Leave a comment

PRH IS A GREAT BUY. 5.7%

July 6, 2015  Exactly one year ago we bought PRH.  The copy is pasted below.

PRH has dropped recently but is making a turn-around.  BUY……. or you can add to existing positions.

_____

Buy at $24.75 and under $25.00

Prudential Financial 5.7% Junior Subordinated Notes PRH is debt that trades on the stock exchange.  It trades like a stock.  The income is distributed quarterly.

PRH gives provides you a good investment at low risk which is why you are seeing a somewhat low yield BUT its certainly better than a CD or Treasury.  PRH can be called in 2018 at $25.00 which is HIGHER than what you are going to pay…what a great deal.

I really like Exchange Traded Debt and have had good luck over the years.

Can you believe this number:  $747 Billion in assets.  Wow.  Prudential Financial, Inc. is an insurance and investment management organization headquartered in Newark, New Jersey. As of March 31, 2014, the company had total assets of $747 billion and total shareholders’ equity of $39 billion.

Bottom Line:  Unless Prudential goes belly up which is most unlikely you have very little risk and a pretty good yield.  We also hold VZA and JMPC which are debt issues, in the Core Portfolio.

__________

GO here for helpful Links. If you find our stuff useful, please hit the LIKE button below!

  Go To Core Portfolio Click HereWant to send comments? Go here.

The monthly manipulated jobs report was released last week.   The stated 5.3% unemployment rate is pure fiction.

First, the previous two months were revised Lower by 60,000 jobs.  Wow that’s good news isn’t it.

Lousy Part-Time jobs increased by 161,000 while Full-Time jobs DECREASED by 350,000.  That’s really good news isn’t it.

Even worse, 640,000 people are no longer counted as part of the work force……going on disability, food stamps, not looking for work.  More good news isn’t it.

Bottom line, more and more people are going on government doles and getting free money (that’s what Obamaliar wants) which means they are out of the work force and NOT COUNTED, WHICH MEANS the unemployment rate looks better than it really is.  Sounds bizarre doesn’t it. 

The government says the not looking for work crowd does not exist, so we do not need to count them!!!!!

I feel like I’m in the Colosseum where the government tries to divert our attention from the bad economy……watching the man eating tigers…….while Rome burns.

Image result for rome colosseum

  __________

Since 2007:  1.4 Million Manufacturers Lost and 1.4 Million Waiters Gained.  Wow what a strong economy LOLOL

Leave a comment

OBAMALIAR. OBAMACARE. SOCIALISM.

June 29, 2015  We now know that this administration lied about ObamaCare.  Specifically insurance premiums are going UP.  But the Supreme Court has again ruled in support of Obamacare and for all intents this will be a permanent fixture as America goes down the path of socialism.  Americans are now demanding more and more entitlements which explains why the ultra liberal socialist Bernie Sanders is so popular…free money….free education….free goodies from your friendly government.  Hell, what’s not to like.

So why are we bringing up Obamacare?

When Obamacare was originally passed, we should have been smart enough to get into the healthcare stocks/ETF’s.  Quite simply we did not see the investing opportunity.  Sometimes you can’t see the forest for the trees.  Now it’s too late to get in.

But we are not going to sit around and cry in our soup.  There are some interesting buys in the healthcare Individual Corporate Bond market.  But before we get into that please read the following:

This was a point made by Stephanie Pomboy in an article entitled “What To Expect In The Q2 GDP Number” by Elizabeth MacDonald.

“Spending on healthcare (insurance and services) has increased $232 billion over the last twelve months. That increase accounts for a big ‘two-thirds’ of the $353 billion in consumer spending and one-third of the $666 billion growth in total GDP over the stretch.

And wage gains are being wiped out by rising health costs. ‘The increase in healthcare outlays over the last year is roughly equal to the $284 billion in wage gains for households during that time.'”

A little more background before we go further.  With a few exceptions, we recommend investors invest only in Individual Corporate Bonds, NOT bond funds.  Here is a good overview of this market from http://www.StreetTalkLive.com

“The rise and fall of interest rates are only of concern if you own bond funds or bond related ETF’s. 

Bond funds and bond related ETF’s (exchange traded funds) ARE NOT BONDS. Funds and ETF’s are a BET on the DIRECTION of interest rates just as stocks are a bet on the direction of the market. There is no return of principal function for bond funds or bond related ETF’s and, therefore, they must be managed in a portfolio just as you would manage a stock position.

However, the rise and fall of interest rates is of very little concern in a portfolio of individual bonds that are being held until maturity. The only time the level of interest rates becomes of concern is when a bond owner wishes to liquidate a bond position due to changes in the borrower’s fundamentals, credit worthiness or the bond owner needs to raise liquidity.”

So as mentioned earlier we looked at some INDIVIDUAL CORPORATE bonds from healthcare companies.  Here are some investments that you may find suitable.  Hold to maturity.

HCA 2023 4.4% Cusip 404121AF2

HCP 2025 4.27% Cusip 40414LAM1

GO here for helpful Links. If you find our stuff useful, please hit the LIKE button below!

  Go To Core Portfolio Click HereWant to send comments? Go here.

 

Leave a comment

BUY ENERGY TRANSFER BONDS–IF YOU CAN PLEASE DONATE TO AIR SHEPERD SEE BELOW

June 25, 2015  As a reminder to our newer readers, we own every position in the Core Portfolio.  It is not a fantasy portfolio.  It is real.  We are in the game with anyone that follows the recommendations.  Having said that, here is a new suggestion:

Energy Transfer, the folks that are trying to buy WMB (which we sold last week) is selling a Corporate Bond that offers 4.77% and matures in 2025.  When buying INDIVIDUAL Corporates you want quality companies and Energy Transfer fits the bill.  The price yesterday was $94.41…this is a super good price.  So a bond will cost you approx. $940 each.  You should plan on holding this to maturity.

CUSIP 29273RBD0

__________
GO here for helpful Links. If you find our stuff useful, please hit the LIKE button below!

  Go To Core Portfolio Click HereWant to send comments? Go here.

__________

Image result for air shepherd

http://airshepherd.org/

There appears to be a way to stop elephant and rhino poaching.  Please visit their site and donate if you can.

__________

Via Judicial Watch,

Federal Bureau of Investigation (FBI) files obtained by Judicial Watch reveal that the dad, maternal grandpa and father-in-law of President Obama’s trusted senior advisor, Valerie Jarrett, were hardcore Communists under investigation by the U.S. government.

Jarrett’s dad, pathologist and geneticist Dr. James Bowman, had extensive ties to Communist associations and individuals, his lengthy FBI file shows. In 1950 Bowman was in communication with a paid Soviet agent named Alfred Stern, who fled to Prague after getting charged with espionage. Bowman was also a member of a Communist-sympathizing group called the Association of Internes and Medical Students. After his discharge from the Army Medical Corps in 1955, Bowman moved to Iran to work, the FBI records show.

According to Bowman’s government file the Association of Internes and Medical Students is an organization that “has long been a faithful follower of the Communist Party line” and engages in un-American activities. Bowman was born in Washington D.C. and had deep ties to Chicago, where he often collaborated with fellow Communists. JW also obtained documents on Bowman from the U.S. Office of Personnel Management (OPM) showing that the FBI was brought into investigate him for his membership in a group that “follows the communist party line.” The Jarrett family Communist ties also include a business partnership between Jarrett’s maternal grandpa, Robert Rochon Taylor, and Stern, the Soviet agent associated with her dad.

Jarrett’s father-in-law, Vernon Jarrett, was also another big-time Chicago Communist, according to separate FBI files obtained by JW as part of a probe into the Jarrett family’s Communist ties. For a period of time Vernon Jarrett appeared on the FBI’s Security Index and was considered a potential Communist saboteur who was to be arrested in the event of a conflict with the Union of Soviet Socialist Republics (USSR). His FBI file reveals that he was assigned to write propaganda for a Communist Party front group in Chicago that would “disseminate the Communist Party line among…the middle class.”

It’s been well documented that Valerie Jarrett, a Chicago lawyer and longtime Obama confidant, is a liberal extremist who wields tremendous power in the White House. Faithful to her roots, she still has connections to many Communist and extremist groups, including the Muslim Brotherhood. Jarrett and her family also had strong ties to Frank Marshal Davis, a big Obama mentor and Communist Party member with an extensive FBI file.

JW has exposed Valerie Jarrett’s many transgressions over the years, including her role in covering up a scandalous gun-running operation carried out by the Department of Justice (DOJ). Last fall JW obtained public records that show Jarrett was a key player in the effort to cover up that Attorney General Eric Holder lied to Congress about the Fast and Furious, a disastrous experiment in which the Bureau of Alcohol, Tobacco Firearms and Explosives (ATF) allowed guns from the U.S. to be smuggled into Mexico so they could eventually be traced to drug cartels. Instead, federal law enforcement officers lost track of hundreds of weapons which have been used in an unknown number of crimes, including the murder of a U.S. Border Patrol agent in Arizona.

In 2008 JW got documents linking Valerie Jarrett, who also served as co-chairman of Obama’s presidential transition team, to a series of real estate scandals, including several housing projects operated by convicted felon and Obama fundraiser/friend Antoin “Tony” Rezko. According to the documents obtained from the Illinois Secretary of State, Valerie Jarrett served as a board member for several organizations that provided funding and support for Chicago slum projects operated by Rezko.

Leave a comment

ADDING TO BSJM

June 24, 2015  We are adding to BSJM the defined maturity Corporate Bond fund that is in the Core Portfolio.  This is NOT your typical bond fund.  They hold bonds to maturity so you get the principle and interest back.  Try to get at $24.92.  You should hold this to maturity but you CAN sell at any time.

Here are some good Core Portfolio positions to buy right now—or ADD to your current positions:  PFLT and SDIV.  They have been steady producers.

PFLT:  A play on rising rates.

SDIV:  “It provides exposure to 100 companies worldwide that rank among the highest dividend yielding equity securities in the world.  It offers exposure to a broad range of sectors and countries, many on hard-to-access foreign exchanges.”

WMB another of our energy positions was a pleasant surprise when it skyrocketed higher the other day………….. we sold for a huge profit.

We are watching KMI Kinder Morgan for a possible buy in the energy sector.  Kinder has been trashed recently but if we can get KMI ‘on sale’, this would be a good position to buy.

__________

Image result for piggy bank

Readers:  Be sure YOU contribute to your 401K and also put money aside in a savings account.  Read this:

According to a survey of 1,000 adults released by Bankrate.com on Tuesday, nearly one in three (29%) American adults (that’s roughly 70 million) have no emergency savings at all — the highest percentage since Bankrate began doing this survey five years ago. What’s more, only 22% of Americans have at least six months of emergency savings (that’s what advisers recommend) — the lowest level since Bankrate began doing the survey.

Political Cartoons by Glenn McCoy

Leave a comment

SELL WMB RIGHT NOW

June 22, 2015.  WMB a holding in our Core Portfolio is up $12.00 this morning.

Twelve dollars!!!  SELL right now.

Take your profits today.

__________

GO here for helpful Links. If you find our stuff useful, please hit the LIKE button below!

  Go To Core Portfolio Click Here.

__________

seekingalpha.com is one of our favorite financial websites.  You have large numbers of new articles every day discussing the stock and bonds markets.  Every once in a while you come across an especially good discussion that clearly describes a financial point.  One of those is below:

http://seekingalpha.com/article/3272415-cys-investments-calling-the-yellen-bluff?isDirectRoadblock=false&uprof=46

“As for where interests rate are heading, nobody really knows, even the Federal Reserve. As was made apparent via its FOMC statement, they are sending out very mixed signals. Yellen implied that the Fed still on track for a rate hike or two later this year. However, the market is not buying it and is seeing through the charade.

From the Fed’s very own economic projections, it is obvious that they slashed US GDP growth estimates by at least a full 1%. They are now expecting 2015 GDP growth to range to 1.8%-2%. Hardly a sign of an overheating economy.

Furthermore, inflation is no where to be found outside some select asset bubbles. All around, commodities such as oil, natural gas, steel, corn, wheat, etc, are trading lower. This not helped by the extremely strong US dollar, which is more of a side effect of easing in Europe, China, and Japan than an indication of US economic strength. In addition, wage growth is stagnant, while the unemployment rate is going down mostly due to workers giving up on finding full time jobs and settling for part time, temp, or low wage work to get by.

It is not much of a surprise then that US treasuries surged on the Fed news, with the 10-year falling below 2.30% after seeing a major rally entering the month of June, an utter refutation of the Fed statement.

This news and market reaction makes Yellen’s stance on raising rates seem irrational at best and willfully ignorant at worst. Indeed, the data shows that we should be considering more monetary easing, not tightening.”

Leave a comment

BUY PG FOR YIELD AND APPRECIATION.

June 18, 2015  We suggest you look at PG.  This is a huge Company that everyone knows.  (Google it if you want to read more.)  PG is undergoing a transformation and that’s why the stock has tanked.

Image result for procter and gamble

PG hit a low of $77 a few days back and appears to be on the upswing.  A small investment in warranted.

The yield is low in percentage terms but due to the high stock price, the actual real dividends are quite good, around 65 cents per share every three months.  We are looking for capital appreciation here meaning a significant increase in the stock price.

__________

On May 21 we suggested you start getting acquainted with Lance Roberts.

http://streettalklive.com/

STT_Web_Logo-6-2.png

This is one of the best financial websites out there.  And best of all it’s free.  If you are an advisor or manage your own money, you really need to start reading the articles that Lance writes.  I don’t know where this guy gets the time to produce all this content, (I can hardly keep this crappy little blog up to date) but they give you an excellent overview of what’s really going on in the markets.  He must have a staff of minions that do most of the work.  Apparently he also is a full time money manager and…and also has a daily radio program.  Amazing.

I just read an article on the site today which is really informative………all of his articles are helpful and educational.  Go to the link below and read the latest:

http://streettalklive.com/index.php/blog.html?id=2766

__________

Another excellent discussion you should read.  Link is below:

‘Based on this simple analysis I truly believe that the U.S. is in completely untested water, and the Federal Reserve does not have the ability to raise interest rates of any significant value without crippling the economy. The Federal Reserve did raise interest rates significantly from 1950 to 1980, but this was a time where the national debt was nine times smaller and as a result, the cost associated with raising interest rates one percent was very minimal. Therefore, comparing the change from 1950 to 1980 to current claims that the Fed will raise interest rates is like comparing apples to oranges. I believe that the Federal Reserve’s claims are merely a bluff to appease Congress who has been putting pressure on them to hike up interest rates to gain more stability. However, if interest rates were to rise it would be more costly than ever and would be a major shock to banks, corporations, and our economy as a whole. Based off this information I believe that any rate hike will be very minimal and the years of low interest rates will remain for years to come.”

http://seekingalpha.com/article/3260605-why-im-calling-the-federal-reserves-bluff

Do you like this blog….please take our ten second POLL..CLICK HERE

GO here for helpful Links. If you find our stuff useful, please hit the LIKE button below!

  Go To Core Portfolio Click Here.

Leave a comment

DOWN WE GO

June 16, 2014 

(Dupont Fabros is offering a Corporate Bond that provides 5.7%.  The Cusip is 26613TAF7  If you can afford five bonds this is a buy.  HOLD to maturity.)

We are in correction mode and it appears we could go a lot lower.

This is not a surprise and we have mentioned the possibility of a pullback several times.  This is the ‘weak’ season in the markets and if anything significant is going to happen it is now.

We suggest you just hold all positions—you certainly do NOT want to sell.  That does not sound exciting but that’s the way the game plays.  We ARE still looking at several positions to buy as has been mentioned in previous posts.

The Greece fiasco will be resolved.  And I don’t see how the hell Aunt Bee and the Fed can raise rates in September with this lousy economy.  But hey I’m no expert.  We just have to wait and watch.

If you do not own GGN this is the time to buy.

__________

There is a lot of activity going on in the gold market which most people are not aware of.  I have been saying for years the gold is going up.  We hold GGN in the Core Portfolio.  Read this from MarketWatch.com:

http://www.marketwatch.com/story/the-next-great-bull-market-gold-25000-2015-06-04

What if I was to tell you that gold could make another such run over the next decade plus? Does it seem that outrageous now? Well, I think the math shows it can and will, with the price of gold futures surpassing $25,000, and more specifically for this column, the price on the Gold Bug Index HUI, -0.33% eclipsing 15,000. But let’s take a look back before we go forward.

It’s the middle of 2011. Gold was rising parabolically — some days even advancing by $50 per day — and heading over $1,900. Breaking the $2000 mark to most was a sure thing.

Think if someone walked up to you then and stated that the price of gold would be cut in half within four years. It would be an outrageous market call. In many ways, it would be no different than the person suggesting that gold would go from $250-$1900 within a little over a decade.

Well, in August 2011, I was that person. In fact, in my first gold column on Seeking Alpha, I warned investors:

“Since we are most probably in the final stages of this parabolic fifth wave ‘blow-off-top,’ I would seriously consider anything approaching the $1,915 level to be a potential target for a top at this time.”

At the time, everyone was so intoxicated with expectations of eclipsing the $2,000 mark that they failed to see the impending top. As we now know, gold topped in September of 2011, at just under $1,921, which was within $6 dollars of my target. We then began this multi-year correction within which we now find ourselves.

Many are probably wondering how I came up with such an accurate target for a top to a market that was rising parabolically. My answer is that the topping target was calculated using a 200-year Elliott Wave and Fibonacci mathematics study.

__________

 Religious affiliation DECREASING

“Those days might be over. To those of us who are atheists, agnostics or “spiritual but not religious,” and who prefer to keep the Constitution and the Bible in separate drawers, the Pew Research Center has recently published data from a massive representative survey of 35,000 adult Americans, revealing that the fastest growing religious cohort in America are the “nones”—those who check the box for “no religious affiliation.” Such unaffiliated numbers have been climbing steadily out of the single-digit cellar in the 1990s into a now respectable two-digit 23 percent of adults of all ages, up from 16 percent just since 2007. More telling for politicians who cater their campaigns toward younger voters, 34 percent of millennials—those born after 1981, and the nation’s largest living generation—profess to having no religion. A third! That’s a viable voting bloc.

It is really the raw numbers that should give pause to any politician or candidate contemplating ignoring this voting bloc. There are today about 245 million adult Americans. This translates into 56 million religiously unaffiliated adults of all ages, more than either mainline Protestants or Catholics and second only to evangelical Protestants. This translates into 19 million more people who have no religion just since 2007, an encouraging trend for those who have grown weary of America’s slide toward theocracy.”

Follow

Get every new post delivered to your Inbox.

Join 35 other followers

%d bloggers like this: