April 1, 2014

Go to “Core Portfolio” for current holdings.  Hit “+Follow” at top of page to follow this blog.

(Evaluating YYY for possible BUY)

(60 Minutes caused a ruckus about the ‘rigged’ stock market.  Well I’m not sure it’s rigged but sure as H it is manipulated.  This is OLD news.  So should we care?  I don’t think we should as long as you stick with dividend paying investments.  Let the big stock market day traders and hedge funds worry about how fast their orders are filled.)

(Just remember this:  there is no way they are going to let this market collapse with the upcoming elections in November.  Are you kidding me.)

That NitWit Yellen is now talking about extending QE.  So we may NOT see higher rates for a long time, and the markets should continue higher.  Only in America……wow talk about manipulation.  Stay invested, but always keep in mind this money printing by the Fed will cause a huge Crash….someday.

PSEC:  I suggest buying more up to 5% of the portfolio………this is a good opportunity.

I doubt that many readers of this blog are familiar with “covered calls”.  In actuality covered calls are somewhat complicated but put very simply they are a way to receive more income than just the dividends paid by the stocks.  In other words, you get high yield but the risk in increased.  So I suggest small positions to start.

(I have provided a link below to an excellent article from SeekingAlpha.com that describes how they work.  The author presents 12 funds that you can evaluate.)

So why would you want to invest in these things?  Well, higher yield of course.

A word of caution:  unless you are an experienced trader, you never, never, never want to get into the covered call game on your own.  You are competing with experts and your chances of losing money is huge.  So you want to get into funds that we are talking about here.  They have the experts and they will do the work for you.  So let’s look at some possibilities.

I have owned CII Blackrock Enhanced Capital and Income for years, and years, and more years!  The yield is around 9%.  The article that is linked below gives you several investments from which to choose, one of which is CII.

I suggest you review EXG the Eaton Vance Tax Managed Global Diversity Fund paying over 9%.  They have 136 holdings and they invest only in indices, not stocks, which I feel is a positive aspect.  You could also add to the position when it goes ex dividend in the middle of April.  The price today is $10.10.  Note that if we see much higher interest rates later this year or next year, we may want to sell this thing.


Additional article:  http://seekingalpha.com/article/2134233-in-times-like-these-consider-covered-call-etfs

Movies.  Captain American.  What a fun time.  Strongly recommended.

The Associated Press-GfK survey finds that 26 percent of Americans support the Affordable Care Act.

Amazing Stuff:  “To fix the unemployment rate, a government basically has two big options: create jobs, or change the definition of what unemployment is. What did our government do? You guessed it. They swept the dirt under the carpet… changing the way unemployment rate is calculated…and they redefined unemployment as “number of Americans receiving unemployment benefits”.

Stopped receiving benefits?

It doesn’t matter that you haven’t had a job since Clinton… in the state’s eyes, you’re NOT unemployed.
But when you follow the method the government used to calculate unemployment rates before the 1990s, the shocking rate is more than 3 times bigger – or 24%… far more than we had even during the Great Depression, and close to that of countries on the verge of total collapse, like Spain.”

Link to prior post.

2 comments on “BUYING EXG 9%

  1. […] 21, 2015  EXG and TOTL are positions in the Core Portfolio.  We are suggesting you ADD to your existing […]

  2. […] EXG has 87 holdings including Google, Apple, Nike, Home Depot, Prudential, Anheuser-Bush InBev SA, Medtronic, Roche Holding AG, Imperial Tobacco PLC, NXP Semiconductors, NV and Compass Group PLC. http://funds.eatonvance.com/tax-managed-global-diversified-equity-income-fund-exg.php […]

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