Yield Curve’s Turn Puts Microscope on Next U.S. Economic Reports

It all puts even more weight than usual on the next round of economic reports, starting with Thursday’s revised reading of first-quarter growth and culminating with the May jobs report on June 7. Investors have also been fretting about the U.S.-China trade war after President Donald Trump raised tariffs
— Read on ca.finance.yahoo.com/news/yield-curve-turn-puts-microscope-090000131.html

Building a Simple Bond or GIC Ladder for Retirement

How to build a Bond or GIC Ladder is a simple three step process.

  • Decide the amount of money to put into a Bond or GIC for the longterm $50,000, $100,000, $200,000 etc.
  • As longterm interest rates are on the upward trend decide on what increments to invest in, 3rds, 4ths, 5ths.

Example: Intial Investment $50,000 (Split over 5 years equally)

Year 1 – $10,000

Year 2 – $10,000

Year 3 – $10,000

Year 4 – $10,000

Year 5 – $10,000

At Year 6 reinvest Year 1 into a new Bond or GIC, and keep repeating as each Bond or GIC needs to be renewed.

  • The benefits paying taxes on only one-fifth of the interest earned on the Bond or GIC and protecting oneself as interest rates rise (positive) or as interest rates decrease (negative).

Author – Sam Latella – copyright 2019

How to Build a Dividend Income Stream

Building a dividend income stream is quite simple and can be done by any investor with an interest in investing and learning.

The five essential investing steps are below.

  • Market Timing – Even though it is difficult to time the market. The basic timing is knowing when the economy is in a recession. Investor psychology is at an all time low. The stock market at this time is filled with many opportunities of good valuations on stock prices.
  • Segmenting the most important 11 sectors – Understanding the 11 most important sectors and finding the five largest companies listed on the stock market by market share, sales, and profit. The research should result in a listing of 55 companies or stocks to possibly invest in.
  • Dividend Payers – Chose the top two in each of the 11 sectors and are dividend payers from the above 55 companies. The analysis should result in a list of 22 companies or stocks to invest in.
  • Diversification – Begin purchasing those shares in each sector in increments of 25, 50, 100 shares or more at a time.
  • Dividend Income Stream – List the dividend payment dates on a calendar to create a monthly dividend income stream from the stocks that have been purchased.

The benefits of doing this on your own 1. no extra fees only the one time purchase of a brokerage fees. 2. Diversified Portfolio. 3. Dividend Income Stream created. 4. Dividends are more Tax efficient. 5. Buy and hold strategy created for the longterm.

Author – Sam Latella – Copyright 2019

Dalio Sees `Risky Time’ Ahead in U.S.-China Trade Conflict – Bloomberg

Ray Dalio, the billionaire founder of investment management firm Bridgewater Associates, said Wednesday that he viewed the U.S.-China conflict as more than a “trade war” and that increasing export controls would be a major escalation.
— Read on www.bloomberg.com/news/articles/2019-05-29/ray-dalio-sees-risky-time-ahead-in-u-s-china-trade-conflict