| VCAM: September/October 2009 Newsletter | VOLUME 9 ISSUE 4 |
Bernie Madoff-The newest member of Dante's 9th Circle of Hell:
In Dante's epic, Inferno, we follow Dante as he wanders fearfully through the darkness of hell's 9 circles in order to arrive to an understanding of holiness, light, and forgiveness. In the opening of the novel, we learn that earth (the dark forest that leads to the sunshine of the mountain tops) is where souls struggle between light and dark, good and evil, and their choices on earth lead them either to Heaven or Hell. ...So where would we see Bernie Madoff in Dante's Epic?
[Read Full Bernie Madoff Article]
Are Yields really Low? Or is it a Deception?!
Have you looked Everywhere?
From where I sit, there appears to be controversy surrounding the current low interest rate environment. Some have told me that generating cash flow in an income portfolio is nearly impossible because of low interest rates. Yes, people are struggling to find secure, consistent, income oriented investments. And yes, mortgage rates are roughly 5%, money markets are sitting at .75%, t-bonds at 4%, CD’s at 1.7% (www.yahoofinance.com & www.bankrate.com). However, our office prides itself on helping clients have a cash-flow/income predictability strategy and it is possible to have income predictability with high dividend equities and equities that have increased, yes, increased dividend yields, despite the current environment, for instance: Exchange Traded Funds (ETFs) or Closed End Funds. These kind of investments create diversification within your portfolio. In addition, even in our current interest rate market, you may find certain ETFs and Closed End Funds that are at a high yield rate.
[Read Full Yields really Low Article]
Not All Gasoline is Equal!
I recently saw the documentary; "Over a Barrel, The Truth About Oil," that appeared on ABC News by Charles Gibson on Friday, July 24th, 2009. While I commended their efforts to try and explain the complex picture of oil usage in the US, ABC unfortunately did not report certain facts correctly. This is a very difficult and complicated subject, and very few really understand the complete industry. While I cannot address all of the misconceptions in an article, I will try and address some of them.
