Episode 385: How to Get Your Financial House in Order
On this week's Stansberry Investor Hour, Dan and Corey are joined by Austin Root. Austin is an old friend and the chief investment officer at Stansberry Asset Management ("SAM"). SAM is a separate company from Stansberry Research and MarketWise, but it was born with the same DNA. The difference is, SAM helps individual investors optimize their portfolios.
Austin kicks off the show by discussing his favorite moments from last week's Stansberry Conference & Alliance Meeting. After, he shares what his role is at SAM and how the company helps individual investors with financial planning. Austin explains that SAM's team of specialists will look at an investor's full balance sheet – not just the part SAM is managing – and then make a personalized plan from there using projections. He emphasizes that paying down expensive credit-card debt is the most important first step, and he breaks down how macro factors influence SAM's strategies...
Around the perimeter, we are being more tactical. We're holding a little bit extra dry powder right now... On the fixed-income side, we have a weird barbell approach. We still own a lot of short-term U.S. Treasurys, and then we own some more high-yielding things that are sort of off the run... One of our favorites are busted convertible bonds.
Next, Austin talks about why investors should be in productive assets rather than cash, why he sees gold as inferior to shares of world-class businesses, and how bitcoin can be a good long-term store of value. He also names two stocks he finds particularly attractive right now. The first is a financial company that's trading at a discount, is poised for double-digit revenue growth, and serves as an inflation hedge. The second is a construction-materials company with a fantastic shareholder yield of nearly 10%...
It has a business that will benefit from infrastructure, needed infrastructure plans, aggregate, road building, etc., trades at a discount to the market. [It only] has a 1.5% or 2% dividend yield, but its shareholder yield is approaching 10% because it's retiring shares at an attractive price. [It] trades at a significant discount to the more traditional players in this space... If you just screen for dividend yields, you wouldn't appreciate how much it's returning capital to shareholders.
Finally, Austin explains why investors should keep politics out of their portfolios for the long term. He says inflation is the one factor he always pays attention to and everything else is noise. Austin does note though that he has loaded up on defense stocks for the short term since geopolitical tensions are rising around the globe. But overall, he says both candidates want to spend like mad and will be bad for the economy in the long run...
In either case, we want to own these productive assets because either candidate is going to spend and debase [the U.S. dollar]. And we see inflation as an issue.
Click here or on the image below to watch the video interview with Austin right now. For the full audio episode, click here.
(Additional past episodes are located here.)
The transcript is coming soon.
Disclosure: Stansberry Asset Management ("SAM") is a Registered Investment Adviser with the United States Securities and Exchange Commission. File number: 801-107061. Such registration does not imply any level of skill or training. Under no circumstances should this report or any information herein be construed as investment advice, or as an offer to sell or the solicitation of an offer to buy any securities or other financial instruments. For more information on SAM, please visit here.
Stansberry & Associates Investment Research, LLC ("Stansberry Research") is not a current client or investor of SAM. SAM provides cash compensation to Stansberry Research for Stansberry Research's advisory client solicitation services for the benefit of SAM. Material conflicts of interest may exist due to Stansberry Research's economic interest in soliciting clients for SAM. Certain Stansberry Research personnel may also have limited rights and interests relating to one or more parent entities of SAM.
For important information about Stansberry Research's relationship with SAM, click here.