December 6, 2017
We are suggesting you look at NEWTL which is a debt security from Newtek: pasted below is a brief description copied from the article and the link is below. We have been watching Newtek for ages and the time has come to buy. The bond NEWTL is a BUY.
We are NOT buying this in the Core Portfolio simple because we do NOT have the CASH LOL !!!!!!! As we have been saying the Core Portfolio is extended with too many positions. We ARE going to list NEWTL in the portfolio page as a “place holder” and we WILL buy in the near future if the funds become available.
Newtek Business Services Corp. (NASDAQ:NEWT) is an internally managed Business Development Company with a unique and differentiated business model. What is most notable about NEWT is that it has outperformed ALL of the other internally managed BDC companies over the past 12 months.
“MUST READ” article-link below:
Since 2014, the stock market has risen (capital appreciation only) by 35% while reported earnings growth has risen by a whopping 2%. A 2% growth in earnings over the last 3-years hardly justifies a 33% premium over earnings.
The current market advance both looks, and feels, like the last leg of a market “melt up” as we previously witnessed at the end of 1999. How long it can last is anyone’s guess. However, importantly, it should be remembered that all good things do come to an end. Sometimes, those endings can be very disastrous to long-term investing objectives. This is why focusing on “risk controls” in the short-term, and avoiding subsequent major draw-downs, the long-term returns tend to take care of themselves.