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January 2, 2023

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Throwing Caution to the Wind:

The January 2023 Issue

January 2, 2023

At the beginning of 2022, in our January 1, 2022, issue of Sound Advice, we warned “Historically low interest rates and bond yields have pumped up stock prices in 2021, but as we roll into 2022, those buoyant forces will be attenuating. By April, these forces will be gone, and the specter of rising interest rates will start haunting the markets”. Our Sound Advice Diffusion Index of Lagging Indicators (page 11) was in “Caution” mode at the beginning of 2022, and one again, this warning proved prophetic. The S&P 500 index ended the year accordingly, the Sound Advice portfolio gained 4.02 percent in 2022. As we begin 2023, we have a completely different situation...

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Sound Advice Income and Growth Fund

Gray Cardiff invites your to invest with him, on a side-by-side basis

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The Fund maintains positions in all of the Sound Advice model porfolio recommendations and will follow all future recommen-dations froms the Sound Advice investment advisory letter. I will be investing side-by-side, along with you. The minimum invest-ment is $125,000. Regular Income: You may elect to receive cash distributions either quarterly or annually, or have them reinvested for you. Liquidity: You may reedem your investment any time with a 14-day notice. There are no redemption fees. Retirement Accounts: You may invest through IRAs (including Roth IRAs) and other tax-deferred retirement accounts. The chart below shows the growth of $100,000 invested in the S&P 500 (in gray) versus $100,000 invested in the Sound Advice recommendations (in blue). From the beginning of 1999 through the end of 2022, the Sound Advice model portfolio has produced an average investment return of 8.76 percent annually, as compared to 4.27 percent annually from the S&P 500. This means that a $100,000 invest-ment in the S&P 500 would have grown to $261,444. That same $100,000 would have grown to $689,777 following the Sound Advice recommendations.

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Income with Growth Symbol Price/NAV +/- Yield Action Limit
Hersha Hospitality Trust - Preferred D* HTPRD $18.70 0.00 8.77% BUY $25.00
RLJ Lodging Trust - Preferred A* RLJPRA $23.79 0.00 8.20% BUY $27.00
RPT Realty 7.25% Preferred D RPTPRD $49.98 0.00 7.25% BUY $52.00
Growth with Moderate Income
Cisco Systems CSCO $48.05 0.83 3.08% BUY $50.45
Crown and Castle CCI $150.31 0.55 4.16% BUY $157.83
Intel INTC $29.60 0.51 4.70% BUY $31.08
Invesco Consumer Staples ETF RHS $172.43 0.46 2.64% BUY $181.05
JP Morgan Chase JPM $140.80 2.21 2.84% BUY $147.84
Valero VLO $137.61 1.48 2.85% BUY $144.49
Growth
Apple AAPL $135.91 1.15 0.60% BUY $142.71
Genomic Revolution Multi-Sector ARKG $33.44 0.63 N/A BUY $35.11
Invesco Basic Materials ETF RTM $173.05 0.00 1.58% BUY $181.70
Invesco Health Care ETF RYH $295.36 0.10 0.62% BUY $310.13
Invesco Small Cap Industrials ETF PSCI $94.64 0.00 1.04% BUY $99.37
Moderna VLO $137.61 1.48 2.85% BUY $144.49
Third Avenue Real Estate Value Investor * TVRVX $20.73 0.19 N/A SELL
Virtus LifeSci Biotech Products BBP $53.33 0.00 N/A BUY $54.95
ETFs for Rising Bond Yields
Direxion Daily 20+Treaury Bear Shares 3X Leverage TMV $111.94 2.05 N/A BUY $117.54
Proshares Short 20+Treaury - 2X Leverage TBT $28.60 0.36 N/A BUY $30.03
Proshares Short 20+Treaury - No Leverage TBF $21.31 0.14 N/A BUY $22.38
Hedges
ProShares UltraShort Russell 2000 TWM $14.46 0.05 N/A BUY $15.18