Your Survival Guy

Preparing your investments and family for when disaster strikes.

Compensation was paid to utilize rankings. Click here to read full disclosure.

Will Vanguard GNMA be Up in 2019?

By

By Creativa Images @ Shutterstock.com

You know, it has been a good year-end advance for Vanguard GNMA. Which is why, if investors can take away one thing from 2018, it’s that they should never allow predictions to run their money.

Because, if you recall, it was at this time last year when everyone was predicting higher interest rates for 2018. And because of that (not you of course) many soured on Vanguard GNMA and bonds all together, hence removing a most powerful counterbalancing force in their portfolio. Not a good move as it turns out.

Predicting the direction of interest rates is about as useful as predicting the direction of the stock market.

Be Intelligent: Join Dick Young & Get My Friday Email

Make a New Year’s resolution: Do not allow predictions to ruin your portfolio. Because, as we’ve seen thus far in 2018, even if your prediction is right you may just end up being wrong about the outcome.

The following two tabs change content below.
My Twitter profileMy Facebook profileMy Instagram profile

E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West (RIP JB) and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.

Recent Posts from YourSurvivalGuy.com

Stop Eating All that Crap

You know the way Americans eat needs an overhaul. Which is why the uproar over Trump’s nomination of Robert F. Kennedy Jr., for Health and Human Services Secretary, is rich. The American diet is a mess. It’s like they’re in the business of getting people sick, working hand in hand with big pharma. From my […]

Robert F. Kennedy Jr. for Department of Health and Human Services Secretary

Trump’s pick of Robert F. Kennedy Jr. for Department of Health and Human Services Secretary is the right one. RFK, Jr. is the one calling out big pharma and trying to make America healthy again. In his book, The Wuhan Cover-Up, RFK Jr. calls out medical researchers’ dangerous practices. The book’s description reads: “Gain-of-function” experiments […]

Paul Tudor Jones: “All Roads Lead to Inflation”

Your Survival Guy’s been warning about inflation for years. It’s everywhere you turn, and it’s not going away. The Fed and Treasury are in the inflation business period. Deep Newz reports on Paul Tudor Jones’s concerns about inflation, writing: Billionaire investor Paul Tudor Jones has reiterated his concerns about inflation, stating, “All roads lead to inflation.” […]

SPECIAL REPORT: Your Survival Guy in Paris

Dear Survivor, One of the more misunderstood components of compound interest is time. Everyone understands the rate of return. It’s all you hear about, from your uncles to your nephews. “What did it return this year?” they ask. Time, on the other hand, is boring except when you do it over a couple of generations. […]

City Dwellers Want to Be Great Again Too

You know that Americans have been fleeing America’s big blue blob cities, looking for a better America for their families and children. But the people left behind in the cities aren’t happy with their leaders. Many city voters expressed their frustration by voting for Republicans, especially Trump, in greater numbers than they have in a […]

Bidenflation Isn’t Over

Donald Trump has been reelected, but he won’t take office until January. And even then, the effects of the bad policies of the Biden administration will take time to fade away. The latest report on inflation shows that the legacy of Bidenflation persists, as CPI growth accelerated to 2.6 in October. Colby Smith and Harriet […]

Getting Rich Safely with Portfolio Strategies that Work

When you look at how much has changed over the last four years, it’s important to consider how much will change in the next four. Today, you have a generational opportunity with Treasurys and other fixed income. You can seek out value and growth in stocks by being focused on getting paid and being patient. […]

Trump Nominates Pete Hegseth Secretary of Defense

Congratulations to Trump’s Secretary of Defense nominee, Pete Hegseth. No one has been more vocal than Hegseth on the disastrous American troop withdrawal from Afghanistan. And no one has been more vocal about the wokeness that has infected the leadership ranks of the armed services. Time to clean house and put America First. Anna Young […]

“Then One Day the Grandfather was Gone”

UPDATE 11.13.24: As America prepares for a changing of the guard at the White House, it’s important to remember the wisdom of our elders. It was America’s Founders who created a government that would help keep the republic working for the people. Some things are timeless. The wisdom passed on to us by our forebears […]

“I’m Not Going to Invest Until After the Holidays”

Inertia. It’s a mighty foe. You can beat it back, but it’s not easy. You can always find reasons for not investing. Here are a few just from the last couple of weeks. “I’m not going to do anything until the election is over.” “I’m not going to do anything until after the holidays.” “I’m […]

Death and Taxes: Know Your Estate and Inheritance Tax

Will your estate be taxed when you die? Many states have phased out estate and inheritance taxes, but there are a number of them still using this punitive tax. Those states include: Connecticut Hawaii Illinois Iowa Kentucky Maine Maryland Minnesota Nebraska New Jersey New York Oregon Pennsylvania Rhode Island Vermont Washington and Washington, D.C. At […]

Fidelity’s Assets Under Administration Grow 30% from Year Earlier

At Think Advisor, Dinah Wisenberg Brin reports on Fidelity’s ability to attract new customers. Fidelity CEO Abigail Johnson explains, “The economics of the financial industry continue to reward efficiency and demand faster speed to market.” Wisenberg Brin writes: Fidelity Investments posted significant growth in assets, trading and client planning sessions for the third quarter. Assets […]

A Spending Cuts Cheat Sheet for Elon Musk

Elon Musk wants to trim away the fat from the federal government much the way he did when he bought Twitter and cut vast numbers of its workers. At the Cato Institute, Chris Edwards, who has studied cutting spending for decades, gives Musk and the Trump administration a list of the top ten spending cuts […]

Money: What Trump Means for Your Stocks and Income

Your Survival Guy takes note when Warren Buffett hoards $325 billion in cash, which is mostly invested in Treasury bills. When you look at the yield curve you can see he’s getting around five percent on his money. Not bad considering major investment firms are calling for about the same or less long-term returns for […]

Membership Has Its Privileges

When you become a client, you open the door for the rest of your family. Membership has its privileges. It is no surprise that the Fed cut rates recently (pay attention to The 4 Biggest Surprises of the 2024 Election) in the face of rising stocks, commodities, real estate, and more. Those are all inflationary […]