Hello Suckers …

As I feared on Friday last week that one of my notes may default, the borrower paid today. So all my notes are current. It however doesn’t mean anything, since the borrower may default next time, but at least the risk is lower now.
Today I also purchased a new loan note completely funded by repaid principals and interest. That means that every month I deposit 100 dollars to my Lending Club account, purchase 4 notes and add one new note from reinvested proceedings. So now I am buying 5 notes monthly instead of four notes as at the beginning.

I am very satisfied with this snowball so far. However I still am aware of the investing risk I am undertaking and try not to be too greedy (as I was at the beginning by purchasing large loans with high interest) and keep investments on the very minimum amount. I would rather buy thousands of loans than a few.

I am presenting you with my weekly results of my effort in building my money making machine. See my investments and their results in my three accounts: Trading account, which is my aggressive portfolio buying individual stocks, my ROTH IRA retirement account which is my dividend investing portfolio and an account with Lending Club - my other money making opportunity.
Read the rest of this entry »

Some companies which are major components of S&P 500 reported better than expected earnings. That moved the stock market to a rally attempt. Will this be a sufficient catalyst for the market to sustain the growth? We will see.

Caterpillar Inc., 3M Co., UPS Inc. and AT&T Inc. all topped earnings forecasts and raised their outlooks for future profit. Only Travelers reported a dip in earnings, but that came as bad weather led to more claims payments.

The Dow Jones industrial average rose 119.88, or 1.2 percent, to 10,241.85. The Standard & Poor’s 500 index rose 15.00, or 1.4 percent, to 1,084.59, while the Nasdaq composite index rose 35.56, or 1.6 percent, to 2,222.89.

I would still proceed with caution and postpone purchasing individual stocks or ETFs. I would be buying NTF (No Transaction Fee) mutual funds in smaller portions rather than one big purchase and take advantage of possible further decline in price if the market slips back into correction.

Trading Account:

New stock picks this week:

Stocks bought or added to portfolio this week:
none

Stocks dropped from portfolio this week:
none

Stocks watched this week:
none

Existing & new holdings:

Symbol	Qty	Last	Gain($)	Gain(%)	Stop	ATR	Risk to stop (%)
V	20	71.45	-93.19	-6.12	67.28	2.3500	-11.60

---

Contribution this week: $0

Current capital exposure: -11.80%     

New positions available to open: 0     

Starting account value = $1,614.77

Account value = $1,496.17  (without margin)

Buying power = $67.17

Portfolio Gain/Loss this week = -7.34%

Portfolio Gain/Loss for JULY 2010 = -2.26%

Portfolio Gain/Loss for 2010 = -48.97%

Annual Return (CAGR): -37.48%

Lending Club:

Debt notes

Available cash:	$20.43
In Funding Notes:	$0.00
Outstanding Principal:	$588.82
Accrued Interest:	$3.80
Account Total:	$613.05
Net Annualized Return:	11.82%
Contributions this week:	$0.00
Weighted Average Rate:	12.37%
Expected Monthly Payments:	$19.64
Payments to Date:	$45.96
Principal Payments:	$36.18
Interest Payments:	$9.78
Late Fees Received:	$0.00
Notes Invested In:	25
Average Note Amount:	$25.00

Net Annualized Rate to date:

Higher than 58% and lower than 42% of all investors.

---

ROTH IRA Account:

New stock picks this week:
none

Existing & new holdings:

NTF Mutual Funds

Symbol	Qty	Last	Gain($)	Gain(%)	Div. Y(%)	Port. (%)
AIGYX	83.472	12.82	70.12	7.01	5.34	24
ATIPX	106.395	9.12	30.15	3.21	6.94	22
GABUX	77.118	6.04	-5.01	-1.06	4.10	11
HISIX	26.918	6.55	-23.69	-11.84	4.73	4
HSTIX	37.325	7.93	1.12	0.38	3.36	7
SICNX	69.645	6.77	-28.50	-5.70	4.83	11
SWDSX	62.474	11.13	-8.83	-1.25	3.70	16
SWLSX	29.814	9.34	9.54	3.55	2.16	6

Individual ETFs

Symbol	Qty	Last	Gain($)	Gain(%)	Div. Y(%)	Portfolio (%)
IGD	29.0	10.46	-53.36	-14.96	11.07	100

Individual stocks

Symbol	Qty	Last	Gain($)	Gain(%)	Div. Y(%)	Portfolio (%)
JNJ	23.0	59.44	13.35	0.99	3.65	100

Account target and current allocation

Individual stocks	$1,367.12	42%	22%
NTF Mutual funds	$4,423.82	38%	72%
ETFs	$303.34	20%	5%

---

Contribution this week: $50.00

Starting account value = $6,194.42

Account value = $6,147.18 

Dividends received in JULY 2010 = $11.20

Dividends received in 2010 = $211.58

Portfolio dividends yield 2010 = 3.44%

Portfolio dividends yield lifetime = 4.81%

Dividends received lifetime = $295.70

Portfolio Gain/Loss this week = -0.76%

Portfolio Gain/Loss for JULY 2010 = 2.59%

Portfolio Gain/Loss for 2010 = -8.12%

Annual Return (CAGR): -5.37%

Portfolio Return since inception: -17.76%

---

Are you interested in Reverse Scale Strategy and see how it works when implemented to even a small account?

Stay updated with Hello Suckers

Trading ended with a huge loss today:

NEW YORK (Reuters) - Downbeat consumer sentiment data and weak revenues from GE and two big banks slammed stocks on Friday, driving major indexes down more than 2.5 percent.

The Dow Jones industrial average (DJI:^DJI) slid 261.41 points, or 2.52 percent, to end unofficially at 10,097.90. The Standard & Poor’s 500 Index (^SPX) dropped 31.60 points, or 2.88 percent, to finish unofficially at 1,064.88. The Nasdaq Composite Index (Nasdaq:^IXIC) fell 70.03 points, or 3.11 percent, to close unofficially at 2,179.05.

The three major U.S. stock indexes erased their weekly gains; each index closed down roughly 1 percent for the week.

(Reporting by Rodrigo Campos; Editing by Jan Paschal)

That it so big one day loss that it changes the market status into “Correction”. No new buys of stocks this time (if buying I will be buying mutual funds in small portions as the price will be dropping). Next week we may see more action as more reports will come up. As for my portfolio here is a calendar of upcoming reports:

Jul 28, 2010    Q3 2010  Visa Inc Earnings Release,  consensus estimate:  $0.928, Conference Call @ 5:00pm ET

Jul 20, 2010    Q2 2010  Johnson & Johnson Earnings Release,  consensus estimate:  $1.21