Money Matters Update! December 8, 2014 NEWS PLEASE READ NEW RECOS

Talk about a world full of debt!

 

Marc’s Notes:

In our world, there are cycles for almost everything.  From the seasons to tidal, to mathematical cycles and life cycles to everything in between, there appears to be some repeatable and hence forecastable movements in almost all things.

The stock and bond markets also have cycles, but being a social science instead of an absolute one like math is, stock market movements are difficult to predict.

Many theories abound as to what is and isn’t a cycle in stock markets, and one of them pointed out by Sy Harding of Financial Sense.com is what he calls the “Super Bull Cycle” in stocks.

Mr. Harding brings to light an interesting observation suggesting we could be smack in the third of a Super Bull Market in stocks.

The first Super Bull occurred according to Harding in the 1920’s and ran 9 years until the market crashed in 1929.  The second Super Bull started around 1991 and lasted 9.3 years and ending in the dot.com crash of 2000.

Using those two cycles and looking at the current bull market in stocks, we find ourselves 5.8 years into our market run-up.  Looking at a projection of a 9 year duration, Harding suggests our market could continue to run for another 3.5 years or so, putting us smack in the middle of 2018 before the next “super crash” which follows Super Bulls.

So far, nothing has happened during this Super Bull of our markets 5 year run-up to dispute that prediction, and I personally see nothing that would alter that time frame if indeed we are in another Super Bull run-up.

In my opinion, there is still more game to be played. The Feds have lots of money to print and central banks everywhere are using the same play book: mainly addressing every economic problem with more money printing more commonly referred to as quantitative easing (QE). 

Their game is far from up but when they do hit that inevitable wall brought on by the ramifications of such QE policies, the result should be something in the order of the other super crash that occurred when the previous super bull markets came to an end.

In my mind, another three years or so seems right about the time when such policies will have run their course which will probably leave us nowhere else to run.

Only time will tell whether we are indeed in a Super Bull Cycle and if the Super Bull Market cycle will again end in a super crash as previous Super Bulls did.

We will find out in 2018 I suppose, if not before.

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The fall in the price of oil has given the American consumer a gift, allowing him to spend more on things other than the necessity of gasoline.

The average estimate of savings should gas stay where it is equates to about $1000 dollar annually.  Although black Friday sales didn’t live up to what analysts expect who forecast such things, the savings on gas is real the lower prices go.

But low gas prices are causing some problems and the lower the price goes the more problems are caused and I’m talking about problems in the debt markets.

Debt markets are where companies go to borrow money if they need it and lend money if they have it.

These markets are huge and synergistic, which means the pools of IOUS form a liquid and moving market, where fluctuations in one entities debt effects the movement of all the others.

Companies that sell, explore and refine oil range in size from small wildcat explorers to the huge conglomerates like the Chevrons and Exxons of the world.

The smaller underfunded oil companies often need to borrow money to continue operations. As the price of oil falls, their profits dry up and they either have to borrow more or may have trouble paying what they’ve already borrowed.

The energy sector makes up about 15 % of what we call the HIGH YIELD market where many of these smaller companies go for money.

Another 23% of this market is money borrowed from the banking sector. Since banks do much of the lending to these smaller  companies, one could add the two percentages together and comfortable say that about 38% of the high yield market has some exposure to the oil market and its players.

Simply put, as the price of oil falls, companies who deal in oil or are exposed to loans from oil companies can find themselves with obligations they can’t pay or loans they can’t get paid on.

Remember, since oil is a huge part of the world’s economies, many hundreds of billions of dollars if not more center around its price. If it goes too low, the profits dry up and the result could spell big trouble to the credit markets of the world and the ramifications from that could fall right back on us in the form of another banking crisis.

Although many are glad to see the price of gasoline drop as oil prices do, be careful what you wish for.

With the fall in oil, a stock on the Super Dividend Payers List has fallen below the threshold where we have to cut and run. Transocean (RIG) got hammered by almost half in a few weeks and must be dumped.  A similar company in the same business eliminated its dividend and with Transocean continuing to fall, it’s time to look elsewhere. I am selling RIG. Although RIG may be ok in the long run, I prefer not to ride a stock dropping like a rock. The speed of RIG’s fall was surprising and although I hate taking losses on any positions, they are sometimes unavoidable. Since I only recommend holding a small amount of each stock (for this VERY REASON), your losses should be minimal. Pick another stock out of the SUPER DIVIDEND PAYERS LIST to replace it.

I am working on an update now with some more great stocks on it! Stay tuned.

As also mentioned previous newsletter to consider dumping McDonalds and Coke (MCD, KO).

McDonalds got sliced again on terrible sales. The reasons we mentioned to sell was the desire for people to move away from junk foods. Apparently investors and McDonald’s sales figures agreed with last week’s call today. If you haven’t done so, consider dumping. We aim to stay on top of trends. Keep following Money Matters and if you have not already done so, pick up the Super Dividend Payers List now.

Also an updated version of the Dream Portfolio is in the works. Keep watching this newsletter for when it comes out and when it does, pick yourself up a copy.

All for now, and I will always watch the markets for you so you don’t have to!

SUPER DIVIDEND PAYERS LIST INFO BELOW- please read.

 

Marc

 

 

Super Dividend Payers List

I am so excited about the new update to the Super Dividend Payers List I just put on my website! This list has always had great dividend payers on it, many of which I own or have owned myself for years but this latest version has some great stocks I have found which you should consider right away. I have arranged the list so the first 60 stocks are in order of importance as I view them!

The first few are money generators and the Giants of the Midway as I call them.

Let talk about the FIRST stock on the list. (I made this super easy! Just get the list and look for the first one listed!).

This company owns over 95% of its market! It is valued at over one tenth of a TRILLION dollars! Talk about HUGE!

Its spews cash like an uncorked fire hydrant!

It has a balance sheet like Fort Knox and generates tens of billions in profits and has for decades. I bet you use this product everyday as almost every person on the planet does whether they know it or not! It has increased it R and D spending despite its complete dominance which tells me it’s not sitting on its heels!

It pays a healthy dividend compared to other companies of this size. It has beaten almost all the Dow stocks in performance and this year rose over 30 %!

You know this name yet few own it. That should all change once you get the list!

It’s paid a dividend for over 30 years and right now yields gobs more than a savings account. The real jewel in the crown is it’s been a few years since it raised its dividend and some experts think it’s about to do so in short order and by A LOT!

What makes this money pot even sweeter is the company is planning to buy back almost 1 in 10 of its outstanding shares within a year or so and at today’s prices it will spend somewhere in the neighborhood of 20 billion dollars to do so! When a company buys back its own shares it means less shares on the market and that mean profits as shares likely rise! They may even buy back the shares you hold (if you dare want to sell that is!).

It also shows us that management thinks its own shares are a deal! What a better vote of confidence could there be! Again, it is the first stock on the new UPDATED SUPER DIVIDEND PAYERS LIST just out this week!

The second stock on the list is one I have recommended to friends and family alike. It’s also a MONSTER of a company and again, odds are you interact or use this product every single day in almost everything you do. It has oodles of cash and the very best of ratings of any company on the planet. It gushes cash and owns its market. It one of the best stocks I can recommend and is usually the FIRST stock I have anyone buy! It is listed second on my list and if you buy BOTH you will own the finest of companies on Earth and both pay you to hold them!

The 3^rd company is now being removed so skip over this company. (RIG). If you own it, consider selling it now. 

The next stock on my list (#4) is a drug company that owns multiple patents and the most commonly drugs. It’s a leader in its field but it’s also been beaten up due to what I deem as temporary setbacks. I love beaten up stocks as they can go up again AND pay you huge dividends while we ride! Its pays a 5.7 % dividend and has a cheap Price to earnings ratio of 14. Another blue light special and the 4^th on my Super Dividend Payers List.

One more thing: being in the pharmaceutical business, the Ebola scare could send this companies stock soaring!

The next two stocks are just as monstrous and a must have in any solid portfolio. #5 has been around for over 60 years with a 35 billion market cap. Its dividend growth has been superior and is ranked in the top 4 of the strongest companies as rated by the top rating agencies. #6 is another of the best run companies in the world and has an arsenal of products used every day worldwide. Both of these companies are the best of the best and companies you never sell! Just collect the checks!

My list has sported solid payers for years. The first 60 or so on the Super Dividend Payer List sit among the world’s finest of companies and if you haven’t heard of every single one of them, I would be VERY surprised. I KNOW you have used their products in your everyday lives though!

Right now stock picking is tantamount to profits. Today’s markets are not the buy and hold markets you are taught. I have said since about 2011 you should only own about 10-20 % in stocks and only hold the biggest and baddest companies on the planet.

The first 60 or so ARE those companies!

For the price of a dinner out, you can own this list for you and your family to use. My own father uses dividend payers for his daily income and makes over $3000 a month JUST IN DIVIDENDS from some of these same companies!

This market is not for your average everyday mutual funds nor your small, speculative stock picks. It is a market where you should only own the most defensive of stocks in the biggest and safest of companies!

That’s why this list was developed. Sure there are some high flyers on the list and I usually (at least right now) only recommend the first 60 or so but I have stocks and funds on the list which pay 10, 11, 12, 13, 14, 15 and even 16 % in dividends a year! If you need even more income and can tolerate risk, there are many of these ultra-high paying stocks and funds to select from.

Of course, no one can guarantee which way any stock will go or whether they will raise, lower or cut their dividend and I can’t either, but most of these first 60 or so are names you know of and whose products you use. The smaller ones you may not have heard of but the returns you will LOVE.

Get on the fast track and start seeing checks in your account instead of fees that rob you and your family of your hard earned income. See the list I use. See what I own and buy for my own family and friends. Get started today by clicking here to get my SUPER DIVIDEND PAYERS LIST. You can buy the list outright or better yet, for a few dollars more, sign up for website membership and get all my updates to this list and my others portfolios AND the entire series of Money Matters topic shows for 2 years! I will even give you one year FREE with a two year subscription! That’s makes 3 years of the most complete coverage and analysis of the markets and your money!

If you already are a member, you get the updated list for FREE as a paying member!

Download it today! If you are not a member, become one now!

Don’t delay. Click here and start cashing checks and get these monster dividend payers before everyone else starts discovering these hidden jewels and drives their stock prices up, up and away.

CLICK BELOW or paste on your browser:
http://moneymanagementradio.com/cart/super_dividend

Stay tuned and as always, I am constantly scouring the planet for the safest and most profitable investments for all of my fans! Keep tuned and keep the faith.

 

 

 

 

 

 

 

 

 

 

 

 

 

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