June 30, 2020. Iron Mountain has called the other Corporate Bond that we own in the Core Portfolio. This had a 5.5% coupon and we really did not want to lose this.
We are buying small starter positions in the TAXABLE municipal bond arena. Here is an article on munis:
Note: Altho the liberal biased press is going hysterical over the increased virus infections, it appears death rates and hospitalizations are not really terrible. So we are getting a little more comfortable in buying investments.
BBN Place buy limit order at $24.64
|FUND DESCRIPTION: BlackRock Taxable Municipal Bond Trust, formerly Blackrock Build America Bond Trust, is an exchange-traded closed-end fund or a closed-end ETF that is officially described as a non-diversified, closed-end management investment company. INVESTMENT OBJECTIVE: The BlackRock Taxable Municipal Bond Trust primary seeks high current income, with a secondary objective of capital appreciation. FUND STRATEGY: The Trust invests at least 80% of its managed assets in taxable municipal securities, which include Build America Bonds (BABs), to finance capital projects, such as public schools, roads, transportation infrastructure, bridges, ports and public buildings. The Trust’s portfolio includes in sectors, such as utility, transport, education, tobacco, housing, local tax-backed, state tax-backed, school districts and other industries.|
GBAB Place buy limit order at $23.12
|FUND DESCRIPTION: Guggenheim Taxable Municipal Managed Duration Trust, formerly Guggenheim Build America Bonds Managed Duration Trust, is an exchange-traded closed-end fund or a closed-end ETF that is officially described as a diversified, closed-end management investment company. INVESTMENT OBJECTIVE: The Guggenheim Taxable Municipal Managed Duration Trust seeks to provide current income with a secondary objective of long-term capital appreciation. FUND/TRUST STRATEGY: The Trust seeks to achieve its investment objectives by investing primarily in a diversified portfolio of taxable municipal securities known as Build America Bonds (BABs), Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in BABs, and may invest up to 20% of its Managed Assets in securities other than BABs, including taxable municipal securities that do not qualify for subsidy payments, tax-exempt municipal securities, asset-backed securities (ABS), senior loans and other income producing securities|
We started with a tiny position. We are going to triple this position by buying more today.
We are still expecting declines in the stock market averages going forward. But we are also reviewing potential income generating ‘buys’ if we can get positions ‘on sale’, possibly in August. There are sectors that look really good to us: warehouses “the Amazon factor” and cell towers/data centers.
We do own Digital Realty in both corporates and preferreds and Duke Realty. Prologis, Monmouth and Corsite are just a few that look promising in warehouses.
(If you own Amazon you are already invested in the warehouses and data centers that we are talking about here….Amazon is NOT a buy at these prices.)
The Buffett Indicator
Yes, there is actually a Buffett Indicator and it looks at the equity market capitalization relative to the country’s GDP.
One of those measures, in particular, has popped up on investor radars lately, and that’s the “Buffett indicator.” The Berkshire boss called it “the best single measure of where valuations stand at any given moment.” If historical patterns hold true, a thrashing could be in store for complacent investors.
Put simply, the indicator is the total market cap of all U.S. stocks relative to the country’s GDP. When it’s in the 70% to 80% range, it’s time to throw cash at the market. When it moves well above 100%, it’s time to lean toward risk-off.
Source: Market Watch
That snippet was from 2018. Today the indicator stands at a jaw-dropping 156.3%.
Finally, competition to Twits:
Parler has done it. After a massive surge in sign-ups after Twitter had censored and suspended everyone from conservative meme-makers to the President himself, the free speech social media platform known as “Parler” hit number one on the Apple App store’s News section.
So why did Trump do better than the polls in 2016? You don’t need to say the polls were all wrong. You just need to realize that more than 15% of the electorate didn’t like either candidate, and half of them broke for Trump. This year, with Biden at or near 50% in the polls, is leaving a lot fewer undecideds on the table for Trump to try and win over.
If Election Day looks like today does (if somehow, we don’t get about a dozen world-changing stories between now and then), Trump will lose, and not because people turned away from him, but because he drew a much less hated opponent.