Quiet Goldilocks Markets Continue

Both stocks and bonds are trading in a nice orderly fashion–stocks are up a fair amount and bonds yields are consolidating a bit after the 10 year made a try at 3%.

One thing we can be certain of is that this will change.  There is no way that we don’t get a disconcerting presidential tweet or threats from one side or the other on trade tariffs.

We have had some discussions on the message boards on alternative investments.  As I was reading through todays SEC filings I found one that is interesting and is something that obviously someone buys–NOT US.

Shepards Finance LLC loans money to home builders–obviously at very high rates and you can buy a note from them with a coupon of 11%.  IF YOU ARE BUYING ANY NOTES LIKE THESE YOU ARE LOOKING FOR REAL EXCITEMENT IN YOUR LIFE.

The old saying that “if it looks too good to be true it likely is” holds with these.  Not that some won’t make good money on some of these–but we want to actually get some sleep at night.

11 thoughts on “Quiet Goldilocks Markets Continue”

  1. Tim,
    Thanks for mentioning Shepherd’s Finance notes. It is nice to know there is another note opportunity available to the general public. However, I’m going to pass on this one – just to risky for me, especially if the housing market turns sour. But, the prospectus may make for some interesting reading on a lazy Sunday afternoon.

  2. Tim, I have $20,000 to invest in preferreds I had two issues just called one at 7% and one at 7.5% $10,000 each. I have been following you for years and taken your advice. Anything would you suggest now.

  3. If were we not near the end of this cycle, Shepards might be ok, but now….. yeah not so much.

  4. I have been using treasuries and Cds at around 2 percent each. But I’d like to get the next step up at 3 to 4 percent

  5. Keeping cash ideas:
    Some brokers have money markets @ almost 2%,
    or if you can trade with little or no commissions,short term (~ 1 year) treasuries, paying >2.3%.
    If liquidity is not an issue, 1yr cds @ ~ 2.2%, or shorter
    If lots of cash, Ladder of treasuries and bonds from few months to a couple of years

      1. Tim, you care to buy any Entergy Ark preferreds from me? I think I have too much, as I bought 200 more EGRKI today a little under a buck below redemption call price. I have made a nice little killing picking up nickels in front of an oncoming train over the past few years. Hope this isnt payback time, lol…

  6. Can you do a write up on places to keep cash short term. I know you mentioned KYN-F , any other recommendations?

    1. Hi Ray–there are bunches of things I want to write on–and will try to catch this topic a bit. Unfortunately (or fortunately) I have 2 other businesses that support me (and this website) which are going crazy busy–at my age I would rather be less busy.

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