Blog Archive

10 April 2010

Anarchist Pig Investment Advice for April 10th, 2010

As part of my blog, I am going to start posting investment advice based upon my own portfolio. This may surprise some of my readers because how could a blog by a Buddhist Anarchist possibly include investment advice ? In my mind, it's simple. Strong personal finances equals liberty and independence and the ability to generate income, which in turn, can be used for more beneficial uses such as helping others.

So, knowing that some of my readers trend a bit more towards the radical side, my first investment tip should be right up their alley. In my portfolio, I bought the following bond and have been enjoying a nice return on it of late-

Venezuela, 10.75 % 9-19-2013
CUSIP ID # 922646BJ2 (this is the identification for this bond.)

Simply put, this is a bond issued by the government of Hugo Chavez that you can buy on the open market through any brokerage account. As of yesterday, Friday April 9th, this bond was trading at around $ 982.50. Since the bond yield of 10.75 % is based on the face value of the bond, $ 1,000.00, you actually receive a yield of 10.94 % if you buy at this price. The bond pays semi-annually, and the coupon payment you receive is $ 53.75 twice per year for simply owning the bond. I hold this bond in an IRA making the deal even sweeter because the fascist bastards at the IRS can't get their mitts on it until I retire.

The downside is that this bond is considered near junk status by the investment community and is rated B2 by Moodys and BB- by S&P. Even though the coupon payment is fixed at 10.75 %, the underlying price of the bond could fall causing a loss in the original investment. You need to have some courage to make an investment like this, but I am confident that rising oil prices will benefit Venezuela and reduce the likelihood of a default on their debt.

This week, Citigroup reports earnings and I will comment next week on the call option strategy that I put into place this week under the assumption that their earnings will improve. If they don't, I will be drinking heavily and will probably not post anything at all.

Dislcaimer- Anarchist Pig Investment Advice is just that- advice. I am not an investment advisor, broker or investment professional and if you use this advice, you are using it at your own risk. If you take my advice, you need to do the research to see if it supports your investment goals. IN other words, if it doesn't work out, don't fucking call me.

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