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Money Matters Update July 3, 2013
Me at the Lion's Den! The Darks Side's nest.
Marc’s Notes: CORRECTION SEE THE REVISED LINK BELOW FOR THE EVERBANK MONEY FUNDS ********
First off- Listen up! There is a brand new Super Dividend Payers List now on Moneymanagementradio.com which includes some new stocks AND a stock that has increased their dividends every for over 125 years! You use these companies’ products probably every week and it’s been around for over 150 years! Pick up your copy of the Super Dividend Payers list now! All yearly subscribers can download it for FREE! If you would like to access all SHOWS and portfolios for 3 years, buy 2 years of access and get the 3rd year for FREE! This special may not last for long so just see the bottom of any web page to buy a yearly subscription!
Interested in the upcoming real estate class or Money Class? Email to reserve your spot now!
Want to meet with me one on one? Email “Sarah” right here in our office!
One more thing- a NEW EVERBANK NO RISK CD IS COMING! Stay tuned for a link soon. I have to review the listing and make sure it is fit for Money Matters listeners so keep an eye out on future Money Updates. It’s coming soon!
Also they have a great yielding Money Market and Savings Account that is the best I have seen. Get your money in top working condition with this high yield money market account.. The way I see it, it's my job to keep your hard-earned money safe and growing so that when you're not working, you're living right.
Here is the link so you get the right one: *********** use this corrected link for this account.
http://adfarm.mediaplex.com/ad/ck/13305-85986-43235-0?referid=13286
I will have more from Everbank soon but for now open this money-market account if you want a higher yielded with safety.
Money Matters airs July 11th, 2013 NOON Pacific Standard Time! Lets talk about those bonds you hold and what stocks we should replace them with!
Bonds:
Investors are finding no shelter from the worst corporate-bond losses in almost five years as debt plunges for the most creditworthy to the riskiest borrowers in every industry worldwide.
Company debentures erased 2.2 percent the last three months, the worst quarterly decline since a 5.2 percent plunge in the period ended September 2008, when the collapse of Lehman Brothers Holdings Inc. ignited the worst credit crisis since the Great Depression, Bank of America Merrill Lynch index data show. All 16 industries in the index lost during the period, from a 0.7 percent decline for the debt of automakers to a 3.5 percent drop in energy-company bonds. Now, if your financial advisor has you in BONDS, dump him or her NOW! Read the facts here yourself:
and here:
and here:
http://www.cnbc.com/id/100855508
More QE? “Please Ben, stop!”
Five years into the Quantitative Easing by the Federal Reserve and about 3 trillion dollars later, and Ben Bernanke your Fed Chief is starting to talk about bringing it to a close once again, about his fifth or sixth time of threatening to take away the money punch bowl without actually doing it.
He as well as many others are surely starting to wonder if all this money printing known as QE is really doing any good. Sure the Dow Jones industrial stock average is at a new high almost but seeing as only one in ten people own stocks, this Dow high helps very few average Americans.
With unemployment still stuck in high gear and business balance sheets and reports reflecting at best a stagnant economy, it begs the question just how effective have all these QE programs have been. They’ve helped the banks of course, as is evident by another quarter of flawless trading and record profits, but QE was never intended just to help out the banks, well, it really kinda was, but they TOLD us it was to help joe blow get a job and rescue his mortgage payment from defaulting. Indeed a few homeowners got their rent reduced, not me mind you, but after 5 years of this QE stuff, we can pretty much draw some reasonable conclusions as to what it has and hasn’t done.
Banks love it, main street is still waiting, Wall Street swears by it and the politicians that were in there during the crisis 5 years ago haven’t been fired, jailed or strung up by their buster browns, so there you have it then.
The people in control of the money helped the people who manage it, who in turn throw some of into the coffers of those who supported it, who appoint the people who printed it who showered the money into the lobbies and vaults of those who gamble with it who win more of it and then line the pockets of all the above. Mean while the people who actually end of paying for all of it, that’s you and I by the way, get screwed.
I get it now, I’m on the wrong end of the money hose, and instead of getting covered with money, I get hosed!
Markets and Your Money:
The market is up then down then up again.
The Feds print then threaten to not print then take it back. Sheesh!
What’s an investor to do?
Be patient and don’t jump around. Hold a modest portion of stocks but not too much.
I always recommend about 10- 15 % in stocks but only in dividend paying stocks. That’s a lot less of a percentage then the financial advisors you talk to recomend but keep in mind financial advisors just usually know two things- stocks and bonds.
They are not economists; they make their money by taking from you and usually only buy you a handful of mutual funds you could buy yourself. They usually “over invest” you in these two assets and rarely tell you to just get out of the market altogether. You are then being set up for possibly HUGE losses by a flawed model. My opinion of course.
They will let you ride the market down in downturns and then tell you it always comes back. I guess they never studied market history as there‘s been plenty of times the markets take years to come back. If you don’t believe that one, take a look at the market in the late 60’s or better yet, the last 12 years or so. It is about the same place its been since the year 2000! Hold for the long term? I don’t know how much “long” I have left in my “term”!
Instead of just stocks and bonds, keep a good portion, more then half, in plain old savings accounts where you won’t lose it. Laddering bank Cds is also a good strategy and laddering just means buying a handful of Cds with different maturity dates like few 3 month Cds, a few 6 month Cds and possibly buying a one and two year Cd. That way you get at least some interest and always have some money coming due.
A foreign currency or 2 makes sense to hedge against a US dollar crash. Take a look at the Canadian dollar funds (FXC), the Swiss Franc Fund (FXF), the Australian dollar fund (FXA) and the Merk hard currency fund (MERKX). I recommend holding all four of these for true dollar diversification and you might collect some interest payments along the way to boot.
Although gold is down hard in the last few weeks, holding some gold and silver coins is always good insurance against a catastrophic dollar collapse and if it doesn’t happen, pass the coins on to your kids. I also think a bottom may be in soon and for it may be time to load the boat on some good gold funds and stocks. Do NOT do anything now. Wait for me to let you know when I start buying as more downside may be in store!
Top all this off with a Canadian savings account accomplished by a vacation trip to Vancouver and maybe even a Swiss Annuity or Swiss “investment service” (Email me for information) and you have a solid base for a true diversified portfolio. You can save the money you pay to that advisor and buy some more stock with the money instead. You will also be safe knowing what you own and why you own it.
All for now, stay tuned for more in coming editions of this Money Matters Update.
Marc
