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

Weekly Update: July 21, 2014

Geopolitical Headwinds Trip Up Rally

One can look to the market's resilience of late and only be impressed with the strength of how each and every dip in stock prices is being snapped up by investors eager to add to equity holdings. In a normal world, the phenomenal wave of mergers and better-than-expected high-profile earnings that are crossing the tape would have the S&P 500 trading up through the 2,000 level like a hot knife through butter.

In light of the events in Ukraine and Israel/Gaza, both of which are worsening by the day, the fact that the major averages are trading higher shows that, despite the ugly nature of these highly fluid scenarios, neither situation will seriously affect the global economy. With more than 700 companies set to report earnings in the next two weeks and the likelihood of more merger activity also prevalent, any downside move in equities will, in my view, be well-contained.

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Monthly Issue: July 14, 2014

Mr. Market and Managing Expectations

Not a day goes by when there isn't yet another high profile market analyst doing his or her imitation of John the Baptist, crying out in the wilderness to repent of being long this supposedly grossly overvalued stock market. The headline this weekend in The Wall Street Journal 'Biggest Weekly Loss Since April for S&P 500' sounds like there must have been some serious sell off that had investors running for the exits. Unfortunately, fear sells better than hope, but, rather than get emotional, let's examine the facts about the current market and let the numbers speak for themselves.

For the week, the S&P declined by 0.79%. That's right...not even 1%. We're talking about a loss of 16 points for the index, opening last Monday at 1,984 and closing Friday at 1,967. The big news of the week was Lebron James' announcement that he's returning to the Cleveland Cavaliers, which overshadowed strong earnings from Alcoa (AA) and in-line numbers from Wells Fargo (WFC). That's how devoid the market was of economic data, M&A and business related news.

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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 7/14/14.

Securities Yield
30-Day Treasury Bill 0.02%
1-Year Treasury Note 0.11%
5-Year Treasury Note 1.65%
10-Year Treasury Note 2.55%
30-Year Treasury Bond 3.37%
Taxable Money Market 0.41%
Tax-Exempt Money Market 0.11%
1-Year Certificate of Deposit 1.10%
5-year Certificate of Deposit 2.30%
SPDR S&P 500 ETF (SPY) 1.90%
The Average Cash Machine Investor 9.5%

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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