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August 5, 2014

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

(Update Tuesday:  Those crazy Russians are in the news and the DOW is down 200 points.  This will probably blow over and at that point you should be looking to buy stuff when it’s on sale….we don’t know when, could be days or weeks.  The good investor waits for situations like this which typically lead to buying opportunities.  In the meantime we have to tolerate the pain in declining values of the Core Portfolio but the dividends keep coming.)

Back on July 19 I told you that the markets were over valued, we had high risk, and you may want to put in some sell stops.

Well guess what.  We took a hit last week.  Investors were afraid that interest rates would be going up.  Everyone and their brother were selling and telling us the end was near.

As I said in July I was holding on.  I sold nothing and I suggest you do the same.

Yes I think we could go lower.  The current momentum is DOWN.  But with the elections upcoming, I think the long term action is UP.  The crooks in Washington continue to lie and tell the American people that everything is great.  Well, it’s not.  The real unemployment rate is terrible probably around 14% and people do not have money to spend.

I suggest you hold on.  Yes we could take more pain but in dividend investing you are still earning income on a consistent basis. Yes you take the occasional hits, but long term everything works out.  Having said that, we ARE in a bubble and as I have said here many many times, this thing will eventually blow up.  But I think that is down the road….at least until after the elections.

I would not buy anything right now….but I am watching several positions in hopes that we get a buying opportunity.

Six in 10 Americans are dissatisfied with the state of the U.S. economy, more than 70 percent believe the country is headed in the wrong direction, and nearly 80 percent are down on the country’s political system, according to the latest NBC News / Wall Street Journal poll.

The frustration carries over to the nation’s political leaders, with President Barack Obama’s overall approval rating hitting a new low at 40 percent, and a mere 14 percent of the public giving Congress a thumbs up.


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