Tuesday, August 31, 2010


"Always bear in mind that your own resolution to succeed is more important than any other one thing." -- Abraham Lincoln

Monday, August 30, 2010


With upcoming November elections in the U.S., the democrats may very well lose their stranglehold on the House and the Senate.  By some estimates, the likely hood of Republicans gaining control of the House of Representatives has grown to 77% from below 30% at the beginning of 2009.  So how might this affect the stock market?

The last time the Democrats controlled both Houses of Congress and the White House was during the first two years of the Clinton administration.  They lost control of both houses to the Republicans during mid term elections in 1994.  So how did the market react?  Subsequent to the 1994 mid term losses and during the second half of the Clinton presidential term,  the stock markets gained over 34% in 1995. 

If history should repeat itself, which it often does, then we should all be hoping for resounding victories for the Republicans in November.  Also playing in favor of the markets, the third year of a presidential term is historically the best, as far as the stock market goes. 

Wednesday, August 25, 2010


Just earned another check from SendEarnings (see banner ad this page).  What a great deal!  This check is for $42 and some change.  Not a lot, but I'll be transferring it from the bank to my money market account and will use it to purchase a few shares of dividend paying stock.  Keep the money moving and growing :0)

Also been doing some carpet cleaning jobs on the side with my new carpet machine.  I've earned enough to reimburse me for 1/6th of the purchase price of the machine.  In addition I have three other carpet jobs lined up, whenever I get time to do them.  At this rate it won't take long to earn back the entire purchase price and I can start using the money to retire what little debt I have left and build my investment account even more.

Speaking of investments, I'm looking at the current downturn in the market as a buying opportunity.  Looking to add additional shares to some of my quality stock holdings.  Have reduced investment costs to my IRA by changing my investment schedule from monthly to quarterly.  Instead of paying a commission each month, I'm only paying 4 times per year, reducing my commission expenses from $48 to $16.  Would rather have the money go towards purchasing more shares than fattening the brokers.

Monday, August 23, 2010


"There are no limitations to the mind except those we acknowledge--both poverty and riches are offspring of thought." - Napoleon Hill

If you think you will be wealthy, you will.  If you think you'll always be poor, you're absolutely right. 

Sunday, August 22, 2010


While the U.S. and the rest of the world may be short on jobs, short on available credit and short on signs of economic recovery, one thing they are not short on is fear.  Fear has become a pervasive part of our national consciousness in relation to the stock market and the economic recovery.  Every day brings some bad news or other that activates yet another panic attack among investors. 

The choice we face as investors is whether to become a victim of fear or learn to benefit from it.  Fear almost inevitably causes an overreaction and it has never been more evident than in the wild swings we've seen recently in the stock market.  One thing you have to do, to avoid becoming a victim of fear, is to decide whether your financial plan and your financial goals are still worth pursuing.  If the answer is yes, and your time horizon is 10 or more years, then why would you be panicked by temporary swings in the market?  Yes we are in a historically disastrous economic state at present, but this too shall pass.  Those who had the intestinal fortitude to invest during the height of the great depression and hold on, found themselves the beneficiaries of some of the greatest wealth building portfolios the world has ever seen. 

I believe we are facing just such a situation today.  While the average Americans day to day life is not as bad as the people who suffered throughout the Great Depression, there are still a great deal of similarities.  So, if you find yourself one of the lucky ones who still has a job and still has a little extra money to invest, now may be a golden opportunity to build the portfolio of a lifetime.  When panic takes hold and most investors flee the market, look at that as an opportunity to pick up great company stocks at bargain basement prices.  The resulting investments could generate untold wealth for you and your loved ones for generations to come.  Instead of being victimized by fear, choose to become a beneficiary instead. 

Wednesday, August 18, 2010


"In the confrontation between the stream and the rock, the stream always wins--not through strength, but through persistence." -- Buddha

Being persistence will win out when working towards your financial goals.   

Monday, August 16, 2010


Not making a lot of changes in my portfolio right now.  But I wanted to update readers on the progress of my "free stock" strategy.  In earlier posts I talked about selling enough shares in Legacy Reserves LP (LGCY) and E. V. Energy Partners (EVEP) to pull all my initial investment money out of the stocks.  I intend to let the remaining shares ride to collect future dividends, figuring any dividends collected are pure profit, since I have no dollars invested in these stocks.

Just got my latest dividend payments from both stocks!  I'm thinking this is the greatest thing since sliced bread!  With no dollars invested, I've created a stream of future income, not to mention the current value of both stocks is on the rise.  What could be better?  I'm looking at some of my other stocks to see which ones I can employ the same strategy with.  I'll be selling just enough shares to take my investment capital out and keep the remaining shares of "free stock".  Then I'll redeploy the original investment capital elsewhere, in hopes of repeating the process over and over.

I'll keep the readers posted on how it's going.

Friday, August 13, 2010


Just finished reading an interesting article about investing in bonds versus dividend stock investing.  It made some great points about the current state of the bond market.  Not the least of which is the fact that with current bond rates at all time lows, the bond market yields have nowhere to go but up.  As yields rise, bond prices move lower, eating away any gain from the coupon.

On the other hand, dividend stocks make quarterly or annual cash payments similar to bond payouts, but also have unlimited potential for capital appreciation.  They satisfy the two main concerns of most investors by giving them cash to help with rent, groceries and other expenses, while increasing in value over time, helping to raise the value of your portfolio in the process.

What I found most interesting about the article was, of the five dividend stocks recommended for stability and long term gains, I already hold positions in four of the corporations.  The remaining was an energy limited partnership which I do not own shares in, but I do still have shares in 3 other energy partnerships, so it all works out in the end.

Investors this year have pulled billions of dollars out of the stock market and poured their hard earned cash in to bonds.  With the uncertainty in the market, this is certainly an understandable response.  But I firmly believe that the only way for most of us to achieve a secure and comfortable retirement, is to invest in individual stocks. 

While you won't get rich over night, diverting a good portion of your investment portfolio toward dividend paying stocks, will go a long way towards building wealth and helping you sleep better at night.  

Saturday, August 7, 2010


Am I the only one who thinks it's the height of hypocrisy for Tim Geithner to be on his high horse about the Bush tax cuts?  Correct me if I'm wrong, but isn't this the same guy who almost blew his appointment as Treasury secretary for failure to pay all his taxes?  So now he would have us believe that the United States economy is doomed if the Bush tax cuts remain in place, tax cuts which he most likely benefited from. 

I would like to remind Mr. Geithner that not all people who benefit from dividends and capital gains are "rich".  I certainly would not be considered "rich" by any standards, but I do benefit directly from dividends, capital gains and interest on my investments.  Is there any good reason hard working Americans, who manage to save and invest for their future, should be forced to pay higher taxes to support those who fail to do so?  I don't believe there is.  

You can't fix unemployment and insufficient government revenues by taking money from one group of citizens and giving it to those who are less productive.  It's this type of thinking that is giving fuel to the rumors of the current administrations move towards a more socialistic form of government.  It did not work in the Soviet Union.  It did not work China.  It did not work in Cuba and it will not work in the United States of America.  

Promoting savings by low taxes encourage investments, which in turn generate capital for businesses.  When businesses have adequately capitalized and are free from excessive government taxes and restrictions, they hire more workers.  When more people are working, more people are spending and state and federal governments benefit from greater tax revenues.  It's just that simple.  If Mr. Geithner and anyone else in Washington doesn't understand this, they should not be there.  We should all keep that in mind during upcoming elections.