Monthly Issue: November 2009

Strong Dollar, Weak Consumer Confidence Halts Rally

Despite better-than-expected earnings and a string of upbeat economic reports, there are two events that have led to a shaky start for the fourth quarter: consumer confidence and dollar volatility. In fact, the current market rally actually coincides (to the day) with the decline in the greenback.

So far, the current environment remains primed for our high-yield income strategy. Sector leadership is pointing up, capital spending in technology is on the increase, and I believe that 2010 is going to be a great year for investors who position themselves for the coming global economic recovery.

In fact, given the recent developments in the economic landscape, I've been working hard to get the November Cash Machine issue out to you as soon as possible. And I didn't want to hold it until our normal time next week due to an exciting new recommendation in the dry bulk shipping sector. So, today I'm sending you the monthly issue, along with our regular weekly discussion, in one package.

What exactly will we be covering in this combined issue? Well, we'll discuss what the recent market action means for our Cash Machine portfolios going forward. I also have a massive portfolio update, and two sell recommendations. Additionally, I'll go over the Baltic Dry Index and the dry dock shipping sector -- which I've wanted to jump back in to. Well, today's the day -- I've got an excellent new recommendation, a Master Limited Partnership that actually just raised their dividend in a sector where practically all dividends have been omitted recently. Read

Strong Third-Quarter Earnings Season Will Stampede October Goblins

Monthly Issue: October 2009

Oh how the market pundits love to talk about the dark side of being invested during the month of October. As we all know, that's because investors have experienced some of the biggest hits in October -- think the 'Great Crash' of 1929 or Black Monday in 1987 or even just two years ago when the Canadian government changed its tax policy on trusts.

But this October, I think the picture will be much different. Third-quarter earnings are likely to provide the firepower necessary to push the market to new highs. Overall, I think it's going to be a great month.

So in the October issue of Cash Machine, we'll not only be discussing my outlook for October, I'll also talk about why the Pacific Rim is offering some tantalizing high-yield opportunities. This region is extremely important to global growth, so with the Asian markets poised to experience the greatest long-term rate of growth, owning high-yield assets based in the Pacific-Asia region is a powerful investment theme. And I'll add two new recommendations along these lines this month. Read

Indian Summer Rally Boosts High-Yield Assets to New Highs

Monthly Issue: September 2009

This summer has been anything but lazy and lackluster for investors. Each day, we've seen headlines capable of shaping the investment landscape. And as a result, investors have been sitting on pins and needles waiting for the market's next move.

There isn't likely to be much of a change in September either, as investors are still skeptical about the recent market rebound. So in this month's Cash Machine newsletter, I discuss the current market environment and share my thoughts on what to expect this month and in the coming months.

In addition, I'm constantly asked questions about Master Limited Partnerships. So this month, I revisit the subject, providing in-depth sector profile on these investment vehicles. And I also add a natural gas MLP to the High-Yield Conservative Buy List. Read

Latest Economic Data Paves Way for Slow Recovery

Monthly Issue: August 2009

In July, we saw a fundamental shift in sentiment as the major averages posted their best one-month gains in years. And I'm expecting the current favorable trends to continue in August. So this isn't a time for income investors to be complacent.

With that said, in the August Cash Machine issue, I provide two new recommendations. One is an apartment REIT that is benefiting from the recovering real estate markets and is yielding 8% -- a solid bet for conservative investors. And the second recommendation is an energy play that is great for both conservative and aggressive investors -- it's yielding a solid 10%.

In addition, I've received a fair number of subscriber questions recently, so I dedicate a good portion of this month's issue to addressing your concerns. And I have a fresh watch list this month, with a few commodity plays making the list. Read

Soft Employment Data Gets Third Quarter Off to a Rocky Start

Monthly Issue: July 2009

Everyone knows by now that the U.S. economy is powered by the consumer, accounting for two-thirds of GDP. So when 14.4 million people are out of work and 30% of them have been out of a job for at least six months, it would appear that it's going to be a grind for the economy to reverse the trend.

Using the assumption that the economy is going to be stuck in second gear for the next couple of quarters argues well for high yield. That's because market psychology will shift to those asset classes that at least pay out handsome dividend yields while investors wait out a long recovery cycle for the economy.

That's why in this issue of Cash Machine I have three recommendations -- two Agency REITs that are practically printing money, and an attractive buying opportunity of a recently merged company in the communication sector. Read

Economic Green Shoots Taking Root Amid String of Upbeat Data

Monthly Issue: June 2009

While there's a lot of 'window dressing' providing support to the markets right now, we need to be wary of the weakening U.S. dollar. A declining dollar could put a lid on the current rally, which none of us want to see.

With the markets finding some support in recent weeks, we can take a step back to look at the beaten down hedge funds. This asset class has received a lot of bad press as of late, but I think it's unfounded. In fact, since hedge funds have been sold down to the tune of 80%, I think it is time to reconsider this asset class for retail investor portfolios as the income streams and upside potential are hugely attractive. So in this month's Cash Machine issue, I add a well-known hedge fund to the Aggressive High-Yield Portfolio.

In addition, I'm seeing an opportunity in one of the biggest winners in a recovering economy. This science and technology company boasts a solid 5.7% yield, and is my latest recommendation for the Conservative High-Yield Portfolio. Read