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Tuesday.  UPDATE:  Several indicators are telling us that we MAY have reached the bottom on this correction….we are around a 10-11% decline which would be typical.

STILL watching HYHG for a buy at lower prices:  will get there eventually.  Also, OXSQL is a BUY.

Monday October 29, 2018,  IRM Iron Mountain is one of those Companies that you really need to own.  We do have their Corporate Bonds in the Core Portfolio.  But we have been looking at the IRM Stocks for years, trying to get a good entry point.

We may be reaching a price that we like.  It was sky high at $41 but has plummeted to $31 and pays a high 8%.  The indicators have reached bottom and we are expecting a turn around.  Go to the link below to get a detailed analysis of IRM.




Hooray.  Far right candidate wins in Brazil.  And Germany’s immigration queen gets out of town.


MOVIES.  HUNTER KILLER.  It is so unfortunate that the movie ‘critics’ (morons) are giving Hunter Killer such bad reviews.  Are these dopes in a different universe?

Hunter Killer is one of the best flicks this year.  If you want thrills and spills, get to the theatre.  This is the kind of stuff that Hollyweird should be producing, not garbage like Lalaland.  And the critics just don’t seem to get it.

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UPDATE:  You hear a lot of reasons for this market collapse.  But the real reason is the upcoming election.  Traders and investors are worried that the radical liberals and crooked Pellosi will take over the House.  You need to get out there and vote to keep the status quo.

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UPDATE:  HYHG is collapsing, which is good for us as we want to buy at lower prices, maybe next week.

October 26, 2018.  oooooo…….make it stop.  It just keeps getting worse.  The markets are down again today, and it appears they will continue tumbling for a while.  The momentum indicators are STILL pointing DOWN.

We own one position that is actually a BUY—or you can ADD to your position.  We own individual term bonds which mature at a specific date.  As long as you can take the short term ‘pain’, (paper losses) and keep earning the dividends, you will be fine.

GLOP-A (GLOPPRA at Fidelity-we bought in May 2017) is on sale at $25.35….yes it can drop a little more.  But the indicators are starting to turn up.  Here is a link to an article talking about this position.


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Now in the 6th year of Dividend Income Investor.
Before buying any investment, GO TO CORE PORTFOLIO for a listing of CURRENT positions.

October 25, 2018.  After a disastrous 600 pt decline yesterday, the stock market is up a little today and some investors will want to jump in.

We suggest you stay away.  The momentum indicators for SPY and the very important XLF financials are still DOWN …………and the bottom has not been reached, in our opinion.

Watching two NEW debt dividend paying positions for possible buys at lower prices:  HYHG (discussed many times before) and ECCB.

Security Type: Traditional Preferred Stock ECCB

QUANTUMONLINE.COM SECURITY DESCRIPTION: Eagle Point Credit Company, Inc., 7.75% Series B Cumulative Term Preferred Stock due 2026, liquidation preference $25 per share, redeemable at the issuer’s option on or after 10/30/2021 at $25 per share plus accrued and unpaid dividends, and mandatorily redeemable on 10/30/2026 at $25 per share plus accrued and unpaid dividends. Cumulative distributions of 7.75% ($1.9375 per annum or $0.161458 per month) will be paid monthly on the last business day of each month to holders of record on the record date fixed by the board, not more than 20 days or less than 7 days prior to the payment date (NOTE: the ex-dividend date is one business day prior to the record date). The Company is required to redeem the preferred at $25 per share plus accrued and unpaid dividends if they fail to maintain an asset coverage ratio of 200% (see page S-12 of the prospectus for further details).  


Severe declines in over 300 stocks.

More concerning, and a testament to the tech-heavy leadership of the market concentrated amid just a handful of stocks, is that while the broader S&P 500 index has yet to enter a correction, more than three quarters of all S&P stocks – or 353 – have already fallen more than 10% from their highs. Worse, of those, more than half 179 have already fallen by 20% or more from their highs, entering a bear market.


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Now in the 6th year of Dividend Income Investor.
Before buying any investment, GO TO CORE PORTFOLIO for a listing of CURRENT positions.

UPDATE Oct 25:  Momentum indicators for SPY and major averages still DOWN.  Don’t be fooled.  This is not the time to buy stocks.  We are looking at dividend paying debt positions for possible buys.  

UPDATE Oct 24:  HYHG coming down nicely.  We will buy at a lower price.  KCAPL is a buy under $25.00

UPDATE Oct 23:  Back on Oct 15 we told you that you should have sold all stocks.  And today we see a plunge.  Having said that, we still believe they will move the markets back up leading into the elections, only 14 days away.  We are still holding all the bond ‘term’ holdings in the Core Portfolio….meaning we collect dividends until the holdings mature.

MOST IMPORTANT:  Watch what happens after the election and into 2019.  We are not adverse to selling everything if the markets start to fall apart.  

If you did not purchase NSS, when we did recently, NOW is the time to buy.

October 22, 2018.  Keep HYHG on your radar.  We have been watching this for a long time (and talking about it here), but the price kept going up.  Now it is heading back down.  HYHG will be purchased EVENTUALLY!!……but the momentum indicators are still down.  So patience is required here.  Currently paying just under 6%.  Do NOT buy this right now….this thing could keep declining for weeks.

ProShares High Yield—Interest Rate Hedged ETF
ProShares High Yield—Interest Rate Hedged ETF (HYHG) is a high yield corporate bond ETF with a built-in hedge that targets a duration of zero to eliminate interest rate risk. Many investors use high yield bonds as part of their fixed income portfolios. High yield bonds typically offer better return potential than Treasurys or investment grade bonds as a way of compensating investors for taking on greater risks.
HYHG combines the return potential of high yield bonds with a built-in hedge that targets a duration of zero to eliminate interest rate risk.

Here is an excellent article discussing why the market is setting up for a year end rally. 



Netflix;  While listening to a financial radio show, they mentioned the series ‘Ozark’ currently available on Netflix.  It is about a financial advisor that gets involved in the drug market-the financial aspect turns out to be a relatively small part of the story.  This is probably one of the best series on Netflix and we recommend it.  We also continue watching ‘Heartland’.  Originally aired as a Canadian production, we are now watching the ninth season.  Also one of the best on Netflix.


Since 2009 there have been 22 corrections in the stock market with an average decline of 8.4%.  The current pullback is 7.8%.  See full video at link below:



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October 19, 2018.  At the gym yesterday, a local money manager came up to me and hollered:  see how much the market is down?.  Yeah, I said, down 400 points.

Time to buy, he says.  Time to buy.

Well, maybe, I am thinking.  The momentum indicators are pointing down.  Down.  The mid caps and small caps are telling us there are problems.  The financials have to lead and they are weak.  The momentum short term on SPY is actually up, but down long term.

So, despite that negative review, we think they will keep pushing UP the markets in front of the elections next month…..The Dow futures are actually positive as we write this.  Trump cannot go into November with a collapsing market.

So, what to do.  We elect to own dividend paying TERM positions, which pay us dividends but also mature at a given price, where we get our money back.  Spending eight hours a day trying to time the stock market is just too time consuming, frustrating, and risky.

Bottom Line:  The concern is what happens AFTER the elections.  Watch China, the FANG stocks, and interest rate hikes.


Now in the 6th year of Dividend Income Investor.
Before buying any investment, GO TO CORE PORTFOLIO for a listing of current positions.


The most dramatic change over the last six weeks in the midterm election picture is clearly in the Senate, but the House situation has subtly changed as well. Not long ago, the most likely outcome for the Senate was either no net change at all, or a shift of one seat, so the Senate would remain under GOP control, with the majority holding 50-52 seats. Today, a Republican net gain of a seat or two seems most likely, moving the GOP up to either 52 or 53 seats, though a gain of three seats or no net change are entirely possible. There remains some chance of Democrats picking up two seats and a majority, but those odds are long, no better than 1 in 5, and seemingly getting longer…Once you saw Republicans and conservative voters coming home and getting energized for the first time this election cycle, on top of this lopsided Senate map of seats overwhelmingly in GOP-friendly states, Democrats’ hopes went down precipitously.

In the House, Democrats remain heavily favored to capture a majority; the change is that their chances of blowing the House wide open with a gain of 40-50 seats or more have diminished. In the suburban-oriented districts where most of the competitive House races are, things remain extremely challenging for Republicans. A large gender gap driven by suburban, college-educated, and younger women remains a very strong dynamic. But the more rural- and small-town-oriented districts—those with substantial numbers of Republicans, conservatives, and Trump backers—are now fully awake and engaged, moving some of those districts back away from the edge of competitiveness. Republicans were looking quite vulnerable through the summer in districts that one would never guess they would have to worry about. Today, Democrats seem more in line to score a net gain of between 20 and 40 seats.



Liz Warren blows up….please go away and take Hill with you.


Political Cartoons by AF Branco

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Now in the 6th year of Dividend Income Investor.
Before buying any investment, GO TO CORE PORTFOLIO for a listing of current positions.

UPDATE:  SELL HAL.  On Monday we told you expect additional losses as the momentum is down and today, Thursday, the stock market is down 300 points.  We are holding all of the income positions in the Core Portfolio but if you are a stock trader, it would have been a good idea to sell them last week.  

October 17, 2018.  We are increasing the Buy Limit order for NSS to $25.20.  We want to buy this and it appears we will have to pay more than we anticipated….the price is still very acceptable.

Back in May we bought BSL……which has declined over the last week along with everything else.  It is ok to buy this now or add to your position.



We love reading the stories about the radical liberal out of control failing CNN freakshow.  Here is the best article yet (link below) which outlines how bad things really are at CNN.

If CNN had anything other than tragic ratings, if CNN were in second place or even close to second place, I could understand the shamelessness, the tabloid approach to covering politics. But CNN’s ratings are not only awful, they are miraculously awful. Not only is CNN in far-last place, The Least Trusted Name In News does not even have a breakout star or show. Throughout all of last quarter, and only in competition with two other networks (MSNBC and Fox), not a single CNN show — not even one — placed in the top 20.
Think about how awful CNN is to accomplish such a thing, to only have two other networks to compete with and still not place even one show in the top 20 throughout an entire quarter.


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Breaking:  Last night’s 60 Minutes interview with Trump was a real shit show  Biased fake news liberal 60 Minutes really dumped on the Donald but he fought back hard.  Good for him.

October 15, 2018,  Most of the Core Portfolio positions are ‘term’ meaning they mature at a future date, (barring bankruptcy) where you get your money back and in the meantime, dividends keep coming in.  The whole point of the Core Portfolio in INCOME.  We are holding all positions for now.  Yes you will experience paper losses or gains but that is the game we are playing.

If you owned a lot of stocks, experienced traders would have sold out last week at the 100 or 200 day moving averages.  Momentum is down and we anticipate further declines in stocks during this week…..just our opinion.  But Long Term we see further advances in stocks.  (We could see an additional 3-4% decline this week.)

Bottom Line:  Our crystal ball does not work, and nobody can see the future.  Everyone has their own investing style.  This blog simply outlines OUR approach which has been working for a long time.

PS.  Never buy annuities or whole life insurance or non-traded REITS.  Worst rip-offs in history. 


Is it over?  Not likely.  From realinvestmentadvice.com (one of our fave sites).

It is unlikely the current rout is over and we will very likely have a retest of recent lows before the next bottom is found. Having some cash on hand will both hedge portfolio risk and provide opportunity to reallocate to equity when the selling pressure is resolved.



‘Kiss of Death’: Democrats keep Hillary off campaign trail
According to multiple Democratic senators up for re-election in states, ranging from ruby red to deep blue, and those involved in 2018 strategy, Hillary Clinton has not been called upon and isn’t expected to be. In many cases, she is an afterthought.



If – and I emphasize the word “if” because I do not have a Dragonfly-style program covering Google HQ – Dragonfly is real, Google is in serious trouble. Collaborating with a dictatorship that is sliding into a cult of personality so complete Hitler would have salivated over the program violates every ethical and political norm of every political faction in the United States. Anything that puts Elizabeth Warren and Ted Cruz on the same side during Senate hearings should get everyone’s attention. And Google’s executives’ refusals to confirm or deny Dragonfly’s existence while under oath before Congress tends to shift my thinking that this is less bureaucratic bungling and more greed so all-consuming it constitutes treasonous behavior. It is exactly the sort of massive corporate miscalculation that has triggered catastrophic government crackdowns on major American firms in the past. The breakups of Standard Oil and Bell come to mind.


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