New CD out. Fall is upon us. No Cost solar. Market update September 28 2014

 

 

 

Marc’s Notes:

The Pimco funds, some of the biggest bond funds in the country, took massive hits to their stock prices on the news its chief honcho and founder Bill Gross resigned to go to Denver based  Janus Capital Group.

Pimco funds manage or should I say “managed” over 2 trillion in assets before the announcement of Bill Gross’s exit. Almost immediately after the news hit the wires, over 70 billion dollars flew out of the family of funds in a stunning vote of confidence in Bill Gross’s ability to manage money and was a slap in the face to the parent company he left the Newport Beach based PIMCO.

Co-founding Pacific investment Management company later to become PIMCO, the performance of PIMCO funds was exceeded by few and most of the reason for their ongoing success was Bill Gross.

Call him the Steve Jobs of money management, Bill Gross was a leader in bond and asset management and consistently posted excellent returns thru the thick and thin of the Wall Street roller coaster.

In recent years however there were losses at their flagship fund, The Pimco Total Return Fund and couple that with reports of outlandish behavior by Gross was rumored to have led to internal squabbles which may have pre-empted Fridays move.

Some news reports said PIMCO was going to ask Gross to leave anyway and Gross made the decision to leave on his own timing.

Whatever happened, PIMCO suffered devastating losses to all of its funds and its companies stock while Janus Capital Stock, the new digs where Gross will work rose 43 %.

Only time will tell if the massive investor exodus from Pimco family of funds will continue. Pimco funds are held almost everywhere and are in the largest of pension and retirement plans.  Indeed many a portfolio I have seen in the past contained a Pimco fund or two.

No doubt Janus Capital will reap more than its stock increase when some of that money fleeing Pimco funds follows Gross to his new haunts and no doubt Janus will reward Gross handsomely to say the least. Not that Gross needs the money mind you, he has an estimated net worth of over 2 billion and growing.

The real question is should holders of PIMCO funds follow the money that left PIMCO Friday and move their money out of PIMCO’s offering of funds.

I would tell investors to keep a close eye on any PIMCO funds you might have in your portfolio but odds are PIMCO will strive to provide only the best management to replace Gross and repair the damage done to their funds last week. If anything, the drastic drop across their entire scope of funds might provide a buying opportunity for those looking for beat up asset groups. As always, read the prospectus of any stock or fund you might consider buying and do diligent research before investing.

 

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Fall is upon us and once again the markets look dicey, a common thread during the fall seasons for stocks.

Fall often marks the time for market weakness. Summer is usually slow as traders leave for vacation and the early spring usually brings market rallies but when traders return from their summer haunts, the mood for selling stock in the fall can often take hold.

No one is really sure why the fall season can mean falling stock prices. It is thought traders and fund managers may be dumping losers so their year-end statements look better and there is also always some tax selling to balance out previous winners and losers in portfolios.

But the fall does hold some mystery to it as to exactly why some of the worst market crashes have occurred during this time

Perhaps Halloween goblins do their dastardly deeds in the trading pits. Maybe it’s the upcoming Xmas present budgets that are weighing on investors’ minds but whatever it is, the worst selling (historically that is ) is usually over by the end of October or so. Then the Santa Claus rally kicks in and it’s up, up and away again, or at least it can be.

Whatever the reason for these cyclical movements, its best to not completely ignore the history of fall seasons and if the markets start to rattle and roll this fall (like they seem to be doing right now) perhaps lightening up on stocks and taking some profits might be in order.  Keep some free cash available to get some stocks on sale if they do fall and don’t completely ignore what is going on around you.

And speaking of bonds, we’ve been warning for a few years now to stay away from bonds in general, and although I may have been a little early on this call, bonds are beginning to show signs of strain and with the Feds tapering back on their bond buying, it might finally be time to seriously take some of your bond profits off the table.

 

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NO Cost solar for your house? Yes!

Read here. You have a lifetime contract with PGE to buy your power with no guaranteed on increases. Now you can get a solar system like I did on your house for free and save on your power bill. It really is true and I am a living testament to it as I have one !

 

 I know we have talked before on this and it really is too good to be true but it is true! And now I just found out there is ANOTHER benefit from getting a no cost solar system. PGE has informed me from now to the next 12 months I will only be billed a nominal connect fee instead of my full power bill. Only in 12 months will I then get a “True up” bill where they will net my solar power with my power consumption and then bill me for what I used over my solar production. I just got the first bill and it was about 8 bucks instead of the 4 or 5 hundred dollar bill I usually get. I will only get my big bill NEXT September which means I get to use all that money I would have paid them for a full year! It’s like a free loan! I will have to pay up in 12 months but I get to use THEIR money for that entire year! And how great is that! Click on the Solar City banner link on the right side of the menu on the website OR use the address below to email Andrew, the nice gentlemen who did my system to set up an appointment!

amckibben@solarcity.com

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Finally a new CD no risk from Everbank. These don’t come along very often.

It is a 3 year CD with no chance of loss of principal but you could make much more than a bank CD with has no upside except the initial interest rate that bank CD’s offer.

Here is the blurp on this CD. I like this CD as it is the only CD I can offer you that has tremendous upside yet no downside risk as it is FDIC insured. Make sure you can tie up whatever you put in this CD for the 3 year term.

 

NEW 3-YR MARKETSAFE® BRICS CD

If you believe that good things are on the horizon for the major emerging market economies of Brazil, Russia, India, China and South Africa (aka the BRICS nations), this could be the opportunity you’ve been waiting for. With the all new MarketSafe BRICS CD, we’ve united the currency indices of all five nations into one bold financial opportunity.1 Available now through October 15, 2014, it’s your chance to seek the upside of the indices without any risk to your deposited principal.2 And with no cap on their upside potential, the results could be strong. Remember, as economies emerge, so too does opportunity.

Please use the below link to open the MarketSafe CD to make sure you get the correct one.

http://adfarm.mediaplex.com/ad/ck/13305-85986-43235-7?referid=13286

Open the link and once opened, complete the application if you wish to buy this CD.

These are only available for a limited time and I always get calls from people after these limited CDs close because they miss the deadline.  You only have a few weeks to get this CD then it will be no longer offered.

All the best and read the term sheet before you open the CD.

 All for now,

Marc