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

Weekly Update: October 20, 2014

Visible Signs of Proactive Measures

Investors have just come off the most volatile week in three years that included wild swings in the major averages, a steep correction in the oil sector, high-level anxiety of Europe sliding back into a recession, reports of ISIS about to invade Baghdad and the threat of the Ebola virus striking fear across global borders.

The week was capped with the Dow posting its second-largest gain of the year; buyers stepped in just as the S&P 500 came within a whisker of registering a 10% decline from the Sept. 18 peak of the 2,019 level, which marked the beginning of the current decline. By definition, the market has endured a four-week correction that, if contained to the lows of last week, will fall into the category of 'garden variety.'

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Monthly Issue: October 13, 2014

Global Concerns Wash Ashore on Wall Street

Back on Sept. 17, when the S&P 500 broke cleanly above the prior high from 2010, the market was set to trend up to 2,050 based on a set of circumstances that at the time were viewed as quite bullish. The Federal Reserve reiterated its dovish stance toward holding short-term interest rates at below 0.25% for a 'considerable time.' Exactly what Mr. Market wanted to hear.

Then a series of unfavorable events derailed prospects for a rally, all in the span of a couple weeks. It kicked the stool out from under the bullish set up, leaving Mr. Market in a quandary as to whether the current 6.2% pullback for the S&P is the garden variety, making this a buying opportunity, or whether there is structural deterioration.

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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 10/11/14.

Securities Yield
30-Day Treasury Bill 0.02%
1-Year Treasury Note 0.10%
5-Year Treasury Note 1.55%
10-Year Treasury Note 2.31%
30-Year Treasury Bond 3.03%
Taxable Money Market 0.28%
Tax-Exempt Money Market 0.10%
1-Year Certificate of Deposit 1.10%
5-year Certificate of Deposit 2.30%
SPDR S&P 500 ETF (SPY) 1.99%
The Average Cash Machine Investor 10.16%

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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