January 3, 2015
To View Current Positions Go To Core Portfolio
Happy New Year!! As I write this we are getting the first snow of the season…..I really don’t like winter!!!!!
We continue holding all positions in the Core Portfolio. Barring some natural or political disaster it appears the markets will march higher as we get into 2015.
We have recommended numerous positions over the last few months and most of them are doing very well. I am taking a serious look at LMLP which is a leveraged ETN that does NOT include energy. This is a high risk position that gives you a very good yield. If the market continues higher this year. we will do well with LMLP.
The ETRACS Monthly Pay 2x Leveraged Wells Fargo® MLP Ex-Energy ETN (NYSE: LMLP) (“LMLP” or the “ETN”) is an exchange-traded note linked to the monthly compounded 2x leveraged performance of Wells Fargo® Master Limited Partnership Ex-Energy Index, less investor fees. The index is intended to measure the performance of all non-energy master limited partnerships (“MLPs”) listed on the New York Stock Exchange (“NYSE”), NYSE MKT or NASDAQ that satisfy market capitalization and other eligibility requirements.
MOVIES Unbroken. Strongly recommended. This is one of the better movies that you will see. A story of Olympic runner-turned-POW in WW2. The book is #1 on the New York Times best-seller list. Our local theatre has installed new recliner seats……wow what a great experience.
MOVIES The Interview. The movie that got Sony hacked. Believe it or not, this is actually a fun romp and I suggest you see it. You will laugh at the raunchy jokes and generally speaking have a good time. This thing is certainly more fun than a lot of the crappy movies out there.
Most investors including myself did not see the coming implosion in oil. I still hold oil investments. Of all the advisors that I read, only one was smart enough to get out of oils way back in the Spring. In my opinion this is a manufactured collapse that is designed to hurt Russia and Iran…and eventually we will see higher prices. At this point we have ‘paper losses’ and I am not prepared to sell anything…….and hopefully will continue getting the dividends. The upside………..we are paying $1.93 when filling up the old wagon.
If you want an excellent analysis of the oil situation, read this article:
In a new interview with Barron’s, Gundlach is once again going contrarian and saying rates could go lower than we seen in a very long time:
Where the median economic forecast tabulated by Bloomberg for the 10-year U.S. Treasury Bond yield for year-end 2015 currently stands at 3.24%, Gundlach thinks the 10-year that finished 2014 at 2.17% could potentially take out its modern-era low of 1.38% yield hit in 2012. This would particularly be the case if crude-oil prices keep falling to, say, $40 a barrel from their 2014 year-end level of about $55. This further drop from the 46% decline suffered by crude in 2014 would only accentuate deflationary forces he sees at work globally that continue to drop long-bond yields…
…weighing on U.S. bond yields will be brisk foreign buying from investors in Japan and Europe, where long-term sovereign debt bond yields are mostly lower than U.S. rates and economic growth prospects are less bright. “Everybody worried about what would happen to the U.S. government [bond] market when the Fed ended [its third round of quantitative easing] last fall and stopped its heavy monthly government bond purchases,” he points out. “The answer, of course, is that foreign buying easily replaced declining government support of the market. And the strengthening dollar, which we think will continue, only makes U.S. bonds all the more attractive, for not only do foreign investors benefit from higher relative rates, but they also win on currency translation profits.”
Here is the link to the Newsweek article on the Bible that has everyone in a tizzy. This is great reading.
The Bible: So Misunderstood It’s a Sin