This Global Economy is Sicker by the Day – But Let’s Focus

When watching the daily stream of economic news one must wonder–how does the U.S. keep its head above water?  Each day we look around at the news and then promptly bury our head in the sand so we don’t have to face up to the approaching economic turmoil (just kidding, but we do ask daily-when will the turmoil come onshore to us?).

We find it difficult to invest for the long-term when you look abroad at the turmoil in Russia, a good share being caused by low oil prices, the rest caused by their own stupidity relative to the Ukraine.  We see China slowing dramatically.  Japan is printing money as fast as their presses will run-yet it isn’t likely to help as they appear to be reaching the end of their demographic life.  Emerging markets are quaking in their boots as they view potential increases in interests rates as their own death knoll as they can’t afford to service debt if rates rise.  Europe just goes on–with no improvement as the Germans believe they are an island to themselves.  Of course Greece is going socialist so we should finally be able to toss them off the economic boat and move onto serious business.

But in the end unless you are willing to start accepting .05% returns on your savings we must invest.  Oh sure, cash is an option for everyone–but really, let’s understand that it is a damned poor option. So no matter your results for 2014 we can wipe the slate clean–put bad experiences behind you (i.e. if you were over weighted MLP’s) and get on with it. If you had a poor year take a step back and evaluate your goals–make them realistic.  We try to present ideas for many different levels of risk/reward for the income investor.  Alternately there are bunches of ideas on our site for almost anyone to build a portfolio that fits their needs.

We will launch our 2015 portfolio on Friday.  Our 2014 model will remain, but honestly the 2015 model ends up quite similar to the 2014 portfolio. This makes some sense as we had good results in 2014 and have spent substantial time and effort arranging the portfolio to take advantage of what we see economically for 2015.