Monday, July 6, 2009

Volume 3, Issue #60

Also in Today's Issue...

Remember Aesop's fable, "The Tortoise and the Hare"...

The Hare was once boasting of his speed before the other animals. "I have never yet been beaten," said he, "when I put forth my full speed. I challenge any one here to race with me."

The Tortoise said quietly, "I accept your challenge."

"That is a good joke," said the Hare. "I could dance round you all the way."

"Keep your boasting till you've beaten me," answered the Tortoise. "Shall we race?"

So a course was fixed and a start was made. The Hare darted almost out of sight at
once, but soon stopped and, to show his contempt for the Tortoise, lay down to have a nap.

The Tortoise plodded on and plodded on, and when the Hare awoke from his nap, he saw the Tortoise just near the winning-post and could not run up in time to save the race.

Then said the Tortoise: "Plodding wins the race."

Steady Income in a Crazy Market
In the past few years we've seen inflation fears rising as the dollar continues to weaken.

To make matters worse, governments everywhere have adopted "easy money" policies by pumping trillions of new dollars into the economy and aggressively running massive defecits funded with depreciating dollars -- all in a effort to lessen our economic woes and fend off depression.

And while the recent rally has investors looking to re-enter the markets... they are still battling fears of higher energy prices, rising interest rates, global recession, and more government intervention.

So what's an investor to do?

Take advantage of a strategy that will allow you to successfully protect your portfolio NOW, while you wait for new, profitable opportunities ahead.

Fortunately, there is a conservative alternative that will still let you sleep at night while you make money -- inflation or no inflation: buying high-income investments at a discount.

For two decades now, I have focused on this overlooked method for racking up steady gains you rarely give back. (I say "rarely" because an investment occasionally fails me. There is no such thing as a perfect investment. But you can make a lot of money on a strategy that works 80% or 90% of the time.)

Sometimes the stock market will outperform income investments. But when it comes to the race between the "growth" hare and the "high-income" tortoise, I'll bet on the income tortoise for the long run. Compounded interest is indeed the 7th wonder of the financial world, and you should take full advantage of it.

Studies have shown that during the long run, stocks outperform bonds and bonds outperform cash. That may be true most of the time, but remember, when the global economy is in turmoil -- facing war, inflation, recession, corporate scandals, and uncertainty -- it pays to have some investments earning income while you wait for the markets to recover.

And when you buy income investments when they are temporarily low priced (like they are right now), you have a much greater chance to beat stocks over the long term.

A Simple, But Powerful Way to Make High-Income
For the last few years, I've been doing a standing-room-only workshop at investment conferences on my high-income strategy.

I offer a simple, but powerful way to make high income -- sometimes double-digit percentage income -- with potential capital gains. It doesn't require a lot of work or research, and it doesn't involve options or short selling. All it requires is some know-how and, most importantly, patience to buy at the right time. My formula for making money in these turbulent times is simple... buy income funds at a discount. And as you'll soon find out, my strategy has been highly successful.

For example, one of the recommended companies we owned in our Forecasts & Strategies High-Income portfolio announced its first dividend in December 2005. In little over a month, the company's stock jumped 19%. Another one of our recommended holdings declared its first dividend in June 2007. Within 3 months, its stock shot up 35%!

But I'm not new to the high-income game... my Forecasts & Strategies subscribers have been able to make great gains on my income recommendations over the years with blockbusters like...

Currently, my recommended portfolio of high-income investments is up over 24% this year, while the Dow is down almost 4%!

My high-income strategy is ripe for the current markets. In fact, I am currently recommending to my Forecasts & Strategies subscribers that they keep 50% on their portfolio in high dividend-paying stocks and funds to take advantage of the high-income bargains in the markets.

Now is time for you to add more high income investments to your portfolio. My Forecasts & Strategies subscribers plan to fatten their portfolios with the great capital gains AND monthly income that these investments offer. I hope you do too!

Yours for profitable investing!

-- Mark Skousen, Ph.D.
Editor, Forecasts & Strategies

P.S. If you want to learn about my latest high-income investment recommendations, you can sign up for Forecasts & Strategies and receive instant access to the latest issue where I reveal how to use high-income investments to profit from a rising interest rate environment. Click here to sign up for Forecasts & Strategies now.

Additional Investing Ideas

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