Looking at what is overvalued and what is undervalued today’s
name of the game is maintenance of your principal dollars and secondary how
much money can be made.
Short term bond funds such as Vanguard’s Short Term Bond
Index – VBIRX along with stacking gold and silver or buying Vanguard’s Global
Capital Cycles Fund – VGPMX that holds 25% in precious metals mining companies
is DYI’s basic theme.
I’ve been pounding the table for those folks with their 401k or
Roth IRA etc. to dollar cost average into a long term investment grade bond
fund as their yield is significantly greater than the yield from the S&P
500 index fund.
This massive bubble has lasted far and away greater than I
would have ever imagined. Massive
government spending spewing out relentless deficits; pushing up the national
debt to levels of gargantuan proportion; forcing the Federal Reserve to money
print in order to keep interest rates from popping to the moon.
When will the bear return to stocks? I don’t know.
However what I do know is the first shoe has dropped with the ending of
sub atomically low interest rates. The
interest rate decline that began in 1981 ended in 2020. IMO interest rates are
in a saw tooth manner of ever increasing rates.
In other words, during growth rates will propel to increasing highs and
during recessions to ever higher lows.
That is why I only strongly advocate for those with 10+ years to dollar
cost averaging into an investment grade long term bond fund capturing ever
higher yields.
Till Next
Time
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