Powering Higher on Never-ending Complacency

August 18, 2014  10 pm

We are amazed by the stock markets never-ending complacency with the global situations and events.  We listened for years as all the ‘experts’ harped continuosly about the ‘global economy’ (of course these are the same ‘experts’ that have warned us to get out of interest rate sensitive instruments for 2 years now) and how everything, economically speaking, is globally linked.  I guess someone forgot to tell equity buyers that the economies of Europe, South America and Asia are on the downhill slope.  Oh well, we will just ride the wave with the few common shares and REITs that we own.  Also while rates jumped a bit today, preferred shares and exchange traded debt ended up rising to within 1/3% of a yearly high.

The model portfolio closed at a high for the year–up 10.31% YTD.  After falling into the 8.5% area 2 weeks ago a rise to 10.31% is extraordinary.  A few stellar performers were MLP Compressco Partners (ticker:GSJK), an opportunity which we pointed out here on 7/23and other times thereafter a few weeks ago after it dropped on a secondary offering–up $3.50/share since purchase and Leisureworld Senior Care (ticker:LWSCF) (one of our favorite Canadian issues) which sprung ahead .75 cents on stellar earnings.  We will enjoy the gains while they last.