Money Matters airs tomorrow- Find out what is going on in the markets! Update dated 12/17/2014 Please Read

 

 

 

Money Matter airs tomorrow Thursday Dec 18, 2014 at noon PST. Find out why the markets are falling and what to expect!

Marc's Notes:

An enabler is one who is thought to foster bad behavior by provided either misguided advice or permission or by providing the tools to continue the negative practice or practices.

In a world of easy money, it can be said the central banks of the world have enabled the mega banks, hedge funds and speculators to also continue with their bad behaviors.

By keeping interest rates so low, it’s easy and very cheap to borrow money.

This in turn encourages speculators which are large banks, pension plans and hedge funds to engage in large derivative bets on everything that is traded. 

During the crisis, the low interest rates fostered an overabundance of home loans that couldn’t be serviced by the borrowers. It encouraged banks to make risky loans and enabled questionable borrowers to take out loans that normal interest rates would have otherwise made unobtainable. In summary, low rates encourage investors to buy higher yielding and therefore riskier assets. They can also make big time gambling by the largest of speculators extremely profitable.

Easy money in the form of low rates could be said to be the main cause of the housing bust and bank blow up in 2008.

Now with oil prices plunging, we can expect those low interest rates to again make their effects known as a variety of loans and bets on oil and the companies that deal in oil’s related investments to start suffering huge losses.

Much like we saw in last crisis, low rates have fostered a new potential for problems. The low rates that have existed over the years have enabled marginable oil producers to borrow money to fund their operations. Now that oil is plunging, these companies are finding it harder and harder to make their loan payments and the markets where these loans are traded are starting to squeal.

Even more dangerous are the massive bets speculators have made on the movement of oil. With oil rapidly falling, many of these highly leveraged bets are about to go up in smoke, and with them the balance sheets of the companies that made those bets.

Had interest rates been normalized after the banking crisis, many of the large bets on oil would not have been possible. In addition, many marginable oil companies would not have been able to borrow money and produce oil, whose oil has now added to the glut that is now contributing to its price plunge. Much like the overabundance of houses we saw because rates were so low, we are now seeing an overabundance of oil, causing another bust similar to the housing blow up.

Thanks to another round of low interest rates we may be about to witness the result of the grand enablers which are the central banks of the world and their artificial manipulation of those rates.

A plethora of bad oil bets are about to blow up due to this drastic fall in the price of oil and much of what is to come can be blamed directly on the low interest rates which are set by the central banks of the world.

Until interest rates are allowed to rise to their natural rates we will continue to see these massive blow ups, false booms and subsequent nightmarish economic busts.

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With the drastic fall in oil prices, a wave of trouble is starting to hit the credit markets.

Oil is the largest of commodities traded in global markets. As a result of its magnitude in scope, money that centers on this commodity is starting to shake rattle and roll.

What I mean by this is many companies either handle, drill, process or transport oil.

Many more companies loan money to these companies and many more bet on oils price movements.

While price movements in all commodities occur daily, this drastic drop in the world’s largest traded commodity is causing panic in the markets where oil is traded and in the markets where its debt is traded. That means basically all markets as oil and its derivatives are traded everywhere.

Much like the Euro debt problem where problems in Greece spread to the markets in general, the rapid fall in oil prices is causing problems in all markets.

Many oil companies are approaching the verge of being in severe financial trouble as profits dry up due to oils fall. They not only may not be able to pay their bills, they may have trouble paying their loans or the interest on those loans. And that means a wave of bond defaults are forthcoming should oil not recover fairly quickly.

Worse yet, those big mega banks and hedge funds have huge bets on the price of oil and needless to say some bet for oil to go up and other bet for oil to go nowhere. The only winners are the ones betting oil would fall and that’s only a small portion of them. That means the rest of the bets are losing bets.

The drastic fall in oil has destroyed balance sheets and has probably caused a few large funds and maybe even some big banks to arrive at the abyss. It’s only a matter of time until we find out their names when their troubles make the evening news.

Mark my words dear listener, the  ****!!! is about to hit the fan and the news will be that some big bets are about to go sour, which may in turn facilitate another government bailout. The ramifications to the general markets could also be significant as more bankrupt funds and companies come forward.

Some great buys on stocks right now that pay huge dividends. See below!

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 3rd 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 4th 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.