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Trust In Obama May Be Harmful to Your Financial Health

By Bill Spetrino   |   Wednesday, 24 Mar 2010 02:32 PM

Before you believe this article is politically motivated, let me make a statement.

I have never belonged to a political party or any group or organization in my life.

I am a Libertarian and I do not believe in “groupthink.”

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Having said that, this massive government takeover of the student-loan system and this massive government bureaucracy will certainly lead to one result: The private sector will be hiring less people than forecasted.

Would you like proof?

I recently surveyed 45 small business owners for whom I do tax consulting.

A total of 41 told me they have no plan to hire anyone due to increased taxes, the uncertainty about extending the Bush administration tax credits and the inevitable increase on their future healthcare premiums.

Only two said they may hire later in the summer. More than 35 percent told me they worry if they can even stay afloat.

What does this mean to an investor?

First, inflation is unlikely if private-sector unemployment continues. Obviously, those who invest in gold will not benefit much if there is no inflation.

Could we have inflation down the road?

Perhaps, but unless the present administration cuts taxes like JFK, Reagan or Bush (or capital-gains taxes like Clinton), why would unemployment decline?

For those of you who saved your money all your life, this only means that interest rates will stay artificially low to try and stimulate growth.

And for that reason — and the fact our government admits we will run multitrillion dollar deficits — low interest rates should become a reality.

I don’t expect to see 5.5 percent money markets again this decade.

Selfishly, I’m not complaining.

I have been borrowing money at unbelievably low rates and investing it in dividend-paying stocks.

The readers of my “Dividend Machine” newsletter have seen all 20 of my stock recommendation rise by 8 to 40 percent or more.

My simple solution is to choose your own interest rate.

Buying great large-cap U.S companies is much safer than investing in the obligations of the U.S government.

The interest rates on the bonds many U.S companies is much lower than T-bills.

The free market is telling you what most savvy investors, like Warren Buffett, already know.

The best way to protect yourself against the foolishness of this government, future inflation and the inevitable decline of the U.S. dollar is large-cap, multinational dividend-paying stocks priced appropriately.

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Before you believe this article is politically motivated, let me make a statement. I have never belonged to a political party or any group or organization in my life. I am a Libertarian and I do not believe in groupthink. The World's Greatest Dividend Stock on Sale...
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