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

Weekly Update: July 28, 2014

External Events a Drag on Bullish Tone

Increasing tensions in Ukraine, Gaza, Iraq, Iran, Syria and Afghanistan are making for stiff headwinds against improving economic macro data for global markets. It's hard to get through the evening news without being reminded of all the strife -- and yet the string of high-profile mergers continues unabated, while emerging markets have come back to life, scoring strong gains last week.

At the same time that negative geopolitical events are captivating the networks, second-quarter earnings season is coming in at or better-than-expected for three of every four companies that have reported. This week, 140 S&P companies will post their numbers, which will shed further light on the broader health of the U.S. economy. The market rallied well leading up to earnings season, so it's not surprising to see some selling on the news after the S&P touched 1,985 and today is testing 1,970.


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.


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.