Saturday, September 24, 2016

Dividend Stock Yields 12.3%, Trades At A Large Discount, Insiders Buying Massively - Medley Capital (NYSE:MCC) | Seeking Alpha

Dividend Stock Yields 12.3%, Trades At A Large Discount, Insiders Buying Massively - Medley Capital (NYSE:MCC) | Seeking Alpha



This is a great article on MCC, a business development company that is paying a 12% dividend along with a lot of insider buying.  Stock returns for the general stock market will probably just be single digits during the next two years with gut wrenching volatile happening also.  So, it is a good idea to hold up to half of your portfolio in quality dividend stocks in order to get paid while the rest of the market turns and burns.  I own many dividend stocks already, and I plan to add MCC to my portfolio soon.

Sunday, September 11, 2016

The Great Debt Unwind Beneath the Surface: US Commercial Bankruptcies Soar | Wolf Street

The Great Debt Unwind Beneath the Surface: US Commercial Bankruptcies Soar | Wolf Street



Here is a very good website for stock market and other important information.  Wolf Richter talked about commercial bankruptcies in a home page article, and this means that more economic trouble could be around the corner.  Wolf also has a website section on the central banks and what is happening around the world economically.  So, this website is one that you should check often for important news about stocks and the economy.



Could This Bull Market End Up Rivaling The Tech Bubble? This Strategist Thinks So - Here's Why - SPDR S&P 500 Trust ETF (NYSEARCA:SPY) | Seeking Alpha

Could This Bull Market End Up Rivaling The Tech Bubble? This Strategist Thinks So - Here's Why - SPDR S&P 500 Trust ETF (NYSEARCA:SPY) | Seeking Alpha



This is an excellent article on why the bull market will continue for a few more years even if we have a lot of volatility with it.  Pension funds are obligated to make money for employees, and stocks are making more than bonds right now.  The 2% Friday sell-off will probably be met with buying whenever people calm down over the threat of rising interest rates.  You also have insurance companies and foundations which are big investors.  These groups need to make 6 to 7.5% each year, and they are having to invest aggressively now. 


Stocks Sink With Bonds, Dollar Rallies as Complacency Broken - Bloomberg

Stocks Sink With Bonds, Dollar Rallies as Complacency Broken - Bloomberg



This is an outstanding article that explains why bonds and stocks both fell together on Friday.  Usually they move opposite of each other.  However, when the Federal Reserve is getting ready to raise interest rates, bonds will fall along with stocks.  This also happens when a recession is about to begin.  If a bear market arrives because of rising interest rates, government bonds will eventually reverse to the upside since people will ultimately seek the safest asset.


Saturday, September 10, 2016

Physical Gold And Silver Demand Beginning To Stymie Government Intervention - SPDR Gold Trust ETF (NYSEARCA:GLD) | Seeking Alpha

Physical Gold And Silver Demand Beginning To Stymie Government Intervention - SPDR Gold Trust ETF (NYSEARCA:GLD) | Seeking Alpha



Here is a great article explaining why owning gold and silver is becoming important in spite of the Federal Reserve talking about raising interest rates.  People will own precious metals if they have to pay banks to keep their money with negative interest rates.  The author also mentioned that world-wide demand for gold and silver will prevent any precious metal raids, and this will remain the case regardless of what happens in the U.S.  NUGT and USLV are two leveraged stocks I plan to trade over the coming months.  The article suggested buying silver when it falls to its 50 day average.

Saturday, September 3, 2016

The smart investing strategy a janitor used to build an $8 million portfolio

The smart investing strategy a janitor used to build an $8 million portfolio



This is a very good article on the value of long-term investing in quality stocks.  A Vermont janitor who died at 92 years of age had amassed an $8 million fortune through stocks by the time he died.  He owned at least 95 stocks when he passed away, and they were not all winners.  This shows the value of buying and holding for a long period of time, and it shows the great importance of diversification to protect your portfolio.  The fact that he succeeded by being greatly diversified with 95 stocks does away with the theory that you should only own a few stocks.



I recall when AMZN was selling for $9 per share and PLCN was selling for $5 per share in the early 2000s.  I made a major mistake by not buying both of them back then.  Amazon is now selling for $772 per share, and Priceline is selling for $1422 per share.  One thing that held me back from owning AMZN was that it always had a high PE, but that means nothing when the company is growing.  I did not buy PLCN because I did not understand the business well enough although I did buy Travelzoo which went nowhere compared to Priceline.



The bottom line is that I should have bought at least pilot investments in both stocks so that I could monitor their progress.  Then, when I saw that they were increasing their revenues virtually every year, that would have been the overwhelming clue that they were fabled multi-bagger stocks that should be held for many years.  I do own AMZN now, and I will probably buy PLCN on a large pullback.  We should always own world class stocks like these as soon as we realize they have the potential for capturing the whole world.




How To Quit Working In 5 Years With $330,000 In Savings | Seeking Alpha

How To Quit Working In 5 Years With $330,000 In Savings | Seeking Alpha



Here is an excellent article about how you can escape the rat race with high savings and by maintaining your investments through high dividend stocks.  PCI and PDI are both paying 12% dividends, and I will probably be adding them to my portfolio soon.  It is unlikely that the S&P 500 will beat 12% annually now that stocks are topped out.  You will also suffer from a lot of volatility by holding index funds under the current stock market conditions.  I am working toward at least 50% of my portfolio to be invested in high paying dividend stocks.