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BUY HDLV OVER 8%

November 25, 2014

HDLV the ETRACS Monthly Pay 2xLeveraged US High Dividend Low Volatility ETN invests in huge well known dividend payers like AT&T and Conoco.

Anytime you start talking about leverage and Exchange Traded Notes, you are talking increased risk.  So I suggest you buy small amounts and watch how this thing acts.  I am placing this in our ‘going to Vegas’ category.  BUT HDLV is invested in big well known Companies and I sincerely doubt we will encounter any problems.  With low interest rates expected to continue for years to come, I think the market will trend higher……all of which supports this position.

The price today is $27.30

This is a great position for people who are looking for high dividends—–the basic purpose of this blog.  HDLV owns a large number of Companies which provides diversification in utilities, telecom, financials and others.  (see below)

From Fidelity.com:

The ETRACS Monthly Pay 2xLeveraged US High Dividend Low Volatility ETN (the “Securities”) are linked to the performance of the price return version of the Solactive US High Dividend Low Volatility Index (the “Index”). The Securities provide a monthly compounded two times leveraged long exposure to the performance of the Index, reduced by the Accrued Fees. The index is designed to measure the performance of 40 dividend yielding, relatively lower volatility Index Constituent Securities from the universe of the largest 1,000 U.S. listed stocks by market capitalization.

Utilities 30.64%
Telecommunication Services 24.12%
Consumer Staples 19.90%
Financials 18.35%
Energy 5.74%
Consumer Discretionary 0.50%

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FUNNIES:

For the second year in a row, President Barack Obama has made it onto GQ magazine‘s list of the least influential people.

The irreverent, sometimes obscene, list maker, Australian-American Drew Magary, wrote that his 2014 roster — compiled in no particular order — was comprised of “people who took up vast clouds of oxygen, gave us back nothing of use, and probably helped accelerate the death of our planet.”

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We are entering the seasonally favorable period for stocks:

INVESTOPEDIA EXPLAINS ‘Sell In May And Go Away’

This strategy is based on the historical underperformance of stocks in the six-month period commencing in May and ending in October, compared to the six-month period from November to April. According to the Stock Trader’s Almanac, since 1950, the Dow Jones Industrial Average has had an average return of only 0.3% during the May-October period, compared with an average gain of 7.5% during the November-April period.

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Book Recommendation:  (You could read this to avoid talking to the relatives during Thanksgiving!!)  Going Clear by Lawrence Wright (Pulitzer Prize winning author).  I read that Hollywood is making a movie of this book which is about Scientology so I ran down to our local library and got a copy.  I have always been amazed that Tom Cruise, Travolta,  and other Hollywood stars can get involved in an obvious fake religion.  Most people are probably not interested in this subject but I found it educational, fascinating and a fun read.

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BUY TCRX A BABY BOND

November 24, 2014

Last week I suggested you look at TCRX.  Below I pasted in the copy from last week in case you missed it.

TCRX started trading today and as I write this the price is $25.05.  You can buy if you are interested but do not pay much more than $25.05 and as always I recommend buying small amounts of any single position.

You will never hear about Baby Bonds on CNBC.  And most financial advisors will never mention them.  But they are a good conservative way to earn good dividends.  Unless the issuing Company goes belly up the bonds will be called at the issue price, and you have very little chance of losing money.  You do not want to pay a lot more than the issue price….usually $25.00.  They typically pay very nice dividends.

You can always sell them at anytime.

THL Credit Inc.has priced a note issue at 6.75%…essentially a Baby Bond and we own many of these in the Core Portfolio.

A Baby Bond is essentially a Corporate Bond (normally priced at $1000) which has been cut up into smaller pieces and is designed for the smaller investor.  Typically you see pricing at $25 so it is easy to buy small amounts like $500 or even several thousand.  I keep investments in a single issue at very small amounts, altho I consider these bonds as safe.

THL Credit is a Business Development Company.

The new notes mature in 2021 which is a good thing.  Pays 6.75% which is not great but certainly adequate.  I do not see these as high quality so buy a SMALL amount.  http://www.thlcredit.com/junior-credit/credit-inc/

The markets will be slow this week so don’t expect much action.  I rather doubt I will be looking at anything new to buy.  Our headin to Vegas stock AMYGF is actually doing better than I expected.  If you own this hold on.  The technicals are very good.

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Jonathan Gruber warned of Obamacare premium spike as president promised savings

Predicted massive health insurance cost increases for Wisconsin residents in 2010 report

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HALLOWEEN TREATS (A LITTLE LATE)……..BUY TCRX

November 18. 2014.  Go to “Core Portfolio” for current holdings.  Hit the “Follow” button to get updates. 

Update Monday:  TCRX is trading today.  BUY.  Scroll down for comments.  Do NOT pay much more than $25.00

Every so often, (when I remember), I like to remind our readers of the US National Debt.  I should have posted this on Halloween because this shit is really scary.  BOO!!!

So why should you care you ask.  Because it is YOUR debt.  Who do you think is going to pay these bills?

$18 TRILLION US National Debt

$56,000 Debt Per Citizen

The average person can’t even comprehend these large numbers…most people can’t balance their checkbook.

What’s even more scary about this problem is that nobody is talking about it.  Not the government.  Not the liberal media….God forbid we don’t want Obama to look bad.

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Now that I have cheered you up, here is a position that I am looking at.  It’s not even trading yet, but I may buy a small position.  symbol will be TCRX.

THL Credit Inc.has priced a note issue at 6.75%…essentially a Baby Bond and we own many of these in the Core Portfolio.

A Baby Bond is essentially a Corporate Bond (normally priced at $1000) which has been cut up into smaller pieces and is designed for the smaller investor.  Typically you see pricing at $25 so it is easy to buy small amounts like $500 or even several thousand.  I keep investments in a single issue at very small amounts, altho I consider these bonds as safe.

THL Credit is a Business Development Company.

The new notes mature in 2021 which is a good thing.  Pays 6.75% which is not great but certainly adequate.  I do not see these as high quality so buy a SMALL amount.  http://www.thlcredit.com/junior-credit/credit-inc/

(I am also looking at WPC for a buy.)

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When I started this blog years ago, I would have never imagined having viewers all over the world.  South America, Europe. Caribbean………amazing.  So thanks to all you guys/gals and I certainly hope my thoughts on dividend investing is helpful.  Fell free to comment and ask questions.

More Links and Info:

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BACKGROUND

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OIL DROPPING LIKE A ROCK

November 17–. 2014.  Go to “Core Portfolio” for current holdings.  Hit the “Follow” button to get updates. 

Our oil positions (MLP) are dropping.…but I am holding on.

Some of the causes include retaliation to Russia and declining usage due to the awful economic conditions. Nobody seems to have the definitive answer altho there is prolly some amount of manipulation going on.

I suggest you maintain your positions and collect the dividends.  I also hear the oil market will continue downward.  It is too late to sell anything right now.

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Book Recommendation:  Citizens of the Green Room by Mark Leibovich.  This tome was heavily promoted and sounded interesting so I picked it up.  Very early in the book you realize they are talking about stuff ten years old.  Lo and behold these are OLD articles from the New York Times re-bundled into a book.  Rip-off!!!!  Having said that, there ARE some juicy stories about the politicians and other crooks out there….especially loud mouth Chris Mathews on MSNBC.

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Liberal media continues sucking-up to Obama:

Fox Business Network anchor Melissa Francis dropped a bombshell on her show Friday, revealing that when she worked at CNBC, she was silenced by management for questioning the math behind ObamaCare on television.

In the shocking clip (below) that has picked up major traction on social media, Francis explains that she is not surprised by the lack of media coverage of “Grubergate” because many liberal media outlets are all too happy to help the architects of ObamaCare cover up the truth.

“When I was at CNBC, I pointed out to my viewers that the math of ObamaCare simply didn’t work, not the politics, by the way, just the basic math,” Francis said.

“And when I did that, I was silenced. I said on the air that you couldn’t add millions of people to the system and force insurance companies to cover their preexisting conditions without raising the price on everyone else.”

“I pointed out that it couldn’t possibly be true that if you like your plan, you can keep it,” Francis said. “That was a lie. And in fact, millions of people had their insurance canceled.”

“As a result of what I said at CNBC, I was called into management where I was told that I was ‘disrespecting the office of the president’ by telling what turned out to be the absolute truth.”

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BUY SMALL (TINY) POSITION IN SBLKL. PAY 8% (AND OIL PRICES)

November 11. 2014.  Go to “Core Portfolio” for current holdings.  Hit the “Follow” button to get updates. 

(update Saturday:  The highest probability is for an end of year rally.  I suggest staying fully invested.)

Interview with Jim Rogers:

http://www.businessinsider.com/jim-rogers-on-oil-russia-investing-mistakes-2014-11

(Update:  The best and most simple explanation of what is going on:

The Fed is printing money and throwing it at Companies and the banks to keep the stock market going up.

(Update Wednesday:  It appears we may get a short term pullback, which may give us a “double bottom” formation on the charts.  I think long term the trend is UP.)

Greek ship owner Star Bulk Carriers Corp has sold a 8% Senior Note offering.

This issue has a maturity date of 2019.  I do not love the shippers but I am buying this ONLY because Oaktree Capital (a huge outfit with $93 Billion in investments) is a 60% owner.  And you have to love the 8% yield.  There is really no way you can lose money on this unless the Company goes belly-up.  And the shares are redeemed at $25.00 so DO NOT pay more than $25.00….if you want this buy today as I think the price will hit $25 quickly.

Buy a small number of shares.  Do not go overboard.

Star Bulk Carriers Corp., 8.00% Senior Notes Due 2019, issued in $25 denominations, redeemable at the issuer’s option on or after 11/15/2016 at $25 per note plus accrued and unpaid interest, and maturing 11/15/2019. Interest distributions of 8.00% per annum ($2.00 per annum or $0.50 per quarter) will be paid quarterly on 2/15, 5/15, 8/15 & 11/15 to holders of record on the record date that will be 2/1, 5/1, 8/1 & 11/1 respectively

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Yesterday I paid $2.67 for gas.  While we are happy at the low prices, you are very UNhappy if you hold oil investments like we list in the Core Portfolio.  This is not good.  We are getting hit hard.  So now what?  I suggest you hold on for the long term.  Oil prices, and the positions we hold, will go up but we don’t know when. The rising dollar is causing this decline because everyone in the world sees the US dollar as safe…this is causing a decline in oil.  But that will change.

In dividend investing sometimes you just have to endure the pain.  This is why I strongly recommend you buy very small positions…….a single investment should be no more than 1% of the portfolio..and certainly no more than 3%.

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Favorability for the Democrats has hit a record low as things go from bad to worse for the party after significant midterm losses, according to a new poll.

Only 36 percent had a favorable view of the Democratic party, a 6-percentage-point drop from before the midterms, the Gallup poll released Wednesday found. With the GOP standing with 42 percent favorability, it is the first time since 2011 the GOP has had a higher rating than the Democrats.

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The problem with Obamacare architect Jonathan Gruber’s comment about the importance of stupid voters in passing the healthcare law isn’t that he said it, it’s that it’s what he thinks, former Democratic Vermont Gov. Howard Dean told MSNBC’s “Morning Joe.”

Massachusetts Institute of Technology economist Jonathan Gruber came under fire when a video surfaced of him speaking at the University of Pennsylvania in 2013, where he said that passing Obamacare relied on the “stupidity of the American voter.”

Gruber also called a lack of transparency about Obamacare “a huge political advantage,” but on Tuesday told MSNBC he regretted the remarks.

“The problem is not that he said it. The problem is that he thinks it,” Dean said Wednesday.

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Red More About Investing Here

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UPWARD BIAS AND GUM CHEWING PREZ OFFENDS

November 8. 2014.  Go to “Core Portfolio” for current holdings.  Hit the “Follow” button to get updates. 

My suggestion is to stay fully invested in the Core Portfolio positions.

The highest probability is an upward trend for at least the next few months.  We may get a short-term pullback forming a double bottom in the charts but that should not be a concern.  In fact it could present us with a buying opportunity.

Interest rates are expected to stay low for a long time, possibly years…..supporting the markets  And altho the Fed has stopped their “QE” program, the big banks have stepped in and are now buying the Treasuries–in essence continuing QE and supporting the markets.  This administration is going to do anything possible to keep the market going up for the next two years.

Bottom line:  Do not buy any stocks right now.  I suggest waiting for a potential pullback  But I am always looking for good quality individual corporate bonds, baby bonds and exchange traded debt.  We have added several in the past month.

The market is rigged to go up long term….which is a GOOD thing for us!  Be Happy!

I mentioned that I sold some of the PSEC position and the remaining will be sold.  The MLP and oil market has been hit but you should continue holding.

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Keeps getting worse and worse, Obammer in China:

Obama emerged from his car chewing gum; he’s a well-known user of Nicorette, the smoking-cessation gum. But Chinese Internet users, accustomed to the highly formal standards of their stiff party leadership, quickly characterized the leader of the world’s most powerful nation as an impolite “idler,” or careless “rapper.”

Politico.com

Whereas the Democrats look for all the world like they are preparing to nominate by universal acclamation a 67-year old grandmother who has been a major fixture in national politics for more than 30 years.

Here is a link to an excellent free market review:

https://www.arlington-capital.com/Blog/tabid/183/EntryId/155/PAAS-Weekly-Update-Video-for-2014-11-07-posted.aspx

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Book Recommendation:  Stonewalled.  Sharyl Attkisson.  This reporter has been in the news talking about how her home computers have been hacked…we assume it is the government.  Stonewalled is yet another book about government corruption and the liberal bias in the major networks.  Most Americans have absolutely no clue about news media manipulation and really don’t seem to care.  The author even asserts that Wikipedia has been corrupted.  The recent elections seem to indicate that more and more people are finally starting to get concerned about our big and corrupt government.

Movies:  Interstellar.  Boring and way way way too long.  Avoid. The Rolling Stone Review says Interstellar is “enthralling.”  GIVE ME A BREAK.  This is crap.

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AND THE WINNER IS………………………

November 3. 2014.  Go to “Core Portfolio” for current holdings.  Hit the “Follow” button to get updates. 

Still trying to get EMQ around $25.20.  Exchange Traded Debt  6%

SOLD half of my position in PSEC……only sold 50% for now.

(Update:  And the winner is the conservatives.  I am glad to see that the American public finally woke up and rejected the Socialist agenda.  But The Republicans have to work smart.  When people start to realize Hillary is corrupt maybe we can get some action in 2016.  The markets are poised to go higher but don’t be stunned if we get a pullback which I view as a buying opportunity.)

“This is a tsunami. Heads will roll at 1600. And if they don’t, shame,” the insider said, adding, “The president has 60 days to clean house, regrow his spine, and lay out an aggressive, centrist agenda. If he fails at any of those, he might as well just start writing his memoir.”

The consensus says the markets will take off if the Republicans win tomorrow.  We shall see.  I was going to sell PSEC today but in reflection it is best to wait and watch.  PSEC is still in a downtrend but hopefully I can sell at a higher price later. If we see market gains in the next week, several of our holdings are positioned to do well:  SDIV, CVY and YYY. Do not sell or buy anything today.  Generally you do not buy at market highs…..and we are there now.  I will probably wait for a potential pullback to add new stock positions….but if I see good bond-like income investments I will be adding. Our oil positions have been hit hard, but they are turning around.  So hold on. Our ‘vice’ holding AMYGF the gambling stock is doing ok.  Never bet against nicotine, alcohol and gambling. I am making a concerted effort to get into more conservative issues such as individual corporate bonds (NOT bond funds) and exchange traded debt (bonds).  I have posted numerous suggestions and you should have purchased. If you have questions or suggestions send us comments!  Or hit ‘Follow’ to get updates.

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Book Recommendation:  The Coming of Tan.  I have always been interested in UFO’s and aliens.  So it was very interesting to hear the author of this book, Riley Martin, talking on Sirius a few weeks ago.  (he has a weekly show)  This is probably the most fascinating and almost unbelievable book you will ever read on this subject.  Whether this guy is a quack or real, you won’t regret getting this book.

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The New York Post is always fun to read: We are witnessing the total collapse of a bad idea. Obamaism, a quasi-socialist commitment to a more powerful government at home and an abdication of American leadership around the world, is being exposed as a historic calamity. It is fueling domestic fear and global disorder and may well lead to a world war. If there is a smidgen of a silver lining, it is that the unraveling, complete with Obama’s shameless attempts to duck responsibility, is playing out on the eve of the midterm elections. Fortunately, voters seem ready to respond by giving Republicans control of both houses of Congress.

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“There have been $2 billion in ads shitting on the president and no one to defend him,” a senior administration official told us. “He is very fired up to get this campaign behind him, to run through the tape.”

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The chart that you are about to view is clear evidence that we are in the midst of a long-term economic decline.  It shows what has happened to the homeownership rate in the U.S. since the year 2000, and as you can see it has been collapsing since the peak of the housing market back in 2007.  Does this look like a housing recovery to you?…
Homeownership Rate 2014
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