Book Report: Charles Payne’s Unstoppable Prosperity

This man is on a mission to help everyday investors build unstoppable wealth and prosperity.

I’ve been watching Charles Payne on the Fox Business channel for many years, and to say that I trust the things he says is an understatement. Charles is high knowledge, high credibility, and no BS.  And for bonus points, he’s a snappy dresser.

So when he announced the release of his book, Unstoppable Prosperity (Paradigm Direct LLC, 2019), I knew it was just a matter of time until a copy would be on my shelves. Well, I got the book, and Mr. Payne has lived up to everything I believe about him, and then some.

The book is organized into ten tight chapters, high on stuff, light on fluff. Its written in direct and clear language so that novice and veteran investors, and even professional money people will learn from it.

The subtitle nails the premise: Learn the strategy I’ve used for years to beat the market. Full disclosure, if you search the term “beat the market” in this website, you find an abundance of reasons that most people will be better off in the long run if they index their portfolio, and do not attempt to beat the market.

So, do I disagree that individual investors can beat the market? No, I do believe most people will not beat the market because of their own biases and behaviors. The operative word is “most.”

So who beats the market? Usually people that have gotten their biases and behaviors under control, and do not approach the markets, or run from them, emotionally.

In fact, in chapter four, Behaviorals: Managing the Moods of the Market, Charles addresses that very subject head on. “It’s one thing to be the master of your own emotions and avoid self-sabotage in your investing efforts,” he writes, “but its something entirely different to weather the storm when everyone else seems to be losing their collective minds.”

I believe that Behaviorals is the foundation that the rest of his work is built upon, and the rest of his work is as robust as the big man himself: Fundamental analysis, technical analysis, building and managing portfolios, a rather detailed section on classic mistakes that investors make, and finally a capstone chapter about putting it all together and into action.

And to close this brief report, allow me to close with a smart money tip: Go to this link and get the book and additional goodies for free (pay shipping cost only).

(Note #1: its February 18, 2022 and I don’t know how long this offer will be available)

(Note #2: I receive absolutely no referral fees or affiliate income from recommending this book…I like it that much!)

 

 

 

Your Average Joe Economics: Inflation will ruin your plans. Plan ahead for rising interest rates.

The Federal Reserve is about to raise interests rates in a very meaningful way. They are a bit late to the party, in my humble opinion. Finally, 2022 will be the year of fighting back on inflation by using a more aggressive monetary policy, that is, raising interest rates.

So what now? Don’t panic. Prepare.

  1. Tune up your financial plan to anticipate and prepare for all phases of the business cycle. Financial planning is an all weather process, and must include both short- and long-term solutions, including how to deal with eventual economic downturns, market volatility and federal monetary policy. You should always have a plan, but if you don’t, getting your plan together right now is the smart move.
  2. Reduce risk in your portfolio. No, you are not a market timer, so don’t dump everything. Look at your holdings and see where you can take some long-held profits and trim off some market risk. For instance, allocating away from growth stocks and toward defensive physical assets may be a relevant protective approach for you. Remember, you don’t go broke taking profits, so when markets are at or near historic highs, take some profits! And what if the market goes higher after you sell? Who cares? We aren’t fortune tellers. Take the profit, and live to reinvest another day.
  3. Be realistic about your return expectations. Interest rates are going to go up, but with inflation at a forty-year high, fixed rates will still put you underwater. If you earn a fixed 2%, but inflation is at 7.5%, then you have lost 5.5% of your principal.  Get it?
  4. Cash in the bank. Cash means covering emergencies. Cash means capitalizing on opportunities that will appear as the markets decline. Be in a good cash position. Sure, the rates will suck, but cash is queen as interest rates rise.
  5. Short term treasury bond rates will still suck, even after rate increases, but they are safe. Consider short maturities if you don’t need all that cash laying around.

    …inflation is literally stealing money from you with every transaction you make…

  6. Consider hard assets. Precious metals like gold and silver tend to do well in recessionary times. They can provide a good hedge to the rest of your financial assets in declining markets. Gold and silver coins, rounds and bars are easy to buy, easy to store, and easy to sell. And commodities, like timber, agriculture, copper, oil, and so forth, will prove good stores of value and offer profit potential.
  7. Count your pennies and cut dumb spending. You will live without Starbucks. As God as my witness, you will live! A better choice: McDonald’s, any size for a buck. Best choice: travel mug filled with home brew. Get it? Every dumb spend has a series of smart alternative solutions. Cut dumb spending habits in all phases of the business cycle, especially as prices jump and wages fall.
  8. Cut dumb debt. That means credit cards. Revolving credit is dumb. Khakis on credit is a dumb idea. Starbucks on a credit card is a super dumb idea (I admit it, I’ve done it, we’ve all done it :)).
  9. Reduce or eliminate leveraged debt like a mortgage which helps you finance an appreciating asset, like your home. Khakis don’t appreciate in value. Aggressively search for opportunities to refinance old leveraged debt (mortgages and credit lines) to historically low rates before they rise.
  10. Work more hours, save more money. Get some differential OT coming your way, or start a side hustle. Unless you are continually “employee of the month,” or playing squash with the boss, watch your backside. Trade your TV time for a side hustle, and be your own boss.

So, in summary, while it is always good to plan ahead with your money, it especially important when rates are rising and inflation is literally stealing money from you with every transaction you make. Start today and build solid habits that will prepare you for every phase of the business cycle.

-Another bite-sized economic lesson from Just Your Average Joe!

If my country were my client…

If my country were my client, I’d tell her its time to fix her family finances, before it’s too late.

I’d tell her it’s long past time to put together a serious budget.

I’d tell her to stop spending foolishly, as if she was able to print an unlimited supply of money down in the basement.

I’d tell her to stop borrowing, cut up her credit cards and pay back who she owes.

I’d tell her that throwing serious money at childish charades and flights of fancy is not “investing,” it’s dangerous.

I’d tell her it was time to play the long game with financial determination so fierce it would ensure the future of her grandchildren’s grandchildren.

And finally, I would advise her to stop hiring dishonest and unskilled employees who will deliberately destroy her standing in the world economy.

She has problems beyond money, but she’s strong, and brave, and good, so I give her my best advice with due respect, loyalty and love for her and her whole family, because they deserve better.

I can dream, can’t I?

Fix the money. Fix the future.