July 29, 2019
We continue to be SHOCKED at how many financial advisors (that we respect) keep telling us to buy stocks/bonds when we are at ALL TIME HIGHS. Now tell me: who in the hell is going to buy positions when everything has spiked higher since December.
Evidently there are investors out there that are doing EXACTLY THAT.
Do not get sucked into this euphoria and start overpaying. There is still a good probability for a 4-5% pull back here which would give everyone a nice buying opportunity. Yes markets may continue higher, especially if the Fed lowers rates this week. And they may go to the moon. But we are not going to start buying unless it is on sale, or we see a new issue become available like NEWTL, which we are waiting for. (LMRKO is going ex-div on Wednesday and we may add to this position.) It is too risky, right now, to buy SPY or market indices. We look for income issues (a huge number are listed in the Core Portfolio) that have come down in price due to various reasons, or new issues that are priced at par.
Revisit THQ a Core Portfolio holding. THQ pays 7.7% and is now priced exactly where we bought it. Linked below is a positive article.
“Overall, THQ has been performing quite well, even in a beaten-down sector and less-than-ideal inception date. Since I have started writing on THQ the discount has slowly been narrowing. When I first covered the fund it had a discount of over 10%. I believe this will allow for higher shareholder returns as the discount can continue to narrow and the sector as a whole starts to show signs of rebounding. The monthly distribution is also quite an attractive selling point for THQ”
We keep forgetting to mention books and movies that we want to recommend. Lion King: Typical high Disney quality. The “animation” technology makes this movie worth seeing just for the visuals. Go see it. Hollywood: Absolutely terrible. Boring and way too long. Avoid.
New Book: Unfreedom of the Press. Just more of the same: beating up on the ultra liberal corrupt press.
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