Economy:
The BLS second estimate for first quarter real GDP was a 5% annualized decline. The first estimate was a -4.8%. GDP 2nd Estimate 2020 1st Quarter.pdf Corporate profits with inventory valuation and capital consumption adjustments declined an estimated $295.4B. US GDP Q1 2020 second estimate
The BLS second estimate for first quarter real GDP was a 5% annualized decline. The first estimate was a -4.8%. GDP 2nd Estimate 2020 1st Quarter.pdf Corporate profits with inventory valuation and capital consumption adjustments declined an estimated $295.4B. US GDP Q1 2020 second estimate
Harvard's Reinhart and Rogoff Say This Time Really Is Different (worth reading)(more Hysteresis; Rogoff: It’s probably going to be, at best, a U-shaped recovery. And I don’t know how long it’s going to take us to get back to the 2019 per capita GDP. I would say, looking at it now, five years would seem like a good outcome out of this.")
US savings rate hits record 33% as coronavirus causes Americans to stockpile cash, curb spending, see Personal Income and Outlays: April 2020 | U.S. Bureau of Economic Analysis (BEA)(personal consumption expenditures decreased by an estimated $1.89 trillion in April)
US savings rate hits record 33% as coronavirus causes Americans to stockpile cash, curb spending, see Personal Income and Outlays: April 2020 | U.S. Bureau of Economic Analysis (BEA)(personal consumption expenditures decreased by an estimated $1.89 trillion in April)
Mitch McConnell: Congress will probably have to pass another stimulus bill
New orders for durable goods declined 7.2 percent in April.pdf (Brian Wesbury blog discussion)
Chicago PMI weakens to 32.3 in May from 35.4 in prior month: report - MarketWatch Any number below 50 indicates an ongoing contraction. The numbers are consistent with an ongoing recession.
New orders for durable goods declined 7.2 percent in April.pdf (Brian Wesbury blog discussion)
Chicago PMI weakens to 32.3 in May from 35.4 in prior month: report - MarketWatch Any number below 50 indicates an ongoing contraction. The numbers are consistent with an ongoing recession.
Consumer confidence May 2020 There was a slight rise to 86.6 from 85.7 last month. The consensus estimate for May was at 82.3.
Trump tweets states 'should open up ASAP' as death toll nears 100,000 His reelection is at stake. Damn the Torpedos, Full Speed Ahead, a phrase uttered first by Admiral David Farragut during the Battle of Mobile Bay in 1864. The quote was shortened from what he actually said: "Damn the torpedoes. Four bells. Captain Drayton, go ahead. Jouett, full speed.".
A staggering number of laid-off workers are receiving more money in unemployment benefits than they did from their jobs - MarketWatch
Mortgage rates hit another all-time low as home buyers rush to secure cheap financing - MarketWatch
Pending Home Sales Slump 21.8% in April | www.nar.realtor; Pending home sales saw biggest decline on record in April because of coronavirus pandemic - MarketWatch
For the week ending 5/23, initial claims for employment was 2,123,000. News Release This figure does not include the people who applied for Pandemic Unemployment Assistance or PUA.
Almost 41M jobless claims have been filed since Covid-19 was declared a pandemic. Weekly jobless claims reach 2.1 million, but total unemployed shrinks
Trump tweets states 'should open up ASAP' as death toll nears 100,000 His reelection is at stake. Damn the Torpedos, Full Speed Ahead, a phrase uttered first by Admiral David Farragut during the Battle of Mobile Bay in 1864. The quote was shortened from what he actually said: "Damn the torpedoes. Four bells. Captain Drayton, go ahead. Jouett, full speed.".
A staggering number of laid-off workers are receiving more money in unemployment benefits than they did from their jobs - MarketWatch
Mortgage rates hit another all-time low as home buyers rush to secure cheap financing - MarketWatch
Pending Home Sales Slump 21.8% in April | www.nar.realtor; Pending home sales saw biggest decline on record in April because of coronavirus pandemic - MarketWatch
For the week ending 5/23, initial claims for employment was 2,123,000. News Release This figure does not include the people who applied for Pandemic Unemployment Assistance or PUA.
Almost 41M jobless claims have been filed since Covid-19 was declared a pandemic. Weekly jobless claims reach 2.1 million, but total unemployed shrinks
++++++
Markets and Market Commentary:
For now, bad economic news and worsening tensions with China will not alter the Stock Jocks belief in an emerging Blue Sky scenario.
Besides an unshakeable belief that the economy will come roaring back soon, with no material drags from the pandemic and shutdowns, stock prices are receiving a boost from low interest rates that are expected to remain in place for years. The 30 year U.S. treasury bond closed yesterday at a 1.41% yield.
Miscalculating Risk: Confusing Scary With Dangerous The author argues that the shutdowns were a hysterical overreaction and were unnecessary since most of the deaths were old folks and those with pre-existing conditions. The argument assumes that the death toll would have been the same without the shutdowns.
For now, bad economic news and worsening tensions with China will not alter the Stock Jocks belief in an emerging Blue Sky scenario.
Besides an unshakeable belief that the economy will come roaring back soon, with no material drags from the pandemic and shutdowns, stock prices are receiving a boost from low interest rates that are expected to remain in place for years. The 30 year U.S. treasury bond closed yesterday at a 1.41% yield.
Miscalculating Risk: Confusing Scary With Dangerous The author argues that the shutdowns were a hysterical overreaction and were unnecessary since most of the deaths were old folks and those with pre-existing conditions. The argument assumes that the death toll would have been the same without the shutdowns.
Why one stock-market bull, who called the bounce off March lows, now sees the S&P 500 rising another 7% by August - MarketWatch
Asian markets fall as new Chinese law puts Hong Kong’s future in doubt - MarketWatch (5/28/20)
Hertz bankruptcy, distressed rental car market hurts U.S. automakers The Covid-19 bankruptcy filings are just starting to roll.
Why the stock market is due for ‘consolidation’ as Trump takes aim at China - MarketWatch
Asian markets fall as new Chinese law puts Hong Kong’s future in doubt - MarketWatch (5/28/20)
Hertz bankruptcy, distressed rental car market hurts U.S. automakers The Covid-19 bankruptcy filings are just starting to roll.
Why the stock market is due for ‘consolidation’ as Trump takes aim at China - MarketWatch
++++++
Trump:
Trump is blaming China and WHO for the U.S. pandemic.
Last Friday, he basically accused China of worldwide, first decree mass murder. Trump Announces End To Hong Kong Privileges After China's Move-NPR
Doctor Dons' Miracle Drug Hydroxychloroquine:
France, Italy, Belgium and the WHO have now halted studies of Doctor Dons' miracle cure for Covid-19 based on harm to patients. France also issued a nationwide health advisory noting "that there was no sufficiently robust clinical study demonstrating the efficacy of hydroxychloroquine in Covid-19 regardless of the severity of the infection." Covid-19: use of hydroxychloroquine
Demagogue Don's Reckless and Factually Unsupported Claims of Voting Fraud:
Trump is blaming China and WHO for the U.S. pandemic.
Doctor Dons' Miracle Drug Hydroxychloroquine:
France, Italy, Belgium and the WHO have now halted studies of Doctor Dons' miracle cure for Covid-19 based on harm to patients. France also issued a nationwide health advisory noting "that there was no sufficiently robust clinical study demonstrating the efficacy of hydroxychloroquine in Covid-19 regardless of the severity of the infection." Covid-19: use of hydroxychloroquine
Demagogue Don's Reckless and Factually Unsupported Claims of Voting Fraud:
Don does not explain why it is illegal to vote by mail or provide any evidence that voting by mail is rife with fraud.
It is not necessary in Trump's America for him to justify his claims-only to make them.
What he says is true in TrumpWorld even if it is blatantly false. Trump’s phony claims about ‘illegal’ voting in Michigan and Nevada - The Washington Post (noting Americans have been voting by mail for more than a century; Trump voted by mail; and voting by mail is safer than in person voting during the pandemic)
For the first time, Twitter labelled one of Donald's tweets with a factcheck. This is what that looks like:
Donald went into his rage mode that anyone would dare claim that one of his reality creations even needed to be fact checked. His constitutional right to free speech was being stifled by Twitter who hates "conservatives".
‘Totally absurd and legally illiterate’ — Harvard law prof on Trump’s charge Twitter is stifling free speech - MarketWatch
5/27/20 Demagogue Don Tweets:
‘Totally absurd and legally illiterate’ — Harvard law prof on Trump’s charge Twitter is stifling free speech - MarketWatch
5/27/20 Demagogue Don Tweets:
For anyone who still has functioning brain cells, and far too many people in the U.S. need to be declared among the living brain dead, it is obvious that Twitter is providing Donald with a platform to spew his vile and lies to tens of millions.
I would note that Michigan voters are guaranteed the right to vote by mail in that state's constitution. Absentee voting is permitted for any reason. Michigan Constitution, Article II, § 4(1)(g)
Michigan Constitution-II.pdf
Constitutions are irrelevant in TrumpWorld as are facts and truth.
I would further note that Donald falsely stated that the Michigan Secretary of State Jocelyn Benson mailed out ballots. She mailed out applications for absentee ballots. Donald lies about everything of course.
Donald does not mention that 2/3rds of the states permit any registered voter to vote absentee without offering an excuse, nor does Demagogue Don mention in his tweets that republican controlled states (Georgia, Iowa, Nebraska and West Virginia) have already mailed absentee ballot applications to their voters.
If Donald loses in November, he will claim voter fraud.
If he loses a battleground state like Michigan, he will call the election illegitimate as will millions of Trumpsters.
Once an authoritarian tastes power, they are not likely to go quietly.
Possibly if he loses Michigan by 500,000+ votes, he will not claim a loss due to baseless voting fraud accusations.
He will claim voting fraud even if he wins, as he did in response to losing the 2016 popular vote.
I suspect he will lose the popular vote by over 4M in the next election, as Biden receives larger majorities in heavily populated blue states like California, Illinois and New York than Hillary. Donald could still win by carrying a few states like Michigan, Wisconsin and Pennsylvania by similar and extremely narrow vote margins as he did in 2016.
Trump and Massive Voter Fraud Allegations-Cover For Voter Suppression (2/13/17 Post)
Republican groups sue California over expanded mail-in voting (5/25 article)
As Trump rages, state officials quietly press forward with vote by mail ("Of the states offering mail-in options, leadership is almost equally split: 24 have Democratic governors and 22 Republican.")
++
Disgusting Donald Continued to Accuse Joe Scarborough of Murder:
Trump is of course an internet troll and has been since he first joined twitter.
The Presidency gave him an army of like minded trolls doing his bidding.
Donald is the only voice that matters in the republican party, enjoying about 95% support among those who identify themselves as members of that political tribe.
If in future years, republicans find its politically necessary to distance themselves from Donald, it needs to be remembered that no such distance existed when it mattered.
The Comedian Dave Chappelle correctly and succinctly summed up what happened shortly after the November 2016 election: "America's Done it. We’ve actually elected an internet troll as our president"
On weekend dedicated to war dead, Trump tweets insults, promotes baseless claims and plays golf - The Washington Post
Thoroughly Disgusting Donald tweeted and retweeted last Sunday the fact free accusation that Joe Scarborough murdered Lori Klausutis.
In TrumpWorld, Joe Scarborough was having an affair with Lori, got her pregnant, and then murdered her to cover it all up.
Trump, who has no decency whatsoever, is in fact engaging in post-mortem libel of a dead young woman who was happily married to Timothy Klausutis.
Donald did not attend Church service last Sunday. He played golf instead and published the usual cascade of false and misleading tweets.
Making baseless claims about Scarborough last Sunday were Donald's substitutes for prayer. Only in TrumpWorld is Donald a Christian.
After the husband of Lori Klausutis requested that Twitter delete Trump's hurtful remarks last Tuesday, Trump decided to double down and repeat his murder accusations against Scarborough, which is gaining a lot of traction in Trump's America based on comments that I have read:
Widower of Joe Scarborough staffer seeks removal of Trump tweets that promote baseless conspiracy theory Trump's Troll Army can now be reasonably expected to attack the widower for standing up to Disgusting Donald.
Timothy Klausutis’s Full Letter to Jack Dorsey- The New York Times
This is an excerpt from that letter:
"The frequency, intensity, ugliness, and promulgation of these horrifying lies ever increases on the internet. These conspiracy theorists, including most recently the President of the United States, continue to spread their bile and misinformation on your platform disparaging the memory of my wife and our marriage. President Trump on Tuesday tweeted to his nearly 80 million followers alluding to the repeatedly debunked falsehood that my wife was murdered by her boss, former U.S. Rep. Joe Scarborough. The son of the president followed and more directly attacked my wife by tweeting to his followers as the means of spreading this vicious lie."
Michigan Constitution-II.pdf
Constitutions are irrelevant in TrumpWorld as are facts and truth.
I would further note that Donald falsely stated that the Michigan Secretary of State Jocelyn Benson mailed out ballots. She mailed out applications for absentee ballots. Donald lies about everything of course.
Donald does not mention that 2/3rds of the states permit any registered voter to vote absentee without offering an excuse, nor does Demagogue Don mention in his tweets that republican controlled states (Georgia, Iowa, Nebraska and West Virginia) have already mailed absentee ballot applications to their voters.
If Donald loses in November, he will claim voter fraud.
If he loses a battleground state like Michigan, he will call the election illegitimate as will millions of Trumpsters.
Once an authoritarian tastes power, they are not likely to go quietly.
Possibly if he loses Michigan by 500,000+ votes, he will not claim a loss due to baseless voting fraud accusations.
He will claim voting fraud even if he wins, as he did in response to losing the 2016 popular vote.
I suspect he will lose the popular vote by over 4M in the next election, as Biden receives larger majorities in heavily populated blue states like California, Illinois and New York than Hillary. Donald could still win by carrying a few states like Michigan, Wisconsin and Pennsylvania by similar and extremely narrow vote margins as he did in 2016.
Trump and Massive Voter Fraud Allegations-Cover For Voter Suppression (2/13/17 Post)
Republican groups sue California over expanded mail-in voting (5/25 article)
As Trump rages, state officials quietly press forward with vote by mail ("Of the states offering mail-in options, leadership is almost equally split: 24 have Democratic governors and 22 Republican.")
++
Disgusting Donald Continued to Accuse Joe Scarborough of Murder:
Trump is of course an internet troll and has been since he first joined twitter.
The Presidency gave him an army of like minded trolls doing his bidding.
Donald is the only voice that matters in the republican party, enjoying about 95% support among those who identify themselves as members of that political tribe.
If in future years, republicans find its politically necessary to distance themselves from Donald, it needs to be remembered that no such distance existed when it mattered.
The Comedian Dave Chappelle correctly and succinctly summed up what happened shortly after the November 2016 election: "America's Done it. We’ve actually elected an internet troll as our president"
On weekend dedicated to war dead, Trump tweets insults, promotes baseless claims and plays golf - The Washington Post
Thoroughly Disgusting Donald tweeted and retweeted last Sunday the fact free accusation that Joe Scarborough murdered Lori Klausutis.
In TrumpWorld, Joe Scarborough was having an affair with Lori, got her pregnant, and then murdered her to cover it all up.
Trump, who has no decency whatsoever, is in fact engaging in post-mortem libel of a dead young woman who was happily married to Timothy Klausutis.
Making baseless claims about Scarborough last Sunday were Donald's substitutes for prayer. Only in TrumpWorld is Donald a Christian.
After the husband of Lori Klausutis requested that Twitter delete Trump's hurtful remarks last Tuesday, Trump decided to double down and repeat his murder accusations against Scarborough, which is gaining a lot of traction in Trump's America based on comments that I have read:
Timothy Klausutis’s Full Letter to Jack Dorsey- The New York Times
This is an excerpt from that letter:
"The frequency, intensity, ugliness, and promulgation of these horrifying lies ever increases on the internet. These conspiracy theorists, including most recently the President of the United States, continue to spread their bile and misinformation on your platform disparaging the memory of my wife and our marriage. President Trump on Tuesday tweeted to his nearly 80 million followers alluding to the repeatedly debunked falsehood that my wife was murdered by her boss, former U.S. Rep. Joe Scarborough. The son of the president followed and more directly attacked my wife by tweeting to his followers as the means of spreading this vicious lie."
When asked about this letter, Trump stated that he had read it and then made the following comment:
“I’m sure that, ultimately, they want to get to the bottom of it and it’s a very serious situation As you know, there’s no statute of limitations. So, it would be a very good, very good thing to do.” Trump Pushes a Conspiracy Theory That Falsely Accuses a TV Host of Murder - The New York Times In Donald's view, the widower did not mean what he actually said in his letter. Instead, Mr. Klausutis really wanted to thank Donald for these tweets.
Last Wednesday (5/27), Donald continued to display his evil spirit with this tweet:
Trump again tweets about Scarborough conspiracy, despite heavy criticism Donald gives new meaning to the word "asshole".
Last Wednesday (5/27), Donald continued to display his evil spirit with this tweet:
Donald can not help himself. He is evil and is only doing what is natural for him given his true nature. Jack Dorsey's Twitter simply enables Trump and his cult members to spew their vile throughout the world on a daily basis.
Only someone who is throughly evil could make those comments about Scarborough once, let alone over and over again to a worldwide audience.
The widower may have a claim against Donald for Intentional infliction of emotional distress. If I was on the jury hearing that claim, I would award the widower compensatory damages and a 7 figure punitive damage award.
Donald also likes to retweet comments from conspiratorial wingnuts and his admirers and propagandists at Fox "News" (e.g. Sean Hannity, Laura Ingraham, Tucker Carlson, Gregg Jarrett, Lou Dobbs, Jeanine Pirro, Steve Doocy, Brian Kilmeade) Those were commonplace last Sunday as well and everyday for that mater.
Donald particularly liked retweeting comments by someone called John K Stahl (@JohnKStahlUSA) / Twitter last Sunday.
After reading a few of Mr. Stahl's comments, it was easy to see why Donald admires him so much and wanted to give him worldwide prominence by retweeting several of Stahl's tweets. Trump Promotes Posts From Racist and Sexist Twitter Feed - The New York Times The NYT article discusses Mr. Stahl's posts.
"Thomas Paine" referenced in the first Trump Scarborough tweet above is reportedly Michael D. Moore. Revealed: Notorious Pro-Trump Misinformation Site True Pundit Is Run By An Ex-Journalist With A Grudge Against The FBI
In the second tweet, Trump retweeted a comment made by Matthew Couch, another spreader of conspiracy theories. 'It is indescribable': How a harassment campaign overwhelmed Seth Rich's friends and family; The Origins Of The Seth Rich Conspiracy Theory : NPR
A newspaper is retracting the conspiracy theory it published about Seth Rich - Vox;
Will Seth Rich’s family ever get a break from conspiracy theorists? - The Washington Post}
It is to be expected that Donald will continue to give worldwide prominence to his like minded internet trolls and propagators of fact free conspiracy theories.
Twitter Can’t Change Who the President Is-The Atlantic This observation is the bottom line. We have just seen how Donald and his cult react to two factcheck icons placed next to two tweets containing unfounded statements about mail-in voting.
Donald makes several demonstrably false statements everyday. He routinely violates Twitter rules with his viciousness.
The only recourse that non-Trump cult members have is to vote him out of office and then relegate him to the same space as Alex Jones and other vicious generators and propagators of Fake News and fact free conspiracy theories. I do not see any material difference between Alex Jones and Donald. They are both cut from the same cloth.
+++
Don The Authoritarian:
In addition to being in your face evil, Donald is an enemy of fundamental and conservative values and principles. His opposition to, and disparagement of those principles is in part reflected by his strong authoritarian tendencies.
Donald has repeatedly called the press the "enemy of the people" since they challenge his false narratives with facts.
I can not say that Donald is the "enemy of the people" since 95% of republicans support him along with a large percentage of independents and close to an 80% approval rating among white evangelicals.
Why Trump is reliant on white evangelicals;
Americans' Views on Trump, Religion and Politics | Pew Research Center;
Donald Trump: White Evangelicals love him;
Survey: White Evangelicals See Trump As 'Honest' And 'Morally Upstanding' : NPR
Trump is just the most serious enemy in the U.S. of conservative values.
This threat published last Wednesday is just one of the more recent examples of his true authoritarian nature:
In TrumpWorld, the Duck has been silenced by Twitter when it tagged a factcheck icon to one of his reality creations. And, he wants to punish Twitter for doing as he made clear in the previous tweet and in this one:
Last Thursday, Demagogue Don sought to regulate social media companies through executive fiat. Trump executive order would challenge Section 230 protections for Facebook, Twitter and Google - The Washington Post Attorney General Barr will use the full force of the federal governments power to carry out the Duck's unilateral law change by suing social media companies for what this U.S. government cabal of authoritarians call "censorship". In TrumpWorld, a social media company censors Donald by placing a factcheck icon next to his demonstrably false reality creations.
When signing the order, Donald wrapped himself in the First Amendment saying “We’re here today to defend free speech from one of the greatest dangers. ” Donald then added the following: "If it were legal, if it could be legally shut down, I would do it." Trump's Twitter slap shows his use of power for personal whims So Donald would shut down the primary method that he uses to manipulate the brain impaired and willfully ignorant. And, to protect free speech, he would shutdown social media sites that factcheck him.
The Duck oozes B.S. from every pore. There is no greater enemy of First Amendment values than Donald. His fact free claims about voting fraud is just an example of his hostility to those values.
This is just a sample of the Duck's other tweets from 5/27:
When asked by a reporter to explain "OBAMAGATE", Donald gave this reply:
"Obamagate. It’s been going on for a long time. It’s been going on from before I even got elected, and it’s a disgrace that it happened, and if you look at what’s gone on, and if you look at now, all this information that’s being released—and from what I understand, that’s only the beginning—some terrible things happened, and it should never be allowed to happen in our country again. And you’ll be seeing what’s going on over the next, over the coming weeks, but I—and I wish you’d write honestly about it, but unfortunately you choose not to do so … You know what the crime is."
"The crime is very obvious to everybody, all you have to do is read the newspapers, except yours,” referring to the Washington Post. In other words, he does not even try to substantiate his accusation with accurate information.
Trump's 'Obamagate' conspiracy theory just got blown to pieces - Business Insider; Michael Flynn’s name was never masked in FBI document on his communications with Russian ambassador - The Washington Post
Of course, facts do not matter to Donald or his cult members. I would just point out again that the FISA warrant to wiretap Carter Page was taken out after he left Trump's campaign.
What 'Obamagate' Is Really About - The Atlantic
Donald spew some of his venom at the Atlantic magazine which caused me to retaliate by subscribing to it.
++
Despicable Don and Congressman Connor Lamb:
Conor Lamb is a freshman congressman from Pennsylvania. He served in the Marine Corps and as a federal prosecutor.
Trump Wrong About Conor Lamb's Vote on Pelosi - FactCheck.org Donald is incapable of being truthful. That is his nature.
Another fact check organization gave Trump a now standard "Pants on Fire" rating for his claim that Lamb voted for Pelosi. PolitiFact | Trump said Pa. Rep. Conor Lamb backed Nancy Pelosi for House speaker. That’s not true.
In 2016, Trump called Lamb "Lamb the Sham".
After reading Donald's tweet, I donated $25 to Lamb's campaign as my response to Donald's lies and disgusting comments about Conor Lamb, particularly the one that called him "an American fraud".
I will never again cast a vote for a republican. I am supporting now only moderate Democrats with small campaign contributions.
+++
Trump ordered to expand document search in suit alleging he endorsed pyramid scam - The Washington Post-Trump defrauded investors in marketing scheme, lawsuit says - The Washington Post
Trump administration discussed conducting first U.S. nuclear test in decades
Jon Meacham: Trump Makes Richard Nixon Look Like Mr. Rogers-YouTube Trump is loved by Republicans.
Trump Adds New Falsehood to Pelosi/Chinatown Claims - FactCheck.org
Trump Misleads on Hydroxychloroquine, Again - FactCheck.org
+++
Church Gatherings, the Pandemic and the First Amendment: Trump administration discussed conducting first U.S. nuclear test in decades
Jon Meacham: Trump Makes Richard Nixon Look Like Mr. Rogers-YouTube Trump is loved by Republicans.
Trump Adds New Falsehood to Pelosi/Chinatown Claims - FactCheck.org
Trump Misleads on Hydroxychloroquine, Again - FactCheck.org
+++
Supreme Court won't force states to speed up church reopenings
U.S. Ninth Circuit allows California governor’s church-closing rule stands (2 to 1 decision; court denied request to issue a temporary restraining order ("TRO") to prevent enforcement; a TRO is generally short term and ex parte and may last until there is a hearing where both sides present evidence and legal arguments; Rule 65. Injunctions and Restraining Orders | Federal Rules of Civil Procedure) The legal issues are difficult ones, requiring the courts to balance a First Amendment right and the state's police power to protect its citizens during a pandemic.
For religious gatherings in my area, many churches are limiting capacity voluntarily for now, but many are not requiring attendees to wear masks. One of those is a Baptist Church located near my home. As Trump Pushes for Reopenings, Congregations Choose Safety Over Haste - The New York Times (“The government simply cannot tell any religious entity how to operate,” said Jason Cruise, the senior pastor at ClearView Baptist Church in Franklin, Tenn., adding that his remark applies to the federal government as well as “rogue mayors and rogue governors across the land who were literally trashing the Constitution". . . . Masks will be optional.” The argument about masks being optional boils down to a freedom from responsibility when exercising a personal freedom.
Police Powers During a Pandemic: Constitutional, but Not Unlimited – Reason.com
There is a church denomination that passed a poisonous snake to church attendees. The belief was that God would protect the True Believers from being bitten and killed. Could the state intervene to protect children from being killed by the snake or charge the pastor with manslaughter when someone dies from a snake bite? Snake handling in religion - Wikipedia
Contrary to what Mr. Cruise believes about the Constitution, churches are subject to the state's exercise of police power to protect its citizen's health.
The constitutional issue is whether the exercise of that police power is justified by exigent circumstances and is narrowly tailored in time and scope to address those circumstances, given the fundamental constitutional right that is involved.
+++++
Covid-19 Updates:
The much hyped Moderna vaccine that is currently being tested on a few volunteers had a serious adverse on at least one healthy 29 year person who took the highest dose. He had a severe reaction to Moderna Covid-19 vaccine. He's still a believer It is only after a vaccine is given to tens of millions that we will have a good idea about its effectiveness, the length of time it provides protection, and the full panoply of side effects and their seriousness. I will probably wait for a few months after a vaccine becomes available nationwide to all takers.
I read the CD guideline relating to elevators. Maintain social distancing of 6 feet and wear a mask. For most elevators, I reckon that means one person can ride at a time. It does not seem to be realistic advice for large office buildings.
Trump, who spent Memorial Day without a face mask, shares tweet criticizing Biden for wearing one One way that Donald delivers his messages is to retweet comments from others. This particular retweet was from Britt Hume, one of Fox "News" more respected "journalists".
Strong Social Distancing Measures In The United States Reduced The COVID-19 Growth Rate | Health Affairs
Can Air Conditioning Spread COVID-19? Here's What Experts Say The short answer is yes based on air flow patterns.
CDC says about 35% of coronavirus infections are asymptomatic
Coronavirus Devastates Black New Orleans: 'This Is Bigger Than Katrina'
High COVID-19 Attack Rate Among Attendees at Events at a Church- Arkansas (3 fatalities and infection spread beyond church members)
More than 40 churchgoers were infected after attending a service on 5/10. Coronavirus: Over 40 Covid-19 cases traced to church service in Germany - BBC News
Missouri hair stylist with coronavirus worked while symptomatic, exposed dozens of clients She was symptomatic. There will be a lot more people going back to work who are symptomatic.
Denver orders closure of facility that handles Colorado's mail
At least 36 UPS employees in Tucson facility tested positive for COVID-19
Vogtle Nuclear Plant has seen 230 coronavirus cases; 198 of those workers have recovered
More than 100 LM Wind Power employees have tested positive for COVID-19, state health department says | Grand Forks Herald
100 workers at Quonset food plant have tested positive for coronavirus - News - providencejournal.com
57 employees at Tennessee mushroom plant test positive for COVID-19
Cheap chicken, beef came at a cost. How American meat plants bred coronavirus hot spots.
Trump's Europe travel ban caused chaos, surge of infected passengers - The Washington Post "Epidemiologists contend the U.S. outbreak was driven overwhelmingly by viral strains from Europe rather than China. . . . Infections reached critical mass in New York and other cities well before the White House took action, according to studies mapping the virus’s spread. The crush of travelers triggered by Trump’s announcement only added to that viral load." Based on genetic mapping, Covid-19 gained a strong U.S. foothold from European travelers, particularly in ares like NYC. More than 1.8M people entered the U.S. from Europe last February.
++++++
Republicans wrestle with conspiracy-theory advocate winning Senate primary Might as well nominate him since he represents core GOP values as does Donald.
+++++++
All trades are commission free except as otherwise noted.
1. Bought 100 POW:CA at C$21.37 (C$1 Commission):
Quote: Power Corp. of Canada (Canada: Toronto)
Closing Price 5/29/20: POW.TO C$22.41 -C$0.30
I discussed this stock in my 5/16/post (Item # 1.I Added 10 PWCDF at US$14.11; 10 at $13.85)
I have nothing material to add to that post which discussed the last earnings report.
The discussion in that post involved a purchase of Power Corporation's ordinary shares priced in USDs (PWCDF) and traded on the U.S. pink sheet exchange. Power Corp. of Canada (PWCDF)
I now own 100 POW:CA shares and 130 PWCDF shares. The only differences are that POW:CA is traded in Toronto, priced in CADs, and pays dividends in CADs, whereas PWCDF is traded in the U.S., priced in USDs and pays dividends in USDs after conversion from CADs.
Dividend: Quarterly at the current penny rate of C$.4475 per share ($C1.79 annually)
Dividends | Power Corporation of Canada
Yield at C$21.37 = 8.38%
Next Ex Dividend Date: 6/29/20
Trading Strategy: I frequently trade this stock. Currently, I am 30 shares over my 200 share limit. I now intend to sell 50 PWCDF when and if the price exceeds US$17 after the next ex dividend date. Those 50 shares are part of a 100 share lot bought at US$15.65 that has been pared down to 90 shares with a 10 share sell at US$16.31. Item # 1. Restarted PWCDF-Bought 100 at US$15.65; 10 at $14.37 10 at $14.98 and Sold 10 at $16.31 (5/9/2020 Post)
Last Elimination of POW:CA: Item # 1. Sold 400 POW:CA at C$31.05-Update For Portfolio Positioning And Management As Of 4/29/16 - South Gent | Seeking Alpha Most of my trades have been in the USD priced ordinary shares.
All trades are commission free except as otherwise noted.
1. Bought 100 POW:CA at C$21.37 (C$1 Commission):
Quote: Power Corp. of Canada (Canada: Toronto)
Closing Price 5/29/20: POW.TO C$22.41 -C$0.30
I discussed this stock in my 5/16/post (Item # 1.I Added 10 PWCDF at US$14.11; 10 at $13.85)
I have nothing material to add to that post which discussed the last earnings report.
The discussion in that post involved a purchase of Power Corporation's ordinary shares priced in USDs (PWCDF) and traded on the U.S. pink sheet exchange. Power Corp. of Canada (PWCDF)
I now own 100 POW:CA shares and 130 PWCDF shares. The only differences are that POW:CA is traded in Toronto, priced in CADs, and pays dividends in CADs, whereas PWCDF is traded in the U.S., priced in USDs and pays dividends in USDs after conversion from CADs.
Dividend: Quarterly at the current penny rate of C$.4475 per share ($C1.79 annually)
Dividends | Power Corporation of Canada
Yield at C$21.37 = 8.38%
Next Ex Dividend Date: 6/29/20
Trading Strategy: I frequently trade this stock. Currently, I am 30 shares over my 200 share limit. I now intend to sell 50 PWCDF when and if the price exceeds US$17 after the next ex dividend date. Those 50 shares are part of a 100 share lot bought at US$15.65 that has been pared down to 90 shares with a 10 share sell at US$16.31. Item # 1. Restarted PWCDF-Bought 100 at US$15.65; 10 at $14.37 10 at $14.98 and Sold 10 at $16.31 (5/9/2020 Post)
Last Elimination of POW:CA: Item # 1. Sold 400 POW:CA at C$31.05-Update For Portfolio Positioning And Management As Of 4/29/16 - South Gent | Seeking Alpha Most of my trades have been in the USD priced ordinary shares.
2. Small Ball:
Small Ball Rules
A. Restarted BAB- Bought 5 at $29.76:
Quote: BAB | Invesco Taxable Municipal Bond ETF Overview
Closing Price 5/25: BAB $31.36 -$0.40 -1.26%
Sponsor's Website: Invesco Taxable Municipal Bond ETF
Expense Ratio: .28%
Effective Duration: 9.47 Years as of 5/15/2020
Get to know your bond fund: Duration | Vanguard
Round-Trips: Item # 2. Sold 50 BAB at $25.4 (3/23/11 Post); Item # 3 Sold 100 of 150 BAB at $24.78 (12/29/2010 Post)
Recent Dividend History:
Last Ex Dividend: 5/18/20
Quality Ratings:
This ETF is unleveraged.
I have frequently traded leveraged CEFs that own Build America Taxable Municipal Bonds.
B. Restarted TFC-Bought 2 at $30.87; 1 at $28.85; 1 at $28.53; 1 T $27.45; 2 at $26.8:
Small Ball Rules
A. Restarted BAB- Bought 5 at $29.76:
Quote: BAB | Invesco Taxable Municipal Bond ETF Overview
Closing Price 5/25: BAB $31.36 -$0.40 -1.26%
Sponsor's Website: Invesco Taxable Municipal Bond ETF
Expense Ratio: .28%
Effective Duration: 9.47 Years as of 5/15/2020
Get to know your bond fund: Duration | Vanguard
Round-Trips: Item # 2. Sold 50 BAB at $25.4 (3/23/11 Post); Item # 3 Sold 100 of 150 BAB at $24.78 (12/29/2010 Post)
Recent Dividend History:
Quality Ratings:
I have frequently traded leveraged CEFs that own Build America Taxable Municipal Bonds.
B. Restarted TFC-Bought 2 at $30.87; 1 at $28.85; 1 at $28.53; 1 T $27.45; 2 at $26.8:
Quote Truist Financial Corp. (TFC)
Closing Price 5/29/20: TFC $36.78 -$1.37 -3.59%
Regional banks were experiencing a rally until Thursday when the worm started to turn back against them.
Closing Price 5/29/20: TFC $36.78 -$1.37 -3.59%
Regional banks were experiencing a rally until Thursday when the worm started to turn back against them.
TFC is the 6th largest commercial bank in the U.S. with total assets of $506 billion as of March 31, 2020.
I classify this bank holding company as a super regional.
TFC SEC Filings
TFC 10-Q for the Q/E 3/31/20
TFC 2019 Annual Report
Market Area, Branches and % Share of Deposits as of 12/31/19:
Average Cost Per Share: $28.59
Dividend: $.45 per share ($1.8 annually)
Truist Declares Quarterly Stock Dividends
Dividend Yield at Average Cost: 6.3%
Last Ex Dividend Date: 5/14/20 (all shares owned)
This company was formerly known as BB&T and traded under the BBT stock symbol.
Last Sell Discussions: Item # 1. A. Sold 71+ BBT at $50.72 (7/25/18 Post)(profit snapshot = $1,330.82); Item # 1. A. Sold Highest Cost 50 BBT Shares at $55.45 (2/8/18 Post)(profit snapshot = $1,061.02); Item # 3.A. Sold Highest Cost 50 BBT Shares at $47.24 (3/28/17 Post)(profit snapshot $568.45).
Last Earnings Report: Truist Reports First Quarter 2020 Results
"Adjusted net income available to common shareholders was $1.2 billion, or $0.87 per diluted share, excluding merger-related and restructuring charges of $107 million ($82 million after-tax), incremental operating expenses related to the merger of $74 million ($57 million after-tax), and impacts associated with certain discretionary actions undertaken by management related to COVID-19 of $71 million ($54 million after-tax). Adjusted diluted earnings per common share decreased $0.18 compared to the first quarter of 2019. Adjusted results produced an annualized ROA of 1.06 percent, an annualized ROCE of 7.88 percent and an annualized ROTCE of 15.51 percent."
"Nonperforming assets were 0.23 percent of total assets"
"Net charge-offs were 0.36 percent of average loans and leases, down four basis points compared to the prior quarter"
"The average cost of total deposits was 0.51 percent, down 13 basis points compared to the earlier quarter. The average cost of interest-bearing deposits was 0.70 percent, down 25 basis points compared to the earlier quarter. The average rate on short-term borrowings was 1.76 percent, down 56 basis points compared to the earlier quarter. The average rate on long-term debt was 2.34 percent, down 96 basis points compared to the earlier quarter. The lower rates on interest-bearing liabilities reflect declines in fed funds and LIBOR rates." (emphasis added)
Capital Ratios:
Purchase Restriction: Small Ball Rule (next purchase has to be below $26.8)
C. Added 2 HBAN at $7.4; 1 at $7.27; 1 at $6.96; 10 at $7.92:
Quote: Huntington Bancshares (HBAN)
Closing Price 5/29: HBAN $8.89 -$0.21 -2.36%
I would classify HBAN as a super regional bank. It operating bank subsidiary, Huntington National Bank, has 839 full service branches located in Ohio, Illinois, Indiana, Kentucky, Michigan, Pennsylvania, and West Virginia.
SEC Filed March 2020 Investor Presentation
HBAN | Huntington Bancshares Inc. Analyst Estimates
HBAN SEC Filings
10-Q for the Q/E 3/31/20
Investment Category: Regional Bank Basket Strategy
Last Discussed: Item # 3.D. (3/28/20 Post)
I discussed the 2019 4th quarter report in this post: Item # 1.D. (2/2/20 Post)
Dividend: Quarterly at $.15 per share
Next Ex Dividend: 6/16/20
Last Earnings Report (3/31/20): SEC Filed Press Release
The reference to CECL is a new accounting rule that requires a banks to set aside reserves based on how forecasted economic conditions may impact their loan portfolio and a variety of financial instruments. CECL standard expected to make a major impact | Accounting Today (Note: I have zero training in accounting)
Under CECL, the initial loss reserve additions taken in the 2020 first quarter, based on forecasted economic conditions, may end up being too low which would then require that additional reserves for credit losses, negatively impacting earnings in one or more subsequent quarters during an ongoing recession.
(Negative adjustments to loan loss provision discussed at Reversing the Trend: An Examiner's Thoughts About Negative Provisions and the ALLL)
Purchase Restriction: Each subsequent purchase must reduce my average cost per share.
D. Restarted VT as a Placeholder: Bought 1 at $59.99:
Quote: VT | Vanguard Total World Stock ETF Overview
Closing Price 5/25: VT $72.92 +$0.16 +0.22%
Sponsor's Website: VT - Vanguard Total World Stock ETF
Last Elimination: Item # 3.D. Eliminated VT-Sold 5 at $79.01 (12/18/19 Post)-Item # 3.B. Bought 5 VT at $73.1 (4/7/19 Post)
Expense Ratio: .08%
Holdings: 8,437 as of 4/30/20
Dividends: Quarterly at a variable rate
E. Started TY as a Placeholder-Bought 10 at $22.93:
Closing Price 5/29: TY $24.68 +$ 0.13 +0.53%
Sponsor's Website: TY | Tri-Continental Corporation | Columbia Threadneedle Investments
TY commenced operations as a closed end fund in 1929.
SEC Filed Shareholder Report for the period ending 12/31/19 This fund will own convertible bonds (6.1%), convertible preferred stocks (8.1%), corporate bonds (12.7%), senior loans (.4%), limited partnerships (.6%) and MM (2.4%) funds. I indicated weightings with the () as of 12/31/19.
Data Date of 4/17/20 Trade:
Closing Net Asset Value Per Share: $26.49
Closing Market Price: $23.03
Discount: -13.06%
Sourced: Tri-Continental-CEF Connect
Top 10 Holdings as of 4/30/20:
Distribution History Since 1980: Tri-Continental Distribution Policy and History | Columbia Threadneedle Investments US
Last Quarterly Dividend Declaration: $.2824 per share, see SEC Filed Press Release
Last Ex Dividend Date: 3/17/20
Next Ex Dividend Date: 6/16/20
Dividend Amount: Regular dividend of $.2824 per share + a long term capital gain distribution of $.2074.
Tri-Continental Corporation Declares Second Quarter Distribution (The Corporation has paid dividends on its common stock for 76 consecutive years.)
The 2019 4th quarter dividend included a long term capital gain distribution of $.8115 per share.
Tri-Continental Corporation Declares 2017 Fourth Quarter Distribution
Net Unrealized Appreciation as of 12/31/19: $184.448+M
Tri-Continental does have some equity preferred stock outstanding. TYPR | Tri-Continental Corp. $2.50 Cum. Pfd. Overview (par value $50). That one has been around since at least 1984.
F. Added 10 FAX at $3.29 and 100 at $3.43:
Closing Price 5/29: FAX $3.68 +$0.0400 +1.10%
SEC Filings
SEC Filing: Portfolio Holdings as of 1/31/20
Last SEC Filed Shareholder Report: Period ending 10/31/19
Sponsor's Website: Aberdeen Asia-Pacific Income Fund, Inc.
Dividend: Monthly at $.0275 per share, reduced last month from $.035 per share. Aberdeen Asia-Pacific Income Fund, Inc. Announces Payment Of Monthly Distribution (announcing change); Aberdeen Asia-Pacific Income Fund, Inc. Announces Record Date And Payment Date For Monthly Distribution (first declaration at reduced rate)
The new annual rate is at $.33 per share.
The dividend is significantly supported by ROC but that support has been reduced after the dividend slash. Form 8937 (Rev. December 2017) Returning the shareholders capital to them in a dividend is not really a dividend. The ROC designated portion is not taxable as a dividend. Instead, the amount so classified reduces the tax cost basis. The shares would have to be sold to generate a tax event for ROC classified distributions.
Current Position: 304+
Average Cost Per Share= $3.62
Yield with ROC at $3.62 = 9.12% at new penny rate
Last Discussed: Item 2.E. (3/21/20 Post)
Data Date of 4/3/20 Trade:
Closing Net Asset Value Per Share: $4.07
Closing Market Price: $3.3
Discount: -18.92%
Data Date of 4/27/20 Trade:
Closing Net Asset Value Per Share: $4.25
Closing Market Price: $3.42
Discount: -19.53%
Sourced: FAX -CEF Connect
G. Restarted WASH-Bought 5 at $29:
Quote: Washington Trust Bancorp Inc. (WASH)
Closing Price 5/25: WASH $31.97 -$0.98 -2.97%
WASH is a bank holding company whose banking services are provided by its subsidiary The Washington Trust Company based in Rhode Island.
SEC Filed May 2020 Investor Presentation
WASH Analyst Estimates
SEC Filings
10-Q for the Q/E 3/31/20
Investment Category: Regional Bank Basket Strategy
Last Elimination: Stocks, Bonds & Politics: Item # 2. Eliminated WASH-Sold 50 at $61.53 (6/25/18 Post)(profit snapshot = $2,309.26)- Item # 3 Bought 100 WASH at $15.26 (1/14/2010 Post)
Last Earnings Report (Q/E 3/31/20): SEC Filed Press Release
"first quarter 2020 net income of $11.9 million, or $0.68 per diluted share, compared to net income of $15.5 million, or $0.89 per diluted share, reported for the fourth quarter of 2019. Our results in the first quarter of 2020 reflect the adoption of the Current Expected Credit Losses ("CECL") accounting methodology, as well as the impact of the COVID-19 pandemic."
"Effective January 1, 2020, Washington Trust adopted Accounting Standards Update No. 2016-13, often referred to as CECL, which requires the measurement of expected lifetime credit losses for financial assets measured at amortized cost, as well as unfunded commitments that are considered off-balance sheet credit exposures. CECL requires that the allowance for credit losses ("ACL") be calculated based on current expected credit losses over the full remaining expected life of the financial assets and also consider expected future changes in macroeconomic conditions. Upon adoption of CECL, Washington Trust's ACL on loans (a contra-asset) increased by $6.5 million, or 24%, and the ACL on unfunded commitments (a liability) increased by $1.5 million, or 506%, as compared to December 31, 2019. This increase in the ACL on loans and unfunded commitments upon the adoption of CECL resulted in a $6.1 million decrease to retained earnings, net of deferred tax balances of $1.9 million."
"In the first quarter of 2020, a provision for credit losses of $7.0 million was charged to earnings and was mainly attributable to the significant deterioration in the economic forecast due to the COVID-19 pandemic. Continued uncertainty regarding the severity and duration of the pandemic and related economic effects will continue to affect the accounting for credit losses under CECL. Under the previous incurred loss accounting methodology, no provision was recognized in the fourth quarter of 2019."
H. Started FBIOX-Bought $100 at $18.98:
Sponsor's website: FBIOX - Fidelity ® Select Biotechnology Portfolio
Closing Price 5/29: FBIOX $22.92 +$0.27 +1.19%
Expense Ratio: .72%
Top 10 Holdings as of 2/29/20:
 |
| Snapshot as of 5/8/20 Close |
Closing Price 5/29: BRG $6.43 -$0.24 -3.60%
Management: Internal
Investment Category: Equity REIT Common and Preferred Stock Basket Strategy
I have already sold my highest cost lots in this chain:
 |
| 20 Shares at $6.38 |
Dividend: Quarterly at $.1625 per share ($.65 annually)
Bluerock Residential Growth REIT (BRG) Announces Second Quarter Dividends on Common Stock, 8.250% Series A Cumulative Redeemable Preferred Stock, 7.625% Series C Cumulative Redeemable Preferred Stock, and 7.125% Series D Cumulative Preferred Stock, and May and June Dividends on Series B Preferred Stock and Series T Preferred Stock
Dividend Yield at $4.96 = 13.1%
Next Ex Dividend Date: 6/24/20
Last Discussed: Item # 1.K Eliminated BRG in Fidelity Account-Sold 107+ at $6.37 (5/16/20 Post)(contains links to prior trades)
Last Earnings Report: I discussed the 2020 first quarter report in the previously linked post.
Bluerock Residential Growth REIT Announces First Quarter 2020 Results
Bluerock Residential Growth REIT, Inc. (BRG) CEO Ramin Kamfar on Q1 2020 Results - Earnings Call Transcript | Seeking Alpha
BRG Realized Gains to Date: +$1,151.81
J. Added 2 GOOD at $13.35:
Quote: Gladstone Commercial Corp. (GOOD)-An Equity REIT
Closing Price 5/25: GOOD $17.92 +$0.28 +1.59%
Management: External
SEC Filings
10-Q for the Q/E 3/31/30 (As of 4/28/20, GOOD owned 122 properties totaling 15.1M square feet in 25 states. The occupancy rate was then at 96.6%, page 26)
ATM Program: During the first quarter, GOOD sold 1.3M shares under its stock ATM program (page 29)
J. Added 2 GOOD at $13.35:
Quote: Gladstone Commercial Corp. (GOOD)-An Equity REIT
Closing Price 5/25: GOOD $17.92 +$0.28 +1.59%
Management: External
SEC Filings
10-Q for the Q/E 3/31/30 (As of 4/28/20, GOOD owned 122 properties totaling 15.1M square feet in 25 states. The occupancy rate was then at 96.6%, page 26)
ATM Program: During the first quarter, GOOD sold 1.3M shares under its stock ATM program (page 29)
Dividend: Monthly at $.12515 per share ($1.50 rounded annually)
Investment Category Equity REIT Common and Preferred Stock Basket Strategy
Distribution History | Gladstone Commercial Corporation
Last Ex Dividend: 5/18/20
Next Ex Dividend: 6/18/20
Current Position: 81+ shares this account
Average Cost Per Share: $14.81
Yield at Average Cost = 10.13%
Last Buy Discussion: Item # 3.G. Bought 10 GOOD at $16.7; 10 at $16.4; 10 at $16; 10 at $15.7; 5 at $14.2, 5 at $13.6, 5 at $12.8; 5 at $12.1, 2 at $11.4, 2 at $10.85 and 2 at $9.5(4/11/20 Post)(used small ball purchase restriction)
Last Sell Discussions: Item # 1.C. Eliminated GOOD in Schwab Account-Sold 50+ at $20.88 and Item # 1.D. Sold Highest Cost GOOD Share in Fidelity Account at $21.36 (3/3/19 Post)
Other Recent News: Gladstone Commercial Corporation Provides a Business Update (5/20/20) ("Portfolio occupancy remains at approximately 97% as of May 20, 2020. Approximately 98% of May cash base rent has been paid and collected. May rental collections remain consistent with 98% of April cash base rent that was paid and collected. Remaining 2% of cash base rents are associated with the previously agreed to deferral agreements. All deferred amounts are to be paid back by the respective tenants commencing in July 2020 and ending in March 2021.)
Last Earnings Report (Q/E 3/31/20):
K. Added to ANGL-Bought 13 at $27; 10 at $26.5 and Sold Highest Cost 5 share lot at $27.85:
Purchases:
Sold 5 at $27.85 (highest cost lot)
Profit Snapshot 5 Shares: $1.74
The purchase of this lot was not discussed.
Average Cost Remaining 25 shares = $26.79
Quote: VanEck Vectors Fallen Angel High Yield Bond ETF Overview
Closing Price 5/29: ANGL $28.18 +$0.22 +0.79%
I discussed buying this ETF in a 5/12/20 comment.
Sponsor's Website: ANGL-VanEck Vectors Fallen Angel High Yield Bond ETF
This bond ETF owns junk rated bonds that were rated investment grade when originally issued.
VanEck’s Fallen Angel High Yield Bond ETF (ANGL) Increases Exposure to Higher Rated, Deeply Discounted Bonds as Downgrades Increase
'Fallen angel' ETF takes flight on Fed announcement - MarketWatch
Fed’s Commitment to Buy High Yield Should Help Lift Fallen Angels
Credit Quality as of 4/30/20:
Dividends: Monthly
Last Ex Dividend: Yesterday, 5/28/20
Top 10 Holdings as of 4/30/20:
Maximum Position: 50 shares
I am extremely reluctant to buy shares in a junk bond ETF during a recession. The Fed's announcement that it would be buying fallen angel bond ETFs caused me to invest a trickle in ANGL. I will keep this one on a tight rein.
L. Bought 5 EBIZ at $20.88 as a Placeholder:
Quote: EBIZ | Global X E-commerce ETF Overview
Closing Price 5/29: EBIZ $21.58 +$0.57 +2.71%
This fund invests in companies "positioned to benefit from the increased adoption of E-commerce as a distribution model, including companies whose principal business is in operating E-commerce platforms, providing E-commerce software and services, and/or selling goods and services online". (emphasis added)
Sponsor's Website: E-commerce ETF
Top Ten Holdings as of 5/22:
Expense Ratio: .5%
Global X E-commerce ETF (EBIZ)-Morningstar (not rated)
M. Added $100 MCDFX at $15.4:
Quote: MCDFX | Matthews China Dividend Fund: Investor Overview
Closing Price 5/29: MCDFX $15.23 -$0.07 -0.46%
Current Position: 55+ shares
Average Cost per share: $15.2
Last Discussed: Item # 4.B. (4/11/20 Post); Item # 6.A. Added $50 to MCDFX at $14.43 (1/2/19 Post); Item # 1 (10/28/18 Post)
Last Elimination: Item # 3 Eliminated MCDFX-Sold 111+ at $17.95 (4/12/18 Post)(profit snapshot: $315.95)
Dividends: Semi-annually at a variable rate
Top 10 Holdings as of 4/30/20:
MCDFX Realized Gains to Date: $1,137.78. The prior elimination snapshots can be found in Item # 4.B.
Sponsor's Website: Overview-Matthews China Dividend Fund
I mentioned in my last post liquidating starter positions in two China funds: CHIQ (an ETF) and CHN (a CEF). This was due to China's recent efforts to tighten its rein on Hong Kong. Based on investor reaction over the past several days, including last Friday after I made this small add, it looks like the Stock Jocks have gotten over this development and may even view it positively, not based on considerations relating to freedoms, but on a future assessment of more stability.
Trump taking action to eliminate special treatment for Hong Kong
Last Friday, the ETF that owns HK stocks closed up:
EWH $19.84 _+$0.10 +0.51%: iShares MSCI Hong Kong Index ETF I own 6 shares which I have not discussed here.
Investment Category Equity REIT Common and Preferred Stock Basket Strategy
Distribution History | Gladstone Commercial Corporation
Last Ex Dividend: 5/18/20
Next Ex Dividend: 6/18/20
Current Position: 81+ shares this account
Average Cost Per Share: $14.81
Yield at Average Cost = 10.13%
Last Buy Discussion: Item # 3.G. Bought 10 GOOD at $16.7; 10 at $16.4; 10 at $16; 10 at $15.7; 5 at $14.2, 5 at $13.6, 5 at $12.8; 5 at $12.1, 2 at $11.4, 2 at $10.85 and 2 at $9.5(4/11/20 Post)(used small ball purchase restriction)
Last Sell Discussions: Item # 1.C. Eliminated GOOD in Schwab Account-Sold 50+ at $20.88 and Item # 1.D. Sold Highest Cost GOOD Share in Fidelity Account at $21.36 (3/3/19 Post)
Other Recent News: Gladstone Commercial Corporation Provides a Business Update (5/20/20) ("Portfolio occupancy remains at approximately 97% as of May 20, 2020. Approximately 98% of May cash base rent has been paid and collected. May rental collections remain consistent with 98% of April cash base rent that was paid and collected. Remaining 2% of cash base rents are associated with the previously agreed to deferral agreements. All deferred amounts are to be paid back by the respective tenants commencing in July 2020 and ending in March 2021.)
Last Earnings Report (Q/E 3/31/20):
K. Added to ANGL-Bought 13 at $27; 10 at $26.5 and Sold Highest Cost 5 share lot at $27.85:
Purchases:
Sold 5 at $27.85 (highest cost lot)
Average Cost Remaining 25 shares = $26.79
Quote: VanEck Vectors Fallen Angel High Yield Bond ETF Overview
Closing Price 5/29: ANGL $28.18 +$0.22 +0.79%
I discussed buying this ETF in a 5/12/20 comment.
Sponsor's Website: ANGL-VanEck Vectors Fallen Angel High Yield Bond ETF
This bond ETF owns junk rated bonds that were rated investment grade when originally issued.
VanEck’s Fallen Angel High Yield Bond ETF (ANGL) Increases Exposure to Higher Rated, Deeply Discounted Bonds as Downgrades Increase
'Fallen angel' ETF takes flight on Fed announcement - MarketWatch
Fed’s Commitment to Buy High Yield Should Help Lift Fallen Angels
Credit Quality as of 4/30/20:
Top 10 Holdings as of 4/30/20:
I am extremely reluctant to buy shares in a junk bond ETF during a recession. The Fed's announcement that it would be buying fallen angel bond ETFs caused me to invest a trickle in ANGL. I will keep this one on a tight rein.
L. Bought 5 EBIZ at $20.88 as a Placeholder:
Closing Price 5/29: EBIZ $21.58 +$0.57 +2.71%
This fund invests in companies "positioned to benefit from the increased adoption of E-commerce as a distribution model, including companies whose principal business is in operating E-commerce platforms, providing E-commerce software and services, and/or selling goods and services online". (emphasis added)
Sponsor's Website: E-commerce ETF
Top Ten Holdings as of 5/22:
Global X E-commerce ETF (EBIZ)-Morningstar (not rated)
M. Added $100 MCDFX at $15.4:
Closing Price 5/29: MCDFX $15.23 -$0.07 -0.46%
Current Position: 55+ shares
Average Cost per share: $15.2
Last Discussed: Item # 4.B. (4/11/20 Post); Item # 6.A. Added $50 to MCDFX at $14.43 (1/2/19 Post); Item # 1 (10/28/18 Post)
Last Elimination: Item # 3 Eliminated MCDFX-Sold 111+ at $17.95 (4/12/18 Post)(profit snapshot: $315.95)
Dividends: Semi-annually at a variable rate
Sponsor's Website: Overview-Matthews China Dividend Fund
I mentioned in my last post liquidating starter positions in two China funds: CHIQ (an ETF) and CHN (a CEF). This was due to China's recent efforts to tighten its rein on Hong Kong. Based on investor reaction over the past several days, including last Friday after I made this small add, it looks like the Stock Jocks have gotten over this development and may even view it positively, not based on considerations relating to freedoms, but on a future assessment of more stability.
Trump taking action to eliminate special treatment for Hong Kong
Last Friday, the ETF that owns HK stocks closed up:
EWH $19.84 _+$0.10 +0.51%: iShares MSCI Hong Kong Index ETF I own 6 shares which I have not discussed here.
3. Short Term Bond/CD Ladder Basket Strategy:
A. Bought 2 Select Income 4.15% SU Bonds Maturing on 2/1/22:
FINRA Page: Bond Detail (prospectus linked)
Issuer: Select Income was acquired by Office Properties Income Trust (OPI)
2019 OPI Annual Report (see page F-27 for debt listings)
This bond is now an OPI obligation.
Bought at a Total Cost of 98.027
YTM at TC = 5.293%
Current Yield at TC = 4.208%
On the day of this purchase, the two year treasury note closed at a .23% yield. So the premium for this bond over that year was slightly over 5% per annum using the YTM number.
Credit Ratings: Baa3/BBB- (lowest investment grade rating)
I did have 2 Select Income bonds mature earlier this year. I did not have much of a profit built into that one:
I am basically rolling over the proceeds into another short maturity.
B. Bought 2 DuPont 3.766% SU Bonds Maturing on 11/15/20:
I discussed this purchase in a 4/2/20 comment.
I am running behind in discussing my bond purchases given the volume of purchases throughout March and into April.
Prospectus
Issuer: DuPont de Nemours Inc. (DD)
Bought at a Total Cost of 99.6
YTM at TC = 4.434%
Credit Ratings:
C. Bought 2 Kimco 3.2% SU Bonds Maturing on 5/1/21:
I discussed this purchase in a 4/8/20 comment.
Issuer: Kimco Realty Corp. (KIM)
Website: Kimco Realty
2019 Annual Report
COVID-19 Update (4/2/20 SEC Filed Press Release)
Kimco Optional Redemption: KIM can redeem on or after 3/1/21 without making a make whole payment:
Bought at Total Cost of 99.8 ($1 per bond commission)
YTM at 99.8 = 4.574%
Current Yield at 99.8 = 4.11%
This bond is now a Tyson Food's obligation. Tyson's senior unsecured debt is currently rated Baa2/BBB.
E. Sold 2 of 10 EBAY 3.25% SU Bonds Maturing on 10/15/20:
FINRA Page: Bond Detail
Profit Snapshot: $14.5
Sold at 100.350
Proceeds at 100.250
YTM at 100.250 = 2.244%
On the day that I sold this bond, Fidelity's third party service claimed the fair market value was 99.688 even though there have been a multitude of actual trades over par value over the prior week:
F. Early Redemption Biogen Notes:
I am receiving multiple early bond redemptions each week. Some redemptions were conditional on the issuer making a make whole payment which was the case for the Biogen bond.
4. Intermediate Bond Basket Strategy:
A. Bought 2 Lexington Realty 4.4% SU Maturing on 6/15/24:
FINRA Page: Bond Detail (prospectus not linked)
Prospectus (subsidiaries are required to guarantee)
Our Story | Lexington Realty Trust)
Total Cost = 99.1 (with $2 commission)
YTM at 99.1 = 4.641%
Current Yield at TC = 4.44%
Issuer: Lexington Realty Trust (LXP)
LXP SEC Filings
LXP 2019 Annual Report: 2018 and 2019 FFO Calculations
4/14/2020 Covid-19 Update
Lexington Realty Trust Reports First Quarter 2020 Results
Lexington Realty Trust Announces Pricing of Public Offering of Common Shares (5/11/20)
Credit Ratings:
I have repeatedly bought and sold the common stock but do not have a position now.
5. Cash Flow for Main Fidelity Account on 5/29 and 6/1/20:
Fidelity will credit my account on a Saturday for dividend and interest payments payable on a Monday.
Municipal bonds trade in 5 bond lots. The dollar positions will consequently be larger than my average corporate bond position since those can be bought in 1 bond lots.
My largest single bond positions are in AA+ or AAA rated Tennessee municipals. The following are two examples from the same Fidelity account:
 |
| AAA Rated |
 |
| AA+ Rated |
Disclaimer: I am not a financial advisor but simply an individual investor who has been managing my own money since I was a teenager. In this post, I am acting solely as a financial journalist focusing on my own investments. The information contained in this post is not intended to be a complete description or summary of all available data relevant to making an investment decision. Instead, I am merely expressing some of the reasons underlying the purchase or sell of securities. Nothing in this post is intended to constitute investment or legal advice or a recommendation to buy or to sell. All investors need to perform their own due diligence before making any financial decision which requires at a minimum reading original source material available at the SEC and elsewhere. A failure to perform due diligence only increases what I call "error creep". Stocks, Bonds & Politics: ERROR CREEP and the INVESTING PROCESS Each investor needs to assess a potential investment taking into account their personal risk tolerances, goals and situational risks. I can only make that kind of assessment for myself and family members.
