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Janet Yellen, cool cars, angry readers and a market update. MONEY MATTERS NEWSLETTERS 2/27/2014
The New Master of the Printing Press.
Marc’s Notes:
After a brief sell off our call of an end to the market fall looked spot on. The market is now back over 16,000 and looks to continue to rise. Many of our SUPER DIVIDEND PAYERS (link here) :http://moneymanagementradio.com/cart/super_dividend
look to continue their ascent. Some are really flying! We put out a move to SELL RCS a few months back and hope everyone saw that. Most of the other dividend payers are moving nicely with the market. As you know, I firmly believe most if not all stocks just follow the major market trends. I only believe in owning the biggest companies on the planet and have stated that for over 2 years now. These are companies you know of like Johnson and Johnson, big oil, big pharma and the like. Companies whose products you use everyday. Wall Street has agreed with this concept and those large stocks have moved nicely. I would stay away from the “lottery” stocks like Facebook, Twitter, Starbucks, Solar stocks and those that are “small” in comparison to the conglomerates.
The exception would be if you play options on them but that is only for the most advanced of traders.
Oil is up since our last newsletter. With tension in the Middle East, that could be a wild card. On other inflation news, meat is skyrocketing and the drought now threatens to bring massive inflation when coupled with the Feds QE continuance. Inflation is going to get much worse in the near future. You heard it here first.
Gold ran some and I still think it has one more fall to come before it finally blasts off.
Owning physical metal is insurance however and I don’t wait for a sale on my house insurance.
Ditto with silver. I think its possible gold will see the $1,000/ounce mark with silver hitting $15.00/ounce. When they go there, I plan to load up again on gold stocks which I regard as a speculation and not insurance like physical gold.
Interest rates are still in the dirt, driven there by the Federal Reserve. Speaking of them, our new chief is Janet Yellen who replaced Bernanke who just signed an 8 million dollar book deal with that being a guarantee but he could make much more. No doubt he will also rake in millions on the speaking tour.
What a disgrace. He will eventually be known for what he is: An over-educated, wrong thinking hack that drove this country to the brink of failure, not once but twice. The second time is not upon us yet but he put the wheels in motion that will be hard to stop.
The budget deal is a no show which means unlimited spending is in our future. (What else is new). Republicans and Democrats will all share equal blame for driving this county into hock to the tune of hundreds of trillions of dollars that can never be repaid.
Most of the world including Americans cannot comprehend the amounts we owe, but the ramifications of such policies will be obvious to all when they occur.
I have been busy penning many articles for a variety of newspapers and publications, some of which has drawn me criticism, (what else is new) including a piece on muni officials, Obamacare, real estate, advisors and more. I do not back off from telling it like I see it. Of course not everyone agrees but opinions are what start conversations and no one should be afraid of differing opinions.
Speaking of Obamacare, there are reports of restaurants installing a Healthcare Surcharge on their bills to the customers. I for one agree. Everyone should know what this fiasco is costing us. As for my family, we have yet to sign up and everyone I talk to is very confused, including health professionals, hospital staffs, accountants and insurance agents. What a mess. I hope, if they can’t repeal it, they at least fix it so everyone can understand it. This turned out like I thought it would. A typical government program: Messed up in simple terms. We will see more unemployment because of it and its cost will be passed onto you in the form of inflation to name a few things you will experience, most of it bad because of it is bad policy.
On the stock and bond markets, we wait for this mundane time to reveal what is next. The world of economics is suspiciously quiet to me so I suspect that will change soon. What that change will be I do not know but look forward to some “action”.
That’s it for now. I am still not finished with my new report on “How to buy stocks on sale or get paid to not buy them”. I hope to complete it soon. I am also scheduling another Money Class so email me if you would like to attend. If you wish to meet with me I have a new fee schedule that is simpler, both for me and you. Email me to meet at bayareaprocess@att.net.
Money Matters airs March 6th at noon on KVMR FM. Follow me daily on Twitter for all my gambling trades and see actual results each and every day.
All for now, enjoy this latest piece on Tesla Motors.
Marc
TESLA- Innovation on wheels.
Tesla (TSLA), the Fremont, Ca. based electric car company has just completed coast to coast quick recharge stations for their groundbreaking electric cars. Although there is only one route you can take for now, owners of Tesla cars can now go from the west coast to the east coast and not have to wait the usual 9 hours it takes to recharge their car from the standard house socket.
These fast recharge stations can recharge Tesla S models in 30 minutes. For convenience Tesla has located the stations near coffee shops or shopping malls so you can pass the time while you auto recharges.
The really nice part is the charge is free so you can drive coast to coast with no fuel charges. Tesla will expand on these 71 existing station and install stations throughout the country by 2015 and will include stations in Canada and for now all will all be free of charge to TESLA owners.
Seeing how quick TESLA is moving into making automobile life that much easier with their groundbreaking cars and stations, you have to wonder why the big three automakers GM, Ford and Chrysler have been in existence for decades yet can be steam rolled with innovation by such an upstart. Its this lack of vision that makes GM, Ford and Chrysler albatrosses in their own business, continually making questionable quality cars and trucks and seemingly always behind the 8 ball when it comes to progressive steps in auto technology. This is only my opinion of course but seeing how Tesla autos are flying off showroom floors, at least a few people agree with me. It’s also probably why all the big three auto makers take bailout monies and petition for congressional protection while TESLA pays backs its government loans years early and moves forward in leaps and bounds, continually surprising everyone on how innovative they are.
Seeing as no one has successfully started an American car company and survived for long for more than close to a century, the fact that TESLA is doing so well attests to its owner, Elon Musk’s creativity and foresight. He‘s the new Steve Jobs and I for one am glad to see it.
It’s about time we got someone like Musk to guide our auto industry to a better place than into the downward spiral it has been headed for decades.
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
