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

Weekly Update: April 21, 2014

High-Yield Momentum Besting Major Averages

Fifteen weeks into 2014, the Dow, Nasdaq and Russell 2000 are all down year-to-date, while the S&P 500 is ahead by less than 1.5%. The market is dealing with some genuine obstacles that weren't prevalent at the end of 2013. Worries over Russia's annexation of Ukraine, slowing in China's economy, Japan's anemic exports, deflationary pressure in Europe and Fed tapering are weighing on investor sentiment.

If these issues weren't enough, the 'great rotation' out of the New America stocks Facebook (FB), Netflix (NFLX), Amazon (AMZN), Priceline (PCLN), Tesla (TSLA), 3D Systems (DDD), Twitter (TWTR), Yelp (YELP) and too many biotech stocks to list -- sent shivers through the market that are just now starting to abate. Last week's rebound saw the bloodletting in high-beta stocks somewhat cease, while capital flows into dividend-paying stocks and high-yield assets remained strong.


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.


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.


"When friends speak of meeting with their financial advisor once or twice a year, I tell them I have constant contact with my financial advisor, which includes weekly updates and daily notices when needed."

S. Lundgaard, Washington

Read More