"The Faith-Based Millionaire is a fresh approach to having an authentic and purposeful life."
-- Dan Miller, best-selling author of 48 Days to the Work You Love and No More Mondays
On This Episode:
1. Market & economic update for May 2011 
2. Is QE3 around the corner?
3. How to develop an all-weather strategy for rain or shine…
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Introducing the All-Weather Strategy
In a volatile investment world, many investors want upside potential but want to minimize their downside risk. In other worlds they want to play both offense and defense. That is where the All-Weather Strategy works best. Think of it as your own personal “hedge fund”.
Since 2009, the All-Weather strategy at Faith-Based Investor has made over 102% for those following the strategy. Investors saw their profits increase by over 50% in 2009 followed by a nearly 30% return in 2010. How were these returns possible?
Think opportunity!
The All-Weather Portfolio
is diversified with stocks and ETFs. The portfolio uses a wide variety of asset classes including real estate, stocks, bonds, precious metals, commodities, inverse ETFs, and is not afraid to hold cash during the tough times.
August 2 looms. That is the absolute deadline for raising the federal debt ceiling, according to Treasury Secretary Timothy Geithner. The U.S. actually “hit” the $14.3 trillion ceiling on May 16 but took “extraordinary measures”, in Geithner’s words, to avoid default. (Those measures included suspension of Treasury payments to the Civil Service Retirement and Disability Fund and the Federal Employees’ Retirement System Thrift Savings Plan.) While Congress will surely vote to raise the debt cap by August 2nd, our politicians are mostly transmitting contention.
Will other nations start to lose confidence in us? Our markets are pretty confident that Congress will resolve the issue. Still, the mere prospect of a default could end up doing some damage on Wall Street (and Main Street). The longer Congress dallies, the more the world questions how serious our politicians are about reaching an accord. Remember the headlines about the debt crises in Greece, Spain, Ireland and Portugal? Remember how that instability weighed on Wall Street? Well, we could give global investors a sense of déjà vu.
In light of current economic conditions, we at FaithBasedInvestor.com are starting to go into “defensive” mode. During upward bull markets, a little offense goes a long way. However during times of high volatility and downward momentum, it is often best to be safe rather than sorry. That is where a good “defense” comes in handy.
In team sports, especially football, defense often wins championships. That is why we wanted to show you ten ways you can add a little “defense” to your portfolio strategies.
1. Load up on cash & money market accounts. Any defensive strategy should have loads of cash to take advantage of any future prime opportunities as well as to protect against the downside. These accounts may earn relatively small returns but are considered a safe haven. Most people wished they had a whole lot more cash in their portfolios during the 2000-2002 stock market crash as well as during the financial crisis of 2007-2009. We believe right now is a prime time to be heavy in cash.
2. Consider short-term U.S. treasuries (1-3 years max). Yes, we are not too bullish on the long-term prospects of U.S. debt, but short term treasuries like (NYSE: SHY), can offer a bit more yield than a money market. Additionally as rates rise, the yield on this ETF will also rise. Short-term treasuries provide a minimal return so they should only make up a relatively small portion of the overall portfolio. However these investments will add stability to your portfolio.
3. Consider inflation-protected securities. Inflation can significantly reduce your returns over time. Whenever I consider an investment I look at taxes and inflation. Treasury Inflation-Protected Securities or TIPS (NYSE: TIP) provide a hedge against inflation as they track the consumer price index (CPI). The price of TIPS is adjusted to keeps pace with inflation. Another inflation protected to consider is one that tracks world inflations such as (NYSE: WIP).
4. Consider stable foreign currencies. In order to hedge against fiat currencies (those not backed by a precious metal) that are relatively unstable at this juncture, consider more stable currencies like the Swiss Franc (NYSE: FXF) and Australian Dollar (FXA). With the U.S. dollar and Euro in crisis mode, more stable currencies can provide some much needed protection.
On this Episode:
* Is China creating a bubble? Check out their ghost cities…
* 5 signs the market is ready for a BIG Drop!
* Reading between the lines: what are the economic numbers REALLY telling us?
Download the audio:
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On this webinar, Jay will show you how to:
* Create more income
* Find investments that line up with your faith and values
* Reposition your portfolio to prepare for the dollar’s collapse
* Build a portfolio that yields 6% or more
* How to find investments you can be “proud to own”
* Protect against the MASSIVE inflation heading our way
* Strategically grow your portfolio over the next few years.
* Avoid assets and asset classes most susceptible to danger in this current environment.
Come learn how to grow, protect, and share wealth with a purpose!
Download the Audio:
Global Income Portfolio Webinar
Download the Video:
2011-05-17 20.01 Building a Faith_Based Income Portfolio
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At Faith-Based Investor we have developed a propriety list of companies our clients can be
“Proud to Own”. Our “Proud to Own” list is a list of companies that meet both our stringent moral and financial criteria. In order to meet our “Proud to Own” status we narrow nearly 8,000 companies down to a manageable list of about 600 companies.
These 600 companies are thoroughly analyzed to make sure they do not violate any of our clients’ moral preferences. Most of our clients want us to screen for Christian Values. They want to avoid investing in companies that profit from or donate money to the abortion industry. They also want to avoid supporting companies in the pornography, gambling, tobacco, and alcohol industries. Many also wish to avoid investing in companies that are lobbying for and actively promoting the homosexual lifestyle.
All in all, there are 13 moral items we screen out of our portfolios. We then screen in companies that are making a positive difference in our society. We combine negative along with positive screens to narrow our list from 8,000 down to 600 companies – our “proud to own” investing pool. This pool is constantly changing as names come and go as moral and financial conditions change.
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