October 8, 2018. Investors are concerned about last week’s drop in the markets.
The Core Portfolio includes date specific bonds that we hold to maturity. Yes you will see price fluctuation (up OR down), but you receive dividends in the meantime AND you get your money back at maturity.
We have had such positive results for so long that investors are selling at the slightest hint of trouble. Right now, we are NOT selling. We suggest you do the same. Bonds are currently at very depressed price levels and we expect that to change–upward.
Obviously if markets collapse, we will get out. We do NOT anticipate this happening-especially with the mid term elections upcoming.
The buy limit order on NSS is at $25.11 but it appears we may NOT get filled. The price just refuses to drop.
As we expected the Amazon PR stunt for increasing wages is bull crap for their longer term workers. Some will actually see declines in income.
Amazon’s decision to raise workers’ minimum wage to $15 per hour was welcome news, even Sen. Bernie Sanders praised the move.
But for some Amazon employees, the excitement didn’t last very long as they learned that existing financial incentives and bonus programs, including stock and monthly bonuses, that usually boost paychecks will be eliminated starting November 1.
Several Amazon warehouse workers in the U.S., who spoke to Yahoo Finance on the condition of anonymity fearing reprisals, talked about how the change will negatively affect them. After the removal of these perks, some workers said they will be making less. Most of the workers who voiced concerns have been working for the company for more than two years, and have been earning close to $15 an hour before the raise.
While these workers’ hourly rates will rise modestly, they said they could lose thousands of dollars that they would have collected from the stock and monthly-bonus programs. Amazon said those who are already making $15 an hour will see an increase in pay but did not specify how much.
An employee earning $15.25 an hour who has worked for Amazon for more than three years in Arizona crunched the numbers. Although he is getting a $1 an hour raise, which would equate to as much as $2,080 in additional pay a year, he said he could have earned a few thousands of dollars more from the incentive programs. “Amazon isn’t giving its employees a raise, they’re taking money from us,” he told Yahoo Finance. “It only looks good if folks don’t know the truth.”
What is the real reason for the rising rates….link to full article below.
…….. what caused Treasury yields to suddenly start rising on Wednesday and into Thursday?
The answer is very likely the same reason that Treasury yields rose so sharply at the end of 2016. And the answer is also very likely the same reason that Treasury yields were surging higher at the end of 2017 into the start of this year. The answer is the sale (or perhaps liquidation) by major foreign holders of U.S. Treasuries in general and countries like China and Japan in particular, both of which are by far the largest foreign holders of U.S. Treasuries at more than one-third of the total. It will take some time before the official data become available to verify this answer, but it has been the culprit so many times in the past when the mainstream financial media and its pundits are pointing elsewhere to possibilities like inflation.
Still bullish on bonds. Putting this all together, I remain still bullish on bonds with a particular focus on the long-term U.S. Treasury and taxable municipal bond markets.
GO HERE FOR FULL ARTICLE