Retirement investing is not what it used to be. In the old days, one could just invest in the “safe” stocks to buy, in “blue chips,” in a nice ladder of bonds, and do just fine.
Alas, the market has significantly changed. Much of this is due to the historically low interest rates we’ve had.
The problem with the Federal Reserve’s attempt to goose the economy is that it killed bond yields, forcing retired investors further out onto the risk curve, making it difficult to find safe stocks to buy. That has pushed stock prices far higher than they should be, if one subscribes (as I do) to the Peter Lynch theory that a stock’s price should reflect its net income growth rate to be added to a list of stocks to buy.
I believe this has created a lot of risk for retired investors when it comes to stocks to buy. There are dividend stocks aplenty, but many of them are priced in such a manner as to create far too much risk.
So here are three stocks to buy that I still consider no-brainer buys for retirement.