???The business of investing is not the same as investing in a business.??? - Maxims of Wall Street
Are you worried about losing up to half your money in the stock market? It happened twice in the past 18 years. And in the final three months of 2018, the average stock index fell over 15%.
What about bonds? The bond market provides steady income, but the returns are pitiful these days. A 10-year bond earns you only 2.8% a year; a 30-year bond earns you only 3%. Corporate ???high yield??? bonds (so-called ???junk??? bonds) pay less than 6%. It is hardly enough to keep up with the cost of living.
Many investors choose to invest in rental properties for the monthly income, potential capital gains and tax advantages. But at today???s high prices, it???s hard to achieve positive cash flow. Plus, you have to play the role of landlord, and dealing with renters has its own set of problems.
Investing in Private Businesses
For those who are discouraged by the gyrations of the stock and bond markets, or the illiquidity and risks of real estate, there is an alternative that can pay off big: investing in successful individual businesses as a partner.
I highlight one way to do this in the stock market by investing in ???business development companies,??? known as BDCs. I???ve been recommending one such finance company for years that pays a high (7%) and rising dividend and has more than doubled in value in the past five years. (For more information, subscribe to Forecasts & Strategies by going to www.markskousen.com).
Another avenue is to invest in private business deals. I???ve recently invested in three business deals that are paying me over $3,100 a month on a total investment of $200,000. That???s $37,000 - over 18% a year. Who can offer that kind of steady income in stocks and real estate?
How did I do it? I???m a member of the exclusive Las Vegas Investment Club, which makes these deals available to a limited number of accredited investors. The directors have developed a unique strategy to discover real performers in business (not stocks or real estate) with minimal risk.
And in almost every case, these are businesses that enjoy positive cash flow immediately, paying you income in a month or two!
In the past five years, the Vegas Investment Club has funded 11 deals worth $21 million dollars, and all 11 have either met or exceeded expectations. Eight still are ongoing Club investments generating monthly cash payments between 8-27% annual percentage rate (APR) for investors.
You don???t have to live in Vegas to participate. The Las Vegas Investment Club has decided to expand into Southern California with the creating of the Los Angeles Investment Club. For those of you who live in Southern California, the LA Club is holding two introductory meetings (I???ll be at both).
The first is on Tuesday, Jan. 22, at 7 p.m., at the Sheraton Gateway LA Airport Hotel. Register here.
Or on Wednesday, Jan. 23, at 7 p.m., at the Westin South Coast Plaza Hotel, in Costa Mesa. Register here.
There is no obligation, but you must reserve a seat at either location. (If you don???t live in Southern California or Vegas, don???t worry - the investment clubs will be at www.freedomfest.com to answer your questions).
Upcoming Appearances
On This Saturday, Jan. 12! San Diego chapter meeting, American Association of Individual Investors (AAII), Jan. 12, 9-11 a.m.: I???ll be speaking on ???A Conservative Way to Beat the Market and Earn High Income in 2019." I???ll be autographing copies of ???Maxims of Wall Street.??? The meeting is at the Solana Beach Presbyterian Church in Solana Beach, California. My subscribers are welcome to attend. RSVP by contacting Ryan McKeon at rmckeon@sandiego.edu.
On Next Wednesday, Jan. 16: Certified Financial Analysts (CFA) Meeting at Chapman University, 5:30-7:30 pm, Beckman Hall #404: I???ll be giving a lecture on ???Eurekanomics: Discovering the Missing Link in Macroeconomics.??? I???ll be autographing copies of ???The Structure of Production.??? Subscribers and visitors are welcome to attend. Price for non-members is $15. To RSVP, contact Caitlin at caitlin@cfala.org.
Orlando MoneyShow, Feb. 7-10, Omni Orlando Resort: Mark will be leading a main-stage panel on "The Best Places to Put Your Money in 2019," plus a workshop on "Flying Five Strategy: My Favorite Way for Conservative Investors to Beat the Market and Earn High Income." Other speakers include Louis Navellier, Jeffrey Saut (Raymond James), Stan "The Annuity Man," Steve Moore, Brien Lundin, Mark Mobius, Jim Lowell, Kelley Wright and fellow newsletter writers Hilary Kramer and Mike Turner. Tickets are complimentary. Call 1-800-970-4355. And be sure to mention you are a subscriber to Investor Cafe. Use code 046878.
Good investing, AEIOU,
Mark Skousen
You Blew It!
Would You Pay More Than $2,000 for an iPhone?
Would you be willing to pay $2,000 to $2,800 for an Apple iPhone?
That???s the estimated price tag for one if it was ???Built in the USA??? instead of China and other parts of the world.
Yet, Donald Trump, America???s Luddite president, keeps insisting that Apple should close down its factories in China and build its products in the United States.
Donald Trump, who calls himself ???The Tariff Man,??? is doubling down on his ???America First??? agenda by manufacturing an immigration crisis (illegal immigration is down 80% from 2000) and even shutting down the government in his vain pursuit of building a wall.
Apple is already the largest U.S. taxpayer, and is investing $350 billion in the United States over the next five years by building data centers and more in North Carolina, Texas, Nevada, Oregon, Iowa and Arizona. What more does Trump want?
Apple products, like other tech manufacturers, are built from parts made all over the world.
It???s a global economy, stupid!
Watch this three-minute video about the benefits of free trade vs. protectionism by George Mason University professor Don Boudreaux.
In fact, Professor Boudreaux is so incensed by President Trump???s trade war that he???s taking on Trump defender Steve Moore of the Heritage Foundation, author of ???Trumpanomics,??? and a Trump advisor, at this year???s FreedomFest, July 17-20, 2019, Paris Resort, Las Vegas. The debate is entitled: ???Trump???s Trade War: The Art of the Deal or No Deal.??? The sparks will fly.
Here is our three-minute video promo - watch the fun ending:
Our super early-bird discount ends Feb. 1; save $250 off the retail price of $795. You pay only $445, and $300 for guests. To sign up now, click here, or call toll-free 1-855-850-3733, ext. 202.
