New Money Matters update today! April 19, 2015. Please Read!

 

Money Class is happening this week!

The class will be a small class which means we get more one on one time! Don’t delay!

April 22nd, 10.30 am to 2:00 PM at our new digs at KVMR!  120 Bridge St. in Nevada City across for our old digs at 401 Spring St. See the new studios and attend class in our new community room. I will provide drinks and some snacks.

Cost: Reduced to $99.00 so email me. It is too late to mail check.

This is a MUST ATTEND class for everyone, regardless of net worth.

We will cover, money- what it is and how does it work? Investing in stocks or elsewhere?
Tips on great rates for savers and low income. Real Estate, Dividend payers, annuities, bonds, offshore stuff, gold and silver, inheritance, fixed income, aging parents, investing for kids and more! Question and answer period at the end if time allows.

You will also get my Super Dividend Payer List!

Or just send us an email or sign up for two years on the website, get three and the class!

Remember, subscribe for a 2 year membership to the site and I will THROW IN THE CLASS FOR FREE~ Just go to moneymanagementradio.com. WHAT A DEAL! Cost for the 2 year membership is $199.00 and I also throw in your 3rd year free!

If you signed up for the website in the last 30 days for $199.00 you are also eligible for the discount.

You can also pay at the door of course ($99.00).

Don’t delay and get your discount. Choose your method of payment!

Special Note: The enrollment is small so you can bring your portfolio and have more one on one time with me! This will be a small class so take advantage of it and sign up now!

Email me or call me at (530) 559 1214 to get your name on the list and I will see you this Wednesday!


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A NEW EVERBANK NO RISK MARKET SAFE CD IS OUT and it is insured by FDIC!

These seldom come out and when they do they are a great way to get inflation protection but without any risk! Here are the details: 5 years CD

Based on emerging economies which look to rocket higher as the US economy stalls.

No downside risk and a minimum of 10 % return if the underlying indexes have any increase at all.

100 % UPSIDE participation! Unlike some of the other CD’s in the past where the upside is limited this one is not.

Here are the details:

EverBank created the 5-year MarketSafe Future Economies CD for those seeking safer exposure to 6 emerging market currencies:

• Brazilian real (BRL)

• Chinese renminbi (CNY)

• Indian rupee (INR)

• Indonesian rupiah (IDR)

• Mexican peso (MXN)

• Turkish lira (TRY)

CD payments, including deposited principal and a potential Market Upside Payment, will be denominated in U.S. dollars and paid upon CD maturity. The potential upside payment will be based on the

equally weighted value of the performance of these 6 currencies against the value of the U.S. dollar.1

If the CD performance exceeds 0%, but is less than or equal to 10%, the CD will deliver an upside payment of 10% at maturity.

If the performance is greater than 10%, the upside payment will equal the CD performance.

If there is a negative performance, your deposited principal will be 100% protected and returned in full upon CD maturity.

 

What a great way to get upside potential without downside risk and no where can I get you this mix!  Here is the link:

https://www.everbank.com/investing/marketsafe/future-economies?referid=13286

More news: I am looking at managing money for a local financial firm who sees things as I do. If we reach an agreement I can now manage your funds so you don’t have to! Stay tuned to this newsletter for the announcement!

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After half a decade or more of QE and other attempts by government to get the economy going again, what do we have to show for it?

One thing is the highest deficit in history. The figure comes in at an eye-popping 18 trillion and counting. The cumulative national debt increases at the rate of about 1 million dollars a minute, give or take, no one really knows for sure.

Despite the trillions being spent and all the programs designed to help people the statistics since the crisis of 2008 are showing a negative correlation between money spent and the number of poor and low income Americans.

Median income is down since 2008 and the number of people on food programs has increased by 32%.

Despite 3.7 trillion spent on welfare, the poverty rate is over 15 % for 3 years running. That’s the first time that has happened since 1965.

More than half of American workers make less than $30,000 a year and are living paycheck to paycheck and the number of homeless children is at an all-time high.

More small businesses are going under than being created and that’s also a first.

If you dig deeper into the statistics of poverty, they only get worse.

Meanwhile, the upper 1% of what we call the super wealthy are even richer, the banks are bigger and Wall Streets cherished stock market is at an all-time high.

I don’t know what conclusions we can draw from all this but something is definitely not working and it may be time we stop throwing good money after bad and perhaps try something else.

Government bailouts and programs seem to be actually making things worse for most Americans and only better for a select few.

One could argue the more Washington does, the worse off it gets.

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Determining market direction is the holy grail of investors, advisors, hedge fund managers and anyone involved with Wall Street.

With so many people trying to predict the market, how come no one has completely mastered it?

It’s because the stock market is really just the sum of all the players in it, and their cumulative decisions come together to move stocks and bonds one way or another on a daily basis.

I have always said the day to day market movements are only the sum of all the players in it on any given day and day to day movements in no way reflect the economic reality around us. The markets will however reflect reality eventually.

Think back to the housing boom. Late in the boom housing stocks were still rising even as the real estate market was losing steam. At that time, investors believed the housing boom was still ongoing and continued to bid up housing stocks although the curtain was already coming down on the industry. Eventually housing stocks crashed and reflected the reality of the situation.

Although I nor anyone else can tell you for sure which way things may go, there are historical signals and statistics we can fact check and see what happened in the past.

One statistic for market movements is investor sentiment and how much of a percentage of money available is in the stock market at any given time.

Cash on the sidelines is the highest at market bottoms and there’s little cash not invested in stocks as we approach tops. When mutual funds have about 4% of their cash left in their coffers that generally means there isn’t much cash left and most of their money is already in stocks. When we reach that point of 4 % or so, markets usually sell off. Right now mutual fund cash sits at about 3% so we are already into what might be considered an extreme end of this graph indicator.

This might be a warning a correction might be coming.

Investor sentiment, how investors feel about the near term future direction of the market is also now at very high levels. Mom and pop investors are feeling good, and the bigger money players are also very optimistic as are the traders. This triple whammy of all three investor classes concurrently feeling giddy may also be telling us the market is ready to correct.

There are many other indicators and many of them are telling us the exact opposite: that the market looks to run even higher.

Since all the indicators are not in agreement this point in time, I continue with my muted warning that I have been reiterating since the winter of 2014. The green light is on for stocks but it’s not all green. An orange tint is definitely visible so that means conserve some cash and don’t commit large amounts of new money to the market at this time.

A medium term correction is likely coming and although I don’t think it will be the big one, you want to have some cash available to pick up some stocks on sale when it hits.

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The emerging markets indexes have been left in the dust compared to the US market.

Greek debt problems and a general malaise economy in Europe has resulted in overseas markets poor performance.

But the old adage buy when everyone is selling and sell when everyone is buying might make for an interesting opportunity for those willing to bet against the crowd.

Contrarian investing strives to do just that, buy when everyone is not, which means getting stocks on sale as prices get beaten up from bad news. Buying beaten up assets is when you get the best price.

That being said, the recent US dollar strength and the opposite fall in the Euro currency has widened the gap between overseas markets and ours, and it might be time to take a look at the out of favor emerging markets.

I like buying assets on sale and right now the emerging markets are on sale. There are a variety of funds that track emerging markets and I like the ones that pay dividends to boot.

Take a look at Wisdom Tree Emerging Markets (DEM) which currently pays about a 5% dividend and iShares MSCI Emerging Markets (EEM) which pays about 2.2%.

There are many other emerging market funds you can choose from. I have more on my Super Dividend Payers List you can get on the site.

Although no one can say for sure which way particular markets will go, buying assets on sale such as a beaten up market is a way to better your odds of success.

All for now, I look forward to seeing you all this Wednesday!

Marc