Global Recession

http://www.telegraph.co.uk/finance/economics/12093807/RBS-cries-sell-everything-as-deflationary-crisis-nears.html

A rather gloomy assessment and recommendation from the RBS.

....And just when they say we are finally coming out of it!

It's hard to see how things will turn around but it doesn't look good for 2016 and maybe even a couple of years out. We're mostly in cash and we made some changes to my mother in law's accounts.

I've been trying to get my wife to cash in on our Con Ed stock while it is still high. Put the cash in the safe deposit box and buy the stocks back in a few months.

ED is looking good - has a 3.9% annual dividend.

Some say to stay in US-centric industries like utilities, cell providers (verizon), drug stores (WalgreensBoots and CVS) since they are defensive, prices are fairly stable, aren't as sensitive to global issues, and the dividends are stable too. On the down side, utilities usually don't do well when interest rates rise but maybe the US will experience a slowing, low interest rate economy like Japan.

I'm doing some covered calls in these types of stocks. Even if the price drops I'm lowering my initial cost (basis) by collecting the monthly call premium and quarterly stock dividend.

ED is good for the dividends that's why she is hesitant. We get close to $2K a year with them.