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Get out of Bonds. A Super Dividend Payer is bought out for a quick 20 % pop overnight. Update from Money Matters Feb 18, 2013
(Will the "war-cycle" spawn a new war soon? Many say yes and this war will be used to goose the economy and distract us when the world economies implode).
Marc’s Notes:
First off our dividend payer Heinz food was just acquired by Hathaway so the shares popped 20 % in one day! Good companies get bought and the first monster companies on the Super Dividend Payers list are just that. I wouldn’t be surprised to see more of these on my list bought. Look at Campbell Soup. It popped in sympathy of Heinz!
Those wanting in on this list get it here!
http://moneymanagementradio.com/cart/super_dividend
Better yet, subscribe to the whole site for a year or two years and get ONE YEAR FREE and get all the lists, all the Money Matter shows, all the updated portfolios every time is make one! It’s the best deal going and those who had Heinz paid for the subscription just last week in one day!
Those holding Heinz can now sell the shares and add a different stock on the list!
Get the list and look at the first 32 or so. You will recognize the names and that’s the point. Right now I am only buying the best of the best and recommend same.
Congratulations to those who held Heinz, now take your profits and run!
Markets:
Investor complacency is at an all time high and insiders are dumping stock. Contrarian signals are everywhere. This does not necessarily mean a stock crash is imminent but history shows that when investors are complacent and insiders dump stock we should be wary. You can add VXX for a short term hold if you believe a market crash is imminent but this fund is highly volatile and if the market continues up VXX will fall. This stock is only meant to be held short term as it will “erode” in price just sitting there. This is for GAMBLERS ONLY. The markets could continue to run so beware. Right now I am adding VXX to protect my other positions and am selling calls against it. (Advanced traders only). We will see. Right now the stats out of China tell us of retail sales that came out below expectations and the China market is slipping. This may mean a falling US market this week. I would be very careful here. These contrary signs mean a stock correction is probably coming and it could be nasty. Prudence is warranted.
Bonds:
Yech. Warnings are far and wide about a possible bond fall. Investors holding bond funds may be setting up for a fall. Debt is everywhere so why anyone would own more of it for a few lousy percentage points of interest is nuts. A 1 % spike in rates can wipe out years of interest and a higher spike can wipe out even more. With interest rates at all time lows, the only direction they can go is up. They are rising as we speak. Those holding TBT which moves with rates have seen good gains. Long term holders of TBT have been slaughtered as the Feds drove rates down and TBT fell as well. Now is the time to hold TBT and supplement that perhaps with SJB, a fund that shorts junk bonds. This is rising ever so slowly and should continue to do so. The Feds may lose control of interest rates eventually and that will be nasty in all things economic.
Natural Gas, our worst call by far is down again. This gamblers play from years ago has not worked out at all. Those holding Nat Gas should only hold a small amount of it and I like holding it through dividend paying stocks and funds. Check out NDRO (pays nicely) for what I hold as well as the stocks on the Super Dividend Payers list. Those who still hold UNG, UNZ or UNL should be out of these long ago.
Those holding TIP or VIPSX safe funds should move to BIL or SHY now. TIP and VIPSX are now coming under pressure as interest rates rise.
Gold and silver are being hammered but I don’t fret. Physical gold in one’s possession as well as silver is insurance only and I don’t care about insurance costs. Eventually paper currencies will succumb to the insane money printing from central banks everywhere and when people finally realize their paper is being devalued because of over-issuance they will wake up to find gold and silver in short supply and those already holding it will reap big profits AND maintain their wealth while everyone else lose theirs.
Protect yourself with our strategy which you can learn at a class or get a glimpse of on the Dream Portfolio on the site. I cannot stress enough you must prepare for what will be the result of severely flawed economic policies coming from central banks everywhere. They have all lost their sense and now print paper to solve non-paper problems. Colored pieces of paper don’t solve anything. If they did, our problems would be long gone but they are almost as bad as they have ever been. Couple that with a new found realization by people everywhere that hard work will be punished through higher taxes, that wealth is bad and is to be redistributed to those “unfortunates”, that to achieve success is to be scorned, and that anything bad that happens to you is somebody’s else’s fault, and you have the recipe for an unmitigated disaster of epic proportions. Society loses its incentive to work, governments grow so large as to consume everything the economy produces, and the people of that economy now sit and wait for government checks. Those remaining producers, those still working, are taxed to death until they themselves go on the public dole.
The only ones getting wealthy are the ones at the money spigots: Washington and its cronies, big lobbying corporations, the military industries which gobble trillions and the banking industry who make money on all of it.
America is falling as foretold by many. Democracy destroys itself because world improvers start improving, the rich are vilified, the middle class is taxed, the lazy get paid to sit home, more labor unions (which exist now just to feed themselves), more perks and pensions, ever-bigger government and criminal-like lobbyist demand continues until the rock is finally bled dry.
No more blood is to be squeezed. As it was once said, the trouble with Socialism is you eventually run out of other people’s money.
Protect yourself, they are coming after your privacy, your wealth, your guns, your gold, even your decency. It is happening America. You are witnessing the fall of Rome. No, we won’t burn to the ground, but America will end up like Britain, a shadow of greatness, once the nation that was the envy of all, now reduced to a blip on world map.
The emerging behemoths like China will be the next in line to inherit the mantle.
In the mean time, look for more government intrusion, higher taxes to “redistribute” your wealth to others in the name of “fairness” and more of you “pay your fair share’ of which that “share” is determined by someone else.
Learn at our classes:
Money Classes are ongoing. Class 2 by See Jane Do for Women is being scheduled as we speak, watch the newsletter for details. Those interested in a discounted Class 1 should email me now.
All for now,
Marc
