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Ripple Effect

The Income Effect

Loading ...Addison Wiggin

September 11, 2025 • 1 minute, 44 second read


DividendsIncome

The Income Effect

Your investment returns come from just two sources.

The first is capital gains. As the AI bubble blows higher, that’s the big focus for investors.

That means the second source of returns is being overlooked.

What’s the second source? Income.

The dividend yield on the S&P 500 is a paltry 1.18% today, almost touching its 1999 low:

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Investors ignore income stocks at their own peril (Source: Multpl)

Dividend-paying stocks have a lot to offer investors. A company can restate its earnings – but they can’t restate a cash dividend.

Plus, dividend growth companies tend to offer lower beta, or volatility relative to the market itself.

Finally, as Jeremy Siegel has documented in Stocks for the Long Run, over an investor’s lifetime, reinvesting dividends can account for over half of an investor’s total returns.

With the growing likelihood of a terrifying bull market in stocks kicking off, investors can get a relative safe-haven with dividend-paying stocks.

With the Fed about to slash interest rates, dividends may soon be the best game in town for income investors.

Even with overall yields looking low, there are plenty of companies that still offer decent yields and the potential to grow their dividend over time. We have plenty of such holdings in our Model Portfolio.

~ Addison

P.S.: Grey Swan Live! this afternoon at 2 pm ET: Mark Jeftovic joins us for “Shadow Fed & the American Dream” — how a September rate cut could hit the dollar’s purchasing power, where the money-market flood might go next, and why “control of money” is migrating from central banks to code, corporates, and courts.

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No doubt, we’ll touch on the claims made by Anton Kobyakov, senior adviser to Russian President Vladimir Putin, that the U.S. is using stablecoins to devalue its debt. Paid members, join us at 2 p.m. ET today.

If you’re not a paid member of the Grey Swan Investment Fraternity, you can review the benefits of becoming one here.

If you have any questions for us about the market, send them our way now to: feedback@greyswanfraternity.com.


Source of the “Debasement Trade”

October 22, 2025 • Addison Wiggin

Gold dropped nearly 2% yesterday. But with the massive increase in fiat currencies globally, that’s an opportunity to buy more cheaply.

With that much cash sloshing around the system, the “debasement trade” is a go.

Source of the “Debasement Trade”
The Dominoes Keep Falling in the Move to Digital Money

October 21, 2025 • Ian King

Trillions of dollars are already being transferred and tracked on the tokenized rails that Visa, JPMorgan, Mastercard and other major financial institutions plan to scale globally in the next 12 months.

Meaning, there’s no longer such a thing as “crypto vs. the banks.”

Because the same financial giants that crypto once tried to replace are taking the best parts of blockchain — speed, transparency and programmability — and fusing them into the system they already control.

And as each domino falls, it brings us closer to a world where money moves as easily as data.

It means that by the end of 2025, digital dollars could settle more value than PayPal ever has.

So if you’re still treating digital money as “the future,” you’re already a step behind.

The Dominoes Keep Falling in the Move to Digital Money
Inside Dollar 2.0

October 21, 2025 • Addison Wiggin

Consumer spending on ChatGPT has plateaued in Europe, with growth now near zero after peaking at +20% in 2023. Yet investors continue to price in boundless growth — what we’ve come to recognize as a classic late-stage bubble pattern.

Inside Dollar 2.0
The New Great Wall of China

October 21, 2025 • Addison Wiggin

Some historic irony, here.

China invented paper currencies in the Tang Dynasty in the 7th Century. Known then by the Mandarin characters that mean “flying cash,” the currency, like all paper money, lost its value.

Today, as the rest of the world goes all-in on fiat, and begins to digitize the dollar, China’s rediscovery of gold as an asset suggests that gold’s run isn’t over… yet.

The New Great Wall of China