May 5, 2015
SELL GOV. GOV is a holding in the Core Portfolio. This sucker is falling apart and we suggest you sell it on Monday. We have held GOV for many many years and still have a profit when you include the dividends. A lot of financial advisors were positive on GOV but it looks like the rental rates were declining. If you own GOV sell it. This was a surprise but S— happens in this investing game. You want to sell losers because they usually get Worse.
This is a good opportunity to remind readers of a core principle that we follow. A single position should never represent more than 1 or 2% of the portfolio…..with some exceptions you can go to 4%. In this way you avoid big losses when a position tanks. I cannot tell you how many times I have broken my own rule!!!…….resulting in big losses. Don’t make the same mistake.
Do not buy any positions mentioned here until you view Current Positions.
Go To Core Portfolio Click Here.
In other news, the GDP report last week was a disaster…..
The Atlanta Fed nailed US gross domestic product in the first quarter.
On Wednesday, we learned that the US economy grew by just 0.2%, far below the consensus forecast among economists for 1% growth. Of the 86 economists surveyed by Bloomberg, only four estimated that GDP growth would be 0.2% or lower.
The Atlanta Fed had long forecast 0.2% growth before revising it down to 0.1% after last Friday’s durable goods report.
And just a day after the disappointing Q1 GDP release, the Atlanta Fed has news about Q2: the economy will grow by just 0.9%, according to their latest forecast. Here’s what they wrote in a post on their website:
“The initial GDPNow model forecast for real GDP growth (seasonally adjusted annual rate) in the second quarter of 2015 was 0.9 percent on April 30. Real GDP grew 0.2 percent in the first quarter, according to the “advance” estimate from the U.S. Bureau of Economic Analysis, 0.1 percentage point higher than the GDPNow model nowcast.”
The Chief Liar in Washington (u know who I mean) continues to tell the American public that everything is great and improving. Lies about ObamaCare, Lies about the IRS, they are never ending.
Some advisors are now thinking that we will a new round of QE: Quantitative Easing. (QE is printing more money to help stimulate the economy.) Despite low interest rates and stock buy-backs, this economy continues to sukk.
We continue holding all positions. The energy stocks are doing well and we like the numerous corporate bonds that are in the Core Portfolio.
BOOKS: The Residence: Inside the White House. This book has been getting a lot of press coverage and is evidently selling well. Altho it is a fun read, most of this stuff has already been covered in movies and TV programs, specifically by Smithsonian. Yes it’s a good beach read, but you are not going to get any super secrets about the WH that you probably don’t already know.
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