The Libertarian ETFs

by Fred Fuld III

A few days ago, I published an article titled Democrat Politician Investors Still Outperforming Republican Politician Investors, which discussed the investment returns of Democratic politicians versus Republicans.

The post also included a few other conservative and liberal ETFs.

One of my readers posted a message asking about the returns for Libertarian oriented stocks.

If you have ever watched the TV show Last Man Standing, the character that Tim Allen plays, Mike Baxter, says “drugs and guns. I’m definitely a libertarian.”

So are there any libertarian ETFs?

Up until recently, there was a B.A.D. ETF (BAD), but unfortunately the fund liquidated a couple months ago. The B.A.D. stood for betting, alcohol, and drugs, which covers some of the areas that libertarians believe in.

Last year, while it was operating, the BAD ETF was up only 4.3% versus the S&P 500 which was up over 22%.

It is somewhat similar to the AdvisorShares Vice ETF (VICE), but VICE doesn’t even include drugs, and about broke even last year.

An alternative play is the Global X MSCI Argentina ETF (ARGT) due to the fact that Argentina now has a libertarian president. This fund was up 46.8% for last year, far outpacing the S&P 500.

Finally, there is the Freedom 100 Emerging Markets ETF (FRDM) which seeks to invest in countries with higher personal and economic freedom scores. The ETF was up 15.7% last year.

Also, if you are just looking for drugs, you have a lot of ETF varieties to choose from (in no particular order):

AdvisorShares Psychedelics ETF (PSIL)
Roundhill Cannabis ETF (WEED)
Cambria Cannabis ETF (TOKE)
Amplify Growth Opportunities ETF (CNBS)
AXS Cannabis ETF (THCX)
AdvisorShares Pure Cannabis ETF (YOLO)
Global X Cannabis ETF (POTX)
AdvisorShares Pure US Cannabis ETF (MSOS)
ETFMG U.S. Alternative Harvest ETF (MJUS)
Advisorshares Msos 2x Daily ETF (MSOX)

Maybe some of these suggestions can free up some profits for your portfolio.

Disclosure: Author didn’t own any of the above at the time the article was written.

This Day Today in Business & Investment History

by Fred Fuld III

Apple Computer (AAPL) was incorporated in 1977.

The first block of the blockchain of the decentralized payment system Bitcoin, called the Genesis block, is established by the creator of the system in 2009.

The Bell Telephone Company (T) was chartered in Massachusetts by Alexander Graham Bell and his associates in 1876.

The Bank of Italy changes its name to Bank of America National Trust and Savings Association (BAC), solidifying its national expansion beyond its Californian roots in 1928.

IBM Corporation (IBM) introduces the IBM 1401, a pioneering transistorized computer designed for business applications in 1960.

The New York Stock Exchange introduces the Decimalization Plan, shifting stock prices from fractions to whole dollar amounts in 1970.

Sony Corporation (SONY) releases the Sony Walkman TPS-L2, the first commercially successful portable cassette player in 1981.

The Playboy Mansion has Dropped in Value Just Like the Playboy Stock

by Fred Fuld III

Is the centerfold industry now passé ?

At one time, Playboy Magazine was the leading men’s magazine.

The publisher, Playboy Enterprises, was publicly traded for many years and had one of the most popular stock certificates, featuring a vignette of a nude Playboy Bunny, Willy Rey.

It also had a picture of the bunny logo, and Hugh Hefner’s signature printed on it.

Source: Author’s Collection

Hugh Hefner later took the company private.

After Hugh Hefner passed away, the company again began publicly trading through a reverse merger with a SPAC. It now trades as PLBY Group (PLBY).

Unfortunately, the stock hasn’t performed so well, trading at 2.68 at the beginning of 2023 and ending up at a dollar a share by the end of the year, a drop of over 62%.

But what about real estate? The Playboy Mansion?

The former Playboy Mansion, located at 10236 Charing Cross Rd, in Los Angeles, near Beverly Hills, was purchased on August 16, 2016 for $100,000,000. It is now only worth $34,166,291 according to Redfin, a drop of 65%.

This 14,217 square foot home has six bedrooms and eight bathrooms, and is located on five acres of land.

Which do you think has a better chance of recovering, the stock or the mansion?

Disclosure: Author didn’t own any of the above at the time of publication.

Democrat Politician Investors Still Outperforming Republican Politician Investors

by Fred Fuld III

Six months ago, I posted an article about the political ETFs, which track the investments of politicians based on the reporting of their transactions, which politicians are legally required to provide.

I mentioned in that article that year-to-date, Democrats were far outperforming the Republicans.

The Democrats, based on the return of the Unusual Whales Subversive Democratic Trading ETF (NANC), was up 9.4% with the Republicans, Unusual Whales Subversive Republican Trading ETF (KRUZ), trailing far behind at 1.1% for the first half of the year.

Now that the year is over, we can see that the Democratic politicians are still outperforming as investors.

Republicans were up only 9.05%, yet the return for Democrats had a return that was more than double that at 19.67%.

NANC blue line vs. KRUZ green line. Source: Yahoo!Finance

Then there is the Political Contribution Comparison. What it shows is the returns of companies that make political contributions to Democratic versus Republican candidates and political action committees.

This analysis shows even more dramatic returns.

The Democratic Large Cap Core ETF (DEMZ) invests in large cap companies that make political contributions to Democratic Party candidates and political action committees above a certain threshold. Total return for the year is 23.32%.

The Point Bridge America First ETF (MAGA) has a goal of investing in companies  that are highly supportive of Republican candidates. The return for 2023 was just 8.63%.

DEMZ blue line vs. MAGA green line. Source: Yahoo!Finance

Finally, there are the semi-political ETFs. These ETFs are somewhat different in that they leave the politicians out of the analysis, both as investors and political donees. These ETFs have very different returns.

The God Bless America ETF (YALL) is an ETF that screens out companies that support liberal political activism and social agendas. It was up an incredible 36.7% for the year.

The American Conservative Values ETF (ACVF) invests in stocks that meet its politically conservative criteria. The annual return was a positive 23.1%.

Two other “conservative” politically oriented ETFs closed up shop back in August, primarily due to “limited asset growth opportunities and the ongoing operational costs”. These include the 2ndVote Life Neutral Plus ETF which invested in stocks that meet its pro-life social criteria, and the 2ndVote Society Defended ETF which invested in stocks that meet its 2nd Amendment and border security social criteria.

One ETF that is considered by many to be a “liberal” ETF is the SPDR MSCI ACWI Climate Paris Aligned ETF (NZAC). It is for “investors seeking to implement net-zero strategies and address climate change in a holistic way”. The ETF is up 21%.

The year 2024 should be an interesting year, not just for politics and the election, but for the political ETFs.

Disclosure: Author didn’t own any of the above at the time the article was written.

Be Careful About Taking Tax Losses: Avoid the Wash Sales

by Fred Fuld III

A wash sale is a situation in tax law where you sell a security at a loss and then repurchase the same or a substantially identical security within a specific timeframe, typically 30 days before or after the initial sale. This repurchase triggers the wash-sale rule, preventing you from claiming the capital loss on your tax return for that year.

Here’s why wash sales are important to investors:

Reducing Tax Liability:

  • Investors often use tax-loss harvesting to offset capital gains with capital losses, thereby reducing their tax liability. A wash sale unintentionally negates this strategy, as the disallowed capital loss cannot be used to offset other gains.
  • This can lead to a higher tax bill than anticipated, especially for active investors who frequently buy and sell securities.

Investment Strategy:

  • The wash-sale rule encourages investors to make well-considered investment decisions based on long-term goals and market fundamentals, rather than short-term tax benefits.
  • It prevents artificial manipulation of tax returns and promotes responsible investing practices.

Understanding the Rules:

  • The wash-sale rule applies to most securities including stocks, bonds, mutual funds, ETFs,and options.
  • The disallowed capital loss is not lost forever, but instead, it is added to the cost basis of the repurchased security. This will reduce the capital gain (or increase the capital loss) when you eventually sell the security again.
  • There are some <strong>exceptions and complexities</strong> to the wash-sale rule, so it’s crucial for investors to consult with a financial advisor or tax professional to ensure they understand the full implications.

Overall, wash sales are an important aspect of tax law that investors need to be aware of to optimize their tax strategy and make informed investment decisions.

Here is an additional resource that you may find helpful:

PINES and QUIBS and PD’s Oh My! Minibonds Anyone?

by Fred Fuld III

Have you ever considered Minibonds(TM), which are also sometimes referred to as Microbonds, for an income portfolio or your retirement plan? These are bonds that are traded just like stocks on the New York Stock Exchange, American Stock Exchange, or NASDAQ for around $25 per share. They are almost like preferred stocks except that they pay interest instead of dividends and they usually have a specific maturity date. Sometimes they are referred to as PINES (Public Income Notes) or QUIBS (Quarterly Interest Bonds) or QUICS (Quarterly Income Capital Securities) or QUIDS (Quarterly Income Debt Securities). There are even a few that are issued as Perpetual Debt, which means that there is no maturity date.

The advantages of Minibonds to the issuers are that the interest is deductible to the corporation (unlike dividends which are not deductible).

The advantages to the investor are first, that the bonds are ‘safer’ than preferred stocks (in other words, if the corporation goes out of business, the bonds are generally paid off first before the preferred or common stock).

Second, the Minibonds (with the exception of the perpetual debt bonds) have some limited protection against inflation versus preferred stocks in that if interest rates go up after purchasing them, their value will drop, however the par value (usually $25) will be paid back at maturity. Whereas, preferreds have no maturity.

The third benefit is the small denomination, especially when looking at a $2,000 IRA investment.

A fourth benefit is that since they are traded like stocks, there is more liquidity than buying or selling a $5,000 bond.

However, these are still somewhat illiquid investments, with most have a very low daily volume and wide bid and asked spreads.

Some of the companies that issue these are lesser known, but some are major companies such as AT&T and Prudential.

Here are a few examples that are making distributions in January:

• Babcock & Wilcox Enterprises, Inc. 8.125% Senior Notes due 2026 (BWSN)
• Gladstone Investment Corporation 8.00% Notes due 2028 (GAINL)
• Hercules Capital, Inc. 6.25% Notes due 2033 (HCXY)
• Southern Company Series 2020C 4.20% Junior Subordinated Notes due October 15, 2060 (SOJE)
• Tellurian Inc. 8.25% Senior Notes due 2028 (TELZ)
• AT&T Inc. 5.350% Global Notes due 2066 (TBB)
• AT&T Inc. 5.625% Global Notes due 2067 (TBC)
• Southern Company Series 2020A 4.95% Junior Subordinated Notes due January 30, 2080 (SOJD)
• The Carlyle Group Inc. 4.625% Subordinated Notes due 2061 (CGABL)
• Prudential Financial, Inc. 5.625% Junior Subordinated Notes due 2058 (PRS)

Disclosure: Author didn’t own any of the above at the time the article was written.

Does a 20% Yield Mean Smooth Sailing or Choppy Seas Ahead?

by Fred Fuld III

The shipping stock sector [meaning companies that use ships for shipping, not FedEx (FDX) or UPS (UPS) type shipping] is one which is noted for its high yields. There are over a dozen that have yields of 5% or more, with one, Frontline Ltd. (FRO), forward yielding in excess of 13%. This Bermuda based company owns and operates oil tankers for transporting crude oil, coal and iron ore. 

Although the company has usually been paying dividends on a regular basis [usually March, June, September, and December) along with special dividends, the amount of the dividend has fluctuated dramatically, making it very difficult to determine what the yield really is. They stopped paying dividends during the COVID year of 2021, but started cup again in 2022.

Nordic American Tanker Shipping Ltd. (NAT) has paid quarterly dividends since 2001, but the dividend payments constantly change. It has a forward yield of 5.57%.

Remember, that just because a stock is paying a fairly consistent high yield, doesn’t mean that they will continue to do so and doesn’t mean that they won’t eliminate their dividend altogether. The price of the stock can drop far more than the dividends earned. In addition, many of these stocks have wide bid and asked spreads and low daily volumes. Do your research and assume worst case before setting sail on shipping stocks for their high yields. 

The following is a list of shipping stocks with high forward yields.

Frontline Ltd. (FRO) 13%
Nordic American Tanker Shipping Ltd. (NAT) 5.57%
DHT Holdings (DHT) 11%
Diana Shipping (DSX) 20%
SFL Corp. (SFL) 8.8%
Star Bulk Carriers Corp. (SBLK) 7.5%

Disclosure: Author did not own any of the above at the time the article was written.

Stocks Going Ex Dividend in January 2024

The following is a short list of some of the many stocks going ex-dividend during the next month, which can be helpful for traders and investors interested in the stock trading technique known as “Buying Dividends” or “Dividend Capture.” This strategy involves purchasing stocks before the ex dividend date and selling them shortly after the ex-date at a similar price, while still being eligible to receive the dividend payment.

Although this technique generally proves effective in bull markets and flat or choppy markets, it is advisable to exercise caution and consider avoiding this strategy during bear markets. To qualify for the dividend, it is necessary to buy the stock before the ex-dividend date and refrain from selling it until on or after the ex-date.

However, it is important to note that the actual dividend may not be paid for several weeks, as the payment date can be delayed by up to two months after the ex-date.

For investors seeking a comprehensive list of stocks going ex-dividend in the near future, WallStreetNewsNetwork.com has compiled a downloadable list containing numerous dividend-paying companies. Here are a few examples showcasing the stock symbol, ex-dividend date, periodic dividend amount, and annual yield.

Franklin Resources, Inc. (BEN)1/2/20240.314.17%
Campbell Soup Company (CPB)1/3/20240.373.39%
Cisco Systems, Inc. (CSCO)1/3/20240.393.11%
Dollar General Corporation (DG)1/8/20240.591.82%
General Mills, Inc. (GIS)1/9/20240.593.54%
Oracle Corporation (ORCL)1/10/20240.401.51%
Cracker Barrel Old Country Store, Inc (CBRL)1/18/20241.306.45%
Caterpillar, Inc. (CAT)1/19/20241.301.77%
Dell Technologies Inc. Class C (DELL)1/22/20240.372.01%
Clorox Company (CLX)1/23/20241.203.37%
Krispy Kreme, Inc. (DNUT)1/23/20240.0350.95%
Scholastic Corporation (SCHL)1/30/20240.202.15%

To access the entire list of over 100 ex-dividend stocks, subscribers will receive an email in the next couple days with the full list. If you are not already a subscriber, you can sign up using the provided signup box below. Don’t miss out on this valuable information, and the best part is that it’s free!

Dividend Definitions

To better understand the dividend-related terms, let’s define them:

Declaration date: This refers to the day when a company announces its intention to distribute a dividend in the future.
Ex-dividend date: On this day, if you purchase the stock, you would not be eligible to receive the upcoming dividend. It is also the first day on which a shareholder can sell their shares and still receive the dividend.
Record date: This marks the day when you must be recorded on the company’s books as a shareholder to qualify for the dividend. Typically, the ex-dividend date is set two business days prior to the record date.
Payment date: This is the day on which the dividend payment is actually made to the eligible shareholders. It’s important to note that the payment date can be as long as two months after the ex-date.

Before implementing the “Buying Dividends” technique, it is crucial to reconfirm the ex-dividend date with the respective company to ensure accuracy and avoid any unexpected changes.

In conclusion, being aware of the stocks going ex-dividend can be advantageous for traders and investors employing the “Buying Dividends” strategy. WallStreetNewsNetwork.com provides a convenient resource to access a comprehensive list of such stocks, allowing individuals to plan their investment decisions effectively. Remember to stay informed and consider market conditions before employing any investment strategy.

Disclosure: Author did not own any of the above at the time the article was written.

More Tax Selling Bounce Stocks

by Fred Fuld III

Recently, I posted an article about turning tax selling stocks into tax selling bounce stocks, which had four stocks listed.

Remember, at year end, traders and investors dump their losers in order to establish a loss for tax purposes. This activity greatly depresses these stocks more than normal, creating an opportunity for traders to buy these stocks and sell them for a quick profit in early january after they hopefully recover.

Here are several more tax selling stocks worth considering.

This is a list of stocks that are down over 50% during the last six months, have a forward P/E of less than 50, and have market caps in excess of $300 million.

CompanyTicker Market Cap
Agiliti IncAGTI 1.04B
CommScope Holding Co COMM 393.37M
Driven Brands Holdings IncDRVN 2.11B
Green Dot Corp.GDOT 482.02M
Hawaiian Electric IndustriesHE 1.47B
ICU Medical, Inc.ICUI 2.07B
Methode Electronics, Inc.MEI 782.50M
NextEra Energy Partners LPNEP 2.47B
Omnicell, Inc.OMCL 1.57B
Piedmont Lithium IncPLL 472.95M
Shyft Group IncSHYF 395.71M
Beauty Health CompanySKIN 403.00M
Petco Health and Wellness Co WOOF 910.42M
Xponential Fitness IncXPOF 387.05M
Yext IncYEXT 688.75M

Maybe you can profit from another trader’s losses. Remember that these are low cap stocks and are very speculative. Some might never recover in January.

Disclosure: Author didn’t own any of the above at the time the article was written.