Ask Doc Last year, my team and I made one of our worst predictions since we began publishing...
In a television studio north of Baltimore, my senior analyst and I got fitted with microphones, sat in front of six different cameras and a crew of a dozen video professionals, and went public with a big prediction.
We did the work, looked ahead, and shared our thoughts on what we thought would come next for the market. More than 150,000 people tuned in to watch.
For an investment expert, these are the big moments.
And we botched it entirely.
At the time, the markets had just been rocked by higher interest rates. Tech stocks had gotten clobbered... since higher interest rates make their future earnings less valuable.
Banks had just squeaked through a near collapse – again because of rising rates, which crushed the value of their bond holdings.
Amid that carnage, we were certain rates would come down. As we said in our video message...
We know what's going to happen next. With total confidence. Pretty much as sure as the sun will rise tomorrow... we know where things go from here.
Instead, interest rates shot straight up. They reversed a drop that had come right before our prediction... resuming one of the most dramatic interest-rate moves in market history.
Basically... we got it embarrassingly wrong.
It's a good example of why you don't build a portfolio based on what you think will happen. You build one based on all the things that may happen.
It's fine to make assumptions about what you think the future could hold. But you want to position your portfolio to grow no matter whether you're right or wrong.
Today, lots of investors are feeling uncertain about what's going to happen next in the markets. This is especially true considering a new administration will be in the White House come January 20.
To prepare your portfolio for whatever comes next, my friend and colleague Marc Chaikin has you covered. Make sure you check out his webinar this Tuesday, December 17. He'll discuss which stocks are likely to do well in 2025 and which are "ticking time bombs."
Also, just for tuning in, you'll get two free recommendations – one stock Marc is bullish on and one that you should steer clear of. Click here to reserve your spot.
Now, let's dig into the Q&A... As always, keep sending your comments, questions, and topic suggestions to [email protected]. My team and I read every e-mail.
Q: I typically brew my green and black tea for longer than three minutes, as I enjoy the stronger aroma and flavor. Does that negatively impact the health benefits of my tea? – J.S.
A: Thanks for your question, J.S. No, there's no harm in steeping your tea the way you describe.
The optimal steeping time for tea depends on the type of tea and the temperature of the water. In terms of flavor, white teas don't need as much steeping as black teas. But regardless of the tea type, several studies show steeping between about a minute and a half to five minutes gives you the most antioxidants.
Some evidence suggests that the amount of antioxidants continues to increase slightly after five minutes, but that benefit often maxes out at about eight minutes.
If you're really looking to pack in the antioxidants, go for green tea over black. Green tea contains higher levels of catechins, which help protect your body from harmful inflammation and cell damage. I recommend the Bigelow brand.
Q: Hello Doc. LOVE your articles!! In response to this article, what would those of us do for omega 3 if we can't stand fish? I know you're not a big fan of supplements so are there other foods with omega 3? – T.O.
A: Glad you're enjoying the newsletter, T.O. While fish generally is the greatest source of omega-3 fats (depending on the fish), plenty of other foods are packed with omega-3. Flaxseeds, chia seeds, and walnuts are some of the best non-fish sources.
What We're Reading...
- Did you miss it? Politics is preventing the market top.
- Something different: Banks now have new limits for charging overdraft fees.
Here's to our health, wealth, and a great retirement,
Dr. David Eifrig and the Health & Wealth Bulletin Research Team
December 13, 2024