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HAPPY WITH OUR TOLL-TAKERS. BKLN LOOKS GOOD.

April 22, 2015

Do not buy any positions mentioned here until you view Current Positions.

  Go To Core Portfolio Click Here.

The intent of this blog is to collect dividends and interest and not necessarily plan on capital gains.  If you want to trade stocks in anticipation of gains, this blog is probably not your best source.  But the positions we mention would be good for the conservative portion of the portfolio.

We are very pleased with our energy pipeline “toll-takers” so far (WMB, OKE, MLPL, FMO, etc.) but it’s now too late to get into these.  Some corporate bonds were also purchased.  We got in early which is our objective in buying new investments.  For now HOLD the positions going forward.

BKLN which is in the floating rate category is looking very good for a buy today.  You can buy or ADD to current positions.

The total market in general has been in a consolidation mode for three months and can’t decide whether to go up or down.  We do not see any new positions that we want to add to the Core Portfolio, so just hold all positions.

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There is always going to be corruption and theft in the financial markets.  We finally learn the truth about the Flash Crash:

Navinder Singh Sarao, a 36-year-old British trader, was arrested Tuesday in connection with the “Flash Crash” in 2010. The sudden slump in share prices wiped about 9% off the Dow on May 6, 2010, worth about $1 trillion (£665 billion) in value.

Sarao was reportedly running the operation from his parents’ house in Hounslow, west London.

US authorities have for some time thought the crash was the result of market manipulation, but they were unable to peg it to a source until now.

Sarao is accused of placing enormously large sell orders for “E-Minis” (US stock futures) to create the appearance of a large supply to drive the price down. According to a criminal complaint, Sarao would buy at the new, lower price, and then cancel the sell orders. This technique is known as “dynamic layering” or “spoofing.”

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NEW POSITION IN ANTICIPATION OF RISING RATES. VRP. 4.96% NO DRAMA.

April 17, 2015

Do not buy any positions mentioned here until you view Current Positions.

  Go To Core Portfolio Click Here.

Well kids our topic today is:  PowerShares Variable Rate Preferred Portfolio ETF.  VRP

When you look at the chart of VRP. you almost have to laugh.  It’s flat as a pancake.

BUT that’s not necessarily a bad thing.  We do not really want drama in our portfolio.  We do want conservative investments that give us good yield.

Image result for no drama

So why are we looking at this position.  Essentially this is a play on rising rates………..with many of the big thinkers in the financial industry projecting a rise may be delayed until 2016. BUY at $25.25.

While we wait, VRP is throwing us a decent yield.  Here is some copy from www. seekingalpha.com my favorite resource for financial information.

PowerShares Variable Rate Preferred Portfolio ETF (NYSEARCA:VRP) is the only variable or floating rate preferred ETF available at this time. While there are other ETFs that track or are based upon floating rates, such as iShares Floating Rate Bond ETF (NYSEARCA:FLOT) and Market Vectors Investment Grade Floating Rate Bond ETF (NYSEARCA:FLTR) this ETF focuses only on preferred or preferred equivalents. This rather young non-diversified ETF first started trading on 05/01/2014 so its performance is limited to only five months. We decided to examine its underlying index, components, sectors, country exposure, and credit ratings and determine its risks if, and when, rates move higher and provide our recommendation.

The ideal situation for this ETF is a slowly improving economy with rates moving up slowly. One could easily say that is the ideal conditions for the stock market and equities as well. As such, we would only recommend this investment for those again, seeking high income in a high yielder, higher risk investment balanced with 50% high yield and 50% investment grade.

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From Gallup one of the leading research orgs. in the US:

PRINCETON, NJ — Americans start the new year with a variety of national concerns on their minds. Although none is dominant, the government, at 21%, leads the list of what Americans consider the most important problem facing the country. The economy closely follows at 18%, and then unemployment/jobs and healthcare, each at 16%. No other issue is mentioned by as much as 10% of the public; however, the federal budget deficit or debt comes close, at 8%.

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SEARS an American institution is almost dead:

Though he has never admitted it publicly (it would be bad for business), it was pretty obvious that Lampert had no grand ambition for reviving the Sears retail empire. That would be ludicrous, and Lampert is too smart for that.

Hillary Logo Ha Ha Ha

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BKLN FLOATS UR BOAT. BUY NTG

April 13, 2015

To View Current Positions Go To Core Portfolio Click Here.  Add us to your Favorites!  If you like us, hit the LIKE button below.

(Update:  We bought NTG way too early and are now showing paper losses….a big mistake.  But we are holding.

After a significant decline, it is trending up and NOW would be a GOOD time to buy NTG as a new position if you did not buy it earlier.)

We are entering earnings season with some big reports coming tomorrow and Wednesday.  We had anticipated buying some new positions last week but upon further deliberation decided they were not so hot after all.  We do suggest you buy BKLN one of our floating rate positions.  It is going ex-dividend within the next few days and you may get a lower price after it hits….but you never know.  PFLT is also in the same position.

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This financial blog is intended for pre-retirement and retired conservative investors who are primarily concerned about preserving principle while also receiving income and dividends.  Younger investors can use the Core Portfolio selections for their conservative/income portion of the portfolio.

Image result for income dividends

The Core Portfolio currently consists of corporate/baby bonds held to maturity , oil/gas pipeline “toll takers”, floating rate positions for anticipation of higher rates, and exchange traded funds that hold income related positions.  Additional very small positions include REITS and a dividend paying gold position. 

We are NOT in municipal bonds, preferred stocks, utilities, long term bond funds and annuities.

Image result for globe

We now have readers in 83 countries worldwide.  Yeah we are actually stunned to see those numbers.  Thanks to everyone and we hope this blog is helpful to you in making your investing decisions.

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A recent Gallup poll found that in Obama’s sixth year in office, 79 percent of Democrats approved of his performance, compared with 9 percent of Republicans, while Bush’s numbers in his sixth year were the exact opposite (79 percent of Republicans approved, only 9 percent of Democrats). Looking at those figures, the pollsters at Gallup concluded that Obama and Bush — who each ran on the promise of uniting the country — could go down as the two “most polarizing” presidents to date.

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Movies:  Woman in Gold.  Helen Mirren stars in this very interesting true life story about how the “small” person can fight the big governments and win.  Strongly recommended for the adult audience who wants some excellent drama..

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A broker is in the business of SELLING you stuff which puts commissions in their pocket.  That’s bad!!!

When seeking a financial advisor, always hire a Registered Investment Advisor.  They work for YOU.

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BAD NEWS IS GOOD NEWS

April 7, 2015

To View Current Positions Go To Core Portfolio Click Here.  Add us to your Favorites!  If you like us, hit the LIKE button below.

Republican presidential hopefuls are gaining ground on Hillary Clinton in key swing states, according to a new poll.

In a Quinnipiac University poll released Thursday, Clinton’s lead over Republicans like former Gov. Jeb Bush and Sen. Rand Paul has evaporated since February in Colorado and Iowa, while she still leads in Virginia.

In Iowa, Clinton is almost tied with every Republican presidential hopeful, and her favorability rating is down in the state from a 49 percent in February to 45 percent in this latest poll.

Virginia seems to be a silver lining for Clinton, who is holding her lead against Bush 47 to 40 percent. In February, the two were tied at 42 percent. Clinton leads Paul in Virginia 47 percent to 43 percent.

“Ominous for Hillary Clinton is the broad scope of the movement today compared to her showing in Quinnipiac University’s mid-February survey. It isn’t just one or two Republicans who are stepping up; it’s virtually the entire GOP field that is running better against her,” Quinnipiac University Poll Assistant Director Peter Brown said in a press release.

“That’s why it is difficult to see Secretary Clinton’s slippage as anything other than a further toll on her image from the furor over her e-mail.”

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The stock market hates high interest rates.

And after the bad employment report last Friday, investors now feel that the Fed will delay raising rates.  Everyone has been anticipating a rate HIKE this year but it appears we are in for a wait.

With a possible delay in increasing rates, the market is up.  Today people are openly talking about the possibility of yet another round of QE Quantitative Easing.

UBS ETRACS

Investors always have to watch Both interest rates And the dollar.  The dollar was down Monday which was driving up our oil/gas pipeline and infrastructure positions.  We have been getting into this narrow segment of the energy patch while things were on sale, and boy I’m glad we did.  I hope readers have been following the suggestions.

We purchased a small position in MLPL ETRACS 2xMonthly Leveraged Long Alerian MLP Infrastructure Index ETN….in the IRA.  According to my Fidelity screen this thing is paying almost 12%.  We are watching MLPL closely and will almost certainly buy a lot more.  But the technicals are still stabilizing and we are now waiting.

But I think MLPL is one of the best investments you can make in 2015.  If you have NOT purchased buy a little now.

As far as adding additional positions in the Core Portfolio we are looking at a debt issue that goes ex-dividend this week and if we see a nice pullback I really want to buy some.

We continue holding all positions in the Core Portfolio.

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MOVIES:  Furious 7.  Non-stop slam-bam bang-em-up action.  Wow don’t miss this one.  Furious is as good as the reviews say it is.  Full of car chases, shooting, car wrecks, it never ends.  The only thing missing is aliens.  lol.  Go see it.

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This is a fun read on the Clintons:

http://www.politico.com/magazine/story/2015/04/clinton-white-house-the-residence-excerpt-116706.html?ml=m_t1_2h#.VSUhPPCXTh4

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Here is a link to a great article discussing our gambling holding Amaya:

amaya

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WE LOVE CORPORATE BONDS. BUY WILLIAMS FOR 4.7%

April 2, 2015

To View Current Positions Go To Core Portfolio Click Here.  Add us to your Favorites!  If you like us, hit the LIKE button below.

Funny Quotes:  Social media makes regular people feel important

 

Image result for williams company

Regular readers know that I like individual corporate bonds.  Today we suggest you look at a Williams Company Corporate bond that matures in 2024. 

The yield is a very nice 4.7%. 

The Cusip number you need to buy this is:  969457BW9.

Each bond will set you back $1000.

We purchased WMB stock recently and you can CLICK HERE to find a lot more information on the Company.

If you are not familiar with corporate bonds, here is some information from Investopedia:

DEFINITION of ‘Corporate Bond’

A debt security issued by a corporation and sold to investors. The backing for the bond is usually the payment ability of the company, which is typically money to be earned from future operations. In some cases, the company’s physical assets may be used as collateral for bonds.

Corporate bonds are considered higher risk than government bonds. As a result, interest rates are almost always higher, even for top-flight credit quality companies.

INVESTOPEDIA EXPLAINS ‘Corporate Bond’

Corporate bonds are issued in blocks of $1,000 in par value, and almost all have a standard coupon payment structure. Corporate bonds may also have call provisions to allow for early prepayment if prevailing rates change.

Corporate bonds, i.e. debt financing, are a major source of capital for many businesses along with equity and bank loans/lines of credit. Generally speaking, a company needs to have some consistent earnings potential to be able to offer debt securities to the public at a favorable coupon rate. The higher a company’s perceived credit quality, the easier it becomes to issue debt at low rates and issue higher amounts of debt.

Most corporate bonds are taxable with terms of more than one year. Corporate debt that matures in less than one year is typically called “commercial paper”.

 

 

 

 

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HEADING TO VEGAS…AGAIN. BUY MLPL IN IRA. 12% YIELD

April 1, 2015

To View Current Positions Go To Core Portfolio Click Here.  Add us to your Favorites!  If you like us, hit the LIKE button below.

(Update:  Spiked up today and came back down.  We bought at $50.31.  We plan on holding ‘forever’.)

We are adding yet another risky position in the “headin to Vegas” portion of our Core Portfolio.  Obviously we are not adding any oil positions like MLPL unless we feel that this segment will be increasing through the rest of this year and beyond.

As everyone knows the energy patch has taken a hit.  But we like to buy stuff when it’s on sale, and energy positions are priced to buy.  That NOT to say that it can’t go DOWN further.  So you will want to determine if you can take the risk and invest now, or WAIT to see higher prices.

AS I WRITE THIS THE PRICE IS SPIKING UP.  WAIT FOR POSSIBLE LOWER PRICES…WE WILL WAIT AND WATCH

Note that MLPL is involved in transportation and processing which is the same as other position we have been buying recently:

Petroleum Transportation makes up 38.6% of the index, Gathering and Processing 35.1%, and Natural Gas Transportation 26.3%

 Image result for oil prices up and down
ETRACS 2xMonthly Leveraged Long Alerian MLP Infrastructure Index ETN (MLP)
 
MLPL does use leverage so your risk is elevated….you can LOSE twice as fast.
MLPL is a ETN not an ETF which also raises your risk.
MLPL give you 12%
MLPL is suitable for your IRA.
(MLPI is the UNleveraged version of this if you prefer less risk.)
 

We ARE taking a Small position now for the Long Term.  If prices decline from here we may buy more.

http://etracs.ubs.com/product/detail/index/ussymbol/MLPL

About the ETN
The ETRACS 2xMonthly Leveraged Long Alerian MLP
Infrastructure Index is designed to track a leveraged investment
in the Alerian MLP Infrastructure Index (the “Index”), and pay a
variable quarterly coupon linked to the leveraged cash
distributions associated with the underlying MLP constituents,
less financing costs and investor fees.
Exchange-traded Notes are senior, unsecured, unsubordinated
debt securities that provide investors with exposure to the total
returns of various market indices, including those linked to
stocks, bonds, commodities and/or currencies, less investor fees.
ETRACS are innovative investment products offering easy access
to markets and strategies that may not be readily available in
the existing marketplace.

Why Invest in MLPs?
MLPs are limited partnerships primarily engaged in the
exploration, marketing, mining, processing, production, refining,
storage, or transportation of any mineral or natural resource.
Because the MLP structure requires the distribution of at least
90% of an MLP’s income to investors (known as unit holders),
MLPs have typically produced attractive historical yields
compared to other income-oriented investments and have
exhibited relatively low historical correlation to the market prices
of a wide range of asset classes, including equities and
commodities.

About the Underlying Index
The Index, comprised of 25 energy infrastructure MLPs, is a
liquid, midstream-focused subset of the Alerian MLP
Infrastructure Index (NYSE: AMZI). The Index, whose
constituents generally earn the majority of their cash flow from
the transportation and storage of energy commodities, provides
investors with a benchmark for the infrastructure component of
this emerging asset class. The Index is calculated using a capped,
float-adjusted, capitalization-weighted methodology that results
in greater diversification versus a pure market
capitalization-weighted index. The Index was created in
March 2008 and has no performance history prior to that
date.

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People are tired of the ultra liberal crap:

Talk about a tale of two cable news networks. With its 53rd consecutive quarter total audience win, Fox News Channel saw a 10% primetime rise among adults 25-54 in first-quarter 2015 over last year. In fact, with 321,000 on average among the 25-54s in primetime, Fox News thrashed rivals CNN (187,000) and MSNBC (132,000) with more news demo viewers than the other two combined, according to Nielsen.

Contrast that to the fate of the NBCUniversal-owned MSNBC, which  not only saw a 39% drop in the demo compared to Q1 2014 but its worst quarterly result in the category since Q2 2005. If that almost decade-old result wasn’t enough of a blow, and rising CNN’s fourth consecutive win over MSNBC in prime didn’t cut deep enough, take a look at the gutting the cabler newser’s nighttime offerings are suffering.

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WE FOCUS ON ENERGY TRANSPORT AND INFRASTRUCTURE. BUY FIDUCIARY CLAYMORE MLP OPPORTUNITY FUND FMO

March 25, 2015

To View Current Positions Go To Core Portfolio Click Here.  Add us to your Favorites!  If you like us, hit the LIKE button below.

(Update:  Well, the Fed hag blurted out a few comments on Friday.  Man oh man is she a mess.  Folks I doubt the Fed will ever raise rates.  lol.  This economy is so crappy (despite what you hear on the liberal media) they may well cause a recession if they did increase rates.  We are holding all positions in the Core Portfolio.  I can’t even remember the last time we sold anything.  We are currently very high on the toll takers in the oil patch…..read the prior posts for more information.  We def. want to buy KMI when the price is right.  It appears oil will continue upward toward the end of this year.)

FMO is a closed end fund with a focus in energy transport and infrastructure.

It gives you a yield of just under 8% and IS leveraged to 25%.

FMO is a good candidate for the IRA account.  You should consider buying this today.  All of our recent purchases in oil and gas pipeline segments should be viewed as Long Term investments……….the energy markets are in flux and holdings can go down……but you will be happy down the road that you bought these.  Remember you want to buy when stuff is on sale.

Image result for gas pipelines

Under normal market conditions, the Fund will invest at least 80% of its Managed Assets in MLP entities and will invest at least 65% of its Managed Assets in equity securities of MLP entities. The Fund may also invest in common stock of large capitalisation companies, including companies engaged primarily in such sectors. The Fund may employ an option strategy of writing covered call options on common stocks held in the Funds portfolio. The Fund may invest up to 40% of its Managed Assets in unregistered or otherwise restricted securities, including up to 20% of its Managed Assets in securities issued by non-public companies. The Fund may invest a total of up to 25% of its Managed Assets in debt securities of MLP entities and non-MLP entity issuers, including securities rated below investment grade. The Fund may invest up to 25% if its Managed Assets in US dollar-denominated securities of foreign issuers. The Fund may invest up to 15% of its Managed Assets in securities of any single issuer. The Fund may invest up to 15% of its Managed Assets in royalty trusts.

http://guggenheiminvestments.com/products/cef/fmo

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Yes the markets are rigged:

http://nypost.com/2015/03/25/us-stock-market-is-just-way-too-riggin-easy/

So sad:  from http://www.zerohedge.com

… and now we have solved the mystery of why US households did not spend all those billions in “dropping gas price” windfalls – the answer is that they did in fact spend all this money.

On Obamacare.

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I guess we knew this already:

According to the CDC, 34.6 percent of all men in the U.S. are obese at this point.

lol This has been obvious for years…from http://www.zerohedge.com:

How in the world, it might be asked, is it possible that the chief beneficiary of the financial repression policies of the Fed is the very most affluent segment of society?  That is a salient question—-but don’t bother to ask the liberal Keynesians who run the Fed. They do not even have a clue that it’s happening.

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