August 19, 2016
Our recent recommendation GLLTP has now converted to the permanent ticker LANDP…and is trading at $25.70!!!!!!! This is bat-shit crazy stuff.
We were unable to get GLLTP under $25.15 and it has now been driven sky-high. Very suspicious activity. We will keep a buy order at $25.15 for now.
This is a good example of what is happening in this over-heated market. Yield seekers are driving up prices way beyond reasonable levels: SEE OUR THOUGHTS BELOW.
We now have approximately 69 positions in the Core Portfolio. Under normal circumstances this would be way to many to track and monitor. But 50 of them are long term corporate bonds that are rarely sold or called. Easy yield in our opinion. And almost all of them are doing very well. We closely track the remaining 19 positions but again most of these are bonds which are rarely sold.
We feel the bond and stock markets are over-valued. Right or wrong we are ready to sell most or all positions if and when the circumstances change. Having lived through the last stock market correction /massacre we are taking NO chances on losing again.
BUT so far so good. We have done very well in 2016 primarily due to the never-ending low interest rate cycle, stock buy-backs pushing prices higher, Quantitative Easing (printing money), and the extreme demand for high yielding investments by high income seeking investors.
A number of high profile financial advisors, money managers, and banks have suggested getting OUT OF THE STOCK MARKET. We agree. We hold almost no stock positions. If you own stocks be sure and have sell limit orders in place.
Bottom line: it is doubtful anything drastic will occur until after the elections. But we are NOT complacent.