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

Weekly Update: August 18, 2014

Late-Summer Volatility Alive and Well

Leading up to last week, markets were trying to find support after getting aggressively sold off amid a stream of negative headlines surrounding several potentially highly disruptive scenarios engulfing Ukraine, Iraq and the slowing of the European recovery that will only be exacerbated by Russian sanctions. Soft retail sales in the U.S. during the month of July also contributed to the sharp pullback for the major averages.

That said, there appears to be a de-escalation of geopolitical risk and the notion of further European Central Bank stimulus to support the European economy, and coming up is what is expected to be a highly dovish speech by Janet Yellen at a conference in Jackson Hole, Wyoming this week. Together, these two factors have the market putting together a sharp rebound during the past week.

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Monthly Issue: August 11, 2014

Summer Vacation and Volatility

Just as sure as the sun comes up every morning, you can set your clock to when the stock market is going to experience volatility: when I take a one-week vacation. This pattern remains uninterrupted for the past 14 years and should be a published barometer for all market technicians who are seeking out consistent forward-looking indicators.

Thankfully, the trip down to 1,900 for the S&P 500 was a quick one, as headlines late Thursday about U.S. air strikes on ISIS rebels were followed by Friday's mid-day headline of Putin calling off Russian military exercises on the Ukraine border. That news was met with bullish glee, after which a third truce was announced by Israel and Hamas.

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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 8/08/14.

Securities Yield
30-Day Treasury Bill 0.03%
1-Year Treasury Note 0.10%
5-Year Treasury Note 1.62%
10-Year Treasury Note 2.44%
30-Year Treasury Bond 3.23%
Taxable Money Market 0.40%
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) 1.93%
The Average Cash Machine Investor 9.25%

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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