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DEAD MONEY

April 19, 2018

We bought RA back in 2017.  This turned out to be a mistake as it has dropped $2 per share.  That’s the bad news.

But…..the total return is about breakeven, as the dividends received have made up for the share decline.  Still, this is not our goal!!!  In essence this has been dead money.

So here is the good news.  The technicals are telling us that this thing has bottomed and is now turning up.  Paying almost 11%, RA is a buy.

FUND DESCRIPTION: Brookfield Real Assets Income Fund, Inc. is an exchange-traded closed-end fund or a closed-end ETF which is officially described as a diversified, closed-end management investment company. INVESTMENT OBJECTIVE: The Brookfield Real Assets Income Fund, Inc. seeks to provide a high total return, primarily through high current income and secondarily, through growth of capital. FUND STRATEGY: The Fund seeks to meet its investment objective by investing primarily in securities and other instruments of companies and issuers in the real assets, asset class, which includes the following: Real Estate Securities; Infrastructure Securities; and Natural Resources Securities (collectively, Real Asset Companies and Issuers). FUND MANAGEMENT: Brookfield Investment Management Inc. is the Investment Adviser of the Fund. Schroder Investment Management North America Inc. (SIMNA) is the Sub-Adviser for the Fund’s investments in mortgage-backed securities.

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Here is a very interesting piece of information that we came across.  Many of the financial ‘experts’ that are out there will tell you to ‘sell everything’ if the market drops below the 200 day moving average.

“In fact, the S&P 500 has crossed the 200-day moving average 150 times since 1997. If this were a perfect signal, that would imply 75 separate market corrections.

In reality, in that time, there were only 11 market corrections when stocks fell 10 percent or worse. That means the majority of the time when the S&P 500 went below the 200-day it was a head fake, when investors sold out of the market only to buy back higher.”

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LOOK AT UTF

Welcome to the 6th year of Dividend Income Investor.

Before buying any investment, go to Core Portfolio to see a listing of current positions.

April 17, 2018

We bought UTF in January.  It goes ex-dividend today, and is a buy.  The technical momentum indicators are moving up.  Pays 8%.  Here is a link to the original post.

https://luvthosedividends.com/2017/01/09/toll-roads-and-pipelines-boring-but-pays-well-buy-utf/

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With the fake-news ultra-liberal press continuously dumping on Trump it is amazing that his job approval is 51%.  Altho the press and deep state is doing everything in their power to bring him down, half of the citizens are not buying into the continuing hate speech.

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There is an article in SeekingAlpha which describes the current status of UTF.  It is going ex-dividend today and we will be adding to this position, probably on April 18.

Go this article if you want the details:

https://seekingalpha.com/article/4161742-closed-end-fund-utf-fund-weather-trade-wars

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Economy NOT so hot after all????  Link to full article below.

So we decided to recreate the chart using data JPM disclosed in its earnings supplement. What we found may explain why JPM “forgot” and keeps “forgetting” to add that particular slide. It shows that after bottoming in late 2015, JPM’s net credit card chargeoffs have been steadily rising, passing $1 billion as of Q2 2017, and as of Q1 2018 were at $1.17BN, back to levels last seen in June 2012 or nearly 6 years ago, suggesting that contrary to Jamie Dimon’s commentary, the US consumer is not doing all that hot after all.

https://www.zerohedge.com/news/2018-04-13/missing-slide-jpm-credit-card-charge-offs-surge-six-year-high

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One of those “interesting” stories that we come across.

The Associated Press
An average of 39 percent of U.S. Catholics attended church weekly during the heart of the Francis papacy, from 2014 to 2017, Gallup found in a survey released April 9, which represents a significant drop from the 45 percent of Catholics who attended weekly Mass from 2005 to 2008, in the early years of the Benedict pontificate.

Weekly Mass attendance among American Catholics had stabilized in the mid-2000s at around 45 percent, after falling sharply during the period comprising the Second Vatican Council (1962-1965) and its aftermath, which many Catholics experienced as a time of confusion and upheaval.

The downward trend has resumed during the Francis years, falling more abruptly than it had since the 1970s.

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BUY RILYZ

April 12, 2018

UPDATE Friday  We added at $25.02.  The price has gone lower, and this is still a buy.

BUY RILYZ.

This position is in the Core Portfolio and went ex-dividend today.  Buy anywhere close to $25.00

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BUY BDCS NOW

April 12, 2018

BUY BDCS at $19.61

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President Trump signed an executive order Tuesday for a government-wide review of welfare programs, with a goal of putting more people back to work, White House officials said.

The order directs all federal agencies involved in providing more than $700 billion in low-income assistance annually to study programs that are “failing Americans,” and to report back in 90 days with recommendations, said White House domestic policy council director Andrew Bremberg.

“Our country still struggles from nearly record-high welfare enrollments,” Mr. Bremberg said in a conference call with reporters. “President Trump endorses reforms that ensure those in need receive assistance, while eliminating the economic stagnation that has resulted from long-term government dependence.”

 

https://www.washingtontimes.com/news/2018/apr/10/donald-trump-orders-top-bottom-review-welfare-prog/

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IS GOLD GOING TO GLITTER AGAIN

April 11, 2018

Jeff Grundlach is considered the reigning “bond king”.  What is a bond king, you ask.

Well, he is viewed as the supreme ‘expert’ in bonds.  So when he speaks investors listen.

Jeff Gundlach, who currently manages over $100B at DoubleLine Capital, said
“Gold is negatively correlated with the dollar. We see that gold broke above its downtrend line. But now we see a massive base building in gold. Massive. It’s a four-year, five-year base in gold. If we break above this resistance line one can expect gold to go up by, like, a thousand dollars.

Will it happen? Well it’s not happening right now but it’s a very interesting juncture. It’s a great time to be buying gold straddles. Because one way or the other this baby’s got to break in a big way.”

We use GGN as our way of participating in the gold market.  We have owned for many years.  BUY GGN.  Currently paying 12%. 

FUND DESCRIPTION: GAMCO Global Gold, Natural Resources & Income Trust, formerly the GAMCO Global Gold, Natural Resources & Income Trust by Gabelli, is a non-diversified, closed-end management investment company.

INVESTMENT OBJECTIVE: The GAMCO Global Gold, Natural Resources & Income Trust seeks to provide a high level of current income. The Fund’s secondary investment objective is to seek capital appreciation consistent with the Fund’s strategy and its primary objective.

FUND STRATEGY: Under normal market conditions, the Fund will attempt to achieve its objectives by investing at least 80% of its assets in equity securities of companies principally engaged in the gold industry and the natural resources industries. The Fund will invest at least 25% of its assets in the equity securities of companies principally engaged in the exploration, mining, fabrication, processing, distribution or trading of gold or the financing, managing, controlling or operating of companies engaged in gold-related activities. In addition, the Fund will invest at least 25% of its assets in the equity securities of companies principally engaged in the exploration, production or distribution of natural resources, such as gas, oil, paper, food and agriculture, forestry products, metals and minerals as well as related transportation companies and equipment manufacturers.

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Rules of the Road:  Every so often we mention some rules in investing.

Never, never, ever buy an Annuity.  They sound great but they are sold by insurance salesmen, and they are the biggest scam on the planet.  Avoid.  Just Google search and you can find articles talking about how bad these are.

Don’t trust your money to brokers or “wealth advisors” who only want to collect commissions.  If you are not managing your own money, use a Registered Investment Advisor.  Go to https://www.napfa.org/

Never buy more than 4% of a single position.  At a maximum of 4% you would have around 25 positions in your portfolio.  Learn from the mistakes we have made:  don’t go above 4%.

Generally speaking, you do NOT want to own bond FUNDS.  We prefer individual bonds and target date bond funds where the fund closes on a specific date.

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STILL TRYING TO GET BDCS. AND NEW BOOK

April 10, 2018

BDCS is still on our radar.  Despite market volatility the price is stable and is now $19.94

It goes ex-dividend on April 12 (44 cents) and we plan on buying if we can get the right price.

We have a Limit Order at $19.49.  (NOTE:  You CAN buy BDCS now, and get the dividend.  We prefer to buy at the lower ex-dividend price.)

Note that we already own 8 Business Development Companies in the Core Portfolio and periodically we talk about adding to these positions.  There are numerous positions going ex-dividend during April and we are looking at buying more if we see good prices.

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Last week we mentioned the new political book The Trump White House by Kessler.  We have been reading numerous books since the election and most of them provide similar, and often boring, stories about the election.  After a while you start reading the same stories over and over again.

But The Trump White House is distinctly different.  Kessler claims he is a long time friend of Trump and he can provide a different slant on Trump.  Well, he’s right.

The book is easy to read and very interesting.  The author provides a positive background on Trump that you will certainly never see in the fake news liberal press…..not even on FOX.  We strongly recommend this book.

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We own three Guggenheim ETF’s in the Core Portfolio which have been sold to Invesco.  The management fees have actually been reduced.

ATLANTA, April 9, 2018 /PRNewswire/ — Invesco Ltd. (NYSE: IVZ) announced today that it has completed its previously announced acquisition of Guggenheim Investments’ exchange-traded funds (ETF) business, which consists of $38.8 billion of assets under management (as of Feb. 28, 2018).

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Signature not required!!

You will not be routinely jotting your name on payment slips and checkout terminals much longer. Mastercard, Discover, American Express and now Visa plan to ditch the signature requirement at merchants in April.

https://www.creditcards.com/credit-card-news/signatures-soon-may-not-be-required.php

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SELL KINDRED HEALTHCARE

April 6, 2018

Last year we purchased a ‘distressed’ Kindred Healthcare corporate bond.  We have a significant increase in value PLUS we have received some very nice dividends.  We like to sell high:  SELL THIS BOND.

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Here is another positive article on LADR which has been in the Core Portfolio for a long time….it is always nice to see good reviews on positions that we own. 

We feel LADR is too rich to buy right now:  if you already own, continue to hold your position.

We have seen numerous positive reviews over the last few months.  Here is a tiny excerpt from the article:

“On our last earnings call, I signed off saying I was optimistic about the quarters ahead and today I’d like to leave you with that same sentiment. As the rest of 2018 unfolds, we stand to benefit from rising interest rates.“

https://seekingalpha.com/article/4159190-blue-chip-yields-8_6-percent-strong-results-benefits-interest-rate-hikes?li_source=LI&li_medium=liftigniter-widget

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