How to erase your risk of facing financial difficulties...
Earlier this year, I (Porter) hosted James Altucher on my weekly Stansberry Radio program.
James is a managing partner at Formula Capital, an alternative-asset management firm. He writes a weekly column for the Financial Times, has authored several books, and blogs on his website at www.jamesaltucher.com. (He's also a nationally ranked chess master.)
Over the past few years, James has written dozens of posts that I have enjoyed. But the one that stayed with me the most is titled "Ten Scams You Encounter Every Day." Before you read it… know that James uses colorful language in his posts. But the message is great.
On the podcast, I asked James for the quick "elevator pitch" for listeners who weren't familiar with the post's premise...
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I agree with everything James said... especially the point about owning a home. I tell the young people who work at Stansberry & Associates that they should save half of their after-tax income and never, ever engage in any kind of debt, period. They look at me like I have two heads.
What they don't know is that I did exactly that. So I know it can be done... and look at what happened in the 10 years of my life from when I was 25 to when I was 35. These folks say they'd love to have the success I've had... but they're not willing to do what it takes to gain that financial freedom.
As I've written many times, the most important thing to remember is that you have to consume less than you earn. It's that simple. And on that topic, James made another great point...
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It's simple. If you can avoid divorce – seriously – and you can avoid borrowing money, there is almost no chance that you'll ever have any significant financial difficulty, barring some kind of catastrophic health problem.
James added that he's personally been divorced, borrowed money, and gone bankrupt. "It's really hard to rebuild," he told me. "You can do it if you have the skillset, but you don't want to have to do it. It's very painful."
I often say that the one thing I can't afford is a divorce. Everything else is negotiable. (I'm only half-kidding.)
– Porter Stansberry with Sean Goldsmith
How to erase your risk of facing financial difficulties...
There's a simple way to virtually guarantee you'll never face financial problems… but most people look at Porter like he's crazy when he shares it.
In today's Digest Premium, Porter explains the simple formula…
To continue reading, scroll down or click here.
How to erase your risk of facing financial difficulties...
There's a simple way to virtually guarantee you'll never face financial problems… but most people look at Porter like he's crazy when he shares it.
In today's Digest Premium, Porter explains the simple formula…
To subscribe to Digest Premium and access today's analysis, click here.
Home prices rise (again)... Houses are selling faster... Lennar's land bank... Medtronic's dividend raise... Gold's value 'widely recognized in China'... Russia and Kazakhstan are buying gold... Porter's favorite new book...
Home prices are rising faster than ever before...
Data from the S&P Case-Shiller housing index says the price of existing homes jumped 2.5% from March to April, the largest monthly increase in the index's history. The gain also beat expectations of a 0.5% price increase.
The index – made up of data from 20 metropolitan U.S. cities – is up 12.1% from last year. David Blitzer, chairman of the S&P Index committee, said in a press release, "Thirteen cities posted monthly increases of over two percentage points, with San Francisco leading at 4.9%."
And the Census Bureau's May numbers show home sales climbed to a seasonally adjusted annual rate of 476,000, up 2.1% from April – the best monthly figure since July 2008.
In yesterday's DailyWealth, Steve Sjuggerud pointed to another bullish housing number... The median existing home price is up 15.4% year over year. As he wrote...
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Dwindling inventory, as Steve said, helped homebuilder Lennar post blockbuster quarterly numbers.
Lennar – the first homebuilder to announce earnings – reported a 27% rise in orders in the second quarter. Its number of houses ordered but not yet finished rose 55% in the quarter. And revenue increased 53% to $1.43 billion. The stock jumped as high as 4% on the news.
One reason for Lennar's strong performance is its "land bank." After the crash, Lennar actively purchased high-quality land for home construction. As homebuilder Toll Brothers' CEO Doug Yearley said last month... All the large homebuilders "are well-capitalized and looking for land."
While its competitors are spending time searching and paying dearly for new land, Lennar has enough to last the firm until 2014. And it plans to spend another $2 billion a year on land starting in 2015.
I spoke with Steve Sjuggerud about housing this morning... He said he's still "100% bullish." While mom-and-pop investors are nervous about the direction stocks are taking, they're comfortable investing in housing.
Mortgage rates have risen from 3.4% last month to 4.4% today... But Steve says the rising rates are spurring folks to buy today to lock in lower rates before they climb higher. (Based on history, today's rates are still cheap.)
In the June 19 Digest, we noted that shares of blue-chip medical-device maker (and Retirement Millionaire recommendation) Medtronic had hit a five-year high. We also said the company, which has increased its dividend every year since 1982, would likely announce yet another increase soon...
Two days after our prediction, the company announced an 8% dividend boost to $0.28 per share. It marked the company's 36th consecutive year of dividend increases... And the dividend has nearly quadrupled over the past 10 years.
Gold is trading at its lowest level since September 2010. But falling gold prices haven't slowed China's demand. Despite the drop, the Chinese continue to buy and mine the metal.
In an interview last week, Wang Jiahua, Executive Vice Chairman at the China Mining Association, said...
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Russia and Kazakhstan are also buying gold... Both countries increased their gold holdings in May for the eighth straight month. Russia added 6.2 metric tons, Kazakhstan added four tons, and Turkey upped its holdings for the 11th straight month, increasing its hoard by 18.2 tons, according to Bloomberg.
We've long-recommended owning real, hold-in-your-hand gold. As more and more individuals, hedge funds, and central banks take delivery and store their physical gold, the physical metal will become more difficult to find.
In last Friday's Digest, Porter wrote about one of the best books he's read in some time... It's a book that spoke to him as an entrepreneur... And the author, unlike many folks who write "how to succeed" books, is honest. Plus, he's actually been successful in business. He's started more than 20 companies. He's managed money for top hedge funds. And he's written several books and important articles on finance.
In short, Porter called it "the best book I've ever read on how to start a new business."
More importantly, the author shares Porter's "End of America" views that our country has taken on too much debt. People's retirement accounts will take a large haircut. And many of the jobs we've lost in the crisis aren't coming back.
However, this book explains that you need to look to yourself for success... And he tells you exactly how you can achieve success, regardless of what's happening in the economy.
As Porter wrote on Friday...
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Porter said he's personally using this book as a guidebook for life and business. And he wants to share this important knowledge with you. The book – which Porter didn't reveal on Friday – is now available for you to purchase. To learn more about this important book and how you can receive a copy, click here...
New 52-week highs (as of 6/24/13): Ligand Pharmaceuticals (LGND).
In today's mailbag, one reader compliments Porter's Friday Digest... and another attests to the power of selling puts on blue-chip stocks. Send your thoughts to feedback@stansberryresearch.com.
"Just wanted to drop a note and let you know your Friday Digest was on the mark and I think you're on the right track with your new biz. My job as a corporate jet pilot was eliminated when the company was bought by an investment firm. Luckily instead of buying new vehicles and toys while making a six figure income I built a small service business. I also bought an alliance membership. Everyone in TX needs air conditioning and when the collapse happens I should still be able to provide for the family. My son also did the travel thing although he did it courtesy of the USMC. He did his four years and now works with me." – Paid-up subscriber Scott Snyder
"I'm elated to see Doc Eifrig profiled in the Digest today. I know that selling puts on dominator blue chips is a good strategy in any market, but it's especially smart when the herd is fearful, the dominator's fundamentals are solid, and the expectation is that the market will recover soon. Thank you for giving me hope that you believe in a rebound!" – Paid-up subscriber LAF
Regards,
Sean Goldsmith
Miami Beach, Florida
June 25, 2013