A 'Goldilocks' job report...

Can you take advantage of mortgage rates and stay safe in the 'End of America'?...

 As many longtime readers know, Steve Sjuggerud and I (Porter) are not only business partners... but lifelong friends.

I have a deep respect for Steve's intellect. And he's been a great investor for about as long as I've known him... His True Wealth newsletter offers subscribers some of the most thoroughly researched and objective top-down financial analysis you can get anywhere.

But his recent presentation at the S&A Editors Conference last month gave me pause...

 As Digest readers know well... Steve's been bullish on housing for almost three years. And a year-long rise in U.S. home prices has proven he was spot-on.

At our conference last month, Steve stood up and reiterated many of the reasons he's still bullish on housing. But then... he told the story of a young married couple in the 1970s – a school teacher and a Navy man – who bought as expensive a house as they could. They chose to be "house poor." And thanks to super-low interest rates and inflation, that decision made them millionaires.

Steve went on to say that the current housing environment is similar... And people could do very well making the same choice as that young couple...

 Now, I've written extensively about the danger the U.S. currency faces and how people taking on a lot of debt could face serious consequences as a result...

So shortly after the conference, I had Steve as a guest on the premium edition of my podcast, Stansberry Radio. Steve laid out several of his top investment ideas... And his home-buying thesis was one we hashed out...

 Steve explained that his parents – the schoolteacher and the Navy man in his story – became millionaires thanks to inflation and leverage... "They had a mortgage, and they happened to buy housing the last time housing was affordable. They were living in the place, so they weren't earning rent on it and there was a cost of ownership."

In the 1970s, the median price of a house went from $20,000 in 1970 to $60,000 in 1980, Steve said. Houses went from undervalued to overvalued, and inflation helped out along the way…

 He explained why he thinks we have a similar situation today…

 Of course, Steve's right about the effect of leverage. As I said on the podcast, "I know you make your money in leverage. And I know that it's far riskier than most people realize. I think you will make good money by carrying a big mortgage. But I do think it's risky."

The middle class in Argentina got destroyed over the last 30 years because the government kept inflating the money away, but refused to inflate away the debts. It's a phenomenon called "peso-fication" – where all wages were turned into cheaper pesos, but all debt stayed in dollars.

Could that happen in America? I think you're crazy if you say no. It could absolutely happen.

 That's when Steve turned things around on me:

 Personally, when I buy property, I don't do it to make a lot of money. I'm not trying to get rich in real estate. I'm just looking for something safe where I can earn a reasonable return. So leverage is not part of my own strategy, but I understand why and how it works.

In the end, if you're going to get leveraged into real estate, make sure you have at least one year's worth of payments in cash available at all times.

 Stansberry Radio is my weekly podcast. We recently created a subscription-only Premium edition. On Stansberry Radio Premium, we invite S&A editors and other top investment professionals to discuss their favorite current investing ideas. Other recent Stansberry Radio Premium guests have included Asian investment expert Peter Churchouse, Retirement Trader editor Dr. David Eifrig, and Extreme Value editor Dan Ferris. To learn more about Stansberry Radio and the premium edition, click here.

– Porter Stansberry with Sean Goldsmith

Can you take advantage of mortgage rates and stay safe in the 'End of America'?...

In today's Digest Premium, Porter describes a conversation he and Steve Sjuggerud had on Porter's radio program about Steve's bullish housing thesis...

To continue reading, scroll down or click here.

Can you take advantage of mortgage rates and stay safe in the 'End of America'?...

In today's Digest Premium, Porter describes a conversation he and Steve Sjuggerud had on Porter's radio program about Steve's bullish housing thesis...

To subscribe to Digest Premium and access today's analysis, click here.

A 'Goldilocks' job report... A bear market in silver... Doc Eifrig's favorite retirement investment... The easiest way to avoid frauds... Take advantage of us!...

 By most accounts, last Friday's important employment report was a "Goldilocks" set of numbers.

It showed a modest increase in business payrolls... but not so much of an increase that will cause the Federal Reserve to ease credit conditions.

The report helped the benchmark S&P 500 stock index finish the week at 1,643, close to this year's high of 1,687.

The rich got richer: Goldman Sachs reached a new 52-week high. Warren Buffett's company, Berkshire Hathaway, hit a new all-time high.

The dollar gained, and precious metals fell. Silver struck its lowest point in 32 months.

You can see the bear market in "poor man's gold" below:

 The positive jobs report confirms the outlook Dr. David "Doc" Eifrig provided to his Retirement Millionaire readers back in April.

In that issue, Doc went through a handful of charts that show how business activity was increasing... construction spending was gradually ticking up... private employment was growing... and new manufacturing orders were growing.

After noting these positive economic indicators, Doc urged readers to own high-quality U.S. stocks and be careful with bonds, especially U.S. Treasurys. These bonds pay little in the way of interest and will fall in value as the improving economy pushes rates higher (which would drive bond prices down).

Doc's favorite buys right now include beverage giant Coca-Cola and blue-chip medical-device maker Medtronic. Both companies have increased their dividend payments every year for more than 30 years.

 Why focus on "relentless" dividend-raisers like Coke and Medtronic?

For folks saving and investing for retirement, it's a no-brainer. Retirees must be obsessive about avoiding catastrophic hits to their principal. They must avoid frauds like Bernie Madoff and Enron. They must avoid buying into debacles like Wall Street's worthless mortgage-backed loans in 2007. For folks close to or at retirement, avoiding risk – and earning some income while doing it – is job No. 1.

As we've written many times, owning elite, dividend-paying companies (bought at the right price) is one of the ultimate ways to reduce investment risk and earn investment income.

Reason? Dividends don't lie.

 As Doc wrote in the August 14, 2010 issue of DailyWealth:

 It's a shame we have to constantly be on the lookout for getting screwed over by institutions we used to trust. Take Wall Street...

Over the past 13 years, we've seen former Goldman Sachs CEO Hank Paulson bail out his friends while working as Treasury Secretary. We've seen Wall Street partner up with the government to blow up the housing market. We've seen another Goldman alumnus, Jon Corzine, run a huge brokerage firm (MF Global) into the ground with idiotic credit bets. Even the "smartest banker in the world," Jamie Dimon, oversaw a $6 billion loss at JPMorgan Chase. We've seen the revolving door between Wall Street and Washington, D.C. ensure no important player in the credit bust served a day in jail.

I (Brian Hunt) could go on and on. But you get the picture. Right now, it's more important than ever to be careful about where you place your money... and who you trust with your investments. It's "open season" on the people who have earned and saved their whole lives.

 As for the government, we don't need to say much here. Between the IRS playing favorites with whom it deems a "nonprofit" organization... the latest National Security Administration phone-record scandal... and the utter refusal to deal with the entitlement programs that are bankrupting us... most smart people have little trust in Washington, D.C.

(Nor should the latest headlines lead you to believe that either party holds a monopoly on violating our privacy... It's just been a few years since the GOP was in a position to invade Third World nations on false pretenses or rifle through our library records under cover of the PATRIOT Act.)

Smart people who have made a few dollars have even less cause to trust D.C. Professional panderers like OBAMA! and Nancy Pelosi never miss a chance to claim successful people aren't paying their "fair share." Never mind that people in lower tax brackets are taxed at 10%-15% of their incomes... and high earners are taxed at 33%... 35%... and 40%.

And things will only get worse for earners... now that more than half the voters get more in government benefits than they pay in taxes (if they pay taxes at all). Once the mob discovers it can vote itself its neighbor's wallet, it will only elect politicians who promise more handouts and bailouts. Again, it's "open season" on the earners and savers.

 In his latest issue of Retirement Millionaire, Doc warns that the medical industry also has it out for you (and he explains how to defend yourself). He reports:

 With all this in mind, it's no wonder more earners and savers are interested in protecting themselves from all types of threats... whether they come from Wall Street, the government, the medical establishment, or criminals.

And it's no wonder more people are interested in safeguarding their bank passwords... making their investment portfolios "bulletproof"... keeping as much wealth as possible out of reach from the government... and reducing the role the conventional (and often corrupt) medical system plays in their lives.

That's why we're extremely proud to publish Doc's ideas in Retirement Millionaire.

 Yes, the main focus of Retirement Millionaire is just what the name implies. Doc's careful selection of safe stocks and bonds has earned him at least an "A" rating in every one of Porter's annual Report Cards since we launched the newsletter in 2009. (Actually, he's gotten an "A+" in every year but one... when he slumped in 2011 to a mere "A.")

His track record is incredible. He's helped thousands of folks make smarter decisions with their retirement funds.

Right now, Doc's Retirement Millionaire portfolio is loaded with safe, high-yielding investments that should make up the core of every retirement portfolio.

 But much more important than any individual bond or stock recommendation, Dr. Eifrig provides his readers with regular "asset allocation" guidance. As many of our readers know, asset allocation – which is how an investor spreads his money across asset classes – is 100 times more important to your investing success than any individual stock recommendation. It's what professional investors focus on, rather than finding the next hot stock or big options trade.

We believe the "framework" Doc provides readers – how to view their portfolios as a whole – is one of the great benefits of reading Retirement Millionaire. With a subscription to his newsletter, you regularly receive professional insight on how to structure a portfolio to handle any crash or boom the market throws at you. You'll learn the right way to build a fortress portfolio of elite, dividend-paying businesses... safe income-producing securities... closed-end funds... and precious metals.

We have a difficult time convincing readers to purchase this sort of "common sense" research. Constructing a fortress portfolio of stocks, bonds, and alternative assets – which incurs few losses – just isn't as sexy as finding the next big gold stock or miracle-cure drug stock.

 In addition to helping safeguard subscribers' portfolios... Doc and his team have also done exceptional work giving readers the tools to safeguard their own well-being. Last year, Doc published a guide to defending your digital life. The popular report walked readers through simple techniques for securing passwords (which you're probably not doing right now) and e-mail accounts. And it described what to do if you think (or discover) thieves have stolen critical personal records...

And now, Doc has just released a new set of guides on how to handle nearly any emergency imaginable. Called the "Doctor's Protocol," Doc's new reports make up a simple four-step plan that should enable you and your family to safely and comfortably survive nearly any crisis... whether it's a natural or manmade disaster... a terrorism event... or even an economic crisis.

Doc's new report series covers all sorts of valuable survival techniques and strategies... everything from the safest place to sit on an airplane... to the best food to store in your house. From what to do if you're in a public area and people start shooting... to a clever $20 technique that will thwart almost any burglar.

In his reports, Doc describes the one big mistake even well-intentioned "preppers" make... the fascinating – and unexpected – way your brain reacts in a crisis... and what you must do in the first 72 hours of an emergency. While reading one guide, I learned several priceless tips on how to handle a prolonged electrical outage.

 Please keep in mind: Doc's ideas aren't fringe "conspiracy theories." He simply advocates taking a series of small steps, making some small changes in your life, and understanding what really happens in a crisis so you can deal with the situation.

Sure, we all hope that no one in our family will ever have to deal with a life-threatening disaster or a complete breakdown of civil order. But why on Earth would you risk it?

 Again, the main focus of Retirement Millionaire is building wealth through the stock and bond markets. Doc's extensive educational archive is a fantastic "extra."

We believe Doc's ideas are so powerful and valuable – worth a thousand times more than any single stock pick – we're making our subscription offer irresistible.

To encourage folks to try Retirement Millionaire... we invite you to take advantage of us. Take advantage of our 100% money-back offer for a subscription to Retirement Millionaire. Take advantage of this opportunity to access literally hundreds of dollars' worth of Doc's educational material on investing, trading, and personal security.

Read through Doc's work. Take four months if you like. If you don't find an incredible amount of insight on wealth and personal security, we'll refund 100% of your subscription. But trust us... your family will thank you some day for learning these ideas and making plans to safeguard them. To learn more about Doc's brand-new report and get started with a free trial to Retirement Millionaire, click here.

 New 52-week highs (as of 6/7/2013): Berkshire Hathaway (BRK), Ligand Pharmaceuticals (LGND), Microsoft (MSFT), Prestige Brand Holdings (PBH), and short position on iShares Barclays 20+ Year Treasury Bond Fund (TLT).

 A couple subscribers write in about Saturday's Masters Series essay and our ongoing efforts to "teach" fundamental investing concepts... Send your comments to feedback@stansberryresearch.com.

 "I wanted to echo what Mark Ford said about fear (of losses) affecting your actions or inactions on financial decisions. I've had a rather circuitous adventure throughout my life that parallel Mark's in starting from scratch to where I am today.

"I've been very fortunate to make some very good decisions that I acted upon that were well reasoned and yet risky. This included changing companies (aerospace to transportation) when opportunities vanished earlier than expected; changing careers (engineering to marketing) in mid-stream because the end game appeared less promising; and changing industries later as well with no prior experiences in that new industry. [I took] another chance in leaving an established world leader as a senior executive to take on a more challenging leadership opportunity in a smaller company in the same industry; repositioning/rebuilding a nonequity brand to premium equity and succeeding beyond my expectations; and finally in concert with career decisions, personally investing along the way in new paradigms in emerging tech companies as they were happening and taking a chance on succeeding.

"The overriding thoughts that personally guided me through all these decisions was the same (as Mark said)... a willingness to lose what I could control (a new job, a new career or an investment in new businesses) so long as my opportunities for success were sound and well thought out. I always reasoned that the younger I was, the more risk I tolerated; but what really surprised me was the older I became the less I changed. This process of overcoming fear an take some action is as true today as it was for me 30-40 years ago. This works at any continuum of wealth creation; the comfort level changes (how much you're willing to lose each time) not the fear." – Paid-up subscriber Tom Valdes

 "Keep the investing basics coming please. I read everything you publish with the goal of learning everything I can about investing. You see, I'm a novice. One of those who used to be an 'invest it and forget' investor, in mutual funds of course. That's all about to change as I learn, with your help, and become an active investor. Keep the learning coming. My financial future depends on it!" – Paid-up subscriber Dan Lanahan

Hunt comment: We're glad you like the educational material we publish in the Digest and other services, like our free e-letters DailyWealth and Growth Stock Wire. Sharing the information we'd want you to provide if our roles were reversed is at the foundation of what we do...

And we believe that material's not just for "novices"... No matter how long you've been investing your money and trying to build your wealth, focusing on sound financial principles is critical to success. That's why we've compiled much of our best educational work in the new Education Center. We've mentioned it a few times in recent Digests. But if you haven't visited it yet, we encourage you to check it out.

Regards,

Brian Hunt 
Delray Beach, Florida 
June 10, 2013