May 21, 2015
(ALERT……………PAA, a position in the Core Portfolio, had a small oil spill. Altho very regrettable, this is a MAJOR BUY signal for investors that want to get into the energy segment. You buy when stuff is on sale. BUY or ADD to your current position: BUY at $46.00 or at any price close to $46. Let me repeat, this is a good opportunity.)
The Fed dopes told us yesterday that they are not raising rates. The dollar is down today, and so our oil positions are up…..hooray. The market today is quiet. Hold all positions as listed in the Core Portfolio. If you did not buy PONDX when we talked about it recently, please read the discussion below.
I saw an interesting article on http://www.seekingalpha.com discussing retirement investing, and this paragraph describes two bond funds which we already own and recommend:
Instead of passive indexes, I prefer holding core positions in actively managed bond funds such as the PIMCO Income Fund (MUTF:PONDX) or SPDR DoubleLine Total Return Tactical ETF (NYSEARCA:TOTL). Both funds offer a risk-managed approach with veteran management teams that have the flexibility to shift their sector, duration, credit, and interest rate exposure as needed. This can reduce overall volatility and produce superior yields than many funds with heavy treasury or investment grade corporate bond exposure.
Street Talk by Lance Roberts is by far one of the best financial sites that I have seen. Unfortunately I have only recently discovered this valuable information source.
First of all this is not a stock picking site.
They DO provide analysis of numerous topics including interest rates, unemployment rates…….the list goes on and on. Lance also writes a daily blog which is worth reading. The site is really good for financial wonks like myself who want to understand everything that is affecting the financial markets. I strongly suggest you look at the site and see if it’s valuable to you.
The reality is that there has been very little recovery in housing. With six years of economic recovery now in the rear view mirror, it is clear that the average American is not recovering as evidenced by the lowest level of home ownership since 1980.
At 63.7%, the current level of home ownership shows the lack of “true” household formation which is a detraction from longer-term economic growth. The weak rate of growth and widening wealth gap certainly explain the fall in homeownership rates and the lowest level of birthrates on record.
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Do not buy any positions mentioned here until you view Current Positions.
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