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YOU OWE $163.000.00

If you are employed full time, as about 127 million Americans are, each of you owe $163 thousand dollars (above and beyond the taxes you are already paying) to square up America’s accounts. You can quadruple or quintuple that debt per employee if we are to account for America’s massively unfunded liabilities. And to gauge your capability to do so, I take total disposable personal income (what remains after taxation from all sources of personal income) and divide by the same 127 million full time employees…on average you each take home $115 thousand dollars (despite the fact that the median household income in America is about $60 thousand…yes, the top earners are skewing the average just a tad bit higher)?!?

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February 23, 2018

We took a severe hit on MIC yesterday.  Bad news.

-The Company is not failing or going into bankruptcy.  That’s the good news.

-The dividends are cut and it will take at least a year to get their business back on track.  That’s the bad news.

So that is the abbreviated version of the story…….we are not willing to take the loss by selling the shares and will HOLD this position.  We will collect the dividends with the assumption the stock price will head back up….altho slowly.

https://seekingalpha.com/article/4150020-40-percent-overreaction-creates-buying-opportunity-high-quality-company-yield-10_7-percent?uprof=46&isDirectRoadblock=false

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Not a week goes by that we don’t see another glowing report on WP Carey WPC.  As mentioned before we own the corporate bond.  But with a 7% dividend we have been watching the stock for a BUY.

BUT WPC has been tanking and the technicals are telling us to stay away for now.  In the near future this may be a good buy.

WPC has ranged (over the last five years) between $53 and $73 with the current price at $60.  We may start to see a turn-around very soon.  We are also watching IRM.

W.P. Carey Inc. (WPC) is a top-shelf commercial property REIT that I consider to be a “Strong Buy” on the drop. The real estate investment trust has consistently raised its dividend payout in the last twenty years, the dividend is covered by cash flow, W.P. Carey has a conservative AFFO payout ratio, and shares are cheap after the most recent stock market correction. W.P. Carey’s entry dividend yield has spiked to 6.7 percent, which is not a red flag in my opinion.

Stocks, including REITs, were in for a rough 2018 so far as strong employment data triggered a major sell-off in the stock market. Investors’ fears: Wage growth points to higher inflation, which in turn could prompt the U.S. Federal Reserve to raise interest rates at a faster clip in 2018. The Fed has guided for three interest rate hikes this year, but may lift rates faster and more often if inflation picks up steam throughout the year. The consequence: Bond yields have been rising, which often hurts dividend-paying stocks (bond yields have become more attractive relative to stock yields).

The sell-off has weighed on all stocks, but especially dividend-paying stocks including W.P. Carey. Year-to-date, W.P. Carey’s shares have dropped ~13 percent.

https://seekingalpha.com/article/4149106-6_7-percent-yielding-commercial-property-reit-brainer

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TRY TO GET KCAPL. BUY SOHOK. OVER 7%. CNN TANKS

February 20, 2018

Update Feb 22:  KCAPL is in the Core Portfolio.  We have placed an order for $25.07 which would ADD to our position.  This order may NOT get filled as pricing has been going up three days in a row.

Update:  Incredible demand for SOHOK closing at $25.70.  We continue watching in hopes of getting lower price…..which could be weeks or months in future. 

Looking at SOHOK which is just starting to trade, paying over 7%.  Below is a description of this new potential investment.  A limit buy order has been placed at $25.00 but we anticipate the price to start much higher.  So we will watch and try to get under $25.30.  You will have to decide what to pay but we would NOT go any higher than 25.50

Here is some pasted copy and go to the link below for the entire article.

Lodging real estate investment trust (REIT) Sotherly Hotels (NASDAQ:SOHO) recently sold a new $25 baby bond that fits our needs perfectly. SOHO is issuing a baby bond with a coupon of 7.25% and an extremely short maturity date of 2/15/2021. I can’t remember when I have seen a baby bond issued with a maturity date this short, but it is perfect for investors in a period of rising interest rates.

The new issue will begin trading sometime in the next few days under the ticker SOHOK. Since it is a small issue of just 1.15 million shares, which includes 150,000 over allotment shares, it is likely there will be reasonably good demand and we wouldn’t be surprised to have to pay over $25 to secure the shares. Remember that baby bonds seldom trade on the OTC Grey market, so there may be little chance to be able to buy the shares under $25.

https://www.dividendinvestor.com/new-purchase-for-short-medium-duration-portfolio/

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Help Wanted Ads:  The true definition of ‘starving artist’:  “I’m an artist can I make you a meatball sub.”  We just can ‘t believe some of the shit we see these days.  

Subway Sandwich Artist – new
Jaygurudev Corporation – XXXX IL
$8.50 – $10.00 an hour

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While tax cuts may provide a temporary boost to after-tax incomes, that income will simply be absorbed by higher energy, gasoline, health care and borrowing costs. This is why 80% of Americans continue to live paycheck-to-paycheck and have little saved in the bank. It is also why, as wages have continued to stagnate, that the cost of living now exceeds what incomes and debt increases can sustain.
Yes, corporations will do well under the “tax reform” plan. Already compensation for the top 20% of income earners are seeing wages rise, while corporations have doubled their planned stock “buybacks” to boost earnings per share. But such does not increase the take-home pay for the bottom 80% of the population that drives the majority of economic growth long-term.

http://realinvestmentadvice.com/weekend-reading-hurricane-boost-dissipates/

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LOL “History” Channel Beats CNN.  TOO FUNNY.  Liberal fake news CNN slowly dies.

Basic Cable Top 10 – Total Day (Total Viewers)
Fox News (1,529,000)
Nickelodeon (982,000)
MSNBC (972,000)
HGTV (821,000)
Investigation Discovery (781,000)
NBC Sports Network (704,000)
USA (695,000)
History (676,000)
CNN (674,000)
ESPN (648,000)

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BUYING JUNKY STUFF!!

February 16, 2018

Several years ago, we started buying a few ‘distressed’ super junky individual corporate bonds.  So far we have been successful.

These bonds are rated CCC but they offer very high returns ie 15%.  We had very good luck with a ‘satellite’ bond which was sold at a very nice profit. Of course very little is invested:  usually $2000.

There are currently three of these bonds in the Core Portfolio and we are thinking about selling one today due to the significant price appreciation/profit.

Remember, these are for play money which you could afford to potentially lose altho we doubt that is going to happen.

Here is another one that we bought yesterday.  

REVLON:  Cusip:   761519BD8

Go to link for the full scoop:

http://bond-yields.com/revlon-15-yield-to-maturity-maturing-february-2021/

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A TRULY HORRIFIC SITUATION.

Simon Black recently penned an interesting note on this:
“Less than two weeks ago, the United States Department of Treasury very quietly released its own internal projections for the federal government’s budget deficits over the next several years. And the numbers are pretty gruesome.

In order to plug the gaps from its soaring deficits, the Treasury Department expects to borrow nearly $1 trillion this fiscal year. Then nearly $1.1 trillion next fiscal year. And up to $1.3 trillion the year after that.

This means that the national debt will exceed $25 trillion by September 30, 2020.”

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FIFTY SHADES MOVIE. BLOK. MPW.

Valentines Day

MOVIES:  The reviewers really trashed the new Fifty Shades movie.  So we were not expecting much.  This could have been the worst movie in history and we would have probably liked it.  Surprisingly this is a much better flick than the reviewers would lead you to believe.

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We are STILL trying to buy more TCCA.  We revised the buy order up to $25/06.  (This was filled.)

Looking at numerous potential buys but still waiting for the markets to settle down:  and waiting for lower prices.

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Here is an article on  Medical Property Trust, a holding in the Core Portfolio.  You CAN buy now, and this would be a lower price than we paid on the original buy!!

MPW

https://seekingalpha.com/article/4145664-50-percent-upside-medical-properties-trust?uprof=46&isDirectRoadblock=false

BLOK

We bought the new blockchain ETF a while back:  Amplify Transformational Data Sharing ETF (BLOK).   (This is NOT a bitcoin etf:  it is invested in companies developing blockchain technology) This thing went up and then came back down.  We suggest you read the article linked below to understand whether you want to get into this growth segment.  We are holding, and will add if appropriate.  We think there is huge potential, but who knows?! 

https://seekingalpha.com/article/4143066-4-new-cryptocurrency-etfs-consider-portfolio

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WE NEVER SAID INVESTING WAS EASY

February 12, 2018

UPDATE   Placed Limit Order at $21.02 for UTF.  May NOT get filled.  We are going to watch and may buy around $21.40-$21.50 depending on the action.  On TCCA still waiting for a probable fill.

We go for years and never see a pull-back or correction.  And yet investors think the world is coming to an end as we see significant declines in the stock market.  Kids, this is real life!!  No we don’t like it but what’s the choice?  CD’s?

Our crystal ball has been broken for years.  And we do not know the future.  But if history is any indication we will see a volatile market for weeks or even months, at which point we can all breathe easier.  We continue watching for ‘bargains.’

We still have an order in for TCCA at $24.99 and we may get filled:  just wait.

Watching UTF to buy more when it goes ex-dividend tomorrow.

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We have repeatedly suggested you keep up to date with the “free” financial analysis found on realinvestmentadvice.com site.  Here is a recent post and we highly recommend you read it for an analysis of the current stock and bond markets.  The discussion on bonds is especially important.

https://realinvestmentadvice.com/now-what-02-09-18/?utm_medium=email&utm_campaign=Real%20Investment%20Report%20Now%20What&utm_content=Real%20Investment%20Report%20Now%20What+CID_104cfd65a4526e70bcd85d1a7694f188&utm_source=RIA%20Email%20Marketing%20Software&utm_term=READ%20MORE

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As the avalanche of tech money dramatically inflates the value of even sub-par housing stock – and the state’s Democratic political hegemony has seven some Republicans in the state’s more rural counties rooting for a breakup – residents of the Bay Area are taking off for more affordable areas where they can more comfortably mesh with the local culture.
As CBS San Francisco reported, the number of people packing up and leaving the Bay Area has reached its highest level in more than a decade. And for the first time in ages, the number of people leaving are outnumbering the people coming in.

https://www.zerohedge.com/news/2018-02-09/its-just-not-same-people-are-fleeing-bay-area-fastest-rate-years

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The fake news New York Times or the rest of the liberal media is not talking about the investigations in DC. Go to link for more.

The main stream media is doing the single best job of hiding information that I’ve ever seen. That’s not surprising since the main stream media has been infiltrated by the CIA since the 60’s. But this time around, their deception is truly gold medal level. Almost to a “tee” the people that I casually ask about the memo, or others mentioned in Grassley’s investigations, look at me with a blank stare. Most have never heard of it, or if they did, “CNN said it was no big deal”

Exactly. And that’s the problem. The media is not covering the enormity of what’s going on right now, and yet it is the biggest story this side of Watergate. Imagine a more sane time in US history and this “blurb” came out:

FBI Informant Testifies: Moscow Routed Millions To Clinton Foundation In “Russian Uranium Dominance Strategy”

The journalists would be foaming at the mouth to jump inside that investigation and rush to bring it to print before the next guy. Yet this time around? Crickets. I have purposely watched some main stream media this week, to see if they’re going to finally stop trying to defend Hillary and Obama and actually do “news” work, but no, it’s the same old drum. Trump bad, Trump crazy, Trump incoherent, and anything to do with what is now 8 separate investigations into the FBI, Hillary’s Email server, etc, are “conspiracy theories”. No, they’re not.

To sum it up ( about the media) These facts are not in dispute. Once-trusted journalists have become nothing more than stenographers unquestionably regurgitating all manner of ‘anonymously sourced’ FBI, DOJ, CIA, State Dpt black propaganda with a singular focus: try and stop a Presidential candidate from winning the election, and destroy a POTUS once he was in.

FOX, which is about the closest thing you’re going to get in main stream media for at least some truth, printed this little tid bit that’s come out this week:

Newly revealed text messages between FBI paramours Peter Strzok and Lisa Page include an exchange about preparing talking points for then-FBI Director James Comey to give to President Obama, who wanted “to know everything we’re doing.”

Barack Obama in April of 2016-> “I do not talk to FBI directors about pending investigations.”
Lisa Page text: “POTUS wants to know everything we’re doing”

But wait a minute. Obama is on record saying he had NO conversations with the FBI concerning the Hillary matter. Well now, “Houston we have a problem.” Or maybe this little gem is worthy of some more investigation:

On Election Day 2016, Strzok wrote, “OMG THIS IS F***ING TERRIFYING.” Page replied, “Omg, I am so depressed.” Later that month, on Nov. 13, 2016, Page wrote, “I bought all the president’s men. Figure I need to brush up on watergate.”

Why would she have to brush up on Watergate? Because they got caught then too. Just like these people have. There’s an awful lot of plates in the air folks. There’s more than half a dozen investigations going on. Every day more “thousands” of texts are being released, and in them you can start to draw the appropriate picture.

What Hillary, Obama and her cronies hadn’t planned on, was a Trump. Why do I say that? Trump didn’t blindly walk in on all this. He knew. He had intel. He was a mover and shaker long before being a President. All of Hollywood loved him. The Clinton’s loved him. He had all this dirt from day one, and he set up a plan to expose it all.

https://www.investyourself.com

 

 

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SELLING MORE LOW YIELDING CORPORATE BONDS

February 9, 2018

We are continuing to sell low yielding (3-4%) corporate bonds that were purchased before we started the blog (not listed in the Core Portfolio)…with the intent to buy higher yielding investments when and if this correction is over.  Their prices have been declining altho we are seeing small profits since we purchased at lower levels.  We do see additional declines ahead in the general markets.

Everyone is asking WHY we are seeing market declines.  We noticed this very interesting article talking about Cramer’s (CNBC) take.
The VIX index was made to gauge the fear in the market. For 2017, VIX remained low. This led to rise of leveraged trading vehicles that short the VIX. “Now, it isn’t enough sometimes on Wall Street to just own volatility or bet against volatility. Brokerages know people crave real juice, particularly hedge fund managers, so they invented stocks that allowed you to get twice the gain of the VIX on a given day, or get twice the loss of the VIX if it goes down on a given day. These instruments are the proximate cause of the madness you are now seeing,” said Cramer.
ProShares Ultra VIX Short-Term Futures ETF (NYSEARCA:UVXY) is an ETF that doubles the performance of the S&P 500 VIX Short-Term Futures Index every day. There were a lot of fund managers that short the instrument due to low volatility in 2017. With spike in volatility, they were caught off-guard and 110M shares were traded on Thursday. “There are some very big funds that have bet against this thing and they have to raise cash to stay short it. They can either end the pain and buy it back, or cover their call shorts, or they can just keep wagering by putting more and more of their money by selling stocks or selling S&P futures to raise money,” said Cramer.
The other three funds are iPath S&P 500 VIX Short-Term Futures ETN (NYSEARCA:VXX), VelocityShares Daily 2X VIX Short-Term ETN (NASDAQ:TVIX) and ProShares Short VIX Short-Term Futures ETF (NYSEARCA:SVXY). SVXY goes down when VIX spikes as it did on Thursday. There were millions of shares traded on these funds as traders had bet against volatility.
When the volumes on these and 12 others dry up, it means that market can return to normalcy. It won’t go up again immediately, but the market will be clean enough to trade in a sane manner.

https://seekingalpha.com/article/4145019-like-2008-cramers-mad-money-2-8-18

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SELLING CORPORATES. MORE BILL/HILLARY CORRUPTION

February 8, 2018

We SOLD two of the corporate bonds in the Core Portfolio:  ARES and Aflac.

They were paying 3+% yield which was low and they were declining in price due to potential higher interest rates.  (But we did sell at a higher price than we paid, and we also have been getting the dividends.)

We would prefer to divert the money into higher yielding positions that have taken a hit during the recent downturn….see recent posts.

Bottom line:  we want to buy high yielding investments while they are on sale.

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Bill and Hillary CORRUPTION.  You gotta read this:

https://www.zerohedge.com/news/2018-02-08/fbi-informant-testifies-moscow-routed-millions-clinton-foundation-russian-uranium

OBAMMER implicated:

https://www.zerohedge.com/news/2018-02-07/fbi-lovers-new-texts-expose-obama-complicity-he-wants-know-everything-were-doing

 

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