Some market pundit is always trying to scare investors with talk of the next market bubble and the impending market crash. In this weekend’s shortened Blue Harbinger Weekly (it’s Easter!) we discuss the merits of three such bubbles that have recently been pushed by media pundits: 1) The Smart Beta ETF bubble, 2) The impending VIX volatility spike bubble, and 3) The giant vacuum and market crash to be created by retiring baby boomers.
Business Development Companies: Big Dividends, Differentiated Risks
This week’s Blue Harbinger Weekly reviews a variety of topics including the prospects for high dividend Business Development Companies (see table), our Tsakos options trade (it’s up nearly 100% in two months), the foolishness of those who fearfully sold at the bottom earlier this year (the Dow Jones is actually now positive for 2016), and the continued strong outlook for “value” stocks as we believe their outperformance has only just begun.
Continued Outperformance for Blue Harbinger Stocks
All three Blue Harbinger strategies continue to outperform. This week’s Weekly reviews the performance of the individual holdings within each strategy, and we focus on several stocks in particular that we believe provide terrific buying opportunities right now. And just for grins, here is a fun quote from Charlie Munger.
What a Difference a Week Can Make
Strong jobs data and a rebound in oil prices fueled the S&P 500 2.6% higher last week. Our Income Equity, Disciplined Growth and Smart Beta strategies all outperformed for the week, and they all continue to outperform since inception. Also, our Tsakos options trade is now up 98% since we initiated it on Feb 8th. Next week’s biggest scheduled data release will be crude oil inventories on 3/9, and we believe the stocks in all three of our strategies are set to climb higher. Here are the holdings (and recent performance) for each strategy: