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IN “WAIT AND SEE” MODE AFTER FBI BOMB. DIVIDEND CHECKS COME ROLLING IN!!

Welcome to Dividend Income Investor

November 2, 2016

(Update)  In looking at SPY, the largest 500 stocks, the momentum is still DOWN.  Don’t be surprized to see further declines.

WE ARE LOOKING AT SELLING MORE POSITIONS………….

Quote from MSNBC:  “We have a choice between and idiot and a crook.”

November 1, 2016

(Update)  We have received 16 dividend payments in the last two days.  woohoo.  We sure like seeing those deposits showing up in the broker account.

While we sit around watching the boring stock market, our positions in the Core Portfolio continue giving us decent revenues.  We expect the markets to be DEAD until the election is over.

Image result for halloween stock market images

We are trying NOT to over-react to the potential rise in interest rates.  But we have sold, so far, eleven positions.  In the case of VZA last week, we gained TWO years of dividends….in other words the price had risen so far that we decided not to wait two years for the dividends to come in….that we could gain by selling now.  VZA had exploded higher and had been drifting down…probably due to investors anticipating higher rates.

We have been buying a few positions that may work better in a rising rate environment….and we have numerous positions that we are looking at.

BUT rates have been declining for years and we do not pretend to know the direction of rates.  It is prudent to take precautions….and take profits when appropriate.  We do understand that rates would probably go up very slowly so knee-jerk reactions are not in our best interest.

And yes we are looking at potential sells in the baby bond arena in addition to the huge number of corporate bonds that we own, which have been so good to us.  The long dated bonds are up to scrutiny.

Finally, the FBI bomb on Friday opens the ‘possibility” of a Trump win….according to the Sunday polls.  This would indicate market disruption as he is an ‘unknown’.  We must remain vigilant and cautious in the next week.  In the stock market, SPY, we are seeing lower lows and lower consolidations:  the momentum is still declining.

We are simply waiting and watching…..and trying to stay away from the candy stash.

_____
From Daily Mail:

James Comey’s decision to revive the investigation of Hillary Clinton’s email server and her handling of classified material came after he could no longer resist mounting pressure by mutinous agents in the FBI, including some of his top deputies, according to a source close to the embattled FBI director.

‘The atmosphere at the FBI has been toxic ever since Jim announced last July that he wouldn’t recommend an indictment against Hillary,’ said the source, a close friend who has known Comey for nearly two decades, shares family outings with him, and accompanies him to Catholic mass every week.

‘Some people, including department heads, stopped talking to Jim, and even ignored his greetings when they passed him in the hall,’ said the source. ‘They felt that he betrayed them and brought disgrace on the bureau by letting Hillary off with a slap on the wrist.’

According to the source, Comey fretted over the problem for months and discussed it at great length with his wife, Patrice.

He told his wife that he was depressed by the stack of resignation letters piling up on his desk from disaffected agents. The letters reminded him every day that morale in the FBI had hit rock bottom.

CLICK HERE for Dividend Income Investor Core Portfolio showing current holdings.  WARNING:  MOST OF OUR POSITIONS ARE INTEREST RATE SENSITIVE.  WE HAVE BEEN SELLING SOME POSITIONS IN ANTICIPATION OF POSSIBLE INTEREST RATE HIKES.

CLICK HERE FOR our suggested financial websites.

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