Research Analyst Kristin Orman has a bone to pick… There are three bond myths people fall for, and it could be killing their retirement. Here’s why it’s essential to have a portion of your nest egg in corporate bonds.
The simple fact is we’re living longer. And whether it’s because of the need to work to support ourselves or the desire to stay active and vital, more boomers want to – and need to – work well into their senior years.
The U.S. has lost more than 3 MILLION jobs as a result of China’s unfair trade practices, according to the Economic Policy Institute. And one trade expert reports that China’s been “stealing” more than $5 TRILLION from Americans.
But now the USA is finally striking back… and just weeks from today, everyday U.S. investors could start collecting thousands in what we’re calling “China Payback Checks.” To see how, please click here.
“Why Social Security WEP or GPO Could Ruin Your Retirement” – Forbes
Bond to Equities Correlation: Historically, stock prices and bond prices have been inversely correlated. As investors become wary of the risk of overvalued stocks, they move their money into bonds, sending bond prices higher and stocks lower. When sentiment changes (and investors again desire more risk), the opposite occurs. (To be fair, this relationship has been distorted in recent years by an extraordinarily easy monetary policy out of the Fed, but it will likely revert to form as that wears off.)
You’d never guess the simple fix that could make your phone safe.
Dear Total Wealth Reader,
This is the Unstoppable Trend that my readers tend to be least likely to want to invest in, for obvious reasons. I can’t say I blame them. It’s my least favorite Trend too, both personally and professionally.
But it’s clearer now than ever that War, Terrorism, & Ugliness isn’t going away.
Investors can’t afford to ignore the terrible reality. In fact, I’d say it’s time to direct capital in a way that not only acknowledges these dangers, but actively works to roll back the threat.
That’s why I’m sending you an exclusive briefing on this issue today.
Be first in line for those profits. Learn how to access your exclusive report by clicking here.
Tomorrow we will cover four investments that you can’t live without – literally.
Best regards for great investing,
Editor, Total Wealth
P.S. This revolutionary technology is exactly what America needs to maintain the edge on advanced artillery. Through Operation Hyper-X, you will witness a new age of weaponry and defense – and you’ll have the chance to position yourself before this share price skyrockets. It’s ripe for the picking, but not for long. Click here to learn more about how you can make this your advantage, too.
Famous Millionaire: “Amazon Is About to SHOCK America’s Retirement”
All week, our editor showed the looming signs of an economic whimper: a “traitor” in the White House… an energy boom built on EZ credit… and the “little seen, but always regretted” Mistake #4 of Federal Reserve policy.
What comes next?
The Absurdity of a “Living Wage”
For Labor Day, our editor examines America’s obsession with the idea of a “living wage.” Some ambitious politicians have even proposed fixing prices to make wages “fairer.” Not to be outdone, Bill proposes some price-fixing of his own.
America’s Finances Seem Fishy
America seems to be getting back on track… GDP growth is up. Unemployment is down. America is “winning” again. But Bill’s not so sure. To him, the numbers seem fishy… perhaps even fraudulent.
America Is Headed to “Crazytown” Washington Post journalist Bob Woodward has a new tell-all book. In it, Woodward quotes a top Trump official who describes the White House as “crazytown.” Seems about right. After all, as Bill puts it, the entire country is already driving headlong towards “Crazytown.”
How to Punish the White House “Traitor”
Treason! That’s how President Trump described a recent anonymous editorial published in The New York Times. The unnamed author claims to be a senior Trump official who is quietly working to undermine the president’s agenda. POTUS thinks the unidentified person should be punished. Bill agrees. On Thursday, he devises a plan to flush out the rat…
America’s Oil Boom Is a Fraud
Thanks to America’s shale boom, the U.S. went from being a net importer of oil in the early 2000s to one of the world’s largest energy exporters today. But on Friday, Bill reveals a secret about America’s energy boom…
Why Most Investors Fail to Beat “The Market”
By some calculations, we’re now in the longest bull market in history. But Bill’s top stock picker, Chris Mayer, isn’t impressed. On Saturday, he shows readers how to look past the headlines… and towards the bigger picture.
Managing Editor, Bill Bonner’s Diary
P.S.Diary readers will remember Bill giving an update of his travel plans in the weeks ahead. First Ireland… then Argentina… and finally Bermuda. Bill’s shipping off to the island to attend and speak at the 2018 Legacy Investment Summit. Think of it as a “meeting of the minds” for some of the biggest names in the financial publishing industry.
In addition to Bill, some of your favorite editors will be in attendance… Teeka Tiwari, Dan Denning, and Jeff Brown will be there, giving presentations and hosting meet-and-greets with readers. If you’ve ever had a burning question to ask our editors face-to-face, this might be your best opportunity. Details here.
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Apple Inc. became the first trillion-dollar company on Aug. 2, leaving many investors with the impression that AAPL stock had little room to run higher. That couldn’t be more wrong… While this is a historic milestone for the company, shares of Apple are continuing to trade for a steep discount compared to the rest of the market. Here’s why investing in Apple is still hugely profitable, plus a bonus opportunity to play one of its suppliers for even bigger profit potential…
Why Facebook is the Current Day Enron (Investors Beware)
It comes as no surprise that Facebook is still receiving backlash from their seemingly never-ending scandals. From an investment standpoint, the company continues to flail – facing a staggering $128 billion buzzcut for shareholders and $16 billion for CEO Mark Zuckerberg personally… Chief Investment Strategist, Keith Fitz-Gerald, is here to update you on where Facebook is at now and what’s next for this company – also what Wall Street wouldn’t want you to know about it. In order to get this special access to this report, subscribe to Keith Fitz-Gerald’s Total Wealth Research by clicking here now.
Before we go any further down the path to Total Wealth, I want to make sure you know about every tool at your disposal – and more importantly, how to put them to work for your money.
The fact that you’re reading this right now means you’re ahead of 99% of investors in America.
You’ve got the information, you know the strategies, and now you’re ready to put our Six Unstoppable Trends to the test to help you secure your financial future once and for all – no matter how the government tries to meddle.
But there’s another set of tools that come with your Total Wealth membership, and I want to be sure you’re ready to take full advantage of the benefits they provide.
It all starts when you arrive at the Total Wealth Website, here.
Once you’ve navigated there, you’ll be able to access a treasure trove of resources, not the least of which is the Archives. I believe in making my track record of recommendations easily accessible to you within seconds – and that’s why my team compiled this page. Here you’ll find links to every Total Wealth article I’ve published since its creation on October 2, 2014, posted in reverse chronological order.
Take some time to browse around, and I’ll be in touch soon.
Best regards for great investing,
Editor, Total Wealth
P.S. As a member of Total Wealth Research, you’re signed up for my expert tips and stock recommendations delivered right to your inbox twice weekly. But you’re also part of an exclusive group that’s eligible for an opportunity that could’ve pocketed you over 400% winning gains in one week. Most folks on Wall Street are lucky if they can grow their wealth by 5% A YEAR – click here to find out more.
American Patriot Newsletternewsletter@americanpatriotnewsletter.comvia aweber.com
Sat, Sep 8, 9:34 AM (1 day ago)
This is Going to be BIGGER Than Bitcoin
Bitcoin is skyrocketing!
But while the rest of the world is fixated on watching Bitcoin grow…
Nancy Pelosi recently blasted one of President Trump’s BIGGEST economic initiatives, saying, “I think the president has handled it incorrectly.” And Trump’s already tweeted that Pelosi is “the unhinged face of the Democrat Party.” Yet regardless of your politics, you could make a great deal of money (up to $35,000 or more) when you discover what Nancy and Donald have been arguing about lately. To find out, just click here.
Editor’s Note: As you know, Wealthy Retirement is gearing up for a big event next week…
Bonds are the most boring investment in the world…
At least that’s what I believed when I joined an institutional trading desk more than a decade ago.
As a stock jockey, I worked with hedge funds slinging around shares to capture a quick profit. We traded around binary events like earnings releases and drug trial results. You know, events that really make a stock price move.
I had no interest in bonds. To me, they were conservative investments that only grandpas would buy. Sure, they offered some income and principal protection, but with no price appreciation, there was no way to make your money grow. Or so I thought…
Years later, I found out that everything I thought about bonds was wrong.
Here are three of the biggest bond myths people fall for and why it’s essential to have a portion of your nest egg in corporate bonds.
1. Savings Bonds Are the Only Kind of Bond Out There
If you mention bond investing to most people, their eyes glaze over.
That’s because they have fallen for bond myth No. 1 – the ol’ “savings bond mentality.”
They remember the savings bonds many of us bought from the U.S. Department of Treasury when we were younger.
You buy a savings bond at a fixed price, say $25, and then hold on to it for a minimum number of years to avoid redemption penalties. Savings bonds are essentially zero coupon bonds – issued at a deep discount to their face values but pay no interest.
Corporate bonds are often completely overlooked.
Corporate bonds are debt securities issued by corporations and sold to investors. They’re issued at par value, which is $1,000, and they have a coupon payment structure. Interest is paid semiannually. As long as you own the bond, you’ll receive the interest payment from the issuer until it matures.
Chart shows that Washington is virtually helpless when the next crisis hits. That’s why it could do something drastic on September 26, 2018… something that could bring this raging bull market to a sudden stop.
2. Corporates Can’t Be Traded After They’re Issued
There’s no secondary market for savings bonds. They cannot be traded among investors, so the price you pay for them won’t change if you hold them to maturity.
And contrary to myth No. 2, that’s not true of corporate bonds.
Corporate bonds can be traded after they’re issued. And they are… almost every day.
They’ll move up and down in value as investors buy and sell them to each other. They fluctuate in value based on business fundamentals like stocks do, but not as much on a percentage basis.
If you buy a bond at a discount, say $900, as long as the company doesn’t go bankrupt, you’ll be paid $1,000 when it matures. That’s an extra $100 in your pocket plus all of the interest payments you receive while owning the bond. Which brings me to our third myth…
3. Bond Yields Are Your Only Return
Myth No. 3 is a doozy. It’s why so many investors don’t recognize the huge profit potential that exists in bonds.
Yield to maturity is the minimum return you can expect a bond to generate if you hold it until its maturity date.
Let me say it again, it’s the minimum.
You can often earn twice that (or more) by buying a bond below par value and selling it early at a profit.
And The Oxford Club’s Bond Strategist Steve McDonald has identified a set of bonds, which he calls “superbonds,” that have the potential to generate triple-digit returns for investors.
He’ll be sharing his findings with investors at The Stock Quitter’s Retirement Summit on September 12.
He’ll show you how it’s possible to lock in 154% returns without ever touching a stock.
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