1 Tip to Protect Your Retirement – Avoid Bonds
Over the last few weeks, I’ve warned you to remain cautious with your retirement portfolio even though the economic train seems to be picking up speed into this recovery.
Specifically due to these factors…
- Record debt levels
- Unemployment is still high
- Covid cases are jumping again – especially in India which just saw a world record 350,000 new cases in a single day – and hospitals in India are running out of oxygen.
- Interest rates rising
- And on and on.
I recommend you stay cautious, but I don’t recommend you sell everything… So, what’s the best way to protect yourself from all these risks?
Make sure you’re in great stocks that have the following traits…
- They’re cheap.
- They have little to no debt compared to a lot of cash.
- They produce large profits and cash flows.
- And make sure they aren’t in industries that could be hammered by Covid.
These kinds of stocks – the ones I try to find for you every day – are things you should continue investing in because they will provide you good to great returns no matter what the market is doing.
All while protecting you from the major risks like valuation, unemployment, debt, and inflation.
These are the kinds of stocks I show you every day – either ones to buy or ones to avoid.
Today, I’m sharing another tip to help you protect your retirement portfolio.
Own The Right Assets
Generally, investment advisors recommend that the older you get the less you own stocks and the more you own bonds…
Today, that is horrible advice.
Bond rates are at or near all-time lows and as interest rates rise, bond prices fall.
In the last year alone interest rates are up from 0.55% to around 1.7% as of this writing.
This 1.15 percentage point increase lowers bond yields drastically… And lowers the bonds value as well.
In fact, bonds are one of the worst investments you could be in right now because of this.
You can’t have this is you’re relying on your retirement portfolio to either grow or live off.
Instead choose to invest in dividend stocks like some of the great ones I’ve recommended below.
These companies pay you great regular dividends that will help supplement your retirement income… While keeping your money safer than bonds… All while investing in world class businesses with competitive advantages and huge profits.
Think of these as having the safety of bonds – but with the upside potential of stocks.
This is the #1 thing I recommend you do to protect your retirement portfolio.
Go against common knowledge – avoid bonds – and invest in world class, cheap, stable, and dividend paying stocks with competitive advantages.
In the meantime, you can also check out some of the recent stocks I’ve recommended you avoid to further protect your portfolio…
- Avoid Adobe For Now After its 226,515.2% Stock Rise
- Why To Keep Avoiding Lululemon
- Is Five Below A Buy After Its Fantastic Fourth Quarter?
- Is Dollar General Cheap Enough To Buy After Profits Jump?
- Should You Avoid Starbucks After Its 73.2% Rise In The Last Year?
Your guide to financial freedom and achieving your retirement goals.
Always in your service,
Publisher Stock Market Daily
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