The Next Recession is Coming Although not directly correlated to the stock market in the short term, the economy also experiences cycles of ups and downs. Here are some graphs that have historically been very reliable when used to forecast recessions in the United States. Recessions occur when the total economic output of the country declines in two… Read More »
Why Bonds Are So Important A fundamental skill to successfully managing wealth is knowing how to diversify our assets. This means we must own both equity and fixed income, with the correct weighting and balance. There isn’t a single solution that fits everyone’s situation. But in general bonds help to protect our wealth against volatility when the stock… Read More »
How to Prepare for Higher Borrowing Costs My debt to income ratio is about 500% while the national average is around 173%. Readers sometimes email me and ask what I will do when interest rates rise. My answer is simple. I tell them I will pay down my debts in an accelerated manner prioritizing the highest interest loan first.… Read More »
Summary of Financial Market Returns 2017 was a great year for investors, particular for those with long exposure to emerging markets overseas. 🙂 Nearly every asset class experienced positive returns. The best performing one was cryptocurrencies. It grew from a market capitalization of $20 billion to $800 billion in the last 12 months. To put that into perspective… Read More »
Hello friends. It’s a new year. 😀 My investment strategy for 2017 was simple; to buy dividend growth stocks and alternative investments. Dividend stocks and alternative assets tend to grow in bull markets but also hold up well in recessions. The plan is to earn respectable returns while reducing risk to the downside. Here are my 2017 results.… Read More »