Portfolio “Update”

I sold all of my MAT (Mattel) and took a small position in M (Macy’s). Ordered by largest position to smallest.....

PG (Procter & Gamble)

PEP (PepsiCo)

WBA (Walgreen Boots Alliance)

MMM (3M)

GPC (Genuine Parts Company)

VZ (Verizon)

IBM (International Business Machines)

T (AT&T)

KO (Coca Cola)

ADP (Automatic Data Processing)

HAS (Hasbro)

KMB (Kimberly Clark)

GIS (General Mills)

HPQ (Hewlett-Packard)

SYY (Sysco)

K (Kellogg)

DPS (Dr. Pepper Snapple)

M (Macy’s)

GNMA (6% Bonds)

This portfolio represents about 25% of my assets, about 15% is a home mortgage, about 2% precious metals and collectibles, and the rest are CDs.

The Next Economic Collapse

Since the Great Recession ended about 8 years ago and the US is near full employment, odds are that we are due for at least a recession in the not too distant future. And since US financial markets are at or near all time highs, even a mild recession could hit our financial system pretty hard, depending on the triggering event or events.

Anyway, I'll list some potential triggering events which I see could happen.

1. China's debt situation begins unraveling. Debt over 2x GDP, ghost cities and China's apparent policy of buying up commodities for future use.

2. Climate Change. Hurricanes and wildfires are already stretching resources.

3. War. Recent vitriol makes war with North Korea or Iran a real possibility.

4. Rising US interest rates. Rates are already rising.

5. US debt. Not just national debt, but stock and bond margin debt, auto debt, student loan debt, pay day loans and mortgage debt. And derivatives, especially ETF’s and leveraged ETF’s. All this with massive deregulation.

6. Underfunded pensions. State, municipal and corporate.