Stocks again just meandered around the flat line last week, with a modest dip on Tuesday offset by gains on Monday, Wednesday, and Thursday, after which Friday registered a minor retreat. The summer doldrums are in full swing, with the headlines dominated by the political news, plus fire and floods in California and Louisiana, respectively.

Note that this posting will look ahead two weeks, as I will be away next weekend, and my next posting will not occur until the first week-end in September.

Stocks on my lists going ex-dividend the next two weeks are as follows, with the ex-dividend date and current annualized yield shown:

Kraft-Heinz (KHC), 8/24/2016, yield 2.67%.

NextEra Energy (NEE), 8/26/2016, yield 2.74%.

American Capital Agency (AGNC), 8/29/2016, yield 10.87%. AGNC pays monthly.

Barrick Gold (ABX), 8/29/2016, yield 0.38%.

STAG Industrial (STAG), 8/29/2016, yield 5.70%. STAG pays monthly.

Prospect Capital (PSEC), 8/29/2016, yield 11.82%. PSEC pays monthly.

Kellogg (K), 8/30/2016, yield 2.51%.

Realty Income (O), 8/30/2016, yield 3.57%. O pays monthly.

Safety Insurance Group (SAFT), 8/30/2016, yield 4.22%.

McDonalds (MCD), 8/30/2016, yield 3.04%.

Pepsico (PEP), 8/31/2016, yield 2.78%.

As for earnings, last week saw two firms on my lists report, Sysco (SYY) and Cisco Systems (CSCO). Also, I had listed Pan American Silver (PAAS) as reporting on 8/15/2016, but the company actually reported the previous week, on 8/11/2016. CSCO also announced significant layoffs to occur, even as the firm reported strong results. For details on earnings, see the firm’s press releases, articles on the mainstream financial media, brokerage compilations, or my preferred resource, Seeking Alpha. In many cases a transcript of the earnings teleconference with analysts is available on Seeking Alpha.

As for the next two weeks, three firms on my lists are scheduled to report; JM Smucker (SJM) on 8/23/2016, Prospect Capital (PSEC) on 8/29/2016, and Greif (GEF) on 8/31/2016.

Upgrades / downgrades from last week on my stocks were as follows:

Diebold (DBD) was initiated at Neutral at JP Morgan.

Energy Transfer Equity LP (ETE) was resumed at OverWeight at Morgan Stanley.

Energy Transfer Partners LP (ETP) was resumed at Equal Weight at Morgan Stanley.

Mid-America Apartment Communities (MAA) was downgraded to Hold at Jeffries. MAA made news recently in announcing that it would acquire another apartment REIT, Post Properties (PPS), to create the nation’s largest multi-family REIT.

McDonalds (MCD) was downgraded from Buy to Hold at Argus Research.

Procter & Gamble (PG) was upgraded from Neutral to Buy at B. Riley.

Noble PLC (NE) was upgraded from UnderPerform to Neutral at BofA/Merrill.

Washington Real Estate (WRE) was downgraded from OutPerform to Neutral at Robert W. Baird.

Enerplus (ERF) was intiated at Buy at Canaccord Genuity.

Kinder Morgan (KMI) was upgraded from Equal Weight to OverWeight at Morgan Stanley.  

Enterprise Products Partners LP (EPD) was downgraded from OverWeight to Equal Weight at Morgan Stanley.  

Magellan Midstream Partners LP (MMP) was downgraded from Equal Weight to UnderWeight at Morgan Stanley.  

Mid-America Apartment Communities (MAA) was upgraded from Neutral to Buy at SunTrust.

Emerson Electric (EMR) was downgraded from OutPerform to Neutral at Credit Suisse, and from Neutral to UnderPerform at Buckingham Research.

There seems to be a rough consensus that stocks are fully valued, especially the solid blue-chip dividend payers and REITS, while the economic and earnings outlook is decidedly less optimistic. Energy stocks (excluding oil & gas producers and deep water drillers) have recovered off their lows, but are also well off their highs, and the outlook for a near-term end to the supply overhang is not promising. Geopolitical concerns have generated a modest resurgence in the precious metals sector, while the general nervousness regarding the economy and governmental debt problems has caused BDCs to be priced as if collapse is imminent. I have sold out of a few positions where the price was just too high to justify holding, mostly REITs, but mostly I am just holding on to my dividend payers, while conserving and building up cash, awaiting better entry points to add to existing positions or initiate new positions. Now is a time to be cautious, it seems to me, but not a time to sell everything and head for the hills.

JT

Stocks mostly just meandered around the flat line last week, with the exception of Thursday, which experienced a modest rally. The major averages remain near their all-time highs, but seem unable to push upwards much further. The economic readings are unexciting, as growth is anemic to non-existent, with housing especially slowing down. With earnings from Q2 mostly in, the results have likewise been unexciting. It seems everything is on hold until after the election.

Stocks on my lists going ex-dividend this week are as follows, with the ex-dividend date and current annualized yield shown:

MicroSoft (MSFT), 8/16/2016, yield 2.47%.

Chevron (CVX), 8/17/2016, yield 4.22%.

3M Co (MMM), 8/16/2017, yield 2.45%.  

Main Street Capital (MAIN), 8/17/2016, yield 6.47%. MAIN pays monthly.

Gladstone Investment (GAIN), 8/18/2016, yield 8.67%. GAIN also pays monthly.

Johnson & Johnson (JNJ), 8/19/2016, yield 2.59%.

Pan American Silver (PAAS), 8/19/2016, yield 0.25%.

The short list above perfectly describes the choices available to dividend investors today. Go with solid blue chips, settle for a miserly yield under 3%; go with a major oil company, get a bit more yield, but be aware even the strongest of the strong in this sector may have to reduce payouts if the oil glut continues; go with a BDC, get a great yield, but be aware that if a major economic downturn occurs, dividend cuts are almost certain, and some of these firms may not make it; or go with a precious metals miner, with no meaningful yield, but capital gains possible, but again, per last week’s update, be aware that the easy gains have already occurred, and gains from this point may or may not materialize. Welcome to my world!  

One stock on my lists that went ex-dividend last week was missed. United Parcel Service (UPS) went ex-dividend 8/12/2016, yielding 2.83%.

Earnings season has mostly concluded. The five stocks on my lists scheduled to report last week all did so as scheduled. See last week’s post for the firm names and earnings dates. For details on earnings, see the firm’s press releases, articles on the mainstream financial media, brokerage compilations, or my preferred resource, Seeking Alpha. In many cases a transcript of the earnings teleconference with analysts is available on Seeking Alpha.

As for this week, only three firms I follow are scheduled to report: Pan American Silver (PAAS) on 8/15/2016, Sysco (SYY) also on 8/15/2016, and Cisco Systems (CSCO), on 8/17/2016.

Upgrades / downgrades from last week on my stocks were as follows:

Merck (MRK) was upgraded from Neutral to OutPerform at Credit Suisse.

Reynolds American (RAI) was upgraded from UnderPerform to OutPerform at CLSA.

Emerson Electric (EMR) was initiated at Neutral at JP Morgan.

Barrick Gold (ABX) was initiated at Equal Weight at Morgan Stanley.

Chevron (CVX) was upgraded to OverWeight at Piper Jaffray.

Newmont Mining (NEM) was initiated at Equal Weight at Morgan Stanley.

Waste Management (WM) was downgraded from OverWeight to Equal Weight at Barclays, and upgraded to OverWeight at KeyBanc.

General Dynamics (GD) was upgraded from Market Perform to OutPerform at Bernstein.

Norfolk Southern (NSC) was initiated at Neutral at Atlantic Equities.

Nestle S A (NSRGY) was upgraded from Hold to Buy at Societe Generale.

ONEOK Partners LP (OKS) was upgraded from UnderPerform to Neutral at Robert W Baird.

NuStar Energy LP (NS) was upgraded from Neutral to Buy at Citigroup.

I’m happy to announce that my (roughly) annual rework of my stock lists has been completed. For definitions of my “tiers”, and more regarding these lists, see the “Stocks” selection at my website. Changes by list are as follows:

Tier1

Intel (INTC) was moved to Tier2. It seems to me that INTC has lost its mojo, and has opted to wring every last penny from the once-solid “Wintel” monopoly, based on the 86 series chip. INTC is now a cash-generating dividend stock, but no longer a tech world-beater.  

Northrop Grumman (NOC) and Walgreen Boots Alliance (WBA) were dropped because of yield being below 2% for an extended period.

Westar Energy (WR) was dropped, the utility is being acquired by Great Plains Energy (GXP). Anyone holding WR has a windfall. I recommend sell it and move on if you still own it. In fact, you should have sold in June when this deal was first announced.

Tier2

Intel (INTC) joins Tier2, as noted above.

Medtronic (MDT) was earlier moved to Tier2 because of the Affordable Care Act (ACA) medical device tax introducing uncertainty. With the yield well below 2% for an extended period, I can see no reason to continue to track MDT, so I am dropping it entirely.

Molson Coors (TAP) has had a low yield, under 2%, for far too long. Time to drop this firm as well.

NuStar Energy LP (NS) has moved up from Tier3 to Tier2. See my article on Seeking Alpha for the story on NS. This was a speculation that worked. NS has handled the oil price drop reasonably well, and the distribution was never cut, although it didn’t look good for a while there.

Tier3

NuStar Energy (NS) moved to Tier2, as noted above.

Enerplus (ERF) and Calumet Specialty Products Partners LP (CLMT) were both moved to Tier4, as the oil glut continues. ERF, the one-time Canadian Trust high-yielder, is a case study of how the oil glut has hurt the Canadian oil producers. I believe ERF will survive, but it looks like it will be a long time before ERF returns to anything like its former glory days. CLMT is drowning in red ink, and the dividend is gone, so time to put it on the Tier4 list.

Legacy Reserves LP (LGCY) and Memorial Production Partners LP (MEMP) are both moved to Tier4, to join their bankrupt fellow travelers Linn Energy LLC (LINEQ) and BreitBurn Energy Partners LP (BBEPQ). While LGCY and MEMP do not appear to be going bankrupt right away, they are certainly priced like it, and there is little prospect of recovery of payouts to levels enjoyed in prior years anytime soon. Of course, if they survive and oil prices recover in a couple of years, buying at today’s prices will turn out to have been a great speculation.

It might seem strange that my offshore drilling contractor speculations, Transocean LTD (RIG), Noble PLC (NE), and Ensco PLC (ESV) are still on Tier3, while Seadrill (SDRL) and all producers have ended up on Tier4. The answer is, they are close to demotion, but I haven’t given up just yet. These firms have (or at least had) respectable balance sheets and may yet be able to ride out the storm of there is a recovery of any kind in 2017. It certainly looks dim at the moment, but the eventual cure for low oil prices has always been low oil prices, in that demand will ramp up eventually in response. Pickup truck and SUV sales are hitting new records, and vehicle growth in China continues apace. The fat lady hasn’t sung yet for these three firms, in my opinion.

Tier4

As per above, new additions to Tier4 are Enerplus (ERF), Calumet Specialty Products Partners LP (CLMT), Legacy Reserves LP (LGCY), and Memorial Production Partners LP (MEMP).

My energy production MLP speculations, Linn Energy LLC (LINEQ), BreitBurn Energy Partners LP (BBEPQ), Legacy Reserves LP (LGCY), and Memorial Production Partners LP (MEMP) have all now gone to Tier4. These names as a group seemed like a worthy bet at the time, acquiring positions at single-digit price levels, then bracing for the storm, and expecting all or most to survive, with the gains on the survivors making up for any that did not make it. It could still happen. I am not selling my LGCY and MEMP, I will hold to the bitter end. Selling now at the low single digits would only be slightly “less bad” in terms of a result than waiting it out and ending up with a total loss. But based on the intractability of the oil supply glut, I couldn’t recommend anyone buying in now, even at the current levels, since a recovery occurring soon enough to matter is far from assured.

Energy has been a great sector for me. My entire professional career was spent with firms in it, and my investment results had been outstanding until this recent glut. Actually, I have continued to do well with the oil majors and midstream MLPs, it is just the offshore drillers and energy production MLPs, both sectors entered as speculations, that have gone south in a big way. There is a lesson here as well, which is diversification by sector. My rules state no more than 20% of the portfolio is to be in a given sector. I actually have adhered to that rule, and I’m glad I did. As I have learned over and over in investing, anything can happen, and nothing is guaranteed.

JT

Stocks mostly just marked time last week until Friday, when the regime’s conjured, imaginary employment numbers surprised to the upside, generating a fairly decent one-day rally. Earnings season continued unabated, with most firms managing to meet investor’s lowered expectations. With the political conventions over and earnings season winding down, August should be a slow month for the market, barring any major geopolitical event shaking things up.

A number of my stocks will be going ex-dividend this week. Speaking of “my stocks”, I must acknowledge that my lists are in need of some pruning. Some stocks need to be dropped, as no longer attractive because of either too low of a yield, or diminished prospects, some need to move to different tiers per updated thinking on relative risks, some additional duds need to be moved to Tier4, and some promising new candidates need to be added to the recommended lists. I will get around to this, I swear, in the next couple of months. Until then, regard the lists as out of date, although still about 90% in line with my current thinking. Now, the upcoming week ex-dividend announcements are as follows, listed by date, with annualized yield as of Friday’s close indicated:

8/8/2016

AmeriGas Partners LP (APU), 7.68%.

American Electric Power (AEP), 3.26%.

8/9/2016

Boardwalk Pipeline Partners LP (BWP), 2.34%.

Entergy (ETR), 4.25%.

8/10/2016

Wal-Mart Stores (WMT), 2.73%.

Spectra Energy (SE), 4.40%.

Exxon Mobil (XOM), 3.43%.

Emerson Electric (EMR), 3.58%.

Duke Energy (DUK), 4.01%.

Royal Dutch Shell (RDS.B), 7.12%.

GlaxoSmithKline (GSK), 5.03%.

Smucker JM (SJM), 1.92%.

Statoil (STO), 4.31%.

8/11/2016

Hercules Capital (HTGC), 9.25%.

Buckeye Partners LP (BPL), 6.77%.

Spectra Partners LP (SEP), 5.53%.

Fifth Street Financial (FSC), 13.14%. FSC is a monthly payer.

Southern Co (SO), 4.21%.

Exelon (EXC), 3.50%.

My “yield required” guidelines remain: 3% for a solid blue-chip, 4% for utilities, 5% for REITs, 4% for AT&T (T) or Verizon (VZ), 5% for all other telecoms, 6% for quality MLPs, 7% for less solid MLPs, 7% for BDCs, and 8% for Mortgage REITs. The effects of the Fed’s ZIRP policy, the energy collapse, the “nowhere else to go” valuations, and the “imminent collapse” valuations have skewed today’s yields somewhat in both directions from these guidelines. I also allow a small portion of my portfolio to be allocated to stocks with a minimal yield but high potential for gains, such as precious metals miners in the last two years. If a stock is in one of these groups and the yield is well under the minimum, it is “overloved”, and has been bid up high by the market. Realty Income (O) is a good example. Conversely, if the yield is well in excess of the requirement, it is definitely NOT “overloved”, and the market views the stock as high risk. Many BDCs are in this category today, such as Fifth Street Financial (FSC). The market view may or may not be right. If the market is wrong, FSC is a wonderful bargain right now. My take is, based on the odds, FSC is a worthy speculation, just don’t bet the ranch on it.

Moving on to earnings, last week 52 of my stocks were scheduled to report, and most did so as scheduled, with results about what was expected in most cases. See last week’s post for the firm names and earnings dates. For details on earnings, see the firm’s press releases, articles on the mainstream financial media, brokerage compilations, or my preferred resource, Seeking Alpha. In many cases a transcript of the earnings teleconference with analysts is available on Seeking Alpha. A few deviations from last week’s expected reporting were as follows:

Sanofi (SNY) and Exxon Mobil (XOM) were both shown as reporting 8/1/2016, but actually both had already reported on 7/29/2016. Total S A (TOT) was shown as reporting on 8/1/2016, but had actually already reported on 7/28/2016. Solar Capital (SLRC) was shown as reporting on 8/2/2016, but actually reported 8/1/2016. TICC Capital was shown as reporting on 8/2/2016, but did not report until 8/4/2016. So, to recap, we have the reports from 51 of the 52 scheduled, with one deferral. Exelon (EXC), expected to report on 8/5/2016, is now scheduled to do so on 8/9/2016.

In addition to EXC, other reports expected this week are:

Main Street Capital (MAIN) and PennantPark (PNNT) on 8/8/2016.

HCP Inc. (HCP) and Fifth Street Financial (FSC) on 8/9/2016.

Thus, we are past the 2^nd Quarter reporting zenith for the stocks I track.

It was a slow week last week for upgrades / downgrades on my stocks. Picks and pans of note were as follows:

Royal Dutch Shell (RDS.B) was downgraded from OutPerform to Sector Perform at RBC Capital Markets.

Ventas (VTR) was downgraded from Neutral to UnderPerform at Hilliard Lyons.

Spectra Energy (SE) and fellow traveler Spectra Energy Partners LP (SEP) were both initiated at OverWeight at Simmons.

Royal Dutch Shell (RDS.B) was downgraded from Buy to Hold at Liberum.

Barrick Gold (ABX) was initiated at Buy at Citigroup. ABX is a new Tier3 stock with potential upside. While it pays a dividend, like all miners in recent years, the yield is minimal.

Newmont Mining (NEM), another miner, was also initiated at Buy at Citigroup.

Health Care REIT (HCN), I mean of course Welltower, the stupid new name for the firm, was downgraded from Neutral to UnderPerform at Hilliard Lyons.

Crestwood Equity Partners LP (CEQP) was downgraded from Buy to Hold at Stifel.

Plains All American Pipeline LP (PAA) was upgraded from Sell to Neutral at Goldman.

Emerson Electric (EMR) was downgraded from UnderPerform to Sell at CLSA. This is apparently a “the sky is falling” downgrade.

NuStar Energy LP (NS) was downgraded from Neutral to UnderPerform at Credit Suisse. 

Williams Partners (WPZ) was downgraded from OutPerform to Market Perform at Raymond James.

Energy Transfer Partners LP (ETP) was upgraded from Hold to Buy at Stifel.

Transocean (RIG) was upgraded from Negative to Neutral at Susquehanna.

Consolidated Communications Holdings (CNSL) was downgraded from Market Perform to UnderPerform at Raymond James.

Windstream Holdings (WIN) was also downgraded from Market Perform to UnderPerform at Raymond James.

I suppose in retrospect, it wasn’t that slow of a week for upgrades / downgrades. Some were a bit of a surprise. As I’ve noted in the past, I only list these as entertainment, not as actionable advice. By the time downgrades occur, it is usually too late to sell, and by the time upgrades occur, it is usually too late to buy. Further, sometimes the recommendations seem to be the opposite of what one would expect. Also, note that the recommendations are almost totally based on expected near-term direction of the stock price, not on the long term value as an investment, with dividends included.

Some of my editorializing in the preceding prose has “stolen my thunder” as far as my wrap-up comments are concerned. I will, however, reiterate my current view on precious metals miners, which is that the recent rise has proven the original thesis. That is, these names were extremely underpriced in late 2014 and 2015, and purchases at those levels would be rewarded. As noted last week, I sold NEM too soon, and I bought ABX right at $20 recently, far too late. The easy money here may have already been made, with another big move up like we have seen since the beginning of the year unlikely, although not impossible. At this point, gold and silver stocks (or ETFs GLD and SLV) are worth holding if you own them, but I would be cautious about adding more at current prices. Your approach to this trade has to be driven by your world view at this point – if you believe another crash like 2008 or worse is coming soon, by all means acquire more. If not, you probably should hold off on acquiring more, and watch closely for the current rise starting to end, as a trigger to take profits. My view is the world won’t be ending anytime soon, but it well may seem like it in the next few months, with a stock market decline to match. I’m in my highest cash position since the rebound starting in 2009, with the expectation that far more attractive acquisition prices will be available for top quality stocks in the next 18 months. That being said, I know it is definitely possible that 18 months from now, I may look back and see today’s prices as the prices at which I should have bought. Remember, in stocks as in life, anything can happen, and things seldom turn out just like what was expected.

JT

Stocks last week basically just gyrated around the flat line, as far as the major averages were concerned, with the exception of the venerable Dow Jones Industrial Index, which lost a tiny bit each day. Even though the media trumpeted that the average was “down five days in a row”, being down 20 points on an 18400 stock average is the same as being flat. The Democrat Convention dominated the general news flow, while earnings dominated the financial news flow, with the latter not turning out too great, but no worse than expected.  

A number of my stocks will be going ex-dividend this week, as indicated following, by date, with yield as of Friday’s close indicated:

8/03/2016

Memorial Production Partners LP (MEMP), 7.90%. While the yield % is impressive, I have to spoil things by pointing out that the quarterly dividend is three cents per unit, and the unit price is $1.52. Oil & gas production partnerships are either bankrupt already or hanging by a thread, as the oil downturn continues.

Martin Midstream Partners LP (MMLP), 14.50%. The dividend is a respectable $.81 per unit, as midstream, while hurting, is not devastated like pure producers.

Crestwood Equity Partners LP (CEQP), 10.80%.

Intel (INTC), 2.99%.

Unilever PLC (UL), 2.99%.

Eaton PLC (ETN), 3.54%.

Pfizer (PFE), 3.26%.

8/04/2016

Energy Transfer Partners LP (ETP), 10.76%.

Energy Transfer Equity LP (ETE), 6.93%.

ONEOK Partners LP (OKS), 7.84%.

HCP Inc. (HCP), 5.95%.

Norfolk Southern (NSC), 2.62%.

8/05/2016

Welltower (HCN), 4.45%.

Archrock Partners LP (APLP), 8.68%.

8/08/2016

AmeriGas Partners LP (APU), 7.72%.

American Electric Power (AEP), 3.25%.

Moving on to earnings, last week 40 of my stocks were scheduled to report, and all did so as scheduled, with results about what was expected in most cases. See last week’s post for the firm names and earnings dates. For details on earnings, see the firm’s press releases, articles on the mainstream financial media, brokerage compilations, or my preferred resource, Seeking Alpha. In many cases a transcript of the earnings teleconference with analysts is available on Seeking Alpha.

As for the week ahead, another 51 firms I follow are scheduled to report, as we enter the peak time for earnings reports. The stocks are listed by reporting date, as follows:

8/01/2016

Boardwalk Pipeline Partners LP (BWP), Alliant Energy (LNT), AmeriGas Partners LP (APU), Frontier Communications (FTR), Sanofi (SNY), Total S A (TOT), Williams Partners (WPZ), Gladstone Investment (GAIN).

8/02/2016

Crestwood Equity Partners LP (CEQP), Eaton (ETN), Emerson Electric (EMR), Entergy (ETR), Magellan Midstream Partners LP (MMP), Molson Coors (TAP), NuStar Energy LP (NS), Pfizer (PFE), Procter & Gamble (PG), Welltower (HCN), ONEOK Partners LP (OKS), Plains All American Pipeline LP (PAA), STAG Industrial (STAG), Westar Energy (WR), Solar Capital LTD (SLRC), TICC Capital (TICC).

8/03/2016

Ares Capital (ARCC), Memorial Production Partners LP (MEMP), Spectra Energy (SE), Annaly Capital Management (NLY), Energy Transfer Partners LP (ETP), Energy Transfer Equity LP (ETE), Transocean (RIG), Triangle Capital (TCAP), Iron Mountain (IRM), Spectra Energy Partners LP (SEP), Safety Insurance Group (SAFT).

8/04/2016

Consolidated Communications Holdings (CNSL), Duke Energy (DUK), Kellogg (K), Medical Properties Trust (MPW), MFA Financial (MFA), Windstream Holdings (WIN), Hercules Capital (HTGC), Kraft Heinz (KHC), Calumet Specialty Products Partners LP (CLMT), ArchRock Partners LP (APLP).

8/05/2016

Exelon (EXC), Apollo Investment (AINV), Enerplus (ERF), National Health Investors (NHI), Buckeye Partners LP (BPL).

Upgrades / downgrades from last week on my stocks were as follows:

AmeriGas Partners LP (APU) was downgraded from Buy to Hold at Jeffries.

Williams Partners (WPZ) was also downgraded from Buy to Hold at Jeffries.

Hercules Capital (HTGC) was downgraded from OutPerform to Neutral at Macquarie.

Darden Restaurants (DRI) was downgraded from Hold to Sell at Stifel.

American Electric Power (AEP) was upgraded from Neutral to Buy at Goldman.

HCP Inc. (HCP) was initiated at UnderPerform at Raymond James.

Energy Transfer Equity LP (ETE) was initiated at OutPerform at Credit Suisse.

Ventas (VTR) was initiated at Market Perform at Raymond James.

Transocean Partners LLC (RIGP) was downgraded from OverWeight to Equal Weight at Morgan Stanley.

PennantPark (PNNT) was downgraded from Buy to Neutral at DA Davidson.

Potlatch (PCH) was also downgraded from Buy to Neutral at DA Davidson.

Verizon was downgraded from Buy to Neutral at Hilliard Lyons.

Molson Coors (TAP) was upgraded from Neutral to Buy at Citigroup.

Colgate Palmolive (CL) was downgraded from OutPerform to Neutral at Exane BNP Paribas.

The market just keeps on going up, or at least not going down, as the chorus of doomsayers just keeps on getting louder. A recession in the next six months to a year is definitely a possibility, and it is unclear what the Fed could do to counter it, considering the ZIRP policy of the past few years, and the Fed’s extended balance sheet from the multiple “QEs” that have occurred. An overhaul of business taxation and regulation might work wonders, but that is highly unlikely considering the political climate. The resurgence of precious metals and related stocks indicates the general unease. Unfortunately, in the case of Newmont Mining (NEM), my largest holding in that sector, I sold too soon, weeks ago, in the mid-thirties. I had a decent gain, the dividend was nil, and I was so happy to get out after sitting on the position for a couple of years, I just didn’t consider it might keep on going up past $40, which it did last week. Closing Friday at $44, NEM has not been at this level since early in 2013. At this point, I’m holding my other metals mining stocks, as I now believe more gains are likely.

JT