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Business/Finance See other Business/Finance Articles Title: This Is What Happens When the Third String Is on the Field This Is What Happens When the Third String Is on the Field Dear Reader, It is smack dab in the middle of summer. This is when the masters of the universe are at their homes on Long Island… or perhaps on their yachts…. or even trying out the range on their newest Gulfsteam G650s. And those who haven’t quite made the cut as a master yet… well, they’re still on the beach somewhere or are using their NetJet cards. So, who is minding the trading desks of all of the big banks, hedge funds and other mega financials? The newbies. They’re the third-stringers… the last men on the deal team… the last to know. So when we see some action on the markets, we see them panic. It’s not the first time, nor will it be the last. It’s also prime time for folks to come up with all sorts of excuses. Civil war in Ukraine? Palestinians still attacking Israel? U.S./E.U. selective sanctions on some Russians? Too good jobs numbers? All of these are being rolled out and spun by talking heads who are still at their desks before they, too, head out to their summer spots. But what you need to know is that for now, there’s little to no reason to panic -- especially since you still have heavy dividends coming in from all of the Lifetime Income Report holdings. This is why you have income stocks -- to keep the cash coming even during days like we’ve had on Thursday and today. But also know that none of the world’s isolated political and military woes are part of a massive global meltdown. And when it comes to the U.S. economy -- to which most of our stocks are tied -- we’ve been getting some pretty good news. For example, as expected, the Federal Reserve announced it would be slowing its bond buying… but will keep its massing portfolio of bonds it has already bought and will keep re-investing apparently forever. Better still, we won’t see rate hikes for quarters to come. And we got news that U.S. household income is rising ever faster. The numbers for the current month came in up +0.4, showing that households are getting themselves in a better economic place. Even better, they’ve increased their spending at the same pace. So, more income, more spending -- that’s good. Then there’s inflation. The Personal Consumption Expenditure (PCE) advanced just 1.5% -- well below the 2.5% rate that would trigger Fed tightening action. Just more proof that low rates and easy money will stay. Then there’s the jobs report. A gain of 209,000, and last month’s job increases revised upward to 298,000. While that came with a slight bump in the unemployment rate to 6.2%, the important number of the work participation rate went up to 62.9% -- meaning more out-of-work feel confident enough to look for work again. All of that is good news. Finally, from overseas, there’s news that the military in Thailand has put a temporary legislature in place. That’s leading to optimism that things remain on track for the political reformation and the economy to prosper. So my unofficial recommendation of Thai Fund (TTF) is trading higher. In short, there’s little reason to panic about anything. Let’s let the third string get some playing time and learn some lessons while we keep the dividends coming. I’ll update more of our holdings in your next issue of Lifetime Income Report, which will be coming your way soon. And as always, I continue to appreciate getting your comments and queries. To send yours please email me at AskNeil@AgoraFinancial.com Thanks for reading. All my best, Neil George Poster Comment: Keep the first string in if you can. ;) Post Comment Private Reply Ignore Thread
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