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BUY SDOW

May 6, 2020. We are still short term bearish on stocks, expecting a pull-back in the near future. A guess is 2675 for SPY.

Today we are BUYING SDOW, a triple short inverse fund. If the Dow goes down 100, SDOW goes UP 300.

Obviously this is super risky. Will be short term trade. Probably buy 20 shares to start.

If we see declines, we may be buying JPS (described below) at lower prices. Also CANCEL THE ORDER FOR BIT which was not filled yesterday.

JPS has high-quality issues (most preferreds), with 77% of portfolio rated investment grade. Preferreds are “generally” less volatile than common shares, and they are currently trading at attractive levels…probably heading back up.

It is paying 8% and the ex-dividend date is coming up fast on May 14. May buy JPS today

Nuveen Preferred & Income Securities Fund (JPS)

The Fund invests at least 80% of its managed asset in preferred and other income-producing securities, including hybrid securities such as contingent capital securities. At least 50% is invested in securities that are rated investment grade. The Fund uses leverage.

LINK TO FACTSHEET OF JPS

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With much of the country in lockdown, millions of Americans out of work, and Wall Street crashes evoking memories of the Great Depression, it may seem foolish to predict a comfortable reelection for President Donald Trump. LINK

But that is what my prediction model forecasts: It gives Trump a 91% chance of beating the all-but-certain Democratic nominee, former Vice President Joe Biden. Trump would get 362 electoral votes, Biden 176. (Trump would also beat Sen. Bernie Sanders, who dropped out last week, with 390 electoral votes to the Vermonter’s 148.)

For more than 100 years, the model has selected the winner of almost all presidential campaigns, including Trump’s victory over former Secretary of State Hillary Clinton in 2016. The Primary Model is a statistical algorithm that uses presidential primaries as the key predictor of the general election. In short, Trump is favored to win because of his superior primary performance and the tendency of the electoral pendulum to hold steady after one term in the Oval Office. On the off chance of a mismatch between electoral and popular votes, as happened in 2016, the forecast for 2020 targets the vote of the Electoral College (assuming a majority of electors for one nominee).

NOW IN OUR 8TH YEAR. NOTE TO NEW READERS: Before you buy anything we discuss here, GO to the Core Portfolio tab to see a CURRENT listing of holdings. Don’t forget to hit the like button. Our host WordPress is running ads in the blog and we receive NO compensation from this advertising.

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