Use This Strategy to Beat Average Investors 10:1

If you’re relying on index funds or stock and bond mutual funds to fund your retirement, you have a big problem.

The stock market is driven by earnings growth, the valuation level, and interest rates.

If rates are dropping, earnings are improving, and the price-to-earnings (PE) ratio is going higher, that is all fantastic for the stock market.

You need to have at least two of the three variables improving, or it’s tough for stock to power higher for very long.

On the opposite side of that, if rates are rising, have fallen to the floor, or are weak, then the multiple is going to contract and prices will fall.

Right now, the PE ratio of the S&P 500 is 21. The yield on the 20-year Treasury bond is a whopping 2.02%, and the 10-year yield is just 1.53%.

Earnings for the second quarter declined year-over-year, and analysts are lowering their expectations for the rest of the year.

None of the three components of stock market valuation is favorable right now.

When you add up the numbers, it tells me that for the next decade, investors will be lucky to get 5% returns from the major stock indexes.

But today I’ll show you a strategy that will beat that return 10:1


These “Black Swans” Could Be 1000% Opportunities

The new view of the world is that we’re going to see lower interest rates for a very long time.

In much of the world, rates are negative, and you have to pay a little to some governments just for a promise to get most of your money back at maturity.

The President is pounding the table for lower interest rates to boost the U.S. economy, and the Fed is openly speculating about the negative impact of slowing in the Eurozone and a protracted trade war.

The only ones that even hint of something different are the permabears – the folks who always talk about doom, gloom, and the end of the world.

Here’s the critical question we need to ask ourselves right now…

What if they’re right?