May 302014
 
Apple and Beats

The world’s largest company, Apple Inc, has purchased Beats Electronics for $3 billion. Beats by Dre is a popular brand of headphones that sells for $300 a pair. #veryprofitable. As an Apple shareholder I approve of this deal and hope to make lots of money from this strategic move 🙂 I hope consumers are ready to buy the most overpriced piece of commodity gadget made in China ever!

14-05-apple-beats

April Inflation

The cost of living increased 2%, which is the highest it’s been in recent history. Gasoline, natural gas, shelter, and food have all become more expensive. This is great news for investors! I own many shares of Suncor and Encana, which are oil and gas companies. They are both listed in my Hedge Fund page for disclosure. The price of gasoline at the pumps is up 6.6% since April of last year, but my Suncor stock is up 30%! Encana’s share price is up 25%! Real estate prices are also up.

14-05-inflation-ned inflation

Inflation is good for those who own the right assets. So we have to invest in order to profit from this trend. Don’t wait for a good time to buy investments. Just buy them first, then wait for your investments to go up 😉

Lower Mortgage Rates

Scotiabank has lowered its 5 year fixed mortgage rate to just 2.97%. This is great news! As a Bank of Nova Scotia shareholder I applaud the company’s decision to attract home buyers when interest rates are low, so it can most likely increase the rate 5 years later when all these mortgages are up for renewal. If you’re a home owner in Canada with a mortgage, investing in bank stocks is a terrific way to hedge your interest rate risk. Once Scotiabank builds up relationships with new clients, it can also cross-sell them other financial products and services.

MIC Update

Earlier this month I blogged about doing some research into mortgage investment corporations or (MICs.) I called up several companies and did some due diligence. In the end I decided to go with a MIC based right here in British Columbia 🙂 Since MICs are exempt market products they are not scrutinized by regulators in the way that mutual funds are. So if a MIC goes terribly wrong the investors are pretty much SOL 😕 To protect itself the MIC made me sign a disclosure form as part of the application process. Click on image below to biggify.

14-05-micagreement mortgage investment corporation

One month ago I had never even heard of this company, but earlier this week I mailed them all the signed papers plus a personal cheque for $10,000! 😯 They seem to be a legitimate company according to their website, and the lady on the phone sounded nice, so I decided to trust them.

I guess I’m either really gullible and foolish, or a brilliant investor with a keen eye for superior market returns (^_-) Which is it going to be? I guess we shall see 😉

Later on I plan to write a more in depth article about my MIC purchase, the expected returns, and my buying process. Speaking of MICs, Financial Underdog from Money Ramblings wrote a detailed article explaining how MICs work, and his experience investing in a MIC based out of Alberta.

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Blog roundup – Below are some finance and other articles from around the web this week.

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29 Comments on "Weekend News and Blog Roundup – Inflation"

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Laurie @thefrugalfarmer
Guest
05/30/2014 5:18 am

Thanks for the mention, F35! I’m honored to be in such good company. BTW, this line: ” I hope consumers are ready to buy the most overpriced piece of commodity gadget made in China ever!” cracked me up. Thanks for that. 🙂 Have a great weekend!

Roadmap2Retire
Guest
05/30/2014 5:28 am

Thanks for the inclusion, F35. My portfolio is prepared to take on inflation, head on 🙂

Have a great weekend.
R2R

Debs @ debtdebs.com
Guest
05/30/2014 5:43 am

Good luck with your MIC! Thanks for the shout out. 😀

Anne @ Unique Gifter
Guest
05/30/2014 5:47 am

The MIC is fascinating… I’m interested to see how it turns out!
Thanks so much for the shout out.
I read an interesting piece on jlcollins this past week about hyperinflation hedging and real estate. I can honestly say I’ve never really thought about it and probably won’t again for a good long time!

Jessica Moorhouse
Guest
05/30/2014 6:24 am

Thanks for the mention!

Financial Underdog
Guest
05/30/2014 6:32 am

Did you buy it directly from them or did you buy it from a dealer?

Financejourney.com
Guest
05/30/2014 6:40 am

Thank you for the inclusion, Liquid. I love to see how is your investment with MICs and the option tradings turn out. I like mortgage investment so bought 100 units of FC two years ago. It pays well so far.

TSML
Guest
TSML
05/30/2014 6:52 am

Oh, but now beats will have a “Designed in California” stamp on it, obviously making it worth its high price point. Wait… but won’t it still be made in China from the same supplier??? 😀

Charotte
Guest
05/30/2014 8:37 am

Thanks for including me in your list, Liquid! Looking forward to your deeper look at MIC, it’s something I know nothing about. Have a great weekend!

Asset-Grinder
Guest
05/30/2014 10:04 am

thanks for the shout out and recco buddy. I really like this APPL runup since I am so heavily weighted in it. The prob now is what to do with it! Stay and hold or reduce position next year. Choices choices. I would definatley hold if their dividend was in the 3% range and it could very well get there. What to do!!!!!! I dont want to be one of those shoulda,coulda woulda guys!

Brian
Guest
Brian
05/30/2014 10:25 am

I don’t know if you have ever read the story of beats by Dre, but it is pretty interesting…

http://gizmodo.com/5981823/beat-by-dre-the-inside-story-of-how-monster-lost-the-world

Feel free to delete that link you won’t hurt my feelings.

Dividend Ninja
Guest
05/30/2014 7:08 pm

Thanx for the mention! Love the Apple and Beats comic. 😉

Cheers
DN

PC
Guest
PC
05/31/2014 9:50 am

You sure do invest fast once you put your mind to it. MIC seems like a safe bet as long as the real estate in Canada stays at current pace. I’m invested pretty heavily in REITs now, so kinda in the same boat. Thanks for the shout out! Enjoy the sunny weather 🙂

Laura / No More Spending
Guest
05/31/2014 12:25 pm

Thanks for including my post Liquid!

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