Archive for January, 2013

Two questions every high-yield income investor needs to ask

From Dividend Growth Stocks:
 
Everyone wants to earn more. For investors in dividend growth stocks, the quick way to earn more is to select dividend stocks with higher yields. Swap those 2-4% yields in for stocks earning 6-10%, or more. Before making the trade, you should ask yourself the following two questions:

 
1. Why is the yield higher? and
2. Are these higher yields sustainable?
 
Structure-Driven Yields
 
One variation in yields can be attributed to the entity's tax structure. For example, Master Limited Partnerships and REITs do not pay income taxes. Instead, earnings are passed to investors who pay the taxes. Yields on these types of investments tend to be higher. Since the entity doesn't have to pay income taxes, there is more cash to distribute.
 
Also, since earnings from these investments don't qualify for preferential dividend tax rates, the market adjusts the price of the investment down, which increases the yield, to compensate for the additional taxes owed.
 
Risk-Driven Yields
 
The most significant determinant of yield is…
 
Read full article…
 
More on income investing:
 
Twelve smart dividend rules every retirement investor should know
 
Seven top dividend stocks with plenty of room to raise payouts even higher
 
What you need to know about one of the world's least-understood income investments

Thursday, January 31st, 2013 Invest, News, Wealth Comments Off on Two questions every high-yield income investor needs to ask

Warning: One of the most outrageous laws of the decade goes into effect this week

From Liberty Blitzkrieg:
 
This is exactly the sort of arbitrary legislation that was used to punish Aaron Swartz and what ultimately led to his suicide.
 
I have many close friends whose parents fled the USSR in the second half of the 20th century, and all of them have told me that this is exactly what the Soviets did in order to make everyone a criminal by default. That way the government can then go after anyone they don’t like at any time…
 
Our country is becoming more of a totalitarian state by the day. From The Atlantic:
 
ADVISORY
 
BY DECREE OF THE LIBRARIAN OF CONGRESS
 
IT SHALL HENCEFORCE BE ORDERED THAT AMERICANS SHALL NOT UNLOCK THEIR OWN SMARTPHONES.
 
PENALTY: In some situations, first time offenders may be fined up to $500,000, imprisoned for five years, or both. For repeat offenders, the maximum penalty increases to a fine of $1,000,000, imprisonment for up to ten years, or both.
 
That’s right, starting this weekend, it is illegal to unlock new phones to make them available on other carriers. 
 
It’s embarrassing and unacceptable that we are at the mercy of prosecutorial and judicial discretion to avoid the implementation of draconian laws that could implicate average Americans in a crime subject to up to a $500,000 fine and up to five years in prison.
  
But there is another matter of critical importance: Laws that can place people in jail should be passed by Congress, not by the decree of the Librarian of Congress. We have no way to hold the Librarian of Congress accountable for wildly unfair laws. There are still plenty of crazy laws passed by elected officials, but at least we can then vote them out of office.
 
And if you thought this was bad, provisions of the DMCA relating to anti-circumvention are part of…
 
 
More government insanity:
 
 
 

Thursday, January 31st, 2013 Invest, News, Wealth Comments Off on Warning: One of the most outrageous laws of the decade goes into effect this week

One of the world’s most important commodities could be ready to soar

From All Star Charts:
 
We're watching these corn futures very closely right here around 730. There's a lot going on in this space and I think the daily chart for $ZC_F breaks it down nicely.

 
The first thing we notice is this giant symmetrical triangle that formed off the July lows and August highs. Prices in December were approaching the apex of these two converging trendlines and broke down pretty hard.
 
The sell-off took prices below a rising 200 day moving average and down to last year's former resistance. This level turned into new-found support, and and corn was able to…
 
 
More on agriculture:
 
 
 

Thursday, January 31st, 2013 Invest, News, Wealth Comments Off on One of the world’s most important commodities could be ready to soar

Powerful chart shows a massive financial crisis is headed for this country

From Azizonimics:
 
Things don't look so good for China…
 
Will we see a Chinese financial meltdown in 2013? Or 2014? Or 2015? With global GDP growth on a definite trend downward, with such a tepid Western recovery, and with global geopolitical tensions still high, the last thing the global economy needs is a financial crisis at the heart of the BRIC growth engine.
 
But the data implies that that may just be what we get.
 
To those who believe that China is immune to such a thing, recall that…
 
Read full article…
 
More on China:
 
Jim Chanos: China is a roach motel… Get out now
 
A "mind-boggling" China gold report you have to see to believe
 
"The People's Bank of China makes QE3 look like central banking for prudes"

Thursday, January 31st, 2013 Invest, News, Wealth Comments Off on Powerful chart shows a massive financial crisis is headed for this country

Four little-known tips for saving big money on car repairs

From Eric Peters Autos:
 
The wise mechanic says: Avoiding the need for repairs is the best way to save money on repairs. Here are a few tips and tidbits along those lines:

 
* Parking brake on first 
 
It's a small thing – but could save you a great deal of money. By putting the parking brake on before you put the gear shift lever into Park (or a manual transmission into Reverse – or whatever) you avoid using the transmission to hold the car's weight in place. You use the car's brakes instead – as the Motor Gods intended.
 
Many people make the mistake of putting the transmission into Park first – then engaging the parking brake. This may assure the car stays put – but it also assures tremendous loading of the transmission – which isn't good for it. Which ultimately means, not good for you.
 
* Idle it with the
 
 
More on cars:
 
 
 

Thursday, January 31st, 2013 Invest, News, Wealth Comments Off on Four little-known tips for saving big money on car repairs

Shocking evidence suggests Obama manipulated economic data to win reelection

From Economic Policy Journal:
 
While much focus was put on the curious improvement in unemployment data in early October, which resulted in speculation that the BLS may have manipulated the data for the benefit of the President and his re-election campaign, perhaps more focus should have centered on an even more curious data point released on October 26, 2012, the Gross Domestic Product: Third Quarter 2012 (advance estimate).

 
The release read:
 
Real gross domestic product – the output of goods and services produced by labor and property located in the United States – increased at an annual rate of 2.0 percent in the third quarter of 2012 (that is, from the second quarter to the third quarter), according to the "advance" estimate released by the Bureau of Economic Analysis.
 
This was a big swing upward from Q2. In the second quarter, real GDP increased 1.3 percent. Thus the 2.0 number implied that the economy was on an upswing.
 
Where did the improvement come from? The report went on to inform:
 
The acceleration in real GDP in the third quarter primarily reflected…
 
 
More on the White House:
 
 
 

Thursday, January 31st, 2013 Invest, News, Wealth Comments Off on Shocking evidence suggests Obama manipulated economic data to win reelection

Another astounding fact about the U.S. energy renaissance

From Carpe Diem:
 
The Department of Energy’s Energy Information Administration (EIA) released updated data today in its "Monthly Energy Review," here are several interesting highlights from the report:

 
 
… As a direct result of the U.S. shale oil boom bringing domestic production to a 15-year high last year, net oil imports fell to 40.6% last year, the lowest level in 21 years, going back to 1991 when net oil imports were 39.6%. As recently as 2005, the US relied on foreign sources for more than 60% of its oil, and produced less than 40% domestically. In just seven years, those percentages have been completely reversed, and the US now produces almost 60% of the oil required to fuel the U.S. economy, and relied on foreign sources last year for less than 41% of the oil consumed.
 
In another impressive turnaround, it took 14 years to go from net oil imports of 40% in 1991 to 60% in 2005, and then only five years to reverse that trend and go from 60% in 2005 back to 40% in 2012 – again because of hydraulic fracturing and shale oil.
 
2. Thanks to the energy revolution that has unleashed oceans of gas and oil trapped in shale rock, the U.S. will produce domestically 83.4% of the total energy consumed in 2012, based on EIA data through October (see bottom chart). That brings America’s energy self-sufficiency to the highest level since…
 

 

 
More on the U.S. energy boom:
 
 
 

Thursday, January 31st, 2013 Invest, News, Wealth Comments Off on Another astounding fact about the U.S. energy renaissance

Top analyst Rosenberg: Four signs investors are becoming incredibly complacent

From PragCap:
 
Ever wary of market risks, David Rosenberg of Gluskin Sheff highlights four signs of investor complacency as the equity market soars to new highs on a near daily basis:
 
•   The Investors Intelligence Survey is flashing 52%, doubling in six months and at a two year high.
•   Even the usually more dour AAII poll of individual investors shows a higher share of bulls than at any point in the last two years.
•   Lipper reported that flows into equity funds have been a whopping…
 
 
More on sentiment:
 
 
 

Thursday, January 31st, 2013 Invest, News, Wealth Comments Off on Top analyst Rosenberg: Four signs investors are becoming incredibly complacent

One Indiana couple faces 60 days in jail for an unbelievable offense

From PrisonPlanet:
 
An Indiana couple saved a wounded baby deer and nursed it back to life, saving its life and giving it a home. They named it "Little Orphan Dani." When Indiana state officials got word of this courageous act of compassion, they ordered the deer euthanized.
 
When the deer "escaped" right before it was schedule to be killed — and yes, I think the couple probably set it free rather than have it killed — the man and woman were charged with unlawful possession of a deer.
 
They now face $2,000 in fines and 60 days in jail.
 
This is yet another example of the government police state gone wild, and it’s on top of seemingly countless other stories of similar police state insanity such as armed government raids on raw milk distributors.
 
Who wants to kill the deer and imprison the couple?
 
… [T]he Indiana Department of Natural Resources (DNR). This is the same name as the department in Michigan that forced small farmers in that state to murder their own baby pigs.
 
What we are seeing today across America, both at the state and federal levels, is big government gone BAD, ignoring the real criminals at the top while threatening, fining, and imprisoning the "little people" who are only trying to do the right thing.
 
Recent examples…
 
 
More "government gone bad":
 
 
 

Thursday, January 31st, 2013 Invest, News, Wealth Comments Off on One Indiana couple faces 60 days in jail for an unbelievable offense

Michael Fowler: The New Strategy for Adding Value to Junior/ Midtier Gold (Hint: It’s Not by Making Big M&A Deals)

January 30, 2013 (Investorideas.com Mining stocks newswire) A lackluster U.S. economy is creating a positive environment for gold, according to Michael Fowler, senior mining analyst with Loewen, Ondaatje, McCutcheon Ltd.

Thursday, January 31st, 2013 News Comments Off on Michael Fowler: The New Strategy for Adding Value to Junior/ Midtier Gold (Hint: It’s Not by Making Big M&A Deals)

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