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LVMH share: ascending or peak?


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For the publisher:
LVMH Moët Hennessy Louis Vuitton is undoubtedly an amazing company (“The King of Luxe”, Cover Story, December 10). However, after reading this article, I couldn’t help but think of one of my favorite investing quotes, by Howard Marks, that “the most dangerous thing is to buy something from peak of its popularity. At this point, all the favorable facts and opinions are already factored into its price. Between the questionable assumptions contained in the bull thesis and the many acquisitions that tire me, I would advise potential investors to wait for a better entry point.

Chris Bentsen, on Barrons.com

Changing the world order

For the publisher:
Jack Hough’s interview with Ray Dalio was insightful and timely. December 10). Barron readers should consult the full text of The changing world order, because it complements Dalio’s other two books.

My biggest conclusion is that our country’s two highest priorities should be 1) ensuring that the U.S. dollar remains the world’s reserve currency, and 2) launching a broad but well-designed public-private partnership focused on technological research, development and commercialization. Other questions raised in the book are troubling but less susceptible to intervention and improvement. The right kind of leverage is found in these two areas. It also helps that they reinforce each other over time. Call your representatives!

Chad Roedder, Lookout Mountain, Tennessee

Disaster action plan

For the publisher:
Daren Fonda’s article, “Lending Your Crypto Could Generate Attractive Returns. But how safe is it? »December 10), seems to outline a disaster plan. Has the Securities and Exchange Commission already undertaken an extensive documentary research into the origin of the product? It is apparently unregulated with no tangible existence. It does not offer any government protection against loss and is allowed to have derivatives and be used as collateral. Yes, that sounds a lot like the turmoil of the mortgage crisis.

Philip Becker, Glendale, California

Enbridge too

For the publisher:
Yield plus price appreciation is a powerful catnip for a boomer investor like me (“Looking for good stocks with big dividends? Here’s our list,” Dec. 8). This is why I liked the article by Lawrence C. Strauss. The appreciation in prices compensates for inflation and the higher yields help pay the monthly bills.

I would like to add Enbridge to Strauss’s list of companies that meet both of these criteria. It is a Canadian natural gas and liquids carrier adding a crude oil export facility near Corpus Christi, Texas; a green hydrogen mixing plant; construction of three offshore wind projects in France; and a carbon capture and storage project in Alberta, Canada.

Despite recent weakness, the stock is up 20% year-to-date and has a soft, growing and very sustainable dividend yield above 7%.

Mike Meehan, Bradenton, Florida.

The Fed’s dilemma

For the publisher:
“As inflation roars, the Fed faces a thorny choice” (Up & Down Wall Street, December 10) warns that “with Powell & Co. likely to protect the equity market, all those fund rate hikes feds are unlikely if the actions take A beat. ” The Fed faced a similar dilemma from 1927 to 1929. It could raise interest rates to curb speculation or keep rates low to support European exchange rates. He half-heartedly tried to do both, and neither succeeded. As the gold standard kept inflation under control and interest rates weren’t zero back then, today’s choice is more difficult.

Jay Starkman, Atlanta

Retirement strategies

For the publisher:
I enjoyed “Forget the 4% rule. Why retirees need to rethink their exit strategy ”(December 10), but one important factor was omitted. For many retirees like me, most of our retirement savings are in tax-deferred accounts such as individual retirement accounts and qualified retirement plans.

Uncle Sam determines the Minimum Required Distribution, or RMD, that must be withdrawn from an IRA once we reach age 72. The RMD sets the baseline that should be withdrawn from IRA accounts based on life expectancy. At 72 years old, the RMD is 3.65%; this rate rises to 4.06% at age 75 and to 4.95% at age 80. If we look at a 30-year time horizon for someone who retires at 65, the RMD at 95 is 11.24%. Also keep in mind that if inflation reaches 2.2% per year, purchasing power will have halved over those 30 years.

By following the advice of the previous one Barron Articles, I delay my Social Security benefits and perform Roth conversions in the low income years between retirement and starting to collect my Social Security and Pension. The Roth conversion reduces the amount of my savings subject to RMD and has tax advantages for my heirs. To guard against bear markets, I keep three years of living expenses in cash.

Ron Askeland, San Diego

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