Welcome to Dividend Income Investor
They ALL use the same tax loopholes: LOL Go to the link:
Clinton Campaign Admits Hillary Used Same Tax Avoidance “Scheme” As Trump
(Update: October 1. We are still holding a buy order for ARU at lower prices. The momentum is still down so we may have a chance. But yield investors are seeking dividend payers and so the prices remain higher than we are willing to pay…..so it has become extremely difficult to buy positions at the price that we want. You DO NOT want to pay much more than $25 for ARU)
Overall the stock market has been relatively flat but we are very happy with the bond oriented Core Portfolio as we have realized numerous dividend payments in September…and most of the positions are acting well. Warning: the Core Portfolio is interest rate sensitive and we will start selling if rates start rising aggressively…which we do NOT expect.
September 29, 2016
The big political rumble is now over and everyone is waiting with baited breath for the polls to come out. Of course most of the online polls are showing that Trump won, BUT these are not scientific.
We felt Trump looked awful and unprepared to fight Hill but there is a growing revolution for change and he may be able to pull it out in the end. More and more Americans are realizing that the whole system is corrupt as hell (FBI?) including the media and a change is needed.
In the meantime we are watching numerous potential investments and they continue to remain over priced. BUT ARU, Ares Capital, which we do want to buy, dropped down to $25.22 yesterday. This baby bond is callable at any time, so you do not want to pay much over $25.00. The current yield is 5.77%
We ARE placing a Limit Buy Order at $25.00 in hopes of getting lucky. The momentum is still DOWN so do not get anxious. Wait for the price you want.
With approximately $95 billion in assets under management, Ares Management, L.P. (NYSE:ARES) is one of the largest global alternative asset managers, with three complementary and market leading investment groups: credit, private equity and real estate. We believe the power of our combined platform makes us better investors and enables us to offer a broader range of flexible solutions along the risk reward spectrum.
Some thoughts on bonds from realinvestmentadvice.com
Importantly, while interest rates could possibly tick higher to the long-term downtrend line at 2.1%, (OMG, run for the hills), the reality is the economy is not growing strongly enough to support substantially higher rates which will push the economy more quickly towards the next recession.
Of course, it is during recessions that interest rates fall sharply. Given the rising level of evidence of a potential recession within the next 12-18 months, and with the majority of global economies already sporting negative rates, I continue to expect Treasury yields to ultimately approach zero.