the financial papers or watching CNBC, you have seen the news that the U.S. yield curve has inverted. Typically, this is a sign of a coming recession, and that could be the case today. If, though, you have been following my advice, there is no reason to panic. Have patience and rely on the diversified, counterbalanced portfolio you have built for generating dividends and compound interest. In August of 2013 I explained the power of counterbalancing in your portfolio:

Managing a common stock portfolio takes— above all else—patience. Your goal should never be what to sell next; rather, it should be what stocks you can hold through thick and thin. It is true that portfolio activity, for most investors, runs inversely to consistent long-term performance. How should you measure performance and how should you construct an all-weather portfolio? First, “all-weather” means you do not want to be jumping in and out of the market attempting to predict bull and bear markets. For five decades, I have been investing my own money as well as advising conservative investors saving for retirement. As such, I have invested through many gut-wrenching bear markets and disastrous single years like 2008, which ended with the speculative non-dividend-paying NASDAQ down a frightening 40% for the year. Through all the years of turbulence, I have remained fully invested in a balanced, widely diversified securities portfolio featuring a counterbalanced approach.

I have firsthand experience of what happens when counterbalancing is not in force. The Harleys I rode back in the old days had engines bolted straight to the frame. Talk about vibration and calamity. The constant vibration caused nuts and bolts to loosen and fall off. When you’re on a long-distance road trip, a breakdown in the middle of nowhere is cause for concern. I have found myself in just such a situation and it’s no fun. Today’s Harleys feature counterbalanced engines offering both a smooth ride and a minimum of road trip calamities.

A 2008 Test Kitchen

Counterbalancing simply makes common sense. Let’s look at 2008 as a test kitchen. All the broad averages got hit. High ground, so to say, was achieved by owning positions that got hit least. Consumer staples worked well; no matter how bad the times, investors are not going to forsake toilet paper, toothpaste, or their prescription drugs from Walgreens or CVS.

Counterbalancing is a necessity for your portfolio. If you need assistance in creating a portfolio that is counterbalanced to protect your investments in good times and bad, please fill out the form below. You’ll receive a call from a seasoned investment professional at Richard C. Young & Co., Ltd., my family run investment counsel firm, dedicated to helping retired and soon to be retired investors like you enjoy a successful retirement.

Related Posts

  • Your 8% Retirement Yield
  • The Panic before the Storm
  • Panic at JFK Highlights the Need for Situational Awareness
  • Author
  • Recent Posts
Richard C. Young
Richard C. Young is the editor of Young's World Money Forecast, and a contributing editor to both Richardcyoung.com and Youngresearch.com.
Latest posts by Richard C. Young (see all)
  • Do You Know About the Great Money Explosion? - February 24, 2021
  • The Great Reset Will Take Everything From You - February 24, 2021
  • My Biggest Investing Quarter Ever - February 24, 2021

Dick Young’s Must Reads

  • The Fed – “Independent” and “Non Political” – Joins The Resistance
  • How S.D. Surged in Vaccination Inoculations
  • Top 10 Political Books #1: The Declaration of Independence and the Constitution of the United States of America
  • California’s Progressive Liberals Have Created a Monster
  • Why Some Kids Won’t Go Back to School, Ever
  • Government Should Be Small, Laws Unobtrusive, and Men Left Alone
  • America’s Colleges Have Become Progressive Liberal Rat Holes
  • Your Cash Swept into Your Broker’s Bank Account!
  • The Simple, Elegant Power of the Retirement Compounders
  • Tucker Explains: Put America First, Put its Families First

Our Most Popular Posts

  • Has the Time Come to Abolish the American Government?
  • Biden Tells Audience that Blacks and Hispanics Don't Know How to Use the Internet
  • Enjoy the Boom While You Can
  • Texas – More Subsidies for Wind, More Regulations for Oil
  • Marry Compound Interest, Divorce Market Timing
  • Permitless Carry Corridor Expands: Red States Trouncing Blue States on Freedom
  • Richard Young Reports: 50+ Years with Fidelity and Wellington
  • UPDATE: Your Gun Rights and Freedom Are Under Assault
  • Long Live Rush Limbaugh: Our Walk in the Woods
  • Please Don’t Call It COVID Relief

Disclosure

RSS Youngresearch.com

  • COVID Chaos: New York and California vs. Florida and South Dakota
  • Time for the Fed To Stop Babying the Bond Market
  • Richard Young Reports: 50+ Years with Fidelity and Wellington
  • Deep Survival, Who Lives, Who Dies, and Why
  • Herd Immunity by April?
  • Corporate Bond Yields: What You Can Earn Today
  • Your Retirement Life: Meet Larry the Car Wash Guy
  • Is Oil Headed Back to $100 per Barrel?
  • You’re Worried About Money, Not Just Losing It
  • Texas Needs More Coal, and More Nuclear

Do You Know About the Great Money Explosion?

Don’t Let Its Name Fool You

How One Man and His Family Survived the Texas Deep Freeze

COVID Chaos: New York and California vs. Florida and South Dakota

The Great Reset Will Take Everything From You

My Biggest Investing Quarter Ever

Copyright © 2021 | Terms & Conditions | About Us | Dick Young | Archives