Every week when I sit down to compose this weekly email, I sort through a multitude of articles looking for something that will be helpful and, hopefully, encouraging. It’s a tough slough. Most articles are about the next market crash or moving into recession or get out of stocks and into bonds. Along with that, I am inundated with emails from potential vendors trying to get me to look at what whatever (the new mousetrap of the day) product they’re pushing.
But every now and then, something comes across my desk that is truly startling. In the past week, the dividend yield of the S&P 500 was greater than the yield on the 30 U.S. Treasury Bonds. Think about that for a minute. Investors looking for safety, tie their resources up for 30 years with little yield, all the while losing ground to inflation, taxes and other eroding factors when they could have invested in 505 US companies and involve themselves, their family and their next generation beneficiaries in the growth of earnings, dividends and values that the long-term investment in the S&P 500 has historically provided. Remember, investing in equities does have risk and past performance is no guarantee of future results.
So, this week, I am just going to attach an article about eating healthy. By doing so, we all just may be around a long time to enjoy the long-term potential that equities have historically recorded. As always, should you have any questions or wish to meet with me, please just email or call the office. In the meantime, have a super week. (FYI, brussel sprouts would be last on my list.)