Today, I’ll share one of the safest places to park your money in 2019.

This is more important than ever.

As regular readers know, there’s been almost nowhere to hide.

  • 2018 was a bloodbath…

U.S. stocks got hammered. The S&P 500 fell 6.2% in 2018 – its worst performance since 2008.

And it wasn’t just one or two big sectors that got pummeled…

Eight of the 11 sectors that make up the S&P 500 closed the year in the red. Only healthcare, utilities, and consumer discretionary stocks posted positive returns.

Small U.S. stocks fared even worse. The Russell 2000 – an index that tracks the performance of 2,000 small-cap U.S. stocks – closed the year down 11%.

  • It wasn’t just U.S. stocks that fell last year, either…

Other developed markets also took it on the chin.

Just look at this chart of the iShares MSCI EAFE ETF (EFA). This fund tracks the performance of stocks from developed markets, excluding the U.S. and Canada.

Chart

You can see that it plunged 14% last year. That’s its worst decline since 2008.

  • Emerging market stocks also tanked…

Emerging markets are countries on their way to becoming developed markets like the U.S., Japan, and Germany.

Last year, the iShares MSCI Emerging Markets ETF (EEM) – which tracks over 800 emerging market stocks – ended the year down 15%… its biggest decline since 2015.

  • Bonds weren’t spared in 2018, either…

The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) ended the year down 2%. HYG invests in high-yield corporate bonds, or what most people call “junk bonds.”

Investment-grade bonds – or bonds issued to companies with sound credit – fared nearly as badly. The iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) ended last year down 1.6%.

  • It was the same story with Treasuries…

You’d think they would have done well because they’re widely seen as “safe havens.” Because of that, many investors take refuge in Treasuries when stocks are falling.

But most Treasuries still ended the year down. Take the iShares 20+ Year Treasury Bond ETF (TLT), which holds long-dated Treasuries. It declined 1.6%.

By now, you get my point. Almost every major stock and bond category posted a negative return last year. The same is true for commodities, real estate investment trusts (REITs), and even gold, although gold finished the year strongly.

But not everything finished the year down. In fact, one “cash substitute” finished the year up 1.7%.

  • I’m talking about the SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (BIL)…

BIL invests in Treasuries with one- to three-month durations. These are some of the safest securities in the world.

They’re considered safe places to park money because their short duration makes them very low-risk, low-return investments.

They’re so safe that institutions use BIL as a cash substitute.

Not only that, BIL paid a 1.7% dividend last year.

  • So if you’re looking for a place to park your wealth in 2019, consider moving some money to BIL…

It should preserve your wealth just like “real cash,” should stocks and bonds continue falling. Plus, you’ll earn some extra income, which you won’t get if you stick your money under your mattress or park it in most bank accounts.

Regards,

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Justin Spittler
Cartagena, Colombia
January 9, 2019


Reader Mailbag

Casey Research founder Doug Casey’s unique insights on Syria and Afghanistan continue to bring in feedback…

Mr. Casey, thank you for your recent interview with Justin on the state of American adventurism abroad driven by deep-state interests. I am 66 and have seen my share of what you describe. I believe the United States is on its way to becoming an ungovernable amalgam of political interests, cultures, values, and aspirations. The insiders’ corruption and driving self-interest shall have brought this condition about by short-circuiting nominal government by the people.

Think about it: we are beginning to resemble the landscape of the Middle Ages in Europe: population-dense, polyglot, multi-cultural, leftylib enclaves… our big cities are the city-states, with the vast, underpopulated, rural areas of conservatives becoming the new serfs. This configuration is why the conservatives only prevail anymore in state-wide or national elections. Many thanks.

– Paul

As always, if you have any questions or suggestions for the Dispatch, send them to us at [email protected].


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