Picking up Nickels

Friday, December 21, 2007

Fixed-income outlook for 2008

Boy, what a difference a year makes. Fixed income opportunities are certainly a bit less attractive than they were a year ago. Now let's see what we have to look forward to in 2008.

The FOMC has already cut the target funds rate by 100 basis points since September, with the cutting expected to continue when they meet again at the end of January 2008. Treasury Bill rates have fallen to the 3% level, which could give us a hint of how much lower the target fund rate could be cut from the current level of 4.25%. To make matters worse, Bill Gross of Pimco believes that we are already in a recession.

Further FOMC rate cuts will continue to drive down yields for many of the money market and savings accounts that were earning returns of 5% of better not so long ago. Looking at historical yields from the bellwether Orange Savings account from ING Direct , it is pretty obvious how its yield closely tracks changes to the Fed funds rate:


There are still some pretty good rates to be had out there though. Of course, the major gotcha is that current market leading yields are being offered by banks like Countrywide Bank, IndyMac Bank, and E*Trade Bank who need to pay a premium to get cash due to the credit crunch created by their cavalier home lending practices. If you decide to do the business with these lenders, please be sure that your deposits on account are below FDIC insurance coverage levels.

It's also looking like the Pentagon Federal Credit Union may be riding to the rescue once again with a first quarter CD promotion with above market rates for the fourth year in a row (details courtesy of Bank Deals blog). If the Penfed rumors are true, it may be our last and best opportunity to hedge against the imminent FOMC rate cuts.


Thursday, December 20, 2007

2007 Restaurant holiday gift card promotions

Following up on last year, here are some of the chain restaurants offering gift card deals for a decent discount on future dining that I have run across:

  • Chili's - Receive $5 bonus card with every $25 in-store gift card purchase through 12/31/07. Bonus card is valid 1/1/08 - 2/10/08. Combine with Chili's Pepper Award coupons (received in-store) for a free Kids Meal with adult meal purchase.
  • Bertucci's - Receive $10 thank you card with every in-store $50 gift card purchase.
  • Uno Chicago Grill - Receive $5 bonus with every $25 in-store gift card purchase through 12/31/07. Gift voucher is valid 1/1/08 - 2/13/08. Combine gift card with coupons received when you join the UNO Insider's Club.
  • T.G.I. Friday's - Receive $5 bonus bites card with every $25 gift card purchase.
  • Applebee's - Receive $5 bonus card with every $25 in-store gift card purchase through 12/31/07. Bonus card is valid 1/1/08 - 2/29/08.
  • Friendly's - Receive $5 bonus card with every $25 in-store gift card purchase through 12/31/07. Bonus card is valid through 2/28/08.

Monday, December 17, 2007

Free Schick Quattro Razor at CVS Pharmacy

CVS is offering a free men's razor for the third week in a row.

CVS Pharmacy has an in-store deal for a free Schick Quattro Razor (Power, midnight, or titanium) this week through December 22nd.


CVS has the Schick Quattro Razor on sale for $7.99 this week. They are also offering a $4 Extra Bucks bonus (available immediately after purchase), bringing the cost down to $3.99. This price combined with the $4 off any Schick Quattro Razor coupon from the 12/17 SmartSource coupon booklet will make this razor free.

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Friday, December 14, 2007

E*Trade - Free trades on Wednesday, December 19th

E*Trade Financial has declared Wednesday, December 19, 2007 to be E*TRADE Customer Appreciation Day, and to mark the occasion will be offering free COMMISSION-FREE stock, options and futures trading:

As you know, the past few months have been challenging for the financial services industry.

However, there is some good news. E*TRADE FINANCIAL Corp. has recently received a $2.5 billion capital infusion from one of the world's leading investment firms. This is a clear vote of confidence, solidifying the ability to deliver the value you have come to enjoy—today and into the future.

To celebrate this strategic transaction and thank you for your continuing loyalty, we are declaring Wednesday, December 19, 2007, as E*TRADE Customer Appreciation Day.

For a full 24 hours eligible stock, options and futures trades entered at E*TRADE Securities will not be charged a commission.¹ We hope this gives you a convenient chance to evaluate your investments, balance your taxable gains and losses, or capitalize on trading opportunities prior to year end.

At E*TRADE, nothing is more important to us than our customers. We thank you for your ongoing faith in us, and look forward to serving you for many years to come.

Sincerely,

Jarrett Lilien
Chief Executive Officer
E*TRADE Securities LLC


So it's looking like next Wednesday may be a good time for E*Trade customers to do some tax-loss harvesting or add to their portfolios. I wonder if the iShares TIPS ETF (TIP) will get some love based on the November CPI numbers??

Tuesday, December 11, 2007

December 2007 Financial Asset Roundup

Here are my current financial assets as of the market close on December 10th, 2007:

Asset November 2007 December 2007 Change
Checking 552 420 -132
Money Market 33,269 36,945 3,676
Savings Bonds 4,623 4,638 15
Treasury Bills 0 0 0
CDs 91,802 96,467 4,665
Brokerage 105,066 112,346 7,280
401k 105,529 109,760 4,231
Roth IRA 34,217 35,006 789
SEP IRA 179,199 184,724 5,525
529 Savings 36,682 38,157 1,475
Credit Card 0% Balance Transfers -18,475 -18,275 200
Total Assets $572,464 $600,188 $27,724 (+4.8%)



Volatility in the financial markets worked in my favor as the S&P 500 index rose by 4.28% since my last update. My bottom line is up accordingly, buoyed by a bonus paid out from my S Corp in November:

(chart courtesy of msn.com)

In advance of today's imminent FOMC rate cut, I decided to lock up a bit of cash in short term CDs. I put the proceeds from my World Savings 6.01% APY 15-month CD into a Bank of America 5.15% APY 4-month CD, rolled my matured 3 month E-Loan CD @5.55% APY into a 6 month E-Loan CD @5.15% APY, and put some cash into a 6 month E*Trade CD @5.25% APY.

Monday, December 10, 2007

Free Gillette Fusion Razor at CVS Pharmacy again this week

CVS Pharmacy once again has an in-store deal for a free Gillette Fusion Razor this week through December 15th.

CVS has the Gillette Fusion Regular, Power, or Phantom Razor on sale for $9.99 this week. They are also offering a $6 Extra Bucks bonus (prints out immediately after purchase), bringing the cost down to $3.99. This price combined with the $4 off any Gillette Fusion or Fusion Power Razor coupon from the 12/2 Proctor & Gamble coupon booklet will make this razor free.

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Monday, December 03, 2007

Free Gillette Fusion Razor at CVS Pharmacy

Stocking stuffer alert!

CVS Pharmacy has an in-store deal for a free top-of-the-line Gillette Fusion Razor this week through December 8th.

CVS has the Gillette Fusion Regular, Power, or Phantom Razor on sale for $9.99 this week. They are also offering a $6 Extra Bucks bonus (prints out immediately after purchase), bringing the cost down to $3.99. This price combined with the $4 off any Gillette Fusion or Fusion Power Razor coupon from the 12/2 Proctor & Gamble coupon booklet will make this razor free.


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