Read this NEW MONEY MATTERS UPDATE! January 7, 2015

 

 

Below is my opinion of everything money so read on dear reader!

---------------------------------------------------------------------

Marc's Notes:

A new year is upon us and being a money show let’s talk money shall we?

What can we expect in 2015?

Well if 2014 is any indication probably more of the same.

The Feds will continue their folly and try and print over debt problems either with more QE or ultra-low interest rates designed to enslave us all into borrowing more to spend more to save the precious economy. I say “their” economy as the more we borrow the more in debt we go to them, and “they” is the banking cartel these monetary policies support.

Most Americans will continue to believe Feds in 2015 as the last and final blow up from these policies won’t make themselves known in 2015.

That wonderful event is reserved for us a few years hence.

Anytime the markets fall the Feds will do as they have done this year and many years before it, mainly jawbone up stocks to keep the money train going.

We will continue to see rising meat prices and prices for many things we buy will continue up but as in 2014, the Feds will claim inflation is nonexistent and in fact too low as they have done in 2014.

A few corporate blow ups will make the news if they are large enough, the Feds will bail them out using the age old excuse “to save the system”.

The banks will get even bigger and make even more money while the incomes of you and I will continue to stagnate.  The number of Americans needed social assistance will continue to grow proving current Fed policies are doing nothing for the common man but again in 2015 Washington will tell us the recovery is ongoing despite them having to dole out even more money to those in need.

The National Association of Realtors (NAR) will continue to claim housing is recovering and cry to Washington for more polices to reinforce that fairy tale.     

The rich will get richer and the poor will get poorer but the spectacle of the upcoming elections will distract.  The ACA (Healthcare Act) will mire in its own inefficiency but live on.

Overseas more QE will be undertaken and a host of Euro countries will need their debt to be bought. I suspect more heat will be put on the grand Euro currency experiment as probably Germany will get more and more tired of paying its neighbors bills.

Whether 2015 marks the beginning of the end of the Euro as it stands today is difficult to forecast but I can comfortably say there will be fireworks across the pond.  All in all 2015 will be like 2014, with the same problems just in different area and assets. As for us, it’s still green for stocks with some good buys in energy and commodities to be had. Stay tuned to money matters as we keep an eye out on the markets for you so you don’t have to.

--------------------------------------------------------------------------------------------------------

A change is coming in the world of financial planners and advisors. In a nutshell I have always said investors are waking up to the fact that fees and commissions are eating most of their profits. Worse yet, if the markets go down, investor losses are magnified.

Years ago financial advisors as they are called today were known as full service brokers. Their high fees gave way to discount brokers like Schwab, Scottrade, TD Ameritrade and others. Trading fees were dropped to dirt levels and investors started trading their own accounts. All went well until the markets cratered in 2001 and then again in 2008/9. Then instead of realizing that it was not their stock picks that hurt them but the STOCK MARKET investors somehow thought a "professional" could do better. The truth is no matter who picks the stocks and no matter what they or you pick, they all GO DOWN with market falls and ALL GO UP with market rallies.

It became common knowledge a few weeks spent in a training course and then paying the certification fees gave many a license to “advise” investors on how to invest ones life’s savings. Using the old methodology of hold for the long haul and loading up investors with stocks and bonds, the belief was investors would not suffer losses and if they did, the markets “always came back”.

Full service brokers gave way to the growing financial advisor market and a new breed of money pits was born. Gullible investors thinking advisors knew more than most, flocked to the storefronts and firms petitioning them to handle their money and paying dearly for them to do it.

Not knowing that almost all stocks just move with the markets, investor were sold and continue to be sold a “bill of goods”, convinced the fees and markups charged to them by the “advisors’ were worth the extra money they would make on their investments.

Told the combination of stocks and bonds protected one against markets routs, investors found out the hard way when the out-dated methodology collapsed with the markets.

Stocks AND bonds fell in concert and losses were industry wide. Regardless of what firm they used or who handled their money, the general market fall wiped out profits and handed investors huge losses which many have not recovered to this day. If not for the federal government stepping in to save the markets, the stock and bond market would likely have fallen to levels that would have wiped out most portfolios even worse then what we saw.

The lesson was not learned however and the same old methodologies have not changed. Investor portfolios I have seen still hold the same mix of stocks and bonds, setting them up for a reoccurrence should the markets again fly apart sometime in the future.

Investors are learning however, from by analysts like myself  authors and others, that stocks are stocks and no matter what you buy, they mostly all just move with the general stock market. “Load funds” (funds that have even more fees when you buy them)  a popular way to fleece unknowing investors are now fast going the way of the dodo.

With that in mind, the payment of fees and commissions to firms and individuals to handle your money makes little sense at least to me. One could do as well without these advisors just by buying a mix of solid stocks and funds and save the fees to boot.

A variety of books and TV specials are now exposing the industry. These medias  and others are bringing to light the huge costs to investors by using certain funds, advisors and firms.

Wall Street is hearing the outcry. New funds are popping up with NO FEES whatsoever. More and more investors have had it with seeing their gains pay for fancy offices and new cars of firm employees and advisors alike. More and more investors are using discount brokers which charge no fees and just buying good stocks from great companies and finding out they make much more money and keep that money rather than paying thier gains to someone else for buying some unknown mutual fund or stock that performs no better than the general markets and sometime much worse. 

Better education (like this Money Matters newsletter and show) is helping investors see the light. And more and more investors are making more and more money, keeping the dividends and saving the gains for themselves instead of paying that money to someone else who use strategies that usually don’t even beat the simple averages of the general markets.

Read what I wrote so long ago about advisors, stock averages and the many studies confirming that a change is coming. Much like the full service brokers losing business to discount firms decades past, the “game” of the “financial advisor” and their fees and commission is coming into light and what it is illuminating is not  pretty. 

 

"Thank you very much and it  looks like once again I made more money than you did! But trust me, you still need my services!"

------------------------------------------------------------------------------------

Do you have a professional money manager or financial consultant manage your money, buying you stocks and mutual funds because you think you don’t know enough to do it yourself?

You are not alone in that thought but just because a lot of people might jump off a bridge, does that mean you should?

The point here being that managing your money in my opinion is a fairly simple task and almost anyone can do it once you realize how the stock markets function.

The truth is in most cases is it doesn’t matter what funds or stocks you own as most just move in lockstep with the major indexes. That being said, if you own the major indexes, you will probably do as well or better than a managed group of stocks.

Let me clarify this statement with a simple example you can verify yourself in a few minutes with a computer and a copy of portfolio and its historical performance.

Reviewing your portfolio performance, has your financial advisor given you a 140 % increase in your portfolio since 2009? 

If not, my recommendation for years to just buy an index fund and save those huge fees by doing it yourself rings true. In other words, buy one of the big index funds like the Dow 30, S&P 500 or Russell 2000, (better yet buy all three) then sit back relax. You will save on all those fees and that means more money goes to you and your family.

How do I know this?

It’s simple: the “I shares Russell 2000” index has posted a 140 % gain since 2009.

If you had owned this one index (costing you about 10 bucks to own) you would have posted this 140 % increase in your money AND saved all those fees and commissions.

You also can nix those 6 months visits to that fancy office to “review” your portfolio, a fancy name for garnering even more commissions by buying and selling stocks and funds to “reallocate” your holdings. These semi-annual checkups give the appearance they’re doing something to warrant their fees. Adding insult to injury, they may then charge you more commissions on the “reallocation”.

Topping that off, the Russell 2000 index doesn’t have those high management fees like some of those mutual funds you own and doesn’t have a sales or “load” fee like many funds may have that you are sold. Worse yet, many investors don’t even know they paid a load fee, another shortcoming of a host of advisors.

As a special note: I know many friends and relatives that are realtors and advisors and they are all hardworking, honest people (otherwise they wouldn’t be friends!) and this media is not aimed at them. I am speaking of the fly by night ones that we all know and love of course!

The bottom line is if you show your advisor this article and he or she will likely point to the performance of the portfolio or scare you into thinking you need them in time of crisis.

Then ask yourself, during the last “crisis” (2009) what happened to your stocks, funds and your balance during that time?

My bet is you got slaughtered like the majority of other investors.

Want to check all this out for yourself?

Google up the “I Shares Russell 2000” index chart, then compare it to your statement since 2009.

If you’re not up 140 % like the Russell 2000 is, it may be time to seek another route.

You may have done a lot better (maybe about 140 % better) by simply opening up a discount brokerage account, paying the ten bucks or so to buy the indexes and pocketing the thousands of dollars those “experts” take from you each and every year in fees and commissions.

With the access of the modern internet, you can verify this statement in a few minutes and see who is talking smack and who is speaking the truth.

Numbers don’t lie dear reader so grab your portfolio history and check it out for yourself.

Keep in mind, the truth can stand up to scrutiny. It is high time to scrutinize your holdings against the common indexes mentioned above and then ask some serious questions.

After all, it’s your money.

In conclusion, I’ve always said if you know a money manager or advisor that works 8 hours a day in an office he is probably not very good, for if he was, he wouldn’t need to take your money to survive. He would spend an hour a day trading his own account and spend the rest of the day in the gym and with his family (like I do).

Want to learn how to save those fees and do it yourself?

Stay tuned for my “consult in a box” called the Dream Portfolio!

It will be updated soon. For now however, keep reading!

-------------------------------------------------------------------------------------

An open challenge to any and all investment advisors and firms.

Pick a date in the future. Notify me of that date. Then we wait one year to the day. If any advisor or firm beats the combination of the S&P 500, the Nasdaq, the S&P 500 and the Dow equally weighted, deducting all your fees, commissions and loads, I will pay you the sum of $1,000.00.(one thousand dollars). Your portfolio must be in a valid customer account and hold at least 20 positions for diversification.

If you don’t beat the equal weighting of the three indexes, you pay me. It's that simple. Let’s see if anyone or any firm is willing to put their money where their mouth (and investment strategy) is.

--------------------------------------------------------------------------------------------

 

Good news! I have just updated the Super Dividend Payers List again for the New Year! Even if you go the list in October on the last update, this is a NEW updated list as of January first!

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 “Monsters of the Midway” as I call them and as of January 2, 2015 I updated it again!

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 in October I said it might raise its dividend and guess what? It just did!

I hope you got this stock in October but if not, an increase in dividends says gobs about the company’s strength and management’s confidence in what’s to come. Now is the time to get this monster of the midway!

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. Since October it has gone down even farther making it an even better buy so if you didn’t get it on my last update, consider looking into this stock now!

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!

I added another monster stock in position #7. This company I know you have heard of and is the dominant provider of the internet backbone. It generates close to 50 billion in sales and added 8 billion since 2010! It has a super reliable dividend.

#8 is the world’s largest data storage provider. In 2013 it made 23 billion in sales! Like the other monster stocks above, it gushes cash and gives it back to shareholders in the form of reliable and hopefully ever growing dividends!

#9 is arguably the largest company in the world. Strong is not the word for this company but SUPER strong is! Due to the recent fall in oil this stock is on SALE and if there is one stock I would recommend to my family this is the one!

This new list is even better than the October version and if you already are a subscriber download it now. If not a current subscriber, I would ask why not! These first 9 stocks are the ONES to own first and then keep going down the list. It’s packed with monster stocks that rule the world and you should consider owing each and every one of them. The New Year rally may be upon us and grab these companies before other investors bid up their prices!

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.

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.

That’s all for now, but stay tuned for your “HOW TO DO IT” lesson which is a new money class coming soon!

Wishing you the happiest and most profitable of New Years!

Marc

PS: Want to see how I do using my “Special Report” methods (available on my website under special report) and see how I do using real money? Follow me on Twitter under “marccuniberti”.

 

Link here to the special report:

http://www.moneymanagementradio.com/special-report