September 17, 2014 Go to “Core Portfolio” for current holdings. Hit the “Follow” button to get updates. Readers of this blog are happy with the Fed’s announcement today. They said what everyone wanted to hear and so I anticipate continued money flow into the dividend paying positions that we hold….. resulting in higher prices.
The markets are manipulated to go up. And you should BE HAPPY and take advantage of the situation while it lasts…despite problems………
Unemployment levels are a travesty. (The real unemployment rate is 12.6%) Welfare and food stamps are simply out of control. We are creating a society of entitlements. Companies are buying back their shares…inflating their shares even higher…ensuring their CEO’s get their bonus. Now we are getting into a terrible war. And yet the government, liberal media and the financial television makes you think everything is wonderful.
The situation is getting so crazy that I am actually looking at buying silver coins because down the road they will skyrocket in value. It is probably a good idea to hold some gold and silver coins.
As I have said often, this will not end well. But in the meantime, we are ok.
Some good buys in the Core Portfolio include CEFL and MEMP. Even the high risk pick AMYGF is looking hot.
Sell long term bond funds. It is a virtual certainty that rates will be heading higher in 2015. If you are in long term bond funds, you will get hurt. And it could be bad. I suggest you start selling any long term bond funds that you own. Short term bond funds should be ok.
We buy individual corporate bonds and hold to maturity. That is really the best approach. We also own baby bonds or mini corporates as I call them.
hahahahaha: Chicago’s newest selective enrollment high school will not be named after President Barack Obama, as Mayor Rahm Emanuel had announced with much fanfare when unveiling the high profile school project.
In a statement this morning, Emanuel said he would look for other possible names.
September 11, 2014 Go to “Core Portfolio” for current holdings. Hit the “Follow” button to get updates. A few days ago I mentioned a corporate bond that you may want to buy. Well I am back again with another suggestion.
I really really like INDIVIDUAL corporate bonds—not corporate bond funds. They are a relatively safe investment that provide good yields. I like the Icahn Enterprises bonds. These are individual bonds that you hold to maturity.
Icahn Enterprises 6% due August 1, 2020 (CUSIP: 451102AX5)
Icahn Enterprises L.P. (NASDAQ: IEP), a master limited partnership, is a diversified holding company engaged in nine primary business segments: Investment, Automotive, Energy, Gaming, Railcar, Food Packaging, Metals, Real Estate and Home Fashion.
Here is the web site:
September is typically a volatile month for the markets. And we are seeing declining momentum. But I still think the long term trend is up. With low interest rates you really cannot expect a big correction right now. Maybe we will see some significant action after the November elections but we just have to wait and see. Patience is absolutely essential in investing. This is the most important aspect of trading.
When interest rates start to rise, which is probably a year or more away we will be selling a lot of our positions. But NOT now.
Update Sept 12: We are getting hit this week….our positions are down. We could get a pullback but I would look at that as a BUYING opportunity. We always want to buy stuff on sale. Sit tight and wait to see what happens next week. I think long term the market goes up.
You gotta love Trump:
If Obama resigns from office NOW, thereby doing a great service to the country—I will give him free lifetime golf at any one of my courses!
September 10, 2014 Go to “Core Portfolio” for current holdings.
Safeway, yeah the food store chain, is offering a corporate bond that is giving you just under 7%. Keep in mind that each bond will cost you $1000.
I love corporate bonds and they have treated me really well. Can you believe I have never lost money in corporates. You need to keep these until they mature, and as usual, I suggest you buy small amounts. This is a great yield on corporates. Buy now.
Matures in 2027. A reminder that you do NOT want to buy corporate bond funds. DO buy individual corporate bonds.
On a different note our high risk online gambling company AMYGF is doing very well. It is already up four dollars since we bought it. Quite frankly I am pleasantly surprised at the quick rise. Keep this holding but always have a sell limit order in case it tanks…..which looks doubtful. If you can handle the risk. you may want to buy more.
September 6, 2014 Go to “Core Portfolio” for current holdings.
Jim Cramer is giving free access to his site for a limited time. I suggest you get in and review his Dividend Stock Advisor Portfolio. His returns look excellent and I will have to investigate further. No idea what they charge.
and look for the following:
RIP Joan Rivers. The funniest lady on the planet.
(Update Setp 8: Momentum is down and you should be able to buy MEMP at very good prices. I am loading up on energy MLPs, as they should be very good investments going forward.) September 4, 2014 Go to “Core Portfolio” for current holdings. BUY MEMP Memorial Production Partners an MLP. Almost 10% yield. Pay up to $22.40 in taxable account only. They are involved in a secondary offering and you can get this at a discounted price. As I always say, buy when stuff is on sale. I have been watching MEMP for over a year and today we lucked out in getting this position at a great price.
This MLP is a Delaware limited partnership that was formed to own and acquire oil and natural gas properties in North America. MEMP’s properties are located in South Texas and East Texas/North Louisiana and, subject to the closing of this transaction, California and consist of mature, legacy oil and natural gas reservoirs. MEMP is headquartered in Houston,Texas.
Here is a link if you want more information.
I am going to focus on Master Limited Partnerships going forward as I think MLPs will be LESS affected by rising interest rates in the upcoming years.
Stunning: Obama Job Approval 38%. Funny that he doesn’t seem to give a damn.
September 3, 2014 Go to “Core Portfolio” for current holdings. I have been in this game for many, many years and read numerous articles and posts by financial advisors. I am appalled at what I am seeing. A lot of them are suggesting that clients have 40% of their portfolio in cash. Cash??? Why??
OMG. If you are a reader of this blog and your financial planner (assuming you have one) gives you this advice, you go out tomorrow and fire them.
I’m serious. The Federal Reserve is printing money hand over fist and also almost guaranteeing low interest rates. Who wants to buy Treasuries at 2.3% when they can get good returns in the stock market. And the cheap money encourages companies to buy back their stock, reducing the float, thereby increasing stock prices.
You need to collect dividends while they literally force the stock markets upward. This profound situation is not going to last forever. One of these days, this thing is going to blow up. But not right now.
As I have said many times, this market will crash. We just don’t know when. The markets are inflated. Everybody knows it. But why sit in zero interest CDs and other crap. I recommend you stay invested.
In some respects I really don”t blame the planners. If people don’t have the drive to get educated they can blame nobody but themself.
The goal of this blog is to provide investing information so that you can get educated and learn how to invest your money on your own. And not rely on some stupid broker or moron at the local bank. I hope I am helping.
September 2, 2014. Go to “Core Portfolio” for current holdings. We have had a good run with VNR. Nice dividends and good appreciation. But this thing is tanking and you need to get rid of it.
I should have sold many weeks back but we still have nice profits: we have collected very nice dividends and the stock is up compared to what we paid for it.
This is a classic mistake of not watching my positions carefully. The momentum turned down and I did not take action. We should have sold at higher prices.
The overall market trend is UP believe it or not. China is buying huge amounts of Treasuries which give us support. And the Federal Reserve is keeping rates down. HOLD all your positions. I would NOT be shocked to see a short term pullback, but with the elections coming up, and now getting press attention, they will keep the markets going up.
Our high risk stock AMYGF is up $2.24 today. Wow. PUT IN SELL LIMIT ORDERS TO PROTECT YOUR PROFITS: START ONE DOLLAR ABOVE YOUR BUY PRICE
Here are some reminders:
Do not buy preferreds right now.
Do not buy annuities.
Do not buy long term bond Funds: sell them if you own.
No wonder his poll numbers are plummeting: President Obama attributed people’s pervasive sense the world is falling apart to “social media.”