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June 22, 2015.  WMB a holding in our Core Portfolio is up $12.00 this morning.

Twelve dollars!!!  SELL right now.

Take your profits today.


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seekingalpha.com is one of our favorite financial websites.  You have large numbers of new articles every day discussing the stock and bonds markets.  Every once in a while you come across an especially good discussion that clearly describes a financial point.  One of those is below:


“As for where interests rate are heading, nobody really knows, even the Federal Reserve. As was made apparent via its FOMC statement, they are sending out very mixed signals. Yellen implied that the Fed still on track for a rate hike or two later this year. However, the market is not buying it and is seeing through the charade.

From the Fed’s very own economic projections, it is obvious that they slashed US GDP growth estimates by at least a full 1%. They are now expecting 2015 GDP growth to range to 1.8%-2%. Hardly a sign of an overheating economy.

Furthermore, inflation is no where to be found outside some select asset bubbles. All around, commodities such as oil, natural gas, steel, corn, wheat, etc, are trading lower. This not helped by the extremely strong US dollar, which is more of a side effect of easing in Europe, China, and Japan than an indication of US economic strength. In addition, wage growth is stagnant, while the unemployment rate is going down mostly due to workers giving up on finding full time jobs and settling for part time, temp, or low wage work to get by.

It is not much of a surprise then that US treasuries surged on the Fed news, with the 10-year falling below 2.30% after seeing a major rally entering the month of June, an utter refutation of the Fed statement.

This news and market reaction makes Yellen’s stance on raising rates seem irrational at best and willfully ignorant at worst. Indeed, the data shows that we should be considering more monetary easing, not tightening.”

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