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SOLD NUGT

Wednesday. Gold is being manipulated. NUGT has been a disaster for us, and we sold it.

We really deserve a kick in the ass for this mess. NUGT is a leveraged fund that should be day traded. We held on for several days.

Second, we did not have a sell order in place. How stupid. We broke our own rules.

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BUYING LOW YIELDER

“Boy it’s sure great that the Country had the RESERVES to pay for all this” (a moronic comment from a neighbor)

……in fact, the corrupt Government is ADDING Trillions and Trillions of DEBT to pay for the virus pandemic. The above statement is so shocking………. to think that people do NOT understand that we are ADDING trillion and trillions of dollars to the debt to pay for this. SAD

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May 26, 2020. Major averages have been shooting to the moon. In fact SPY is over 3000, just as we predicted weeks ago. But knowledgeable investors know this is not going to continue. We have been calling for a pullback in July/August. The economy is a disaster and profits will be slow in coming. That is why we have been focusing on safe income generators.

Today we are buying a small starter position in a conservative PIMCO etf: BOND. LINK TO FULL ARTICLE. Paying 3.2%-well it’s better than Treasuries. LIMIT order at $109.62 which is lower than ASK, to be adjusted if necessary.

BOND’s high-quality low-risk holdings, reasonably strong past shareholder returns, and PIMCO’s decades-long track record of market-beating performance in the fixed income space combine to create a strong investment fund.

BOND is a particularly appropriate choice for the most conservative income investors and retirees, wishing to sacrifice capital gains and dividends for an extra measure of safety.

We just cannot get a break on gold. The damn thing is down today again. Virtually everyone expects to head higher. So we continue to hold. Eventually the pain may grow so large we will sell. But NOT now.

And the news only gets WORSE:

But the financial crisis took such a toll that, after it was over, they revised their projected insolvency date down to 2035.

Social Security hasn’t updated its projection yet to incorporate the Covid impact, and they probably won’t until next year.

But the Bipartisan Policy Center ran the numbers using Social Security’s own financial model. And according to their analysis, Social Security is now set to run out of money in 2029.

That might seem like a long time from now, but from a retirement prospective, it’s just around the corner.

And options for Social Security are extremely limited; the government will either have to (a) radically increase payroll tax rates, and/or (b) make drastic cuts to the monthly benefit they’ve been promising people for decades.

Neither option is good, and most likely they’ll end up doing a combination of both. But not yet.

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MEDICI, now on Netflix. If you have any interest in history, Medici is currently of the best series running. You will not want to miss this story abut the Medici family who ruled Florence back in the 1400s.

Episode 1: Medici: Masters of Florence available on Netflix ...
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BUYING.

May 22, 2020. Blackrock Core Bond BHK (leveraged, risky) LINK TO ARTICLE We are buying a small position, just to get it on the radar. IF we get expected stock market declines in July/August, we will be adding at lower prices. BUY BHK at 5.2% yield.

BHK is a leveraged fixed income fund administered by BlackRock, the largest investment managers in the world. BHK itself invests in a wide array of fixed income securities, including treasuries, corporate and municipal bonds, mortgage-backed securities, and other securitized products. The fund’s holdings are reasonably well-diversified across sectors, although there is a strong emphasis on (investment-grade) corporate bonds

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Gold is flat, contrary to our expectations. When we checked this morning, gold was indicating higher. We continue holding the gold positions and see potential highs. The positions are very small at the moment presenting small risk. Will be adding if appropriate.

Despite the markets continuing upward, we are maintaining high cash levels at 48% . In addition to the cash, funds are in income producing bond funds. This is an income and dividend blog and that is the objective. We are still expecting a significant pullback in the market averages during July/August.

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Newspaper ad revenue collapsing.

A MUST SEE VIDEO:ON THE ECONOMY AND THE MARKETS:

NOW IN OUR 8TH YEAR. This blog is intended for INCOME investors, NOT growth. Go to the Core Portfolio for current holdings. Don’t forget to hit the like button. This blog is designed for retired investors seeking income.

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ADD TO GDX AND NUGT RIGHT NOW-TUESDAY

I know… many of my clients are scratching their heads and asking themselves, “How in the world can this market be moving higher in light of all the risk of reopening the economy right now?”
Just remember… What is important is not WHY the market is trending higher… What is always paramount is the fact that the market IS moving higher. What the market does is far more important than trying to figure out the why it does what it does.
(Turner Capital Investment)

Powell to CBS: “There is no limit to what we can do under these emergency powers.”

CBS: “Where does the money come from?”

Powell: “We print it digitally.”

May 19, 2020. We bought gold yesterday and gold promptly dropped. Today it screamed higher right out of the gate. We suggest you keep adding everyday. We will be placing some Trailing Stop Sell orders on both positions.

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This country is in deep shit…….. I mean deep DEBT.

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GOLD SHINING

May 18, 2020. We have been watching gold, expecting a decline before heading higher. BUT gold is now breaking higher and we are buying a very small ‘starter’ position to start. If it continues upward, we will be adding more. BUY GDX At higher risk, you can look at NUGT which moves two times FASTER THAN that of gold.

Image result for Gold

General consensus out there says gold is moving much higher. Is gold telling us there is big risk in SPY/DOW??

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Are bonds dead? A lot of smart people think so….we doubt it. Link to full discussion.

NOW IN OUR 8TH YEAR. This blog is intended for INCOME investors, NOT growth. Go to the Core Portfolio for current holdings. Don’t forget to hit the like button. This blog is designed for retired investors seeking income.

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We like reading Rolling Stone’s Matt Tiabbi. Link full article.

How the COVID-19 Bailout Gave Wall Street a No-Lose Casino

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Creepy Joe Story. Link to full article in first sentence.

Joe Biden’s numerous sexual misconduct allegations extend to his creepy and abusive behavior in front of female Secret Service agents, reports Ron Kessler of the Washington Times.

Kessler, who wrote about the Secret Service in a book titled The First Family Detail, discovered that while former First Lady Hillary Clinton is the most reviled among Secret Service agents, former Vice President Joe Biden comes in a close second.

One of the reasons he was so disliked was his creepy habit of stripping down naked in front of female Secret Service agents to go for a swim.

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COVID-19 is killing 20 times more people per week than flu does, new paper says

Infographic: COVID-19 Cases per Million Inhabitants: A Comparison | Statista
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BUY BTZ

May 15, 2020. We are placing a BUY Limit order on BTZ BlackRock Credit Allocation Income Trust. Pays 7.35%. We are hoping the price comes DOWN to our Limit Order price of: $12.55 If BTZ does not decline to our buy price, we will raise our buy price.

This small position is less than one percent of the Core Portfolio.

Link to full article is below.

Buy What the Fed is Buying

Corporate bonds are getting a boost

Through the special vehicles with credit guarantees from the Treasury, the Federal Reserve is making massive buys of US corporate and municipal bonds. It’s doing this to both stabilize the bond and credit markets now, as well as working to drive down yields and credit costs for corporations, municipalities and other debt issuers.

This means both segments and others have a major buyer that underpins prices. Just like after 2007-2008, the Fed kept the bond portfolio and reinvested maturities and interest for most of the following decade. And recently, the new and renewed buying is bulging the Fed’s portfolio to nearly $7 trillion and climbing.

Friday News

Sorrento Therapeutics (NASDAQ:SRNE) gallops 56% premarket on robust volume in reaction to reports that it has discovered an antibody, dubbed STI-1499, that, it says, can provide 100% inhibition of COVID-19 and flush out the SARS-CoV-2 virus from the body within four days.

“We want to emphasize there is a cure,” says CEO Henry Ji. “If we have the neutralizing antibody in your body, you don’t need the social distancing. You can open up a society without fear.”

The antibody, one of “hundreds” it screened, blocks the coronavirus’ spike proteins from attaching to ACE2, a receptor on the surface of healthy cells that serves as a “doorknob” to open the cell to infection.

Ji says STI-1499 can be used as preventative therapy since there are no unwanted side effects, adding that it may be more effective than a vaccine.

The company is partnering with NY-based Mount Sinai to develop an antibody cocktail, Covi-Shield, comprised of three different antibodies, including STI-1499, for prophylactic use. It says it can produce up to 200K doses per month and is looking to produce “tens of millions” to meet demand.

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TOUGH TIMES. BUY IEF

May 14, 2020.

On May 11, (and May 6) we posted an expectation of a decline of 5-10% for SPY. And we are now in that pull back.

We now anticipate SPY heading back up after this minor decline, BUT THEN A significant decline June/July. (if you are trading heavy in stocks, be sure and have sell stops in place) THAT would be a good time to buy inverse funds that go up when the market declines.

We are in a bear market. Buying of bonds continues. Holding large cash positions and individual corporate bonds.

We are placing a very small starter BUY LIMIT order for IEF, the 7-10 year IShare Treasury bond etf, at $122.09.

NOW IN OUR 8TH YEAR. Go to the Core Portfolio for current holdings. Don’t forget to hit the like button. This blog is designed for retired investors seeking income.

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