August 8, 2016
On August 1, we suggested you buy or add to NEP positions. It pulled back to $29.61, approx at the 50 day moving average, and started to head up, which we expected. We did add to our position. Even at the higher prices today, we suggest buying small amounts. View this as a LONG term hold.
We bought some LNDMP Landmark Infrastructure Partners. This position is NOT being added to the Core Portfolio as we are using this a trade, not a long term hold. If it heads up to $25.80 we will sell. These are preferreds at 7.9%.
Why does the market keep going up with this lousy economy (from investyourself.com):
On CNBC’s “Mad Dash” segment: “Why is the market so strong? What is the bid underneath?”
That bid, he said, is Japan.
“It’s just crazy,” Cramer said, citing a Real Money research report by James Gentile.
The Government Investment Pension Fund of Japan has taken in some cases enormous stakes in individual U.S. companies. The list includes $2 billion worth of General Electric (GE) stock, $1.5 billion in Alphabet (GOOGL) , $100 million in Whirlpool (WHR) , $180 million in Eaton (ETN) and $150 million in Roper Technologies (ROP) .
Now, if you do these aggressively, you actually move these stocks,” Cramer said, especially when the market has bouts of low trading volume. It seemed odd that some of these stocks have stayed afloat despite reporting so-so earnings, he added.
“This is concentrated buying by the government,” he explained. Unlike the Federal Reserve, which opted to buy Treasury bonds, Japan has bought stocks — individually and broadly — as well as bonds and real estate.
Cramer questioned this tactic and said he was “astounded” to learn of it. The fund had to have been one of the biggest, if not the biggest, buyer of GE stock last month, he said
Did you catch that line…he’s ASTOUNDED to learn of this? Like it’s some big secret? Like he just unearthed the Holy Grail? Give me a break. I’ve been whining about this for years to anyone that would listen.
But this is why this market is still flirting with all time highs while the economy is in the toilet. 200 billion a MONTH in QE. The Swiss buying 63 billion in US stocks. The Japanese buying umpteen billions in US stocks. The market is BROKEN. Should we be at all time highs while we print GDP of 1%? Of course not. Has any TV analyst told you why we’re really up here? Like the Swiss, or the Japanese, or the 650 rate cuts since 2008, or the 200 billion in QE each MONTH? Nope, and they won’t. They’ll continue to tell you fantastic fairy tales about earnings and “growth in the second half”.