Bryan Perry's Cash Machine: Double-digit Income Investing

Weekly Update: November 24, 2014

Juicy Drumsticks of Data

When market valuations are being called into question, the most galvanizing scenario that would justify the primary uptrend continuing into further record territory is for the economy to deliver empirical data that support a higher market. Last week, investors got an early Christmas gift of strong data points that argue well for further stock market gains.

The Conference Board's leading economic index increased 0.9% in October, up from a downwardly revised 0.7% (from 0.8%) in September. Consensus expectations were looking for a reading of 0.6%. Leading indicators reveal strong growth and are, as suggested by their name, forward-looking. Ironically, the only component to contribute negatively to the index was stock prices. Yes, there was a 10% correction.

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Monthly Issue: November 10, 2014

Market's Underlying Bid Rolls Into November

The major averages have rallied to fresh record highs, bolstered by rising expectations for additional European Central Bank (ECB) stimulus that have been accompanied by upbeat economic data and corporate earnings in the United States. This time last month, the Dow was in the red for 2014, but has now posted a year-to-date gain of 6.3%. The S&P and Nasdaq are ahead by 10.2% and 11.3%, respectively.

Signs of a steadily improving U.S. economy have been able to overcome concerns about growth overseas. The Fed's exit from QE had caused some initial worries as well, but they were quickly eradicated when ECB President Mario Draghi reiterated the ECB's unanimous commitment to stimulate growth in the eurozone.

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Compare & Contrast

The compare and contrast feature includes a table of guaranteed yields reflecting current yields as a way to compare risk-free investments versus recommendations within the Cash Machine service. Having a handle on what Jumbo Certificates of Deposit, Treasury Bills, Treasury Notes, Ginnie Maes and Money Markets are paying provides important reference points for investors stepping outside these traditional and ultra-safe investments.

Yields determined as of 11/10/14.

Securities Yield
30-Day Treasury Bill 0.04%
1-Year Treasury Note 0.12%
5-Year Treasury Note 1.60%
10-Year Treasury Note 2.32%
30-Year Treasury Bond 3.04%
Taxable Money Market 0.27%
Tax-Exempt Money Market 0.12%
1-Year Certificate of Deposit 1.12%
5-year Certificate of Deposit 2.30%
SPDR S&P 500 ETF (SPY) 1.84%
The Average Cash Machine Investor 11.99%

Watch List

I'm always looking for new investment opportunities to add to our portfolios. Here's what I'm researching right now. I'll let you know if any of these companies meet my buy criteria.

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