The Sharpe Report: Dan’s Portfolio – Second “Core Position”

Posted on Jan 2 2015 - 10:38am by Sharpe Trade

Dan’s first Sharpe Report entry can be found here.

We are continuing the discussion from the last entry that can be found here.

We are still within the process of constructing the “core” of my longer term trades. 

Thusfar, of the $3,000.00 for that “core”, we have $400.00 segmented to straight cash as a position, for the aforementioned reasons.

But we still have more pieces of this “pie” to dedicate to positions.  So what’s next?  Well … to answer that question, I’m going to ask?

Who has all the cash in the economy at the moment?

The man.

That’s who.

As that chart as well as other charts demonstrate, corporate holdings of cash, as well as these corporations cash flows hover near all time highs.

Also keep in mind, that corporations issue stock as part ownership in their company, correct?  Many times we buy shares, or partial ownership in a company that we feel will do well.  But companies also finance their own operations through bonds on their own company.

Now you have heard me say before that I am not a believer, in having debt.  Let us be clear on this point.

I do not believe in me, owing other people, or me being in debt to someone else.

However, I do believe that debt has good uses. You know what debt is good for right?

Debt is what other people should owe you.  And not just other people.  But corporations

Have you ever heard people rant on and on about the supposed “evil” corporations that won’t “share” profits?  What a bunch of garbage.  As a matter of fact, if you really want to “get back” at the corporate world’?  Fine.  I can think of no better way, than having them owe me some money.   We discuss this in the following video entry …

I said it in that video, but let me repeat this here …

I have not yet put an order out there to purchase LQD.   When I do, I will alert everyone here, and in our various social media streams.  As well, it must be remembered that this position, will work in tandum with other positions ...

(We continue the discussion in this next entry)

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