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

Weekly Update: April 7, 2014

Spring Cleaning on Wall Street

A retracement of the recent gains is underway for the major averages amid divergent market forces that are weighing on equities this past week. While emerging markets have caught a fresh bid off of multi-month lows, the U.S. jobs data, although upbeat, have failed to top whisper numbers that were well above the 192,000 non-farm payrolls reported last Friday. The market was looking for something more along the lines of 220,000 jobs.

In addition, the wave of initial public offerings drew huge amounts of capital out of Nasdaq momentum names, thereby creating a large vacuum underneath the tech-heavy sector that spilled over into the S&P and Dow, pulling those averages back down to key technical support levels. Today's early follow-through to the downside comes in a market with few catalysts to turn sentiment around before earnings begin to roll in later this week.

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Monthly Issue: April 14, 2014

Finding Fair Value Without the Fed

A lot of expected events this year are getting a delayed start. The warmth of spring and the blooming of the cherry blossoms in Washington, D.C. are behind schedule, as is the resumption of the torrid rally for U.S. equities that characterized 2013. The market has run into several headwinds during the first quarter, and they are just now getting worked off to a point where it's beginning to feel like many of the negative factors that have punished stocks of late have been discounted if not fully priced in.

Legitimate investor concerns exist about whether China's growth is stalling out or just taking a pause in its transition from a manufacturing economy to a consumer economy. Europe is weighing fiscal stimulus to ward off deflationary pressures that could morph into negative savings rates. Japan's Nikkei has tumbled nearly 15% since January as a strong yen portends of sliding future finished-goods exports that Japan's economy so heavily depends on. Russia's ambitious annexing of Crimea, and now likely of eastern Ukraine as well, is becoming a more central and volatile issue by the day.

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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 4/14/14.

Securities Yield
30-Day Treasury Bill 0.03%
1-Year Treasury Note 0.09%
5-Year Treasury Note 1.58%
10-Year Treasury Note 2.64%
30-Year Treasury Bond 3.46%
Taxable Money Market 0.46%
Tax-Exempt Money Market 0.15%
1-Year Certificate of Deposit 1.20%
5-year Certificate of Deposit 2.10%
SPDR S&P 500 ETF (SPY) 1.80%
The Average Cash Machine Investor 9.42%

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.

Testimonials

"Since I started following the Cash Machine suggestions in 2006, my portfolio has grown consistently better than the markets, and the fact that it is yielding approximately 10% dividends is very much appreciated."

D. Miller, California

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