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May 25, 2016

Comments from Gundlach who is considered the king of the bond world:  we own several of his DoubleLine funds.

As a result, he said on Tuesday that the rally in U.S. stocks, which began on Monday, feels like a short squeeze and characterized U.S. stocks as “dead money.”

His sentiment echos that of not only Goldman, which recently unveiled a surprising warning hinting a drop back to 1850 is in the cards, but also that of Bank of America which last night said that “we are seeing the same decoupling between US and EM stocks that that turned out a leading indicator in Aug and again in Jan.”

Gundlach has been generally bearish on stocks in recent months as the market has gone largely nowhere. It remains to be seen if central banks will allow him to be right, and when.

May 23, 2016

We are buying a small position in Senior Housing Trust Corporate Bonds.

These are investment grade (just barely) paying an effective yield of 4.95% (pretty good) and maturing in May 2024.  Use this CUSIP to buy:  81721MAK5


We just have to laugh at all those so called expert financial advisors talking about how strong the stock market it.  Give me a break.  The market has been trending down for months:  the highest probability is a significant correction.  We continue holding and buying bonds. 


Chicago is on the road to bankruptcy just like Detroit:  if you own muni bond funds that own Chicago bonds, GET OUT.  (we live in the Chicago area)

New accounting rules show Chicago has understated its pension liabilities by $11.5 billion.

At the end of 2015 the stated liability was $7.1 billion. Today it’s $18.6 billion. That’s a jump in net liabilities of 168%.

Mayor Rahm Emanuel has hopes pinned on union concessions and help from the state legislature. Neither is likely.

Please take our ten second POLL 

GO TO Core Portfolio for current holdings:  All positions were purchased at specific prices and are on HOLD and should not be purchased now unless otherwise indicated.

Go here to see our suggested financial websites.

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