Ask Me Anything

About 60 days ago I asked the Fearless Wealth community to ask me anything. Below are ten questions, plus a bonus that I curated based on all the questions that came in. 

If you like this format please let me know and I’ll do it again. 

Below are the questions. In many cases I had many people asking the same question so I put them into one general question. 

Here they are for my first AMA (ask me anything). 

Question #1:
Eventually countries that have been holding dollars in reserve are going to need to switch and hold reserves in other currencies like the Chinese Yuan. When those countries sell or dump some of their dollar reserves what are the implications for the US?

Question #2:
I am approaching the end of my years to be able to save for retirement.  What’s the best strategy for an investor that is within 5 or 7 years of retirement?

Question #3:
Do the exchange traded funds “SPY” and “IVV” automatically reinvest the dividends from the funds? 

Question #4:
What’s the best way to own precious metals?

Question #5:
Hi RC, What are your thoughts on this jubilee people are predicting?

Question #6:
Looking at that 30+ year history of declining interest rates, the question is why has that been happening? Is it a reflection of economic success since the 70s pushing rates of savings and encouraging savings. Is it really a reflection of mass accumulated wealth looking for yield and rent seeking?

Question #7:
I get that if you buy a bond with a negative yield and keep it until it matures, you are absolutely, positively, guaranteed to lose money. Who would do that? Why would anybody do that? Anywhere? Any time?

Question #8:
You can’t ignore traditional warning signs like all forms of increased debt, inverted yield curves, unprofitable companies IPO’ing, high PE ratios that are supposedly justified by ultra low interest rates, vast amounts of sovereign negative bond rates, and slowing worldwide growth, right?

Question #9:
What’s the current state of real estate?

Question #10:
I Believe A Lot Of Noise Is Going around about The Trade wars But I Don’t Think It Really Has That Much Influence On The Markets What say You?

Question #11:
From your viewpoint, is it really “different” this time?

In Your Corner,

RCPeck-Dig Signature.JPG

RC Peck, CFP

P.S. I’ve got Five extra things for my Money Badges this week…

(1) How The Pick of the Month Newsletter World wants you buying and selling stocks.
After the amygdala sends a distress signal, the hypothalamus activates the sympathetic nervous system by sending signals through the autonomic nerves to the adrenal glands. These glands respond by pumping the hormone epinephrine (also known as adrenaline) into the bloodstream.  — Harvard Health

(2) Worth a second listen.
I had this talk in last weeks blog. And I kept it in for this week because I’ve listened to this speech over 10 times and still get something new from it each time. Listen again and let me know what you heard this time around.  This is Water by David Foster Wallace — “Here is just one example of the total wrongness of something I tend to be automatically sure of: everything in my own immediate experience supports my deep belief that I am the absolute centre of the universe; the realest, most vivid and important person in existence. We rarely think about this sort of natural, basic self-centredness because it’s so socially repulsive. But it’s pretty much the same for all of us. It is our default setting, hard-wired into our boards at birth.”

(3) A quote I’ve been pondering
“A wealth of information creates a poverty of attention.” Herbert Simon

(4) If Golf commentators covered all sports.
https://www.youtube.com/watch?v=XE61FKk_vTY

(5) Training is actually what you’ve been looking for all this time…
If you have the right symbol then you’ve solved [only] 10% of your problems. The other 90% is acting how you are supposed to act when you are supposed to act that way. AND the best symbols in the world can’t save you if the entire market is dumping. Or you don’t do what you are supposed to do. Training and this conversation is what you’ve really been looking for.

Subscribe to RC's Weekly Investment Insights