What if Interest Rates Didn’t Matter at All?

By Carl Weber III

When you hear the FED may increase interest rates, do you feel a knot in the pit of your stomach? You should… if you answer ‘yes’ to any of these 4 questions:

1. Do you own long-term bonds or bond funds which hold them? If so, a rate rise could be dangerous to you wealth.
2. Are your stocks in companies heavily leveraged with short term debt? Watch them swim in rough waters when rates rise and they are forced to borrow at a higher rate.
3. Do you own corporate bonds with exposure to credit rating decline if rates rise?
4. Do you own stock, index funds, mutual funds or ETFs? Approximately 78 million boomers hold onto stocks in these vehicles because of low rates. Will they flee when rates rise?

Even those closest to the power source cannot predict what will happen to rates and when.

At the April 8th Federal Open Market Committee (FMOC) meeting there was a clear split on monetary policy. Minutes of the FMOC reveal:

• some members favor action in June,
• others cited the strong dollar and energy prices as the reason to wait until late 2015,
• still, others prefer to wait until 2016.

That leaves the sword of Damocles hanging over your portfolio. The Fed is also debating how to break the news when the rate hike does come. If you remember 2008, you know the anguish of opening a portfolio statement and getting a sudden shock.

Wouldn’t it be nice, at this uncertain time, to own an asset that pays no attention to the market, interest rates or other portfolio stressors?

I think it would. I look back at 2008 when it took a 67% gain just to make up for the losses in most portfolios. It was (and probably still is) devastating for those in or near retirement.

That is why I want to direct your attention to a hidden gem of an asset uncorrelated to any market stressor.

The clock is ticking… protect your bottom line now.

Why not convert some of your recent gains into an alternative asset that actually returned an average over 10% per year for the past 40 years? This asset went up nearly 20% in 2008 - when the rest of the investment world nearly collapsed!

Is it immune to interest rate changes?

Over the last twelve years, one index following its price has actually never fallen, showing a Compound Annual Growth Rate of 11.96%. Another index showed a Compound Annual Growth Rate of over 10% for the last 40 years, with absolutely NO correlation to interest rate fluctuations.

Look at the steady performance represented by the red line, with no correlation to any other asset. No wonder it is a stated favorite of the world’s largest investor Bill Gross, former President of PIMCO.

Have you guessed which asset this is? Here are some hints:

• You hold this asset with no management fees, no storage fees and a guaranteed buyback.
• The firm that offers it is so confident in its growth potential, that their only compensation is a percent of profits when you sell and make your profit.
• They are willing to wait for that profit until you are ready to sell…even if that takes generations.
• The asset is ranked third in profit making on the 2015 Knight Frank Index.
• With this asset you won’t have to flee good stocks and bonds for fear that interest rates might tank your portfolio.

The asset I am referring to is rare stamps.

Yes, rare, investment grade stamps.

ASI is the North American Representative for Stanley Gibbons, Ltd. Established in 1856, Stanley Gibbons is the world’s leading and oldest dealer in rare stamps. Stanley Gibbons was awarded the Royal Warrant as philatelist to the Royal Family in 1914 – an honor they still hold to this day.

With our Flexible Trading Program, we do all the work for you. You set your goals and objectives; we construct a handpicked, one-of-a kind portfolio.

Call me at 877-340-0790 and I will walk you through the entire process.

Your stamps will be stored and insured free of charge in the Channel Islands for offshore protection; and kept in the most pristine environment.

Finally, we will help you add to your holdings over time, or sell when you are ready to liquidate.

Call me at 877-340-0790 or send me an email with a convenient time to discuss this exceptional asset. You will enjoy the education and ASI will enjoy helping you Keep What’s Yours.

P.S. Take a look at a couple of sample rare stamp portfolios.