19 years and the dollar you have in your pocket today can only buy 2/3rds of the goods and services it could have bought in 2000. Regardless of what the official inflation rates the government tells us we’re experiencing; it still costs more to go about life every year.
For a very long time I have talked about Jeremy Siegel and his book, “Stocks for the Long Hall” and his conclusion that stocks outpace inflation by a wide margin. But it’s not only equities, it’s the growing dividends the great companies of the United States and other countries that can help all investors offset this ultimate tax. The investment strategy employed in our portfolios applies that principal as well as creating an extra stream of cash flow. While it’s not guaranteed, there is also protection from a sudden and dramatic drop in equity prices. The bottom line is that it all boils down to future income. The attached article about Social Security is just one example.
As I write this week’s email, it’s been a pretty volatile week for stocks. Most of this volatility is coming from all the news about trade with China. Don’t know how it’s going to end but we just keep on trucking with our investment philosophy. Should you have any questions or wish to meet with me, please call or email.
Have a super week!