1 Comment


May 16, 2014

**********Go to “Core Portfolio” for current holdings.**********

I’m wondering if I should change the name of this blog to “boring investing” or “making money the boring way”.

The SPY index has in a consolidation mode for about three months.  The markets go up and down but within a range.  How much more boring can you get?  If you are sitting in an index fund you have earned nothing.  (altho SPY does pay a tiny dividend.)

But if you are invested in our Core Portfolio you would have earned $1500 since the beginning of the year.  Wow how great is that.

With a portfolio of $100,000 (just to make it easy for my simple mind to figure the math) you would have earned $1500 assuming a conservative 6% yield.  Some of our holdings earn more, and some earn less than 6%.  More simple math:  if you are fortunate enough to have a large portfolio of say $500,000 you now have $4,500.00…..which translates to $18,000 a year.

Best of all you don’t have to do a lot of work in dividend investing.  You are not trading stocks everyday and paying trading fees.  You are not assuming the increased risk.  Sometimes boring is good.

So having said all that, what’s going to happen in the rest of 2014???  Well I don’t have a crystal ball.  And all of those dumb ass highly paid talking heads on CNBC don’t know either.  But it does appear we may be heading for lower prices.

The Russell IWM and Financials XLF are in a DOWNWARD channel.  These are key indicators you must watch.

I am HOLDING all income producing positions.  Not selling anything.  But I am looking at a few buys.  So stay tuned.  A declining market does give you buying opportunities.

InterWeb stuff:  “As I noted recently, if the U.S. national debt was reduced to a stack of one dollar bills it would circle the earth at the equator 45 times.”

More stuff from the InterWeb:  “Fox, while down 6%, still drew more viewers (1.75 million) than its two competitors combined (619,500 at MSNBC and 543,000 at CNN).”  and more:  “NBC News and sister cable network MSNBC rank at the bottom of media outlets Americans trust most for news….” and more:  “And the American people know that they are getting very little truth from the establishment media these days.  A recent Gallup survey found that only 23 percent of Americans have a great deal of confidence in the mainstream media at this point.  Increasingly, Americans are turning to other sources for news and information.”

Go to prior post.



  1. Thank you for the article. There is nothing wrong with making money the boring way. As you mentioned and demonstrated in your post, investing in income producing assets is a positive situation whether you actively trading securities or not. To me, a downturn in the market is beneficial for two reasons. First, as you mentioned, it creates buying opportunities through lower prices. Second, it allows your dividends to reinvest at a lower price, which results in more shares per dividend. Barring deteriorating financial conditions of a stock in your portfolio, I see a downturn as a major advantage. The power of DRIPs and investing the boring way is a great phenomenon.

    Keep up the great work. I look forward to reading future posts.

    ~Bert, one of the dividend diplomats

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