No Such Thing as A Passive Investment - Ask Cardi B

 

Investing In Yourself – Using Pillars to Build Your Core	https://urbanomics.blogspot.com/2015/04/urbanomics-pillars-path-set-for.html
Setting Budgets + Saving for Black Swans	https://urbanomics.blogspot.com/2013/02/personal-finance-budget-101-free-credit.html
	https://urbanomics.blogspot.com/2019/11/hey-henry-high-earner-not-yet-rich.html
How to Open My First Brokerage Account	https://urbanomics.blogspot.com/2015/04/personal-finance-101-starting.html
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No Such Thing as Passive Investing

Hello Family. I wanted to share a quick post about investing, hell about life. There is no such thing as passive investing. If you've ever heard the phrase there is no free lunch, it is true and you should understand this concept. Everything - I repeat everything in life requires work to achieve the end goal. I can't think of a moment in life where I got something in return that did not require work, some elbow grease, or my blood, sweat or tears.

Quick Examples:

~ Getting a Job - Requires work, training, patience, principles

~ A friendship or relationship - Requires work, good listening, patience, principles

~ Investing - Requires research, training, and patience, principles

So when you hear the phrase "passive investing", realize you're being sold a myth. It's a very high likelihood whoever is preaching that passive investing is attempting to MAKE MONEY OFF YOU! I've always said...if it is free you're the product. Passive investing is a term that was created for tax purposes to describe how active you are in the day-to-day activities of the business. However, my definition of a passive investment is simple. I like to define a passive investment as a scenario where my goal is to earn income by handing over my money to someone else to grow in exchange for ownership in their asset -- such as stock, oil field, or real estate. Please pay attention to these key words -- handing money over in exchange for ownership in SOMEONE ELSE'S business. They do the work, and you get residual or passive income. Look into the DJ Envy debacle. People handed over money to a "business partner", Cesar Pena, who dealt in real estate, and they got swindled. Now DJ Envy is walking back his involvement as he promoted this business partner on his radio show, and they held real estate investment seminars. By my definition, these people that got swindled missed an opportunity to legally define their ownership in a way that protected their investment, performed stronger due diligence, and held this business partner honest by performing annual audits of their investment. In business, I support my cybersecurity client by ensuring their legal agreements are airtight, we prefer to do business with well-established players that can explain the processes in detail and allow us to audit their business independently. Further, we ask that they get audited annually by a reputable independent audit firm and we demand the right to see the report (and we're not just talking financial audits). We need proof about how the business works.

Any asset you purchase and receive income from IS NOT passive in my book. Let me tell you why --- because it requires WORK. What the fake advertisers of passive income investing don't tell you is owning a home requires big time work. When I list my property for rent, I must advertise it, receive calls about the listings, pre-screen tenants (some unrealistic), show the property, determine the price, conduct tenant checks, sign leases, clean the property, collect rent, answer questions, fix repairs, answer questions, and stress over unpaid rent.

Need proof - I just rent an article summarizing Cardi B's response to managing a real estate rental. In short, she said:

"We have tenants that have paid f&cking rent for like 9 months!"

"You know what? Don't even f&cking take them to court because we just be so f&cking tired"

In response to her Airbnb in the Dominican Republic:

"Always something! Please! I don't want properties as a gift"

Need more proof - I just spent a week in the Windy City, Chicago. Speaking with 2 people remind me of why you have to be on your A-Game. Here's what we discussed:

Person 1 -- "My tenant wasn't paying rent, further I later found out they were sub-leasing it out on Airbnb. I had to officially provide then a notice to vacate, changed the locked, and kicked them out."

Person 2 -- "I'm preparing to sell my rental. It's been tough lately and currently dealing with an eviction."

Now do these investments sound passive to you. Cardi just realized what we all understand has investors --it takes work. I spend most of my energy screening well, so I don't have to deal with bad tenants. But life happens, you need good legal documents, a lawyer who can handle evictions and you need to have good communication to keep tenants happy and so you stay compliant with local housing laws. 

I own real estate, businesses, and invest and trust me NOTHING about any of these investments is passive. So, I hope this episode of keepin' it real, helps you realize you have to work hard to reap the rewards.

***Remember to get my posts to your inbox by adding your e-mail address. I just found out my posts have stopped coming to my own inbox...so I've got to look into that.

It's Take a Village To Invest - Grow Leaders | Plant Seeds | Stocks

Investing In Yourself – Using Pillars to Build Your Core	https://urbanomics.blogspot.com/2015/04/urbanomics-pillars-path-set-for.html
Setting Budgets + Saving for Black Swans	https://urbanomics.blogspot.com/2013/02/personal-finance-budget-101-free-credit.html
	https://urbanomics.blogspot.com/2019/11/hey-henry-high-earner-not-yet-rich.html
How to Open My First Brokerage Account	https://urbanomics.blogspot.com/2015/04/personal-finance-101-starting.html
Diversify your Life (Mind, Body, Soul, + Investments)	Search My Blog

African Proverb - It Takes a Village

Today I wanted to share a proverb that I believe strongly in. Have you ever heard the phrase "It takes a village" -- usually it's followed by "to raise a child" because that's where modern day society believes the biggest need is in their household. This is evident by COVID because when businesses were closed certain leaders were rushing to get schools open because they needed to 'house' children so the parents could go to work. While this is one function, it defeats the goal or objective that parents muse be at the center of their child's life and educational growth especially during the early years. I started raising children later in life so maybe I am less guilty, but still guilty as charged during my child's infant months. 

A few years back when I was going into the office, I would often come home late (due to work and long commuting) and find my child already asleep. I want to change this mentality to form a better family. My village concept is not new --- because I work from home, I walk my daughter to daycare, take a morning bike ride with my 5 year old, and monitor her school progress --- while I work. Notice in my example, we still use school/daycare BUT they support my village concept and the objectives of raising a child alongside family, church, community --- those other entities are NOT the owner or solution. I set the objective, the goal, the discipline --- the others must help support and nurture the environment. This is the same with other priorities NOT just children. 

So this brings me to Baker Mayfield and Alejandro Villenueva when it comes to the goal of improving African-American lives in the US. The African American village needs help and it takes village and community leaders to help nurture the environment. I prefer calling the objective - we are investing in the African-Americans. Yes, we need to invest in all communities including white ones BUT today we are focused on my community. I respectfully ask you all to never be the Baker Mayfield's of our village. I would rather you be Drew Brees or Alejandro Villenuava but please don't be a Baker Mayfield. Before the National Football Season, he claimed he was an ally and would kneel as he understood the objective at hand - bettering black lives. But as the season approach --- Baker Mayfield changed his tune. Unfortunately, but not uncommon, he probably succumbed to his business interests, protected his image (commercials), and caved to whispers around him. I won't leave my child with a wolf. To protect my child and village I rather that wolf tell me exactly who he is like Drew and Alejandro did. The worst is the false ally you leave to help nurture your village but actually through their actions helps to tear it down. In closing, if you don't know the story of Alejandro is shows why we must nurture villages -- he covered up the Pittsburgh Steeler approved decal of a fallen black child who was killed in Pittsburgh, Antwon Rose Jr. Instead acknowledging and focusing on the objective at hand, I saw the self absorbed culture I see to often in our society on full display. He chose to cover up Antwon Rose's team approved decal on his helmet with a name that meant something more important to him. I'm fine Alejandro supporting your military village but that IS NOT your only village. I can pray for police, military, the flag and still show support for the African-American community and ANTWON ROSE JR - a fallen black male at the hands of the police. They are not opposites on a spectrum, they are simply villages with actual lives that all must be looked after. We must grow leaders that uplift villages --- NOT tear them down.

Planting Seeds - Budgeting

For the last few weeks, I've decided to plant some additional seeds to help my village. I try to train people from all nationalities and backgrounds on information technology principles. I believe the jobs shifts in my sector have the ability to uplift and transform people's career if they choose. I then try to help place those people in the jobs of the future which is like a public - private partnership. I fully acknowledge that I benefit at times when anyone finds a job through me. If I am solving a problem, it's fair to be compensated for that to grow my mission. I wrote months back at how I helped a young man of color via a paid internship that taught him the benefits of project and property management. He shared a new story with me this weekend that made me smile, the seed is growing. I am planting a new seed that takes me back to my root (no pun intended). I am teaching another person the benefits of budgeting as they chart their path outside of their current village. The strange thing is their budget is simply an extension of a plan - a plan to be a seed that grows and adds value to those around him. It's time consuming but self-fulfilling whenever you hear I'm learning a tremendous amount. More to come.

 

Stock - ViaSat

Similar to growing people, I plan investment seeds. I tend to a large garden and have a full-time job. So I set alerts and wait for them to ripe -- my investment goal is to find value but only when the value is there. Then I go back and investigate my plant -- will it grow, or produce other seeds, or is the plant dying or worse can it cause harm to other plants. Here is one of my new investments and you'll even see the alert I set months or sometimes years ago -- reminding me of my objective to find value.

ViaSat Inc  (VSAT: NASDAQ)

Alert was set: $42.10
Current:

Disclosure - I do not own ViaSat but actively watching this stock. Like a crop in my village, I will sit down, evaluate and determine what type of investment will this be. I like when stocks are honest about their true colors, some they are only profit motivated like Drew Brees or Alejandro Villenueva. I can live with their truth. I really analyze and stay clear of the stocks like Baker Mayfield, the one's that claim they align with your objectives but in reality they do not support the mission of the village.

Don't Cancel ---- Investment

 I wanted to speak on the "Cancel Culture" phenomenon that is alive and well within our society. Cancel culture goes by many names in different cultures. Some call it the crab mentality, I jokingly say the hit songs "Can't Nobody Tell Me Nothing" by Little Nas X and "Thank You Next" by Ariana Grande epitomize my point. You'll see Cancel Culture is NOT so alive and well when a music artist is praised for using their 1st Amendment right to lyrically talk about abusing or killing their spouse or  when other artists or politicians  use "blackface". In these moments the masses say 'its just in fun', or 'wow look at their age', or even better --- 'you can't govern speech'. The funny thing is this falls out of alignment with what I learned in Corporate America. Someone has to set the tone from the top and be accountable and oh by the way aren't these musicians, artists, and politicians governed by a larger corporation or government structure. 

So I wonder why I see a difference when certain people appear to be targeted or (wait for it) the Cancel Culture comes calling when its a subject on race, supporting the marginalized, or leveling the playing field.  

If I to ask to diversify Board Rooms and the CEO suite, which is severely underrepresented by people of color, I'm told we can't find the talent.  --- I like the response of Alex Ohanian, Chairman of Reddit who simply stepped down and said I'll make a path. --- I didn't like the response I saw of one company who needed my help on a cyber project. I went to their website and they boasted about having a diverse board. The board was all-white but now had 4 white women in the ranks. So I decided not to pursue it further.

If I ask to diversify Hollywood, which is also underrepresented, my show might be canceled, Instagram page flooded with cancel messages, etc.  --- What happened to data driven metrics. Without much argument data should be able to tell me the diversity mix without someone telling me I need a cultural sensitivity lesson for trying to solve an age old problem.  I wonder instead of the quick to cancel response, we find ways to open doors like Alex Ohanian did, or does he only now understand the problem because he is married to an African-American woman, Serena Williams.  In the corporate world, we form joint ventures and partner with small startups and businesses --- so WHY did Tyler Perry have to build his own film production company to make films that are directed, staffed, and include actors from multi-ethnic backgrounds. The cancel culture can infect even people that look like you as he was sometimes even canceled by people that look like him? He's a comedian and he employs African-Americans...strange we DO NOT critique or hold Corporate America accountable but we come down on him, Michael Jordan, and others --- Cancel Culture not everything we do will be advertised on the internet. 

Why is my analysis of data considered a protest when the facts are clear that most African-American dollars DO NOT even circulate within our own community. Will you try to cancel me, call my statements a protest? Or will you make a path for me, sometimes partner with me, even take a risk on me so that I can simply do what many other cultures do.  Will you try to cancel me for wanting my real estate property to be managed, or the plumbing to be fixed, or by college or work diversity, or the movie I watch to be comprised of people that look like me. Or should I just cancel culture you, like when you tell me to revisit a Confederate museum, or the Constitution, or your cultural history. 

I don't mind revisiting history as I've revisited the world's history all through school, college, and even in your responses. I will take up the challenge to learn from you BUT SHOULD I cancel you since Black Lives Matter, Colin Kaepernick, Boardroom and Workplace Diversity, Police Brutality are  racial, civil, human, and even religious rights issues that predominantly affect me and my African-American community.  Thank you for offering up your history, let me offer up mine. 

I call in the Bunce Island Response: 

When you put on Blackface, put a knee on a neck, make an insensitive joke, question me against my will after a volunteer event, tell me your commute is impacted by a protest, allow the Confederacy to mark public buildings and landmarks, or fail to defend against hate speech to African-Americans you are complicit in denying our true history. My history is your history as the world was involved. Bunce Island was famous to the world as one of the primary processing points for slaves to be sold for the rice plantations of the South. My people's villages were raided for their expertise, what we now called Subject Matter Experts (SME), in cultivating rice. Let me take you to my our home of West Africa, where Africans were rounded up from countries like Sierra Leone, Liberia, Senegal, Gambia, and even as far as Angola to survive concentration boats, concentration plantations, and horrendous abuse from slave labor.

To deny our history is to deny a path forward to solving this problem. I ask modern day citizen, how many weeks, months or years would you work without pay? How would that make you feel and how should these wrongs be corrected?  I saw interns recently sued the big magazine corporations a few years ago for internships with out pay. They could leave after the summer go back to school --- what if for multiple generations your family's identify, wealth, assets, investments, SME, children, wives, fathers were killed or assets stripped, or compensation never paid without any fair market based valuation.  And then go to a school name after the person who robbed your family --- How would that make you feel?

So when I, Magic Johnson, Michael Jordan, Oprah, Lebron, Nas, or the host of many people talk about African-American investments, owning assets, and circulating dollars and knowledge without our community, please don't stand in solidarity...take action. Don't cancel culture me as you accumulate debt or pile debt on people that look like me...let's invest together. And if you're afraid to take risks, I understand  --- over 400 years ago and systematically since then many of us have been programmed to get what you can and NOT to share with others out of fear that there is not enough for everyone. haha a rising tide lifts all boats.

Like Jay Z said I'm not a businessman,  I'm a Business, man. Or as I like to call it a Platform:

• 1 Primary Home
• 1 Rental Home (more coming)
• Investment Portfolio with over 30 stocks at any given time
• 401K 
• Rainy Day Savings
• Corporate Job
• Own a Small Business - training and employing underserved groups on how to enter the information technology field
• 529 College fund for my kids

I enjoy doing deals directly and don't like middlemen. I manage my own money to eliminate the fear from years of being told you can't do it yourself or simply you're not enough. My final point, I sat down with a Certified Financial Planner a few years who told me what I already knew. I gave him all my numbers and he said you're good until roughly 81-87 years of age. He wanted my business...nope at 37 if I got to 87 by myself...tell me how you can help grow my platform...not take a cut. Don't ask for a hookup, ask how can I learn from what you're doing. And realize everyone brings value to the table, teach others what you're doing...don't bottle it in but then again canceling is easy.  Until then stay blessed and get your Urb on

POETIC JUSTICE --- Navigating The Storm To Come

If I told you that a flower bloom in a dark room, would you trust it? ~ Kendrick Lamar

You ever get that feeling of Déjà vu?  Well I did and I did not like what I was seeing. That was the rationale back on March 2^nd when I first started posting on COVID-19 and the risks it posed to our health, economy, and wealth. I beat the drum beat of quarantine, lockdown, or as they are now calling it --- stringent social distancing because as a risk manager you want to prevent the worst possible outcome. I do that on a daily basis for corporations and it is much better getting yelled at by clients for being overly protective and concerned than witnessing them painfully recover from the depths of something that could have been better mitigated.  For example, I once had a banking client down in the Florida Keys. The Keys is a great location --- think conch fritters, fresh oysters, beautiful water and sites. But I also had a job to do --- what natural disaster quite common in Florida and the Keys: Hurricanes. My job was to ensure not only was their cybersecurity posture adequate --- but for a client in the Florida Keys I paid very close attention to their disaster recovery planning and insurance policies. When I completed my assessment, I wanted to provide some level of confidence is they were adequately prepared.  Yes, a large aspect of my blog is about financial empowerment but more importantly you need to be able to sleep at night knowing you did everything in your power to plan for health, economic, and financial success. And your plan has to be resilient to get you through black swan events just like my client who vigilantly prepares for that next hurricane.  

Does History Repeat Itself

Undoubtedly it does. I think it was Will Smith (don’t quote me) who said anything you can think of has already been done and is somewhere written in a book --- you just have to find it. Maybe not exactly like that but you get my point. So if navigating through a crisis is a class, guys like my big homie Ray Dalio are the excellent teachers to keep up with. He runs the world’s largest hedge fund but ironically often sounds the alarm of the true inequities of people today and having a plan to address then because history will eventually give us a black swan moment that will send us reeling.  If I lost you I apologize, but the point I am trying to make here is I am concerned about the tools our government has to get us out of a crisis may have already been exhausted. I’ve heard Ray and a few other people that I follow echo the same sentiment.  I’ll break it down like this because I write about it often here, when times are good for a family or a country the excess wealth it takes in must be saved for a rainy day.  We did not do that as a nation and it’s not going to make RECOVERING from the economic crisis that ballooned out of the COVID-19 pandemic that much harder.

My other example is: When times get bad, a retail store may resort to providing discounts to get customers in the door to spend and give the business a boost. A federal government uses interest rates similar to how a store uses discounts or coupons. If you reduce the interest rates, money is discounted and people come running through the door.  BUT WHAT HAPPENS WHEN INTEREST RATES ARE ZERO --- OR BETTER SAID WOULD YOU KEEP BUYING IF THE STORE KEPT GIVING YOU EVERYTHING FOR FREE??

If you recall, I posted very little in 2017 and 2018 but when I did I highlighted that I had changed my investment strategy to trading stock option contracts. Again not to overcomplicate things:  I simply had a very hard time finding deals in the stock market so I invoked my sandlot strategy --- I took my ball and went home.  I wasn’t buying any stocks but taught myself how to trade options because I wanted short term-investments that didn’t leave me hanging out to dry when the eventual was to come --- a Recession. We were already in our 10+ year of an economic expansion, one of the longest on record.  My biggest concern is the COVID-19 pandemic lit the fuse for a big drop in market I already thought was running too hot.  If you’re lazy here is a snippet: “I explored options for the first time in portfolio and it was a big reason for my investing success this year.  I have been studying it for months, used a fake portfolio of money to test trading strategies out, and implemented BASIC trades that have complimented my LONG-TERM VALUE oriented approach.  I repeat, I was afraid and had never traded an option contract in my life.  This year I’ve executed over 80+ option contract trades in a way that I believe lowers my investing risk, especially considering I’ve told people to be cautious because we are in the 10^th year of a stock market rally. “ Feel free to read my comments here:

https://urbanomics.blogspot.com/2018/04/the-plan-can-economy-grow-forever.html

https://urbanomics.blogspot.com/2018/12/2018-year-in-review-year-of-growtha.html

I want to wrap up here by saying I’m very concerned. Ok yeah I worry a lot, but please put my logic together:

1)  I traded my first option contract on May 30, 2017 and I spent the first half of 2017 learning and practicing something I had no clue about because THEN I thought the market was overvalued.

2)  Debt Levels are very high because our government did NOT save for a rainy day when times were great (10+ years of economic expansion). This does not help thing when in a debt crisis.

3)  Unfortunately President Trump constantly spent the last few years criticizing the Federal Reserve into lowering interest rates. You traditionally raise rates when times are good (we had over 10+ years of good times).  Rates are now at ZERO and that means we have NO MORE TOOLS left to fight an economic battle.  It is the main reason, I recommended going to cash in my Individual Retirement Accounts just a few posts ago.

My next post will break down what happens in a Recession and why I’ve learned from the 2008 crisis --- When I sounded the alarm it was the only other time I’ve ever moved my IRA to cash. Like then, do not try to be a hero in these markets. After 10% down days you may get itchy to buy the dips but prepare to be nimble and get out the next day. Don’t panic, but brace yourself for a bumpy ride down --- and hey if I guess it will be a little Poetic Justice.

Coronavirus / Bear Markets --- What to Do With My Investments?

Investing In Yourself – Using Pillars to Build Your Core	https://urbanomics.blogspot.com/2015/04/urbanomics-pillars-path-set-for.html
Setting Budgets + Saving for Black Swans	https://urbanomics.blogspot.com/2013/02/personal-finance-budget-101-free-credit.html
	https://urbanomics.blogspot.com/2019/11/hey-henry-high-earner-not-yet-rich.html
How to Open My First Brokerage Account	https://urbanomics.blogspot.com/2015/04/personal-finance-101-starting.html
Diversify your Life (Mind, Body, Soul, + Investments)	Search My Blog

Thanks for tuning in. I've heard from so many people so these discussions will frame my upcoming blog posts. For example, I raised the discussion of what to do with your retirement accounts so I'll be addressing that soon. This week, I fielded multiple questions on should I start buying. I will try and address all of these items but not in a frantic manner --- remember we were built for these moments. We've been investing in ourselves, setting our budgets, saving for black swan events, diversifying our portfolios and strengthening our core for these very moments.

People and Safety First

First things first ☝ always remember that people...yes I said people and safety always come first. That is why I was so passionate about what the next steps should be for this country during an outbreak like this. As a risk manager, this is the number 1 rule and it must not be forgotten.  If this were my favorite show "Heroes" you would hear the phrase 'Save the Girl' --- well my response to the administration is 'People First Profits Will Come'.  Sometimes we all need that subtle reminder. 👂

Stick 2 Da Script

If this is your first time get familiar with my pillars above. If you've been here before don't forget them because this is a life-long journey of having the tools you need when things are GOOD and when they are BAD. Again I've received a lot of questions this week and I assume people will take their time to read through my blog before firing off their questions but that isn't always the case. The most common questions I get are:

• Is it a Good Time to Buy?
• What Stock(s) Should I Buy?

These are solid questions if you are a seasoned investor, who invests in the markets often. However, I want to start a new trend --- where people are comfortable talking about how much they got in savings first!  You tell me what car you drive, where you work, your favorite drink, damn some people even rattle off their credit score BUT people get real quiet about their savings.  So I'm here to remind you of my Rules above...because the first investment you should be asking me or anyone about is How Can I Invest In Myself.  And here is my answer:

Set a Budget  Every winter its 2 things -- cuffing season 💑(if you're single) and budget cutting season ✂. I revisit my budget and guess what I found out -- It goes UP, DOWN, or stays the same. It rarely ever stays the same so I challenge everything that goes up.

Mortgage - Have you refinanced?

Insurance - Have you asked for lower rates or called a new competitor for quotes?

Bills - Can't fight these much but do you need that super cable -- when you work 5/7 days a week a least? Can you phone a friend for that Netflix account?

Urb Lesson of the Day - Being a boss means doing the dirty work, and having tough conversations. This week alone, I had CEO discussions with my banks and what they need to do to keep my business --- remember they work for you.

Start Saving 💰 - Real savings IMO is the money saved up AFTER you have no outstanding debts in your household. So set your budget to get on a plan to begin saving for your future and future BLACK SWAN events. Before the coronavirus crisis, I've talked about black swan events being the one thing we are always on the look out for.  Well that event is here and a deep savings account helps ease those of us panicking if schools are closed, your company shuts down temporarily, you unfortunately get laid off, medical bills surface, etc. Remember the government shutdown, H1N1, 2008 financial crash make sure you're not a part of this statistical group:  Roughly 70-80% of American workers live paycheck to paycheck. (Source: 2017 Careerbuilder Report)

This is why I was passionate about putting money in hands of the American people. I predicted state and national shutdowns would be required to slow down a contagious disease (note: China, Italy, S. Korea all showed why this is necessary). That finally happened here in the US.  Why was the response so slow? Well, they are scared to shut the system down --- because the capital machine has most people living paycheck to paycheck. So work can never stop (for those who cannot telework/work from home), I guess even when your health may be at stake.  I applaud this gent for keeping it real on national TV, he acknowledged its a big problem when most Americans live paycheck to paycheck:

Urb Lesson of the Day - I live to save because there will always be black swans, moments that shock you and your family --- weddings, deaths, travel, layoffs, medical bills --- you want to have the savings to get you through these moments. I know the rent, bills, and food has to be paid but the long-term plan is we need a healthy you to be a provider for yourself and family for years to come. Use these markers to benchmark how much you need to save for a rainy day:

2 Weeks Pay --- Rookie

1 Month Pay --- Rising Star

3 Months Pay --- Honorable Mention

6 Months Pay --- Veteran

12 - 24 Months Pay --- All Star (Cue Biggie: "I'm not only a client, I'm the player president")

 

I personally have moved to cash in my individual retirement portfolio because you have to sit down and map out what happens next: businesses slow down, layoffs will rise, and earnings from corporations will be bad for the next few quarters. My retirement money is just that a second savings account I can afford to be very careful with.  Your primary savings account is a cushion for whatever is to come. Stay tuned for more, I will address what to do with your individual retirement accounts and for those aggressive people trying to gain an edge in the market --- YES we'll discuss stocks to buy.

Space Age Pimpin' - Space Age Portfolio

Ok folks time to get your portfolio Space Age Pimpin', well into the next few decades. What does this mean? By following the Space Age Portfolio, readers here at Urbanomics will finally be able to buy stock they are looking to hold long term. As most of you know I am your favorite Urban Economist and that's why you see my boys Eightball and MJG here ->




They were early pioneers in the rap game and I am pioneering the stock investment game with a little bit of Urban flavor. Yeah, I know that my boy Jim Cramer and the guys at Fast Money are pretty cool but they got nothin' on me. My strategy is like my basketball game...very versatile. I generally look for undervalued stocks that will experience some type of near term catalyst that will catapult the stock into a great momentum trade and turnaround story. Want proof, follow my recommendations that have been posted: MMS, CLCT, MOBE, each purchased in the last 6 months with returns over 25%. Need more, I own 2 stocks that will like be bought out this year after merger talks are over: Sallie Mae (SLM) & Cytyc (CYTC). But on to what you want to hear. What about the stocks that will have your back for the long term.

Here goes, the goal of this portfolio will be to pick stocks across a diverse group of industries, that are best in class, and have the opportunity for both price appreciation and income potential. Let's start with my favorite industry so far, OIL. With this group I have to go with ConocoPhillips...yes I am

piggybacking their most recent upgrade by Bank of America and it does hurt that they just disclosed a stock buyback program of roughly 15billion.

ConocoPhillips (COP)


Next, I am going out to one of my long term income potential plays. You will benefit because real estate stock is a REIT and those dividend payments can help grow our portfolio. GGP also operates in two segments retail and master planned communities. So you get retail, land owner, and landlord all in on. Real estate has taken a little bit of a beating so jump on board, now.




General Growth Properties (GGP)




No long write up for this one, because I've already told you why to own it but add this retail player to your portfolio.


Best Buy (BBY)

Wrap up your portfolio with exposure to Utilities. Why?...Because it is too damn hot outside. Man and with this heat wave out there what is every one doing at home turning up the Air Conditioner. And when the A/C goes on, the utility man gets PAID. Ka-Ching. So load up with this exchange traded fund (ETF):



XLU