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HUGE COMPANY. SMALL RETURN.

May 16, 2017

(Update May 18:  Despite a mini crash in the stock market yesterday, and with expected downward pressure today, we had a very tiny decline in our Core Portfolio.  Trump is obviously failing and none of his bills are going to get passed:  the stock market is finally reacting.

We hold major positions in bonds, and we have to laugh at the bond bears out there telling us how bonds are going to collapse.  This aint gonna happen folks.

btw Here is an article on financial derivatives that you must read:

http://theeconomiccollapseblog.com/archives/financial-weapons-of-mass-destruction-the-top-25-u-s-banks-have-222-trillion-dollars-of-exposure-to-derivatives

Another issue:  We keep reading all the articles about why Hillary lost.  lol.  (We finally got the book Shattered from the library, about Hills loss)

Folks there is one major reason:  her calling Trump supporters “basket of deplorables”.  This had a major impact on the Trumpers:  just remember that as you read all the crap about Hillary.

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(“Tabloid Media” having a field day today trying to get Trump pushed out.  LOL)

Generally speaking retired, and near retired folks, are looking for investments that provide safety first, and if possible, good returns.  If rational, this group does not expect 10% returns……….like the ponze scheme that Madoff was running.  By the way if you missed the Madoff show on CNBC, be sure and take a look at the re-runs.  We expected to be bored silly, but it was a great review of the destruction that Madoff dumped on his clients and family.

So anyway, the bond we are looking at today gives you rather modest returns.  But the Company is absolutely humongous and when buying Corporates you have to be virtually certain that the issuing Company will be around when the bond matures.

(As a note, we DO have high paying riskier positions in the Core Portfolio.  You can take a look and view the yields on the Core Portfolio holdings.)

GO TO CORE PORTFOLIO to see current positions.

We were not aware of Brookfield until over the weekend when we read some articles in Forbes that were fascinating.  The link is below.

BUSINESS:  Brookfield Asset Management Inc., is a global alternative asset manager with over a 100-year history of owning and operating assets with a focus on property, renewable power, infrastructure and private equity.

https://www.forbes.com/sites/antoinegara/2017/05/02/brookfields-bruce-flatt-billionaire-toll-collector-of-the-21st-century/#42e2c24b792d

BUY  CUSIP 112585AH7  Yield 3.66     Matures January 2025

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Here is a good article on bonds:

https://seekingalpha.com/article/4073287-high-yield-bonds-now-2017-outlook

 

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