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

Weekly Update: May 3, 2012

"Sell in May" or "Plan to Stay"?

This most recent set of positive earnings from such big names as Microsoft (MSFT), Apple (AAPL), Wells Fargo (WFC) and Alcoa (AA) likely has investors rethinking their plans to 'sell in May.' In fact, I think that the biggest selling activity already took place in April, despite the continuing economic troubles in Europe and the United States. Here at home, last month's data actually is showing modest improvements, so tomorrow's non-farm jobs data will be the tipping point into either positive or negative economic territory.

Either way, the markets are in a good position to benefit -- whether it's from QE3, or from the Fed's confidence that another round of quantitative easing is unnecessary. In today's Cash Machine, I'll update you on some of our current positions, and explain why I'm holding off on additional recommendations for now. I'll also answer some subscriber questions, several of which address recent news about our holdings. Read

Monthly Issue: May 2012

High-Yield Green on Screen Despite Red Market

The S&P 500 has given back 5% of 2012's gains, leaving the stock market's benchmark index up 6.9% year-to-date. The hard-fought, grinding stair-step-higher rally from January through April got met with an elevator ride down in early May. Cash Machine is designed for such times as these, and the power of high-yield investing tends to shine brightest when having capital at risk seems darkest. On Monday and Tuesday, when spates of panic-selling hit the broad tape, 50% of Cash Machine holdings were trading flat to higher. By mid-week, with all the media in a bearish frenzy, Cash Machine assets were trading literally 'unchanged' on the week -- and that, my friends, is beyond comforting.

In this monthly installment of Cash Machine, I'll explain why high-yield assets are 'the sweet spot' and how we've come out way ahead of any investors who took the 'safe' road and put their money in the S&P 500 ETF at the beginning of 2008. I'll also discuss my thoughts on the Bush tax cuts and where I see money rotating into regardless of whether any progress is made on that issue. I have two new recommendations today, I'll update several existing positions, and I'll answer a few subscriber questions. Read

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 Mae's and Money Markets are paying provides important reference points for investors stepping outside these traditional and ultra-safe investments.

Yields determined as of 04/11/12.
Securities Yield
30-Day Treasury Bill 0.07%
1-Year Treasury Note 0.18%
5-Year Treasury Note 0.77%
10-Year Treasury Note 1.87%
30-Year Treasury Bond 3.03%
Taxable Money Market 0.45%
Tax-Exempt Money Market 0.18%
1-Year Certificate of Deposit 1.08%
5-year Certificate of Deposit 1.80%
SPDR S&P 500 ETF (SPY) 1.80%
The Average Cash Machine Investor 9.64%

Watch List

I'm always looking for new investment opportunities to add to our portfolios. Here's what I'm researching right now and will let you know if any of these companies meet my buy criteria. Be sure to check back often.

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