Sunday March 1, 2015
To View Current Positions Go To Core Portfolio Click Here. Add us to your Favorites!
(Update Friday: The amazing FAKE jobs report has everyone afraid that the Fed will start raising interest rates….the real unemployment rate is about 11%.
If you own muni bonds, preferred stocks, utilities, or long term bond funds, make damn sure you have sell orders in place so that you don’t get hurt. We sold our muni bond positions several weeks back.)
You can’t make-up this stuff:
First it was Italy which, as we reported last week, had decided to “boost” its GDP by adding the estimated impact of cocaine and hookers. And now, riding on the coattails of this economics gimmick designed solely to make the economy appear more solvent, it is Britain’s turn, whose Office for National Statistics will also add add up the “contribution” made by prostitutes and drug dealers.
Adding to BSJL Bond Fund IF it gets below $25.00
Buying Corporate Bond Kinder Morgan at $98.00. Cusip 494550BN5
Kinder Morgan Energy Partners is a toll collector with 85% of its revenues being fee based in nature. They have the premiere pipeline assets in the U.S. — the largest energy infrastructure in North America. As America brings and produces more energy onshore in the U.S., there are going to be more requirements for energy infrastructure. So the growth within this industry should be very powerful.
(Update March 4: The stock market wants to go UP. Despite crappy economic news……. the low interest rates and Companies buying back stocks will keep markets going higher. The higher dollar is hurting our only gold position but we hold for the dividend.)
Here is a new income ETF from my favorite family DoubleLine.
SPDR DOUBLELINE TOTAL RETURN TACTICAL ETF. I suggest you buy the multi-sector fixed income etf TOTL. The estimated return is a rather small 3.5% but it is a great conservative and safe investment in the bond arena. This is a good addition for the conservative part of your portfolio.
This position would be a good “parking spot” for excess cash that you may have laying around. You don’t have to tie up the money for years and you can sell at any time you may need money.
There are numerous higher risk investments listed in the Core Portfolio if you want higher yields. Remember: A single position should NEVER represent more than 4% of the portfolio.
Here is a link to the video if you want more info:
The investment seeks to maximize total return. Under normal circumstances, the fund invests substantially all of its assets in the State Street DoubleLine Total Return Tactical Portfolio (the “Portfolio”), a separate series of the SSgA Master Trust with an identical investment objective as the fund. As a result, it invests indirectly through the Portfolio. Under normal circumstances, DoubleLine Capital LP (the “Sub-Adviser” or “DoubleLine”) will invest at least 80% of the Portfolio’s net assets in a portfolio of fixed income securities of any credit quality. The fund is non-diversified.
We continue watching EPD for a buy………at lower prices.
You need to read this. From the New York Times.
The market has been rising — for the most part — since March 2009, in no small measure because of that policy, which makes stocks and other assets relatively attractive, compared with low-yielding fixed-income instruments. Ms. Yellen’s prepared testimony seemed aimed at keeping the market calm — not only now but whenever the Fed actually decides to raise interest rates.
Recently, the market has been rising despite a barrage of corporate reports that might suggest that stock prices are overextended. After all, growth in both revenue and earnings for the last quarter has decelerated. For the 440 companies in the Standard & Poor’s 500-stock index that had reported by Wednesday, revenue for the fourth quarter rose only 1.5 percent over the period a year ago, compared with a 4.1 percent growth rate for the third quarter at the same point in the previous earnings season, Mr. Yardeni said.
Comparable numbers for earnings were an annual increase of 5.9 percent in the fourth quarter, versus a 10.4 percent rise at the same point in the previous earnings season. The strong dollar, falling oil prices and a sluggish global economy have all taken their toll.
What’s worse, guidance for future earnings turned extremely pessimistic. Bespoke Investment Group examined 1,680 publicly traded companies that reported earnings between Jan. 12 and Feb. 19. After subtracting downgraded guidance from upgrades, it found that, on average, companies had downgraded their earnings prospects by “a ridiculously low” net 9.5 percentage points. Corporate guidance hasn’t been that bleak since the end of the financial crisis in the first quarter of 2009.
Sectors to AVOID due to the potential of rising rates. If you own these, be sure and place sell limit orders: preferred stocks, utilities, municipal bond funds and LONG term bond funds. Never buy an annuity.
MOVIES. FOCUS. Boring piece of crap. Avoid.