Why Equities and Bonds are Rising

By Michael Keane

Recently, both equities and stocks have gone up. This is not normally the case. But realistically, this is not a normal market. Both the S&P (up over 17%) and the bond ETF TLT (up over 8%) are up for the year. We believe the main two culprits are new money being invested during a time that the Fed has yet to unwind its bond portfolio.

The main reason we are leaning toward is the thought that we are now seeing an effect of how propped up the bond market is by the Fed, which is worrying. With the tax bill debt increase, along with the Fed planning to unwind a portion of their bond portfolio, bond ETF’s like TLT could be in real danger of not just a decrease in price, but an actual crash. 

New money is also being invested and it is being done so in an allocation method. Putting that on top of the Fed purchases, bonds are probably higher than they should be. 

Per disclosure, our partner KDK Options has had, but does not currently have any positions of either SPY or TLT. 

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 **All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.

Dividend from Ford Received

A dividend from Ford was received. The fund will portions of it for charity, investor payments, and reinvest the rest to increase the compounding.

The Ford holdings are to a point where nearly 10% of its shares are from dividend buybacks. The plan is to continue with this formula without an end date. 

**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.

Dividend From Ford Received

A dividend from Ford was received last week. Portions go to charity, investors, and back into the fund for reinvestment. Dividends from previous reinvestments amounted to over 5% of today's receipt.

Dividend reinvestment is an integral part of KDK Fund's wealth building process. It magnifies the compounding each and every quarter.

 **All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.

New Shares of Ford Purchased

Last week, more shares of Ford were purchased by the fund. This was due partly because of capital increases through KeaneVCC and KDK Options. The price of the purchase was $11.83 before fees and commissions. The purchase adds to the dividend amount received by the fund each quarter. The higher dividend also means more frequent assistance to KeaneVCC's charities.

There is no plan to sell the shares.

**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.

New Shares of Ford Purchased

A purchase of Ford shares has been made by the fund. The cost of the shares were $11.15 before commissions and fees.There is no time frame or price target for the shares. The expectation is that these shares will held for a very long time. We expect to reinvest dividends in order to compound future dividends.


**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.

New Shares of Ford Purchased

KDK Fund has purchased more shares of Ford. The cost of the shares was $11.36. Because of the last two purchases, the dividend received from Ford will be increased by over 90% from last quarter's regular $0.15 dividend.

 KDK Fund is excited to continue building revenue streams and wealth.

 **All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.

Week In Review (Ford Shares Purchase)

Ford was busy this week.

It announced an earnings warning (Bloomberg link here). The drop in the share price allowed KDK Fund to purchase more shares (link here).


**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.

More Shares of Ford Purchased

Because of adding capital and some successful recent trades from KDK Options (USO trade here and FXY trade here), KDK Fund has purchased more shares of Ford. The cost per share was $11.63 before commissions and fees. There is no price or time frame to sell.

The dividend will increase 25% from last quarter's regular $0.15 dividend. Because of reinvestment of dividends, the increase will be higher. The total quarterly dividend for the fund will increase 20%. Reinvested dividends account for 4% of the total owned shares of Ford.

KDK Fund is very excited to continue to build wealth and provide needed assistance to important charitable ventures like Shriner's Hospital in Chicago.

  **All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.

Ford Dividend Received

A dividend was received by Ford. The payout was received and broken down into charity, investor payments, and reinvestment.

The dividend was 69% higher than the December payment due to a new purchase of shares from new capital (30% more shares), a hike in the dividend (from $0.15 to $0.20), and the effect of dividends from previously reinvested dividends (now over 5% of shares owned).

This is one stream that KDK Fund expects to continue to grow.

 **All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.

AT&T Dividend Received

A dividend from AT&T was received. The dividend was over 3% higher than last quarter and 7% higher than normal because of portions of previous dividends being reinvested along with an annual increase of $0.01 per share. This type of increase is how wealth is created and sustained.

Dividend reinvestment is one way KDK Fund uses to create wealth. Getting 3% quarterly increases due to dividend reinvestment is awesome! Needless to say, a portion of the dividend will be reinvested. More importantly, a portion will be going to charity, which is even better!


**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.

Additional Ford Shares Purchased

Hello

Today, KDK Fund made another purchase of Ford shares. This increases the funds amount of Ford shares by 25%. This most recent purchase will increase the dividend by over 20%. It will also increase the fund’s total quarterly dividend by over 10%. It will increase the dividend  from previously reinvested dividends to over 5%.


**All posts on this blog are information and opinions only. They are not to be considered recommendations to buy or sell any security. Please do your due diligence first before trading and investing. Please direct all questions and comments to the blog or to kdkfund@gmail.com or on twitter @kdkfund.