Archive

Posts Tagged ‘real-estate’

The Chinese Are Buying Up Real Estate and Businesses In Detroit

July 31st, 2013

detroit citySomething very strange is happening to Detroit.  Once upon a time, it was the center of American manufacturing and it hadthe highest per capita income in the United States.  But now the city is dying and the Chinese are moving in to pick up the pieces.  Read more…

Real Estate, World News

Why China Will Dominate Thousands Of U.S. Communities

June 7th, 2013

The-United-States-A-Colony-Of-ChinaAre you ready for a future where China will employ millions of American workers and dominate thousands of small communities all over the United States?  Such a future would be unimaginable to many Americans, but the truth is that it is already Read more…

China, Government, World News

Does China Plan To Establish Chinese Cities And Special Economic Zones All Over America?

January 22nd, 2013

china etfsWhat in the world is China up to?  Over the past several years, the Chinese government and large Chinese corporations (which are often at least partially owned by the government) have been Read more…

Asia, China, Economy, Markets

How To Find High-Yield Investments In A Zero Interest Rate Policy World (MRK, ED, CVX, AINV)

November 8th, 2012

Tim Melvin: Frankly, thanks to the U.S. Federal Reserve, it’s surprising we have not seen a savers revolt in the United States.  Read more…

Markets

ETFs And Allocations To Protect Portfolios In The Current Financial Storm

October 24th, 2011

This is a followup to a previous postings suggesting how investors can take refuge in the oncoming financial storm. If you’ve not done so already, be sure to read my previous post Say It Ain’t So for a description of our dismal macroeconomic Read more…

ETF, Real Estate, Uncategorized

ETFs Turn Exotic – Protect yourself

October 17th, 2011

Investments that do not move in tandem with U.S. stocks present opportunities for diversification and potential performance Read more…

Commodities, ETF, OPTIONS, Real Estate, Uncategorized

Your Best Real Estate Investment is a Moat

June 15th, 2011

Reporting from International Living’s “International Real Estate Investment Forum”

During recent flooding in the Midwest, an enterprising Arkansas man built a moat around his home and property to protect it from the floodwaters.

It worked. His house, possessions, and family remained safe.

Like that guy in Arkansas, says Ronan McMahon, Director of Pathfinder Real Estate, when it comes to our personal financial well-being, we need to think about safety – especially in today’s stormy economic environment.

Ronan – who borrowed the term from Warren Buffett – applies this concept of “moat economics” to every investment he makes. He told us all about it here at the Investment Forum in Toronto. When you’re buying real estate for investment, he says, look for moats – barriers to entry that keep the competition low and boost your potential for profit.

Ronan, an international real estate investment advisor, spends most of his time traveling around the world looking for the best real estate investment deals out there. One of his strategies is to follow the emerging middle class. That’s why, despite falling home prices, he’s not investing in the US these days. The US middle class is struggling. And there are other, bigger problems, too – with no solutions in sight.

But there are many other markets – far more attractive markets, both economically and physically – where we should be investing. Markets with moats. Fortunately, Ronan and his team have done the hard work. He and his top lieutenant, Margaret Summerfield, find projects with huge profit potential at an early stage…when capital is critical and developers are willing to extend massive discounts to investors.

The developer knows that Pathfinder can bring in a number of investors. And this gives Pathfinder a big negotiating advantage. The strength of their group buying power allows them to negotiate price reductions and terms that usually aren’t available to the general public.

But Pathfinder won’t work with just any real estate developer. They only pick those with a solid track record and who are on a solid path to profit. Projects with economic moats… in markets or situations where it is difficult for competitors to gain entry…and sales and margins are protected.

As Margaret explained, “We have great leverage – we don’t work with every project out there, maybe only one in ten – in some projects we’ve sold 80% of their inventory so we have great leverage when it comes to pricing.”

By my count, today at the International Real Estate Investment Forum we learned of a dozen opportunities with big ROI potential…some through capital appreciation, others through rental income, many with both.

Talk about building an economic moat – there’s one around the entire country of Brazil. As Margaret explains:

We like the big picture in Brazil. Just look at these facts:

Brazil is energy-independent. Petrobras just announced another 350 million barrel find of high-quality crude, in a field that contains as much as 80 billion barrels of oil. Brazil is #12 in the world for oil production. Brazil is also one of the top ethanol producers, including sugarcane ethanol to fuel cars. Around 90% of new cars made in Brazil in 2010 were flex-fuel, able to run on any mix of gasoline or ethanol. Meanwhile, 80% of the country’s electricity comes from renewable sources (mainly hydropower).

It’s rich in mineral reserves…including iron ore, bauxite, tin and copper. It has huge reserves of fresh water…12% of the world’s reserves, in fact. It has vast tracts of agricultural land…and 25% more untapped agricultural land than the entire crop acreage of the US. It produces 80% of the world’s orange juice, and is the top soybean exporter.

Brazil’s strong manufacturing sector produces cars, cement, electronics, steel, and petrochemicals, and commercial aircraft. Brazil even has a satellite-launching center.

Brazil’s economy grew 7.5% in 2010. And that growing economy is growing the country’s middle classes. An estimated 35 million people joined the middle class between 2003 and 2009. More than half the country’s 190 million population now falls into the middle class bracket. By 2014, 20 million more Brazilians will become middle class.

Today, Brazil is the world’s #5 market for computers, books and music…#4 for cars and refrigerators…#3 for cell phones, TVs, soft drinks and cosmetics…

In short, Brazil’s new middle classes buy the same things we all buy when we have more money in our pockets. And that includes property…upgrading where we live to a better home in a nicer neighborhood, or buying a second home at the beach. Brazil’s middle classes are driving Brazil’s real estate market…

So invest in the right projects in the right markets in Brazil and you could be sitting pretty indeed. Here is one to consider:

In a sweet little beach town with miles of white-sand beaches – just 30 minutes from Brazil’s #1 domestic tourism destination – you can buy a beach lot in a residential community next to a new super-luxurious five-star resort. It’s expected that lot prices will double in the next three years. Listen in to the conference recordings and learn how you can get a big discount (and a low price not available anywhere else) and become an owner here. And the terms Ronan and Margaret have negotiated: No money down and interest-free payments for just two years…

There were other deals in Brazil. I sat through two workshops this afternoon given by Brazilian real estate experts. They both brought four extraordinary deals with top-dollar profit potential.

Closer to home in Costa Rica, Margaret showcased three areas of the country that are overlooked and under-priced. One on the Pacific side, one on the Caribbean side and one in a lush, green tropical mountain lake area (think Lake Tahoe without the people). Lake- and jungle-view lots start at just $19,000 and can be financed over three years, interest-free.

Regards,

Susan Haskins,
for The Daily Reckoning

Your Best Real Estate Investment is a Moat originally appeared in the Daily Reckoning. The Daily Reckoning provides over half a million subscribers with literary economic perspective, global market analysis, and contrarian investment ideas.

Read more here:
Your Best Real Estate Investment is a Moat




The Daily Reckoning is a contrarian e-letter, brought to you by New York Times best-selling authors Bill Bonner and Addison Wiggin since 1999. The DR looks at the economic world-at-large and offers its major players – investors, politicians, economists and the average consumer – some much-needed constructive criticism.

Real Estate, Uncategorized

Life in the So-Called Recovery

June 14th, 2011

“What Recovery?” Time Magazine finally got around to asking in its latest issue.

Better late than never, we suppose. The Daily Reckoning has been asking that question for months already…

“America’s recent economic ‘recovery is just a dismal version of ‘Mother May I,’” quipped Dan Amoss, editor of the Strategic Short Report in his essay “Inflation 1; Economy 0” in early March. “Almost every ‘one step forward’ will succumb to ‘two steps backward.’”

Two weeks later, we reiterated, “America’s economic recovery contains more cracks than Humpty Dumpty…after suffering his ‘great fall.’ Somehow, all of Bernanke’s horses and men managed to slather enough monetary glue onto the fractured pieces of our economy to hold them all together. But the reconstructed economy does not look very much like the original one. Humpty Dumpty is now a Picasso.

“While it’s true that a few ‘headline’ economic numbers – like GDP growth and industrial production – are flashing signs of recovery, numerous other data points are flashing red. Net-net, this recovery is suspect.”

We wanted to see the recovery that everyone else claimed to see, we really did, but we were never able to make out its image, no matter how hard we squinted. Blame us for a lack of imagination.

Most of the folks on Wall Street insist they see plentiful signs of economic growth. But then, a lot of folks insist they see aliens out their windows…or the Virgin Mary in their grilled cheese sandwiches.

Maybe the folks on Wall Street are right. Maybe a recovery is unfolding right below our noses. But to us, the “green shoots” of recovery look suspiciously like the AstroTurf of desperate governmental stimulus efforts. From a distance, the stuff looks like the real deal…or even better. But up close, you find a fake – a parody of economic vitality that will never grow into anything real or self-sustaining. Even worse, the AstroTurf also smothers the soil that could potentially yield productive enterprises.

As a result, the so-called recovery is producing a wide range of severely recessionary phenomena. For starters, according to a recent CNN poll, a whopping 48% of Americans surveyed believe that a 1930s-style depression is “very likely” or “somewhat likely.” That’s the highest reading since the beginning of the 2008 credit crisis.

Aren’t folks supposed to become more confident during recoveries? What’s the problem?

We don’t know precisely, but we can surmise imprecisely. A lot of stuff is broken. Jobs are hard to come by, debts are difficult to repay and household wealth is extremely difficult to regain.

Meanwhile, the US government’s mushrooming debt burden is scaring the bejeepers out of any American with a 5th grade aptitude for arithmetic. According to the latest figures, every American has become a kind of fiscal pack mule – saddled down with nearly half a million dollars of present and future government liabilities.

Those distant liabilities wouldn’t seem so troubling if they did not feel so immediate. But virtually all of America’s wealth-creation trends are moving in the wrong direction: taxes are rising, per capita incomes are slipping, inflation is rising and homeowners’ equity is collapsing.

Estimated Total Value of America's Residential Real Estate

Since the peak of the housing bubble in early 2006, homeowners’ equity has collapsed from $14.7 trillion to $6.9 trillion – a staggering loss of wealth equal to more than half of US GDP.  In fact, homeowners’ equity is even lower today than it was at the end of 1999!

Not surprisingly, a very close correlation exists between the amount of equity Americans have in their homes and the attitudes of Americans toward the economy. You could say these two data series move tick for tick.

Percentage of Americans Who Feel Good About the Economy vs. Americans' Home Equity

But real estate wealth is not the only disappearing act of the last decade. American households have also lost about $2 trillion of stock market wealth during the last five years.

These aren’t pretty numbers. Very few households are better off today than they were five years ago…or even ten years ago. Many are worse off. This bad news might not feel so bad if the US economy were producing a steady stream of good news. But it isn’t.

To the contrary, the federal government continues to spend the money that no one seems to have, while Ben Bernanke prints the dollars that fewer and fewer people seem to want. When and how this perverse merry-go-round will end no one knows, but it might be a good idea to jump off your pony as soon as possible and find a safer carnival ride…like precious metals or foreign real estate or water (as Chris Mayer explains in his essay “Blue Gold…Still Shining”) or, indeed, any other asset that isn’t a dollar bill or a promise to re-pay a dollar bill at some future date.

“There are already elements of [economic] fragility,” said New York University professor Nouriel Roubini in a weekend interview. “Everybody’s kicking the can down the road of too much public and private debt. The can is becoming heavier and heavier, and bigger on debt, and all these problems may come to a head by 2013 at the latest… We’re still running over a trillion-dollar budget deficit [in the US] this year, next year and most likely in 2013. The risk is at some point, the bond market vigilantes are going to wake up in the US, like they did in Europe, pushing interest rates higher and crowding out the recovery.”

What recovery?

Eric Fry
for The Daily Reckoning

Life in the So-Called Recovery originally appeared in the Daily Reckoning. The Daily Reckoning provides over half a million subscribers with literary economic perspective, global market analysis, and contrarian investment ideas.

Read more here:
Life in the So-Called Recovery




The Daily Reckoning is a contrarian e-letter, brought to you by New York Times best-selling authors Bill Bonner and Addison Wiggin since 1999. The DR looks at the economic world-at-large and offers its major players – investors, politicians, economists and the average consumer – some much-needed constructive criticism.

Real Estate, Uncategorized

3 Little-Known Securities with Some of the Highest, Safest Yields Around

June 13th, 2011

3 Little-Known Securities with Some of the Highest, Safest Yields Around

Where's an income investor to go for a decent yield these days? Money markets are obviously out. So are U.S. government bonds, unless you're willing to tie up your money for a few decades. Corporate and emerging-market bond yields have shrunk to the point that they no longer seem worth the risk. Real estate investment trusts (REITS) have been running up for a while, so they look a bit risky, too.

You might as well just park your money in a bank account and wait for interest rates to rise, right?

Well, I wouldn't go quite that far. There are still some very compelling, albeit lesser-known, income-producing investments that yield 6%-8% or more. No, they're not as rock-steady as high-quality bonds in terms of price stability. Nor would I expect them to be, since they trade and behave like stocks. They're generally a lot less volatile than the overall market, though, so the yields more than justify the risk.

I'm talking about royalty trusts, which are exactly the types of income investments my colleague Carla Pasternak features in her newsletter, High-Yield Investing. A royalty trust is a corporation that makes money selling oil and gas, minerals or other resources, or by leasing extraction rights to such resources. Income isn't taxed at the corporate level, provided at least 90% of income is paid to shareholders as distributions or dividends. Those payments are taxable to shareholders — but at lower capital-gains rates.

Companies typically establish royalty trusts to raise capital, and they tend to fund the trusts with mature assets they expect to be depleted at some point. When the assets are gone, royalties stop and the trust ends. (Sometimes

Real Estate, Uncategorized

Don’t touch these stocks with a ten-foot pole!

June 13th, 2011

Martin D. Weiss, Ph.D.Major stock sectors are now in a race for the bottom.

These are stocks on a rendezvous with their lowest lows reached in the debt crisis of 2008-2009 … sinking back into the danger zone that came with red ink, bankruptcy, and financial ruin for millions of investors.

Hard to believe that could already be happening so soon after the market peaked?

Then consider the 25 stocks I’m going to list for you in a moment, starting with PMI Group, one of the nation’s leading mortgage insurers.

Two and a half years ago, at the height of the financial crisis, this leading mortgage insurer plummeted to a low of a meager 32 cents per share.

But in the weeks and months that followed, Washington worked overtime to inject trillions of dollars into the housing market and convince the world that the Great American Nightmare — the worst real estate crash of all time — was over.

Many Americans, blinded by their faith in “almighty government,” actually fell for it: The housing market stabilized temporarily. The economy recovered a bit. Stocks rallied sharply. And PMI surged, reaching a peak of $7.10 per share last year.

But that was just the prelude to disaster …

Chart

In the ensuing months, all of the government’s housing support programs and all the government’s mortgage subsidy initiatives failed.

Nothing the government did could stop wave after wave of mortgage defaults and foreclosures.

And even the government’s massive injections of money into the mortgage market were unable to prevent PMI from crashing again, closing at a mere $1.12 per share in late trading hours this past Friday.

That’s down a sickening 84% from last year’s high!

If you had invested $10,000 in this dog at that time, you’d now have only $1,577 in your account right now.

An Unimportant Company? No!

PMI has historically been a huge player with a pivotal function in the housing finance industry — insuring mortgages against default. But now …

If big mortgage insurers like PMI go out of business or refuse to write new policies, most lenders will refuse to extend mortgage loans to anyone except those who are rich enough to buy a home for cash and don’t need a mortgage to begin with.

Moreover, PMI is on the frontline of the losing battle against a flood of bad mortgages in virtually every region of the United States.

So if this company is drowning and its stock is sinking to zero, you can be quite certain that many other companies downstream — lenders and banks, builders and realtors, REITs and other financials — are likely to face a similar fate.

As I illustrated here last week, nearly all bank and financial stocks are now in a race for the bottom — the only difference being, PMI is “winning” that race.

Just a Technical Correction?

If the housing and mortgage markets were holding up nicely, perhaps you could make that argument stick. But the fact is, all three key facets of this giant sector are coming unglued at the seams —

  1. The finances of homeowners who borrowed the money
  2. The finances of bankers who loaned them the money
  3. And the value of the home itself, the underlying collateral that’s supposed to be tapped when folks run out of money.

This is no small technicality. It’s a fundamental deterioration in the underpinnings of the entire sector.

“Why Can’t the Government Come
To The Rescue Again?” You Ask

For the simple reason that the government itself is ALSO running out of money.

But for argument’s sake, let’s say the government does somehow come up with more funds to pump into housing and mortgages.

OK. So what? What difference is that going to make?

Based on the recent history, the answer should be obvious: Not much!

Chart

Remember: No amount of government intervention has been able to prevent home prices from plunging to new lows — even lower than the bottom of March 2009, when homes were selling at deeply distressed prices. (See chart to left.)

Similarly, no amount of government intervention can prevent nearly every sector that touches housing and mortgages from suffering a similar fate.

“Martin’s Too Pessimistic.
Don’t Listen to Him!” Say My Critics

Harry Truman once said. “I never give them hell. I just tell the truth and they think it’s hell.”

That’s what my team and I do.

If anything, we’re optimists. We find the few companies that do have the wherewithal to survive and even benefit. And we see silver linings in this crisis that I’ll be glad to tell you more about in future issues.

Moreover, this is isn’t the first time we have given advance warnings about companies like PMI.

In our Safe Money Report of April 2005, well before the housing bubble peaked, we told our subscribers not to touch PMI Group and 24 other stocks with a ten-foot pole. Here they are:

Aames Investment, Accredited Home Lenders, Beazer Homes, Countrywide Financial, DR Horton, Fannie Mae, Freddie Mac, Fidelity National Financial, Fremont General, General Motors, Golden West Financial, H&R Block, KB Homes, MDC Holdings, MGIC Investment, New Century Financial, Novastar Financial, PHH Group, PMI Group, Pulte Homes, Radian Group, Toll Brothers, Washington Mutual, and Wells Fargo & Company.

(Want proof? Click here for the SMR issue of April 2005 and scroll down to page 10.)

Subsequently, 11 of these 25 companies filed for bankruptcy, were bailed out or bought out.

ALL 25 stocks plummeted, with an AVERAGE loss of 81.3%.

And even after more than two years of stock market rally, investors who bought and held these stocks are deep in the red.

(But whether they rallied or not, our advice to anyone who owns the surviving companies today is the same: Don’t touch them with a ten-foot pole!)

Later, in the financial crisis of 2008, we were the only ones who issued negative ratings and warned well ahead of time of nearly every major firm that subsequently collapsed. We warned about …

* Bear Stearns 102 days before it failed (click here for the proof)

* Lehman Brothers 182 days before (proof)

* Citigroup 110 days before (proof)

* Washington Mutual 51 days before (proof), and

* Fannie Mae 4 years before (proof).

That’s history. What counts most now is that …

It’s “Game Over” for the U.S. “Recovery”

Look. From the outset, we knew the U.S. economic recovery was rigged — bought and paid for by the greatest monetary and fiscal extravaganzas of all time.

We knew that no government, no matter how rich, can create corporate immortality: In the real world, companies are born and companies must die. I’m sure you understood that as well.

We knew that no government, no matter how autocratic, can repeal the law of gravity: When sellers are anxious to sell and buyers are reluctant to buy, prices fall. A no-brainer!

We also knew that no government, no matter how powerful, can stop the march of time: With every second that ticks by, more debts come due, more mortgages go into default, more homes are foreclosed.

And I think you knew, too. But still you ask:

“How Could This Recovery End So
Abruptly and Crumble So Dramatically?”

Answer: As we’ve been telling you all along, it was never a true recovery to begin with:

CANCEL your Weiss subscriptions and I will “pay” you $9,581!

June 12th, 2011

The powerful economic changes we’ve been warning you about have now begun to hit the U.S. economy where it hurts.

So to help make sure you’re completely ready for the huge volatility ahead, I want to change our relationship in a very fundamental way.

To make that possible, I will “pay” you $9,581 to immediately cancel your current Weiss Research subscription, and in a moment I’ll explain exactly how and why.

That’s nearly $10,000 for you.

All you have to do is decide whether you want to accept it or not.

But don’t worry: If you decide to go for it, I’ll still be there for you through thick and thin. So will Mike Larson, Larry Edelson, Nilus Mattive, Sean Brodrick, and everyone else on our team.

In fact, if you cancel your subscriptions right now, you can get ALL of the services and profit opportunities that ALL of our analysts offer for as long as you want, and STILL get the $9,581 IN ADDITION to all our services.

Unbelievable? Perhaps. But it’s true.

You cancel your subscriptions. You get EVERYTHING we publish today — every service, every recommendation, every video or email.

You get them FOREVER.

Plus, you’ll also get ALL the new Weiss publications we introduce in the future.

And on top of everything, you get “paid” $9,581!

Yes, I agree. It IS hard to believe. But it’s a fact. And by the time you finish reading this letter, you’ll know everything you need to know to claim your $9,581.

It’s an opportunity that I am offering exclusively to a small, select group of our subscribers, but only for TEN DAYS. The opportunity expires promptly at midnight, Saturday, June 18th. I have selected this ten-day window right now because of the dramatic events that have just begun to unfold!

Nationwide, housing prices have just made new lows. Unemployment is rising again. We have an obvious downturn in the U.S. economy.

We see a rapid deterioration in U.S. bank finances.

Plus, we are facing landmark budget battles in Washington — and a Congress sworn to block any major new bailouts or stimulus schemes.

I don’t want you to be hurt by the fall-out or miss any of the dramatic opportunities this crisis has already begun to generate.

Plus, there’s another, very practical reason I have limited this offer to a small group of investors and strictly for this ten-day window: Because of the mixed impact this kind of monumental give-away can have on my business.

I’ve been running this company without interruption for 40 years straight, and if you consider the legacy of my father’s companies before me, we have an 80-year Weiss family tradition of guiding investors to safety and wealth building opportunities.  

I’m in great health and have a solid team of successors to keep the business going for decades to come.

So now let me explain the new kind of relationship we can have and how it works:

It’s my Weiss Inner Circle.

My Inner Circle is the most intimate, most elite, and most private group of friends and clients among our entire family of 400,000 readers and subscribers.

The idea is very straightforward: You get every newsletter, every VIP trading service, every rating, every research report, and EVERY PROFIT OPPORTUNITY that ALL of the Weiss divisions currently have to offer.

You get every single Weiss publication we launch in the future. You get them for as long as we publish them — and as long as you want them.

You get all that FOR LIFE — for less than the cost of just ONE YEAR of those services.

You’ll receive our in-depth monthly investment newsletters — the widely acclaimed Safe Money Report, Real Wealth Report, Income Superstars, Crisis Profit Hunter and Asia Stock Alert.

You’ll get our high-end global VIP trading services, including Emerging Market Winners, International ETF Trader, Red-Hot Global Resources, and Crisis Trader.

You’ll be welcomed with open arms to our million-dollar portfolios, which, with this rare exception we’re making for you now, are CLOSED to all new investors!

They include our Million-Dollar Contrarian Portfolio, our Million-Dollar Rapid Growth Portfolio and our Weiss Million-Dollar Ratings Portfolio.

To underscore my confidence in these investment approaches, I have invested $1 million of my own money in each one! And you can not only track what I do with my own money but actually buy or sell BEFORE I do.

You’ll get our fast-paced, ultrahigh-profit-potential options research services, including Resource Windfall Trader, LEAPS Options Alert, and World Currency Trader.

Perhaps most exciting of all, you’ll be among the first to get the new Weiss service we’re getting ready to launch in a few weeks — not to mention all the new ones we introduce in the months to come.

Plus, There’s One Big Extra Bonus
You’ll Receive That No One Else Will.

You see, up until now, whenever our analysts in Asia, Europe, Latin America or right here in the U.S. have come across major profit opportunities in certain, unique small, but innovative companies, I’ve told them NOT to recommend them.

As you might imagine, this has frustrated the hell out of our analysts who find precious little gems they’d love to recommend to their subscribers.

Still, I have drawn a line in the sand on this issue. We simply cannot recommend these investments to thousands of investors. It would make it difficult for investors to get in — or out — at a fair price.

And that’s a shame — because as you know, it’s these smaller companies that can often post some of the most explosive gains!

The great news is, you can have full access to these kinds of recommendations as a member of my Weiss Inner Circle!

Since my Weiss Inner Circle is a very intimate, VIP group, I have given our analysts the green light to recommend these special opportunities exclusively to Weiss Inner Circle members.

This way, savvy investors like you can take advantage of these stellar, extremely high profit potential companies all over the world.

The profits from just this one benefit ALONE could cover the entire cost of membership in my Weiss Inner Circle.

In addition,

You’ll Be Among the Very First to
Get the Brand-New Service We’re
Launching THIS Month!

It’s devoted to an extremely high-powered new investment vehicle.

We’ll give you the opportunity to try it out before virtually everyone else in the world.

And then when we launch it to the general public, it will cost at least $2,500 PER YEAR. But it will be yours FOR LIFE with your membership in my Weiss Inner Circle.

And there’s more.

In recent months, we have inaugurated some incredibly valuable services and offered them FIRST to Weiss Inner Circle members.

For example, members of our Weiss Inner Circle were the first to gain unlimited access to the proprietary research we have on 40,000 companies and investments.

That includes every public company in the U.S., ranging from the smallest upstart to the largest blue chip. Plus, it also includes every exchange traded fund (ETF) and mutual fund.

We also cover nearly every U.S. bank, credit union, and insurance company.

And all of this research is based on the objective ratings we originally developed.

If you want our research on any institution, you can get it instantly. If you want reports on a hundred institutions of your choice, they’re yours.

Or if you want our help to SEARCH through the strongest among THOUSANDS of institutions, that’s also a part of your membership.

Grab our research as often as you like …

Claim as many reports as you like …

There are absolutely NO LIMITATIONS!

The more investments you have, the more banks or insurers you do business with, and the more you use this incredibly timely, accurate resource, the more profitable it could be for you.

Value: Immense and unlimited!

And there’s another very unique benefit to my Weiss Inner Circle — a benefit that flows directly and naturally from our 80-year history. It’s the Weiss Family Program, which I’ll explain to you in just a moment.

But …

Please Don’t Underestimate the
Exclusive Value of This Membership.

I will never send this invitation to the general public.

I am sending this invitation exclusively to our most loyal subscribers, representing only a small fraction of our readers. And we have set aside only a very tiny number of Weiss Inner Circle memberships — enough for only 2% of our loyal subscribers.

So I am asking you not share this invitation with anyone else.

Now, if you know me, you know I devote a lot of my time and heart to helping the average investor. So I’d love to help everyone if I could. But since many of the investments made available to our Inner Circle members are often smaller special opportunities, we MUST strictly limit the number of memberships we make available.

That’s why I’d like you to keep this to yourself and your closest family members only.

Most important, I recommend that you NOT wait until the end of this ten-day window. Membership is first come first served. If all the available memberships are taken BEFORE the last day, we will close the doors sooner.

In other words, the BEST time to collect your $9,581 is right now.

So now let me explain precisely how you can effectively get paid $9,581 — and at the same time cancel your Weiss Research subscriptions.

Remember what I said at the outset: A membership in the Weiss Inner Circle costs LESS than one year of the services that members receive.

You can get a lifetime membership in all our investment newsletters … all our fast-paced ETF and stock trading services … all of our million-dollar portfolios … all of our extreme high-profit-potential options services … PLUS unlimited access to our research on all 40,000 companies based on the ratings we originally developed.

And you get it all for LESS than the DISCOUNTED price of what you’d pay for a single year.

On top of that, you get all the Weiss publications we will launch in the future.

In the first year alone, you’ll immediately save a whopping $9,581! That’s how I “pay” you this money immediately.

If you got only ONE YEAR of our services and nothing more, you’d already have a huge benefit — nearly $10,000.

But that’s just the beginning …

By the second year, you’ll have saved $27,983.

By year five, you will have saved $83,189!

And in year ten, your total savings will add up to a whopping $175,199!

WITHOUT even including the value of the new services we’re going to be adding — typically a few per year.

In this letter, I’m going to tell you about many of the services you will get, including a few that sometimes go for large triple-digit gains.

But before I do, I want to make sure you understand the context.

It’s important to point out that those large triple-digit gains are NOT always possible, and you should NOT go into any of our services with the expectation that they are the norm.

Normally, most investors are thrilled to bank single- and double-digit profits, and so are we.

And typically, it’s only when great events make markets more volatile that it’s possible to make the far larger gains.

The recent huge rises in oil, gold and other commodity prices are good examples. So is the dramatic decline of the U.S. dollar recently. The collapse of major banks in 2008-2009 also provided some unique megaprofit opportunities. And with the U.S. economy now weakening, with a big budget battle looming and major new global money flows on the immediate horizon, we anticipate similar — or bigger — market moving events ahead.

But it’s also important to remember that all investments involve risk of loss. Nobody I know — including our analysts, who I feel are among the best in the world — can win 100% of the time. Losses, even losing streaks, come with the territory.

The good news is that, with expert guidance and prudent risk management, the historic events we’re now seeing in the U.S. economy, the currency markets and in commodities offer us opportunities that other generations of investors could only dream about. With that in mind, let me tell you about the first new service we’re going to be adding THIS MONTH.

It’s by the world’s most consistently successful trader I have known or probably ever will know. And what’s unique about it is that he HAS been a consistent big winner year after year.

I can’t reveal his name right now. But when I do reveal it this month, you’ll probably recognize him instantly since he’s been such a regular guest on CNBC, Fox News, CNN … and because he’s been quoted so often in the most widely respected websites, journals and blogs all over the world.

What many people do NOT know about him is that he’s been making recommendations to a very small, private group of investors who could have used them to make a fortune.

His track record since he began in 2004 through May of this year, which we’ve verified trade by trade, shows a total return — including winners and losers — of 1,133.2% — enough to make you more than 11 times richer!

If you had started with $10,000, you could now have over $120,000. If you had invested $25,000, you could now have over $300,000. And if you had started with $100,000, you’d now have over $1.2 million.

An astonishing 69% of trades were winners — and the AVERAGE return on each winner was 87.4% — nearly a double, while the average loss on losing trades was only 32%.

Of course, past performance is no guaranty of future success because the vehicles he uses and market conditions can change. But I have personally been getting his trading signals; and I’ve seen, in real time, how consistently accurate they’ve been.

That’s important. And it’s why we’ve decided to add a new service he’ll be running to our Weiss Inner Circle this month.

Normally, investors would pay up to $5,000 for his trading signals, and even if we decide to offer a discount for Charter members, they will still pay close to $2,500 — for one year. But as a member of my Weiss Inner Circle, you will get them as part of your lifetime membership.

As a member of my Weiss Inner Circle, you will also get a lifetime membership in Mike Larson’s LEAPS Options Alert.

In most respects, LEAPS options — or simply LEAPS — are just like any other stock option. They’re generally inexpensive. And their purchase offers you virtually unlimited profit potential with your risk on each trade strictly limited to their cost plus a small broker commission.

But LEAPS give you a critical advantage that ordinary options do not: They can give you far more TIME to work in your favor — up to THREE YEARS! While most other options expire in just a few months, you can buy LEAPS right now that won’t expire until 2014!

This makes LEAPS excellent vehicles for two goals that are especially critical today:

  • To serve as “crash insurance,” helping to PROTECT your portfolio against losses; and
  • To GROW your wealth rapidly — especially helpful in declining markets.

Take Phase I of this great debt crisis, for instance: Had you purchased long-term LEAPS on each of the stocks we warned you about well in advance — the very same stocks we NAMED as candidates for failure — you could have banked …

CANCEL your Weiss subscriptions and I will “pay” you $9,581!

June 12th, 2011

The powerful economic changes we’ve been warning you about have now begun to hit the U.S. economy where it hurts.

So to help make sure you’re completely ready for the huge volatility ahead, I want to change our relationship in a very fundamental way.

To make that possible, I will “pay” you $9,581 to immediately cancel your current Weiss Research subscription, and in a moment I’ll explain exactly how and why.

That’s nearly $10,000 for you.

All you have to do is decide whether you want to accept it or not.

But don’t worry: If you decide to go for it, I’ll still be there for you through thick and thin. So will Mike Larson, Larry Edelson, Nilus Mattive, Sean Brodrick, and everyone else on our team.

In fact, if you cancel your subscriptions right now, you can get ALL of the services and profit opportunities that ALL of our analysts offer for as long as you want, and STILL get the $9,581 IN ADDITION to all our services.

Unbelievable? Perhaps. But it’s true.

You cancel your subscriptions. You get EVERYTHING we publish today — every service, every recommendation, every video or email.

You get them FOREVER.

Plus, you’ll also get ALL the new Weiss publications we introduce in the future.

And on top of everything, you get “paid” $9,581!

Yes, I agree. It IS hard to believe. But it’s a fact. And by the time you finish reading this letter, you’ll know everything you need to know to claim your $9,581.

It’s an opportunity that I am offering exclusively to a small, select group of our subscribers, but only for TEN DAYS. The opportunity expires promptly at midnight, Saturday, June 18th. I have selected this ten-day window right now because of the dramatic events that have just begun to unfold!

Nationwide, housing prices have just made new lows. Unemployment is rising again. We have an obvious downturn in the U.S. economy.

We see a rapid deterioration in U.S. bank finances.

Plus, we are facing landmark budget battles in Washington — and a Congress sworn to block any major new bailouts or stimulus schemes.

I don’t want you to be hurt by the fall-out or miss any of the dramatic opportunities this crisis has already begun to generate.

Plus, there’s another, very practical reason I have limited this offer to a small group of investors and strictly for this ten-day window: Because of the mixed impact this kind of monumental give-away can have on my business.

I’ve been running this company without interruption for 40 years straight, and if you consider the legacy of my father’s companies before me, we have an 80-year Weiss family tradition of guiding investors to safety and wealth building opportunities.  

I’m in great health and have a solid team of successors to keep the business going for decades to come.

So now let me explain the new kind of relationship we can have and how it works:

It’s my Weiss Inner Circle.

My Inner Circle is the most intimate, most elite, and most private group of friends and clients among our entire family of 400,000 readers and subscribers.

The idea is very straightforward: You get every newsletter, every VIP trading service, every rating, every research report, and EVERY PROFIT OPPORTUNITY that ALL of the Weiss divisions currently have to offer.

You get every single Weiss publication we launch in the future. You get them for as long as we publish them — and as long as you want them.

You get all that FOR LIFE — for less than the cost of just ONE YEAR of those services.

You’ll receive our in-depth monthly investment newsletters — the widely acclaimed Safe Money Report, Real Wealth Report, Income Superstars, Crisis Profit Hunter and Asia Stock Alert.

You’ll get our high-end global VIP trading services, including Emerging Market Winners, International ETF Trader, Red-Hot Global Resources, and Crisis Trader.

You’ll be welcomed with open arms to our million-dollar portfolios, which, with this rare exception we’re making for you now, are CLOSED to all new investors!

They include our Million-Dollar Contrarian Portfolio, our Million-Dollar Rapid Growth Portfolio and our Weiss Million-Dollar Ratings Portfolio.

To underscore my confidence in these investment approaches, I have invested $1 million of my own money in each one! And you can not only track what I do with my own money but actually buy or sell BEFORE I do.

You’ll get our fast-paced, ultrahigh-profit-potential options research services, including Resource Windfall Trader, LEAPS Options Alert, and World Currency Trader.

Perhaps most exciting of all, you’ll be among the first to get the new Weiss service we’re getting ready to launch in a few weeks — not to mention all the new ones we introduce in the months to come.

Plus, There’s One Big Extra Bonus
You’ll Receive That No One Else Will.

You see, up until now, whenever our analysts in Asia, Europe, Latin America or right here in the U.S. have come across major profit opportunities in certain, unique small, but innovative companies, I’ve told them NOT to recommend them.

As you might imagine, this has frustrated the hell out of our analysts who find precious little gems they’d love to recommend to their subscribers.

Still, I have drawn a line in the sand on this issue. We simply cannot recommend these investments to thousands of investors. It would make it difficult for investors to get in — or out — at a fair price.

And that’s a shame — because as you know, it’s these smaller companies that can often post some of the most explosive gains!

The great news is, you can have full access to these kinds of recommendations as a member of my Weiss Inner Circle!

Since my Weiss Inner Circle is a very intimate, VIP group, I have given our analysts the green light to recommend these special opportunities exclusively to Weiss Inner Circle members.

This way, savvy investors like you can take advantage of these stellar, extremely high profit potential companies all over the world.

The profits from just this one benefit ALONE could cover the entire cost of membership in my Weiss Inner Circle.

In addition,

You’ll Be Among the Very First to
Get the Brand-New Service We’re
Launching THIS Month!

It’s devoted to an extremely high-powered new investment vehicle.

We’ll give you the opportunity to try it out before virtually everyone else in the world.

And then when we launch it to the general public, it will cost at least $2,500 PER YEAR. But it will be yours FOR LIFE with your membership in my Weiss Inner Circle.

And there’s more.

In recent months, we have inaugurated some incredibly valuable services and offered them FIRST to Weiss Inner Circle members.

For example, members of our Weiss Inner Circle were the first to gain unlimited access to the proprietary research we have on 40,000 companies and investments.

That includes every public company in the U.S., ranging from the smallest upstart to the largest blue chip. Plus, it also includes every exchange traded fund (ETF) and mutual fund.

We also cover nearly every U.S. bank, credit union, and insurance company.

And all of this research is based on the objective ratings we originally developed.

If you want our research on any institution, you can get it instantly. If you want reports on a hundred institutions of your choice, they’re yours.

Or if you want our help to SEARCH through the strongest among THOUSANDS of institutions, that’s also a part of your membership.

Grab our research as often as you like …

Claim as many reports as you like …

There are absolutely NO LIMITATIONS!

The more investments you have, the more banks or insurers you do business with, and the more you use this incredibly timely, accurate resource, the more profitable it could be for you.

Value: Immense and unlimited!

And there’s another very unique benefit to my Weiss Inner Circle — a benefit that flows directly and naturally from our 80-year history. It’s the Weiss Family Program, which I’ll explain to you in just a moment.

But …

Please Don’t Underestimate the
Exclusive Value of This Membership.

I will never send this invitation to the general public.

I am sending this invitation exclusively to our most loyal subscribers, representing only a small fraction of our readers. And we have set aside only a very tiny number of Weiss Inner Circle memberships — enough for only 2% of our loyal subscribers.

So I am asking you not share this invitation with anyone else.

Now, if you know me, you know I devote a lot of my time and heart to helping the average investor. So I’d love to help everyone if I could. But since many of the investments made available to our Inner Circle members are often smaller special opportunities, we MUST strictly limit the number of memberships we make available.

That’s why I’d like you to keep this to yourself and your closest family members only.

Most important, I recommend that you NOT wait until the end of this ten-day window. Membership is first come first served. If all the available memberships are taken BEFORE the last day, we will close the doors sooner.

In other words, the BEST time to collect your $9,581 is right now.

So now let me explain precisely how you can effectively get paid $9,581 — and at the same time cancel your Weiss Research subscriptions.

Remember what I said at the outset: A membership in the Weiss Inner Circle costs LESS than one year of the services that members receive.

You can get a lifetime membership in all our investment newsletters … all our fast-paced ETF and stock trading services … all of our million-dollar portfolios … all of our extreme high-profit-potential options services … PLUS unlimited access to our research on all 40,000 companies based on the ratings we originally developed.

And you get it all for LESS than the DISCOUNTED price of what you’d pay for a single year.

On top of that, you get all the Weiss publications we will launch in the future.

In the first year alone, you’ll immediately save a whopping $9,581! That’s how I “pay” you this money immediately.

If you got only ONE YEAR of our services and nothing more, you’d already have a huge benefit — nearly $10,000.

But that’s just the beginning …

By the second year, you’ll have saved $27,983.

By year five, you will have saved $83,189!

And in year ten, your total savings will add up to a whopping $175,199!

WITHOUT even including the value of the new services we’re going to be adding — typically a few per year.

In this letter, I’m going to tell you about many of the services you will get, including a few that sometimes go for large triple-digit gains.

But before I do, I want to make sure you understand the context.

It’s important to point out that those large triple-digit gains are NOT always possible, and you should NOT go into any of our services with the expectation that they are the norm.

Normally, most investors are thrilled to bank single- and double-digit profits, and so are we.

And typically, it’s only when great events make markets more volatile that it’s possible to make the far larger gains.

The recent huge rises in oil, gold and other commodity prices are good examples. So is the dramatic decline of the U.S. dollar recently. The collapse of major banks in 2008-2009 also provided some unique megaprofit opportunities. And with the U.S. economy now weakening, with a big budget battle looming and major new global money flows on the immediate horizon, we anticipate similar — or bigger — market moving events ahead.

But it’s also important to remember that all investments involve risk of loss. Nobody I know — including our analysts, who I feel are among the best in the world — can win 100% of the time. Losses, even losing streaks, come with the territory.

The good news is that, with expert guidance and prudent risk management, the historic events we’re now seeing in the U.S. economy, the currency markets and in commodities offer us opportunities that other generations of investors could only dream about. With that in mind, let me tell you about the first new service we’re going to be adding THIS MONTH.

It’s by the world’s most consistently successful trader I have known or probably ever will know. And what’s unique about it is that he HAS been a consistent big winner year after year.

I can’t reveal his name right now. But when I do reveal it this month, you’ll probably recognize him instantly since he’s been such a regular guest on CNBC, Fox News, CNN … and because he’s been quoted so often in the most widely respected websites, journals and blogs all over the world.

What many people do NOT know about him is that he’s been making recommendations to a very small, private group of investors who could have used them to make a fortune.

His track record since he began in 2004 through May of this year, which we’ve verified trade by trade, shows a total return — including winners and losers — of 1,133.2% — enough to make you more than 11 times richer!

If you had started with $10,000, you could now have over $120,000. If you had invested $25,000, you could now have over $300,000. And if you had started with $100,000, you’d now have over $1.2 million.

An astonishing 69% of trades were winners — and the AVERAGE return on each winner was 87.4% — nearly a double, while the average loss on losing trades was only 32%.

Of course, past performance is no guaranty of future success because the vehicles he uses and market conditions can change. But I have personally been getting his trading signals; and I’ve seen, in real time, how consistently accurate they’ve been.

That’s important. And it’s why we’ve decided to add a new service he’ll be running to our Weiss Inner Circle this month.

Normally, investors would pay up to $5,000 for his trading signals, and even if we decide to offer a discount for Charter members, they will still pay close to $2,500 — for one year. But as a member of my Weiss Inner Circle, you will get them as part of your lifetime membership.

As a member of my Weiss Inner Circle, you will also get a lifetime membership in Mike Larson’s LEAPS Options Alert.

In most respects, LEAPS options — or simply LEAPS — are just like any other stock option. They’re generally inexpensive. And their purchase offers you virtually unlimited profit potential with your risk on each trade strictly limited to their cost plus a small broker commission.

But LEAPS give you a critical advantage that ordinary options do not: They can give you far more TIME to work in your favor — up to THREE YEARS! While most other options expire in just a few months, you can buy LEAPS right now that won’t expire until 2014!

This makes LEAPS excellent vehicles for two goals that are especially critical today:

  • To serve as “crash insurance,” helping to PROTECT your portfolio against losses; and
  • To GROW your wealth rapidly — especially helpful in declining markets.

Take Phase I of this great debt crisis, for instance: Had you purchased long-term LEAPS on each of the stocks we warned you about well in advance — the very same stocks we NAMED as candidates for failure — you could have banked …

Steroids Wearing Off! Key Sectors Slumping! Urgent Action Required!

June 10th, 2011

Mike LarsonI’ve been a huge football fan for years. I started watching Dallas Cowboys games when I was five because I loved the star on the team’s helmets. I cheered for the Miami Dolphins because I live in South Florida. And then after I went to college in Boston, I adopted the New England Patriots as my team — an affiliation that carries to this day.

One thing I’ve always hated to see was when the game would be corrupted by steroids. I remember when Lyle Alzado of the Los Angeles Raiders struck fear into the hearts of opposing teams in the early 1980s. But it turned out his aggressive style of play and incredible strength turned out to stem largely from drug use. He died a broken man of brain cancer at 43.

It’s not just football, either. How many baseball greats are now turning out to be nothing more than juiced-up pretenders? Heck, even cycling great Lance Armstrong is under a cloud today due to doping allegations made by former teammates.

It’s truly sad, and in the end, what’s the point? Why try to get an unfair edge if it just ends up killing you in the end? Or if your medals and rings and trophies just get stripped away?

Why am I bringing this up?

Because we’re seeing the same, sorry thing happen here to the U.S. economy! Washington has been trying to pump the economy full of easy money for the better part of two years now. Yet it hasn’t worked! And despite all that, the addicts on Wall Street are once again jonesing for another hit!

What’s going to happen in the markets as a result? What does this mean for you? And most importantly, what can you DO about it? Here’s my take …

Why You Can’t Keep Propping
up an Ailing “Player” Forever

Beginning in March 2009 and continuing all the way through present day, Washington has been trying to juice the economy. It began with the bogus “stress tests.” They helped spike the value of bank and real estate stocks, allowing companies to sell equity and buy themselves some time.

We were told the trillions in stimulus programs would cure our economic woes.
We were told the trillions in stimulus programs would cure our economic woes.

It continued with the $1.25 trillion QE1 program … the $600 billion QE2 boondoggle … payroll tax cuts … the HAMP mortgage modification effort … an almost-$900 billion economic stimulus bill … and more.

We were told these would drive unemployment down substantially.

We were told these would prevent a double-dip in housing.

We were told these efforts would — for once and for all — plug the massive balance sheet holes in the banking system.

We were told there would be virtually no negative side effects.

And we were told months ago that the economy had entered a self-sustaining, healthy recovery.

But Treasury Secretary Timothy Geithner … Federal Reserve Chairman Ben Bernanke … President Obama’s economic advisors … and virtually all the major Wall Street economists got it wrong. All we did was pump the economy up with monetary steroids — buying us some short-term performance at the cost of long-term health.

We’re now $14.3 trillion in debt, and Geithner is raiding every government account he can to keep us under the debt ceiling. Plus, we’re running up a trillion-dollar deficit for the third straight year, something no country in the history of the world has ever done.

And what do we have to show for it?

  • A confirmed double-dip in housing,
  • A rising cost of living,
  • A renewed jobs market threat, with unemployed Americans taking a record-long amount of time to find work,
  • And a fresh roll over in bank stocks, with companies like Bank of America giving up every penny of gains they’ve made in the last two years.
Advertisement

Wall Street’s Plea: “Brother, Can
You Spare Some More QE?”

Bottom line: The print, borrow, spend program is NOT working! Yet in the wake of the dismal May jobs report, Wall Street is back to begging Helicopter Ben Bernanke for more free money! And when they don’t get it, like some spoiled kid, they take their toys and go home.

On Tuesday, the Fed chairman offered no hint that QE3 would be forthcoming.
On Tuesday, the Fed chairman offered no hint that QE3 would be forthcoming.

Just witness what happened late Tuesday …

Bernanke gave a speech on the economic outlook at the International Monetary Conference in Atlanta. He said the economy appeared to be weakening again, but failed to promise QE3. Result? Stocks rolled over into the close.

Meanwhile, the same economic “experts” like Paul Krugman who told us that if we just borrowed, printed and spent enough money, everything would be fine, are still at it. They’re asking for even more of the same medicine that didn’t work in the past … twice!

Look folks, the plain, unvarnished truth is that our economy needs a long period of convalescence to heal. We need to work off the massive excesses built up during the tech stock and real estate bubbles. All the steroids in the world won’t do the trick!

Fortunately, you CAN take steps to protect yourself. You can avoid losing money if stocks and the economy sink. In fact, you can turn lemons into lemonade and rack up profits from fading sectors like real estate, banking, consumer durables, and more.

That’s what I’m already helping my subscribers do — and if you’d like to join them for just $2.73 per day, click here to learn more.

Your other option?

Sit by and do nothing while Washington and Wall Street sink further into the debt, deficit, and downturn abyss. I trust that sounds as unattractive an option to you as it does to me.

Until next time,

Mike

Read more here:
Steroids Wearing Off! Key Sectors Slumping! Urgent Action Required!

Commodities, ETF, Mutual Fund, Real Estate, Uncategorized

3 Rare High-Yield Securities that Yield up to 9%

June 9th, 2011

3 Rare High-Yield Securities that Yield up to 9%

Sometimes the best dividend yields can be found by looking for stocks that few analysts follow. There are dozens of otherwise good quality companies out there which analysts simply don't talk about, either because the company is too small, too new or occupies a one-of-a-kind niche. Analysts don't cover these outlier stocks because their large institutional clients prefer investing in recognizable names that have high trading volume and address big markets (which attract lots of competitors).

I decided to investigate the REIT (real-estate investment trust) sector for companies that occupy unique niches and don't command much attention from analysts. REITs are good for dividend investors in a number of ways, primarily because their unique structure requires them to pass along at least 90% of income directly to shareholders. In return, they are not subject to federal income taxes. Income typically comes from the rent, managing fees and leasing of the properties owned by the trust. Because of this unique structure, REITs generally offer higher yields than the overall market.

I found three unusual REITs that aren't widely followed by Wall Street, but offer good dividend growth prospects and rich yields.

1. Government Properties Income Trust (NYSE: GOV)
Yield: 7%

This unique REIT primarily owns offices and warehouses that it leases out to the U.S. government and various state government agencies. As of March 2011, Government Properties owned 58 office properties and about 7.1 million square feet of space across 26 states and the District of Columbia.

Government Properties completed its initial public offering (IPO) and paid a dividend of $0.90 per share that year. The REIT increased the dividend by 36% last year to $1.22 and is on track to pay a $1.68 dividend this year — a 38% increase. Funds from operations (FFO), a key REIT performance metric, rose 7% in this year's first quarter, due to property acquisitions and increased leasing activity. Dividend payout from FFO is average at around 85%, and the REIT's debt is reasonable at just 21% of capitalization. The outlook for further FFO gains is good, since Government Properties has acquired 11 properties so far this year that should help boost future income and dividends.

Real Estate, Uncategorized

3 Rare High-Yield Securities that Yield up to 9%

June 9th, 2011

3 Rare High-Yield Securities that Yield up to 9%

Sometimes the best dividend yields can be found by looking for stocks that few analysts follow. There are dozens of otherwise good quality companies out there which analysts simply don't talk about, either because the company is too small, too new or occupies a one-of-a-kind niche. Analysts don't cover these outlier stocks because their large institutional clients prefer investing in recognizable names that have high trading volume and address big markets (which attract lots of competitors).

I decided to investigate the REIT (real-estate investment trust) sector for companies that occupy unique niches and don't command much attention from analysts. REITs are good for dividend investors in a number of ways, primarily because their unique structure requires them to pass along at least 90% of income directly to shareholders. In return, they are not subject to federal income taxes. Income typically comes from the rent, managing fees and leasing of the properties owned by the trust. Because of this unique structure, REITs generally offer higher yields than the overall market.

I found three unusual REITs that aren't widely followed by Wall Street, but offer good dividend growth prospects and rich yields.

1. Government Properties Income Trust (NYSE: GOV)
Yield: 7%

This unique REIT primarily owns offices and warehouses that it leases out to the U.S. government and various state government agencies. As of March 2011, Government Properties owned 58 office properties and about 7.1 million square feet of space across 26 states and the District of Columbia.

Government Properties completed its initial public offering (IPO) and paid a dividend of $0.90 per share that year. The REIT increased the dividend by 36% last year to $1.22 and is on track to pay a $1.68 dividend this year — a 38% increase. Funds from operations (FFO), a key REIT performance metric, rose 7% in this year's first quarter, due to property acquisitions and increased leasing activity. Dividend payout from FFO is average at around 85%, and the REIT's debt is reasonable at just 21% of capitalization. The outlook for further FFO gains is good, since Government Properties has acquired 11 properties so far this year that should help boost future income and dividends.

Real Estate, Uncategorized