A robust emergency fund is the most critical component for your investment portfolio, according to Suze Orman.

The personal finance guru, appearing Monday on CNBC’s “The Exchange,” said the coronavirus pandemic has laid bare the need to have money saved in the bank for unforeseen challenges. She experienced it recently in her own life, after having emergency surgery this summer to remove a tumor on her spinal cord.

“The most important thing in anybody’s personal financial portfolio — more than all the stocks and everything — is at least an eight-month emergency [fund], maybe even a year emergency fund,” Orman said.

“If you haven’t learned that after this past year of what we’ve been through, I don’t know. You have to be on another planet,” added The New York Times bestselling author.

In late March, three days after the S&P 500 hit its intraday low of the coronavirus era, Orman told CNBC that she saw a perfect buying opportunity. “There couldn’t be a better time to start investing [than] right now,” she said after the bell on March 26. “Fortunes are going to be made out of this time.”

The benchmark U.S. stock index has risen nearly 35% since its March 26 close.

While equity investors may have seen strong gains in recent months, Orman emphasized the need to be clear-eyed about the possibility of financial hardships springing up that require people to rely on their savings. It may be a health scare or the loss of a job. Indeed, the Covid-19 pandemic has brought significant economic and health challenges for millions of Americans.

The personal savings rate has climbed during the pandemic, reaching an all-time high of 33% in April. It has declined since, however, and was at about 14% in August. That is still higher than the 7.6%

Dear client or friend of Vailshire Partners LP,

Greetings from Colorado Springs! I hope this quarterly memo finds you well.

The State of the Economy

The health of the President, his administration, and the economy are at the forefront of our nation’s mind as we approach election Tuesday in early November. As uncertainty about election results and coronavirus containment/immunity persists, so does market volatility.

September and October are historically difficult (read: down) months for US equities and Bitcoin during election years, and this has again proven true in 2020.

Thankfully, the historical returns for both equities and Bitcoin once presidential election results are known are generally quite positive… sometimes surprisingly so! And for this, we are positioning Vailshire Partners LP accordingly.

For now, a Congressionally-approved fiscal stimulus looks increasingly unlikely, given the partisan bickering and game theory. My opinion is that if additional money is to be printed out of thin air, then the least our government can do is put it directly in the hands of Americans, many of whom are suffering greatly from the Covid-related business closures and Depression-level increased unemployment.

The Federal Reserve continues to “do its part” by maintaining ever-increasing supplies of money and securities (such as US Treasuries and other fixed income ETFs), as shown by the following charts:

M2 Money Stock (as of 21-September-2020)

Federal Reserve Bank Credit (as of 1-October-2020)

Federal Reserve: US Treasury Securities Held Outright (as of 1-October-2020)

Where Congressional fiscal policy is lacking, the Fed’s monetary policy is undeniably trying hard to pick up the slack!

Tumultuous times call for deft asset allocation and management. With this in mind, let’s see how Vailshire Partners LP has performed in 2020 relative to its peers.

Vailshire Partners LP Annual and Quarterly Performance

*(Starting date: 27-January-2014)

As the chart reveals, through 30-September-2020, Vailshire

The Ethereum based decentralized finance (DeFi) protocol Hippo Finance launches the first community governed hedge fund for anyone interested in investing in crypto farming tokens safely.

  • Team Hippo aims to set a new industry standard for DeFi farming protocols, as a result, all the code will be audited by two independent security firms before launch.
  • Hippo Finance is powered by a three token ecosystem, designed to provide farming operations that are sustainable and incentivizes holding HIPPO tokens long term.
  • Users decide how the decentralized hedge fund is spent through transparent on-chain voting: burn, invest in another project, or distribute as dividends.

London, October 9, 2020 – Hippo Finance, a liquidity mining platform on Ethereum, today announces the launch date of its community governed DeFi hedge fund. Users will generate returns from staking HIPPO tokens in various farming pools, along with growing the decentralized hedge fund which token holders decide to use as a collective.

How does it work?

Hippo Finance is powered by a three token ecosystem: HIPPO, Angry Hippo (aHIPPO), and Dark Hippo (dHIPPO). Each token has its separate use case which compliments each other through staking to form a powerful positive feedback loop. The Hippo tokenomics are designed to distribute all value captured by the protocol back to investors through community governance. Ultimately the mission is to provide a secure long-term farming platform for crypto investors with plans to scale onto Polkadot.

Once launched, the liquidity mining programs and hedge fund management will work as per the following diagram.

Users stake HIPPO tokens individually to earn aHIPPO as rewards, or can provide HIPPO/ETH liquidity on Uniswap to enjoy a x1.5 multiplier. Additionally, aHIPPO/ETH LP tokens can be staked to farm dHIPPO tokens. Stakers will earn 75% of rewards, 20% goes to the fund contract, and 5% is allocated

When health care firms that haven’t been around very long announce new venture-capital financing, it’s hard to miss the big numbers.

This year, $225 million went into an East Coast health insurance firm called Oscar and an additional half a billion dollars of equity was just raised by Bright Health of Minneapolis.

These firms are very much still startups, and you can hear a little Silicon Valley-style language in how they talk about themselves.

Oscar claims to make health insurance simpler and easier to understand, yet it describes itself as “the first direct-to-consumer health insurer, pairing member engagement with our own full-stack technology.”

Well, that does sound better than having half-stack technology.

But the bigger point is how it’s at least a little surprising that upstarts can raise so much capital to jump into an industry with so many barriers to entry.

Health care is highly regulated, both nationally and state-by-state, and relies on a hopelessly complex payment system the incumbents have all mastered.

Scale matters, too, including the benefits of operating with a brand people respect when the stakes — health care and what it costs — are so high.

Yet entrepreneur and venture capitalist Tony Miller said it’s a much different world in venture finance than it was 10 years ago.

And the first half of the year “produced the largest two-quarter investment period ever for venture-backed health care companies,” according to Silicon Valley Bank.

To illustrate his point, Miller talked about the 2013 zombie apocalypse film “World War Z,” starring Brad Pitt, where the Israelis somehow anticipated the zombies would come and built a wall to keep them out.

The problem of relying on a wall, though, is once the wall is scaled or breached the zombies run wild.

The health care system seems similarly walled off,

Let thy step be slow and steady, that thou stumble not. – Tokugawa Ieyasu

Ever since its inception in January 1987, DNP Select Income Fund (DNP) has been paying dividends consistently. Its distribution reliability and operational durability are factors that have earned it the reputation of a trustworthy fund for income seekers. This is the reason why its market price trades at a premium to its NAV. For the record, its NAV is $8.47 whereas its market price is $10.09 as of October 5, 2020.

02DNP.jpg

Source: Wallmine

Is the price premium justified? Is DNP a buy for income seekers today? Here’s my take:

Investment Strategy & Portfolio

DNP’s goal is to provide investors with current income and long-term income growth by investing mainly in equity and fixed income securities of companies in the public utilities sector. Capital appreciation is a secondary objective.

As of April 29, 2020, DNP’s balance sheet totaled $3.67 billion. Its borrowings were $997 million as of the same date, and its stockholder’s equity and retained earnings were $2.64 billion and $594 million, respectively.

Its top 10 holdings as of July 31, 2020, that accounted for 27% of its total investments were:

  • Eversource Energy (ES): A renewable energy utility
  • Ameren Corp. (AEE): Another renewable energy utility
  • Xcel Energy (XEL): Yet another company focused on renewable energy
  • Crown Castle International Corp. (CCI): Currently riding high on 5G
  • Evergy Inc. (EVRG): Kansas-based regular energy utility
  • CMS Energy Corp. (CMS): An energy utility that serves Michigan
  • NextEra Energy (NEE): Another strong renewable energy company
  • WEC Energy Group (WEC): A regular energy utility that serves Wisconsin, Illinois, Michigan, and Minnesota
  • American Water Works Co. (AWK): Water and wastewater management utility with strong financials
  • Public Service Enterprises Group (NYSE:PEG): An energy utility backed by strong financials

DNP’s top 10 holdings make