We’re used to hearing the phrase “Buy now, pay later.” It promises that we can enjoy positive feelings now and delay the pain of the expense until some abstract time in the future. I’m sure we all know how tempting this can be when it comes to something we want – how wonderful we’d feel if we had it… right now! But living well involves distinguishing our immediate impulses – toward pleasure or away from pain – from what moves us toward our more conscious values. How we spend our money has huge leverage here. Imagine you have an exciting trip planned for a few months from now. There are some in ..read more

There’s been a major shift in the markets, and it’s gone unnoticed by most investors. A fascinating type of trade is gaining steam right now, and I believe the beginning of this trend will eventually be more significant than the day the Chicago Board Options Exchange (CBOE) was created. You see, back in 1973, an original options pricing model was officially unleashed to the public. This model became the single greatest wealth creation tool in the history of modern finance, and it even went on to win a Nobel Prize. At around the same time the model was released, the first stock option was bough ..read more

In my last column, I noted that artificial intelligence (AI) is poised to dramatically improve our standard of living. Yet that’s not what you generally hear from the mainstream media. Instead, you hear that AI will upend the workplace, destroy jobs and pose an existential threat to humanity. It’s true that some folks believe that. And media outlets routinely amplify their views. Not because these views best describe what AI is all about but because we live in an “Attention Economy.” And scary stories increase clicks, likes, shares and eyeballs. As a result, the positive side of AI gets s ..read more

Compared with our distant ancestors – whose lives Thomas Hobbes famously described as “nasty, brutish and short” – the lives of most of us today are peaceful and prosperous. But you wouldn’t know it from watching the evening news. Each day we hear fresh stories of war, terrorism, crime, corruption, natural disasters and other depressing developments. By definition, of course, newsworthy events are exceptions to the norm. Yet hearing a steady drumbeat of negative developments distorts our perception of the big picture. Take, for example, the ongoing wars between Russia and Ukraine and ..read more

At a recent Oxford Club Private Wealth Seminar, an attendee asked a question I’ve heard countless times before: What percentage of a retiree’s portfolio should be in stocks? The answer depends, in part, on your age, your health, your monthly overhead and the size of your portfolio. So let me touch on these briefly and then provide a valuable, real-world solution. It’s called retirement rebalancing. Here’s why it’s essential… Americans today are living longer than ever. If you retire at 65 in reasonably good health, for example, you could be looking at up to three full decades in reti ..read more

EDITOR’S NOTE: Before we get to today’s Liberty Through Wealth article, Alexander Green recorded a short video message for you to watch. (Hint: It’s a special invitation for you to join us at the 26th Annual Investment U Conference!) To tune in to the brief clip, click on the image below.   – Nicole Labra, Senior Managing Editor Over the course of the last few columns, I’ve shared my thoughts on the chances of a near-term stock market crash (low), as well as how to prepare for one anyway (make your asset allocation more conservative). Today I’d like to talk about a related topic: why cor ..read more

There is a silver bullet for much of what ails the U.S. economy and stock market at the moment. And the media generally ignore it (yes, we’re not shocked). Persistent inflation? This silver bullet can fix that. Rising labor costs and slowing earnings growth for companies? Yup. Volatile markets and stagnating stock prices for investors? That too (by boosting earnings, it sends stocks higher). Oh, and it brought us the two-day weekend and the 35-hour workweek. So, you ask, what is this magical elixir? It’s Productivity Productivity is the key to rising living standards over long periods of human ..read more

A couple of months ago, I suggested that now is the perfect time to buy bonds. Just recently, Barron’s agreed, running a headline that said “Time to Buy Bonds.” While I continue to hold dividend stocks for the long term, lately I’ve been putting most of my cash to work in fixed income. Treasurys are yielding more than they have since 2007. Investment-grade corporate bonds – those with very safe S&P Global ratings of BBB- or higher – have an average yield of 6.3%, their highest yield in nearly 15 years. Meanwhile, non-investment-grade bonds, or junk bonds, are yielding an average of 9%. Whi ..read more

In my last column, I discussed the growing fears – and claims – that a stock market crash is imminent. I disagree with this view for several reasons… Equity valuations are not particularly stretched. Investor sentiment is not euphoric, as it generally is near market tops. The Securities and Exchange Commission (SEC) has instituted circuit breakers that halt trading if the market declines precipitously in a single session, giving investors and institutions time to assess the situation and act rationally rather than emotionally.  However, while a market crash is a low probability event in ..read more

On Tuesday, Oxford Club CEO Todd Skousen, my colleague and fellow investment analyst Marc Lichtenfeld, and I met with Members in our new online Clubroom, where we talked about the outlook for the economy and the markets. Getting right down to business, Todd asked Marc and me about the odds of a stock market crash. Despite this week’s rally, it’s not an idle question. There are several parallels between what’s happened lately and what happened just before the last crash. I know. I was an equity manager on Black Monday – October 19, 1987. It was one of those “Where were you?” moments that I ..read more