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

Weekly Update: October 27, 2014

Another Big Week Ahead for Market Bulls

Coming off the best week in the past two years, in which the S&P 500 surged 4.1%, market bulls are in a tough spot to not just hold onto the heady gains, but to find justification to substantiate and support a move for the S&P to clear its September high of 2,020. The week ahead is chock full of potential market-moving headlines that will continue to keep volatility elevated.

Just for openers, West Texas Intermediate crude traded for the second time in as many weeks below $80 per barrel this morning. According to a Goldman Sachs (GS) report sent to clients over the weekend, unless 800,000 barrels per day are taken off the market, crude prices may well test $75 without geopolitical disruption, which always adds a premium to oil prices.

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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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