Leave a comment

GET OUT OF INTEREST RATE SENSITIVE INVESTMENTS. SELLING ANOTHER ISSUE. IS COMEY TOAST.

Welcome to Dividend Income Investor

November 11, 2016

Good riddance:  from edwardkein.com:

After persistent prodding by Valerie Jarrett to remove James Comey from his job as director of the FBI, President Obama has agreed the time has come to fire America’s top cop.

According to a White House source familiar with Obama’s decision, Jarrett and the president held lengthy discussions over the past several days about the political and legal ramifications of firing the FBI director.

The president was furious with Comey for reopening the FBI’s investigation of Hillary’s emails 11 days before the election, then admitting 2 days before the election that he couldn’t find any cause for taking action against the Democratic nominee.

But the president was reluctant to move against Comey for fear that it would open him to charges of obstruction of justice.

However, according to the White House source, Jarrett convinced the president that it was within his power to remove the FBI director for his ill-conceived and erratic interference in the presidential election.

_____

THE INVESTMENT ARENA HAS CHANGED

In case you haven’t noticed, (and most people are NOT noticing) rates are going up.

We have been selling bond like positions over the last few weeks and continue to look at potential sells.  We suggest you stay OUT of REITS, utilities or Treasury bonds.  Preferred stocks and ‘baby bonds’ are rate sensitive.

Individual corporate bonds are sensitive:  we have Newmont and Southern Copper with huge profits.

We are Selling the Southern Copper bond Cusip 84265VAH8.  We bought this on sale (a lucky break) and have two years worth of dividends in the bag due to the price appreciation.  Also the bond does not mature until 2025.  So we are taking profits.

We intend to hold most of the corporates to maturity.

So, you ask, what should we look at for buying.  What does well in a rising rate environment.

Well, financial and insurance are areas to look at.  Maybe floating rate funds.  We may make buy decisions within the next week.

_____

From investorplace.com:

Fear #7: Donald Trump will be a meanie.

SPDR S&P 500 ETF Trust (NYSEARCA:SPY)Yes, he will be, to those that deserve it.

Trump will push back on the destructive PC culture and put “social justice whiners” in their place. He will show strength to our enemies, and play from a position of strength. He will do what is best for business, because Trump investments depend on the success of America.

_____

Here is an excellent overview of the current markets in response to the Trump presidency:

http://seekingalpha.com/article/4022104-just-happened-equity-markets?app=1&uprof=46&isDirectRoadblock=false

 

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: