A Investment Portfolio to Survive Tough Market Conditions
Updated: May 15
The financial outlook in nearly every U.S. sector is uncertain with many unpredictable challenges ahead. Several factors weigh heavily on long-term U.S. growth prospects. Among the most notable challenges are the heavy debt burdens, inflation, higher taxes, political unrest, climate change and population trends in several developed economies.
Primarily challenges that every U.S. investor should consider include;
Higher Tax burdens on capital gains, dividend and retirement accounts
Corporate tax increases with cap on deductible expenses and likely carbon tax
Inflation as the decline in purchasing power continues with weaker U.S. dollar
Heavy Debt burdens in America exceeding $30 Trillion - Real Time U.S. Debt Clock
Political unrest as U.S. cultural population make-up shifts and wealth redistribution
Climate Change particularly flooding, searing heat and violent storm activity affecting agriculture and energy production with an eye towards rise of clean energy sources
Crumbling infrastructure as U.S. falls behind in advancement of rail, aerospace, clean water, transportation, cyber-security and military challenges from China, Russia and the like
U.S. Public Education failure to train workforce in rapidly changing global economy which involves widespread automation and intelligent AI robotics proliferation
Given America is in unprecedented times, a long-term conservative investment approach is warranted using a suggested stock portfolio strategy or similar -- Bright Nova Media.
Vanguard High Dividend ETF (VYM) 25% of your portfolio
Aberdeen Standard Physical GOLD ETF (SGOL) 25%
Vanguard FTSE Emerging Markets ETF (VWO) 12%
Kinder Morgan (KMI) 5% (great dividend play, natural gas prolific in U.S. cleaner energy)
General Motors (GM) 3% (GM and Toyota will lead electric vehicle manufacturing)
Waste Management (WM) 3%
Toyota Motor Corp. (TM) 2%
Microsoft (MSFT) 2%
PayPal (PYPL) 3%
Caterpillar (CAT) 2%
Home Depot (HD) 2%
HCA Healthcare (HCA) 2%
Kroger (KR) 2%
American Water (AWK) 2%
INTEL (INTC) 3%
This type stock portfolio strategy should survive and grow in any market conditions good or bad, enabling long-term investment security and peace of mind for most investors.
Looking deeper into U.S. economic policy, it is very likely the Federal Reserve will be forced to raise interest rates considerably faster than planned in an attempt to cap rising inflation.
And the highly speculative cryptocurrency frenzy will be regulated by the U.S. government regaining control of consumer purchasing options such as BITCOIN, Ethereum and the like.
In order to maintain a stronger dollar, the U.S. government must control all acceptable monetary options including physical dollars, digital money, cyber-currency, and non fungible tokens (NFTs). But a serious risk arises with widespread use of quantum computing over 300 qubits having the ability to break encryption keys and blockchain token algorithm schemes. Any shift to reliance on digital currency presents inhospitable security challenges.
If the miniaturization of quantum computers using advanced designs such as the INTEL "High Ridge" chip echoes past 20-years or so it took for super-computing power to become available as personal computers, and eventually proliferate as handheld wireless mobile devices. Than it's very likely based on past progression that quantum computers will be available in much smaller possibly handheld or embedded devices for consumers by 2040.
Geopolitcal Issues : For example Chinese Invasion of Taiwan
Taiwan based companies hold 66% of the current market share of the semiconductor industry. So, if Taiwan were attacked by China, it would have a devastating impact on manufacturing and production worldwide including the U.S. such as auto, medical, information technology, satellite and aerospace industries.
Therefore, the White House has responded with a proposed $50 billion industry subsidy, which President Joe Biden will incorporate into his proposed infrastructure plan. Since INTEL (NASDAQ INTC) is the largest owner of U.S.-based fabs, it would likely receive the largest benefit from such an outlay of BILLIONS for research and development. And INTEL is developing a robust quantum computing capability with its new scalable "HORSE RIDGE" quantum chip design. INTEL (NASDAQ INTC) might also be nice long-term stock to pickup, if the price drops to $38 per share reports Bright Nova Media.
Very serious challenges are ahead for the United States, once the bedrock of the global economy. As it faces the advent of technology proliferation and significant economic competition headwinds from China, Russia, Germany, middle East and Asia all pushing the limits on innovation in every sector. So, given the U.S. heavy debt burdens, infrastructure rebuilding costs and political unrest, its likely a stagnation is occurring which should push any investor to employ a conservative long-term portfolio strategy reports Bright Nova Media.
The key to America remaining a-top-the world competition relies on innovation based on Divergent Thinking paradigms requiring the complete redesign of U.S. education systems.
About Author BrightNovaMedia.com
Bright Nova Media is a unique in-depth news channel. The content material is drawn from the interesting perspectives based on the 25 + years experience of Bright Nova, a character that explores relevant and informative topics of the day.
(NOTE DISCLOSURE : Author does hold positions in all of the securities listed.)