Columnist Phil DeMuth Provides Advice on Successfully Investing Money in Wall Street

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Phil DeMuth, a best-selling author, columnist, and renowned financial advisor provides advice on how to make intelligent investment decisions on Wall Street.

Best-selling author, columnist, and renowned financial advisor Phil Demuth offers guidance on how to make money rather than lose money through Wall Street. He writes new articles to be posted each Monday at, and currently has several articles which help to simplify the Wall Street jargon, so that the average person will be able to increase their chances of success in the jungle of investing. Utilizing user-friendly tools in his articles, DeMuth includes charts, graphs, and detailed explanations of these figures in order to simplify the complexities of investing on Wall Street. In his columns “Rising Interest Rates 101,” “Bonds for the Rising Interest Rate Environment,” “Is ‘Aging in Bonds’ Dead?” and “The One Question You Must Ask Before You Invest,” DeMuth provides an excellent education for investors.

“Most of what is dished up is just marketing designed to ensnare people in Wall Street’s expropriation machine,” states DeMuth.

Rising Interest Rates 101

Published on July 15th, DeMuth highlights the fact that most investors today are accustomed to working with falling interest rates, and as interest rates continue to rise, bonds and “bond-substitutes” have been negatively impacted. In summation, DeMuth states that “only stocks have played well with rising [interest] rates in the long run,” and that “In a falling interest rate environment, a manager who takes a little more risk than the bond market as a whole becomes a ‘Bond King.’ In a rising interest rate environment, he becomes the Forgotten Man.”

Bonds for the Rising Interest Rate Environment

On July 22nd, DeMuth advises that investors should avoid investing in long-term bonds, and should focus on buying short-term bonds with good credit quality. Throughout the article, he examines and explains different types of bonds which are successful/unsuccessful in contemporary markets.

Is ‘Age in Bonds’ Dead?

In this column posted on July 29th, DeMuth points to advice he provided from his recently published book,The Affluent Investor, claiming that you, as the investor should “keep your asset allocation conservative for the first ten years after you retire, and then you can start to ramp up your stock holdings. By the time you are in your 80s, you can hold your age in stocks, maintaining this posture up until age 100, when you level off (by which I mean, your stock portfolio levels off at 100 percent). Alternatively, you keep the equities level and cash in the extra risk in the form of a higher withdrawal during later retirement.”

The One Question You Must Ask Before You Invest

In this August 5th column, the one question DeMuth encourages investors to ask is “What is your edge as an investor?” The column points out pseudo-sources of edge, to include “You have a good feel for technology and can tell which products will succeed and fail,” “You are good at spotting trends,” and “You have been watching the markets for years and are a seasoned pro.” DeMuth claims that true edge consists of being able to show success in investments, backed by a large personal fortune. Another source of edge would include having specialization “in a tiny niche of the investment universe, possibly running a hedge fund. You analyze convertible bonds and can occasionally squeeze a few basis points of alpha by buying the bonds when they are cheap and then hedging out the interest rate, equity, and credit risk going forward.”

“Those who save will be made to pay for all those who failed to save. This means you need to save even more. You are going to require roughly 25 times your future annual income requirements salted away before you retire. That’s $2,500,000 in investments for every $100,000 you want to retire on in pre-tax income (above and beyond Social Security and any pensions). Gathering this many acorns and berries isn’t going to be easy and politicians will take every penny they can from you to buy the votes they need to stay in office. Why from you? Because you have it and because they can,” states DeMuth.

About Phil DeMuth
Both a psychologist and registered investment advisor, Phil DeMuth has written for The Wall Street Journal, Barron's, the Journal of Financial Planning, Human Behavior, Psychology Today, the Louis Rukeyser Newsletter, and is a contributor to His opinions have been quoted in The New York Times, Fortune magazine, Yahoo! Finance,, and On Wall Street. He has been "Profiled for Success" in Research Magazine, and seen on TV on CNBC, Forbes on Fox, Fox & Friends, FBN, Bloomberg, Consuelo Mack WEALTHTRACK, and Wall Street Week with Fortune. He is Managing Director of Conservative Wealth Management LLC, a SEC-registered investment advisor to high-net-worth individuals and their families, and foundations.

He has also recently published his first solo endeavor, The Affluent Investor. DeMuth has also co-authored nine bestselling books with respected economist Ben Stein, including the “Yes, You Can” series “Yes, You Can Get a Financial Life,” “Still Retire Comfortably,” “Supercharge Your Portfolio,” “Time the Market,” “Become a Successful Income Investor,” “Can America Survive?” as well as “The Little Book of Alternative Investments” and the “Bulletproof Investing” series.

Phil DeMuth has also been featured in a Yahoo! Finance interview:

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Monique Mallory
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