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Money Update on Moneymanagementradio.com June 3, 2014 READ READ READ
Ugh this is not NORMAL! But look for the Euro Central Bank to add even more soon, perhaps just a few days an announcement will come!
Marc’s Notes;
Warnings about a market fall but other than a brief correction I still am of the opinion the market will have one direction (with possible brief scary falls) and that direction is up. Until the Feds and the world’s central banks back off their QE (money printing) schemes, all those billions (if not trillions) will find its way into the stock market. Although our central bank is tapering BACK their QE, there are many issues still in play. Our Fed is tapering BUT countering some of the effect by swapping short term debt for longer term debt. It is complicated and hard to explain but the remaining “asset purchases” they are performing (the ‘untapered’ amounts) a “twist” of sorts similar to the “Operation Twist” you may have heard about. Although they are buying less amounts as they taper of debt, they are buying more LONG TERM debt, which affects interest rates more efficiently than the mix of short and long term debt they WERE buying. Yes, it is complicated, but know this: the Feds know every trick in the book, and are using them to counteract their taper. It is why we are not seeing a lot of market volatility as they taper. Meanwhile the Euro bank is set to do even more QE AND go negative on their interest rates. Since the central banks and the global economies are interconnected, when we taper, the Euro banks “untaper” and the net effect is zero.
Watch for Mario Draghi, the President of the European Central Bank to announce more QE and even lower interest rates. This he will do to offset our tapering here.
Net effect: when we taper here, they print more over there. A global game of monopoly money shenanigans.
Other news:
Gold is falling still as I predicted. Ditto for silver. There may be more to go. ADD slowly if you are not in the 10% range of holding physical gold and silver. Do not add all at once. Also add some dividend paying gold funds and stocks over time. Once the bottom is reached, gold and silver will take off again. We are not there yet.
For savers:
I found a great CD from GE Capital Retail Bank.
This is now the highest 5-year CD rate for a $25K deposit that’s available nationwide.
(CIT Bank is also offering a 2.30% APY but this requires a $100K minimum deposit).
For a 25,000 deposit at GE you can get 2.3 % APR.
The bank’s CD early withdrawal penalties are also some of the best I’ve seen. According to the bank’s account agreement:
For a CD with a term of twelve months or less, the penalty will be an amount equal to 90 days simple interest on the amount withdrawn and not the whole term of the CD like many others. For a CD with a term of more than twelve months, the penalty will be an amount equal to only 180 days simple interest on the amount withdrawn at the current rate.
This makes the 5-year CD an excellent deal even if you prefer short-term CDs. You can get the effective yields on a 5-year CD yet get out early with not much loss in interest.
The best of both worlds.
Another important thing to note in this account agreement is the early withdrawal penalties for IRAs. According to the account agreement
An early withdrawal, without penalty, is allowed only in the event of (a) ….. (b) ….. or (c) when the account is an IRA and the owner dies, becomes permanently disabled or reaches the age of 59½; or (d) within the grace period. That means savers over 591/2 have NO penalty for earlier withdraw and will get ALL the interest promised.
As always read the prospectus of anything you plan to invest in but from what I have read and heard, its one heck of a deal. Email me with your questions at moneymatters@kvmr.org
Another No Risk product is finally here again from our friends at Everbank. If you recall these NO RISK CD’s come out only once in a blue moon and they are only available for a few weeks so don’t delay. You can’t lose any principal yet have the opportunity to make much more then standard Treasuries and CD’s. It pays 3.3 TIMES the amount of change in the 10 year treasury yield. That is the kind of leverage we need in this low interest rate environment where bank accounts and CD’s yield minimal returns. The best part is it is FDIC insured! The worst you could do is get all your money back.
Early withdrawal should not be considered an option but there is a condition where you can do it but you could pay a penalty so read the terms. As long as you stay in the CD for its term, your money is safe. Each time I put one of these out I inevitably hear from people who just miss the boat until its too late. Don’t be one of them. You only have a few weeks to fund this CD and then it is gone.
Here is how it works:
NEW 5-YEAR MARKETSAFE® TREASURY CD
CD FEATURES
• 5-year term
• $1,500 minimum to open
• 100% protection of deposited principal
• FDIC insured
• IRA eligible
PRICING
Gains on your CD will be driven by the five year performance of the 10-year Treasury yield. Performance will be measured using two pricing dates—June 18, 2014 and June 18, 2019.
SAFETY
In the event the 10-year Treasury yield declines over the next five years, you’ll get back all of your deposited principal upon CD maturity.
LIMITED TIME OPPORTUNITY
The MarketSafe CD is a limited time opportunity with predetermined funding deadlines and CD issue dates. With this latest version of the CD, EverBank has established June 11, 2014 as the deadline to open and fund your account.
PERFORMANCE
If the 10-year Treasury yield goes up over the next five years, all of the upside growth will be multiplied by a 3.3 leverage factor to determine the net return on the CD. This leverage factor provides a unique opportunity for enhanced earnings.
Example:
If you expect the 10-year Treasury yield to grow over the next five years, this is for you, as any upside growth during the CD term will be multiplied by 3.3. Even if the yield goes down, you’ll still recoup all deposited principal.1 See the CD in action via the following payout examples, assuming $10K in deposited principal.
|
Hypothetical Examples |
Ex. 1 |
Ex. 2 |
|---|---|---|
|
Initial Treasury Yield |
2.60% |
2.60% |
|
Treasury Yield at Maturity |
6.00% |
2.00% |
|
Difference |
3.40% |
-0.60% |
|
Leverage Factor |
3.3 |
3.3 |
|
Net Return |
11.22% |
0.00% |
|
Payout at Maturity |
$11.1K |
$10K |
To insure you get the right product, you can use this link:
http://adfarm.mediaplex.com/ad/ck/13305-85986-43235-6?referid=13286
Read the entire prospectus when opening the account of anything you plan to buy!
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Stock and Mutual fund strategy
Now a special report available to anyone on how to get stocks on sale or get paid not to buy them at all.
This is a one-time special report from Bay Area Process Inc. and is only available by special order. (Regular newsletter and website subscribers must access this report by special one-time purchase).
This is simple 4 page report on how to get a stock on sale that you want to buy anyway but get it a lower price OR get paid money NOT to buy it!
It’s truly a remarkable strategy and perfectly legal and anyone can do it.
The report is concise and short. You will learn how to pay LESS for a stock you decide you want to buy OR get free money to NOT buy the stock at all!
With this report you also get to attend a FREE class on HOW to do it where you can ask questions, execute trades if you bring you laptop and see how its done first hand!
All this for a one time fee of $399.00. You get the report AND the class! The class will likely be very exclusive with only a small amount of people in each class so you will get a lot of one on one attention from me. We can go thru the report with a fine tooth comb; you can take notes and execute mock or real trades! You will save money on stocks you want to own and/or make free money by getting paid NOT to buy the stock at all. Either you get in ON SALE or get FREE money! No gimmicks, no tricks; just a simple seldom used strategy. We will also cover if time allows a strategy to make money on stocks you currently own even if they don’t pay dividends!
Don’t miss this once in lifetime opportunity to learn a strategy few traders use but can give you exactly as promised. Get stock ON SALE (for less than current price) OR get paid NOT to buy the stock!
Just order it here and you will be able to download the report and then I will contact you to schedule a convenient time to hold our class. Don’t miss out!
Telephone consults are available if you live out of the area. Email me for details.
Order now by clicking on the link below and get started making money!
http://moneymanagementradio.com/special-report
Also a new DREAM PORTFOLIO AND SUPER DIVIDEND PAYERS LIST is now posted and available for all website subscribers to download for free OR a one time buy (only $49.00). Consider signing up for a full subscription. You will get ALL the updates for free in lieu of buying it once only. Sign up for 2 years and get the 3rd year free!
These 2 reports are brand new and updated as of this week!
Get cracking and make some money! Especially check out the new SUPER DIVIDEND PAYERS LIST to see investments that pay you to hold them. Dump those go nowhere funds and stocks that just sit there. Get paid while you wait!
Link to website is:
http://moneymanagementradio.com/
then go to the side left menu and click on either
SUPER DIVIDEND PAYERS LIST or
DREAM PORTFOLIO!
Are you new to Money Matters? Download your free show now!
Go to the left menu under “FREE SHOW” and see why we are the fastest growing alternative money show on the radio!
That’s all for now,
Money Matters airs this Thursday at noon PST. on KVMR FM and worldwide on www.kvmr.org.
marc
Enjoy this article soon to be released on public media:
With the government prying into almost every facet of our lives and considering the revelations of Edward Snowden about big brother snooping, it was no surprise news came out that the Feds are gathering information on Americans from search engines like Google and Yahoo, plowing thru our private emails, monitoring our Facebook and Twitter posts and basically setting the stage for the Orwellian system detailed so long ago in the dystopian novel “Nineteen Eighty-Four” by George Orwell published in 1949.
But entrepreneurism has a way of getting around such undesirable things and you could say the more the government tightens its noose the more creative people get. “Find a need and fill it” is an old mantra from the world of business and with the discovery that your internet searches and emails are open game for the Feds, new companies are popping up to make snooping on your business their business and basically putting a stop to it.
The problem is that the government can require any company it wants to turn over any and all records any time it wants.
Medias like Google and Facebook were developed not ever dreaming that their records could be forced from them. The problem is that their algorithms and the way their websites work are already in place, so unless they revamp their entire operation, their stuck so inevitably so are you, or so we thought.
But recently companies such as Fortinet, Sourcefire, Palo Alto Networks, Confide, Wickr and others are pioneering the way for us to communicate with each other without the possibility of our communications being reviewed by government snoops.
For example the relatively new search engine “DUCKDUCKGO” wipes itself and your information clean after you close the browser keeping your past searches out of prying eyes.
“CONFIDE” is a test messaging service that only shows one word at a time and when that word is gone it’s gone for good.
“WICKR” uses military type, random encryption to transmit text, photos and data from one use to another and after it’s sent, Wickr keeps none of it.
The common thread among these companies is you cannot give what you do not have and the way these applications transmit data, they retain no information after the transmission. They couldn’t provide the information to the Feds even if they wanted to.
Leave it up to good old fashion American ingenuity to solve what is a growing and serious problem as it pertains to our liberty and privacy.
We can look forward seeing to more solutions as the intrusions get more onerous and I for one am glad to see it.
This article expresses the opinions of Marc Cuniberti. Mr. Cuniberti hosts “Money Matters” on KVMR FM 89.5 and 105.1 FM on Thursdays at noon and syndicated on over 30 radio stations throughout the US. He has been featured on NBC and ABC television and on a host of made for TV documentaries for his economic insights. His website is www.moneymanagementradio.com
