Are You Ready for The Evergreen Portfolio?

by Alexander Green, Investment U’s Chief Investment Strategist
Monday, September 13, 2010: Issue #1343

Bill Gross, the top-performing manager of the Pimco Total Return Fund, the world’s largest actively managed mutual fund, says it’s time for investors to accept and start adjusting to “the new normal.”

What’s that?

High unemployment, excess housing capacity, difficult-to-obtain credit and, not least of all, much-lower-than-historic returns from stocks, bonds, real estate and cash.

Sounds depressing. However, some investment advisors aren’t content telling their clients to simply lower their expectations. Two of them are seasoned investors Martin Truax and Ron Miller, Managing Directors at Atlanta-based Morgan Keegan & Company.

Adjusting to the “New Normal” With The Evergreen Portfolio

Truax and Miller point out that “buy and hold” investing and simple diversification haven’t worked over the last 10 years – and it’s hard to disagree. The S&P 500, for example, is no higher than it was in 1999.

Looking forward, they argue that these failed approaches won’t work over the next 10 years either.

Yet there are proven strategies that are likely to produce high returns with an acceptable level of risk. In their new book, The Evergreen Portfolio, out this week from John Wiley & Sons, Truax and Miller invite more than a dozen of the nation’s leading analysts to talk about “the new normal” and make specific recommendations about what investors should do with their money today. (They also reveal their own particular solution: The Evergreen Portfolio itself.)

The book is chock full of interesting and unconventional investment angles. That’s not too surprising when you consider who was involved in this project.

The Evergreen Portfolio: A “Who’s Who” of the Investment World

Contributors to The Evergreen Portfolio include such well-known names as…

  • Rick Rule, CEO of Global Resource Investments.
  • Dr. Mark Skousen, free-market economist, former Investment U Chairman and current contributing editor, and editor of Forecasts & Strategies.
  • Elliott Gue, editor of The Energy Strategist.
  • Frank Trotter, currency specialist and president of EverBank.
  • Mining specialist Bob Bishop, the longtime editor of Gold Mining Stock Report.
  • Bob Prechter, editor of The Elliott Wave Theorist.
  • Richard Maybury, publisher of U.S. and World Early Warning Report.

There are many others, including yours truly. (In the interest of full disclosure, I have not received – and will not receive – any compensation from the sale of this book.)

There is a lot of pessimism out there right now about what lies ahead for the economy and stock market. Yet, unlike most investment advisors, Truax and Miller don’t try to convince the reader otherwise. They are convinced that excess consumer debt, weakness in housing, and rampant government spending are creating a very tough environment for investors.

Their advice – and the investment advice of their contributors – is to face up to this new reality and start managing your portfolio effectively to deal with it.

Why You Need to Read The Evergreen Portfolio

The Evergreen Portfolio is written for:

  • Investors who want a thorough understanding of “the new normal” and hard-hitting advice about how to protect your assets even in inflationary or deflationary times.
  • Businesspeople and other professionals who have been successful in their careers but need a solid foundation for investment success.
  • Investors who are unhappy with the performance of their brokers and money managers and want “untainted” investment advice.
  • Investors who are overwhelmed with too many investment choices and want an uncomplicated approach to the market.

I’m a contributor to The Evergreen Portfolio, so perhaps I have a positive bias. But the book is the distilled wisdom of more than 15 seasoned investment pros and a thoroughly enjoyable read, full of unconventional ideas and unusual insights.

There will be fortunes made and lost in the months ahead – and, like most readers, I intend to be on the winning side. The Evergreen Portfolio is a survival guide for those who want to protect and build their wealth in the tumultuous years that almost certainly lie ahead.

Good investing,

Alexander Green

P.S. The Evergreen Portfolio is available at bookstores nationwide and is currently discounted 28% on Amazon. For further information on the book, click here.