What the heck is a BDC?

What the heck is a BDC?

No BS Weekly Update 4/16/2012

In This Issue

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QOTD

"Being realistic is the most often traveled road to mediocrity. " - Will Smith

(I don't know if it was originally said by him but I heard him say it in an interview)

Dear ,

What the heck is a BDC?

That is a question I will answer in a few minutes. First I want to take a look at what is still going on in Europe. Let's call it the European economy in pictures. Back on March 12th I commented on the latest Greek bailout. At the time I warned that the crisis in Europe wasn't even close to being over, despite the halleluiah chorus proclaiming otherwise. Well take a look at the two headlines from today.

Drive for IMF Funds Caught in Global Power Shift (CNBC)

Euro Area Seeks Bigger IMF War Chest on Spanish Concerns (Bloomberg)

Since they say a picture is worth a thousand words, I thought we would take a look at a few pictures and graphs today. As you look at them ask yourself, "Does this look like a situation that is likely to get better or worse in the near future?"

DownDaily 9-22-2011

Now based on what these pictures and graphs show you might want to consider adjusting your investment philosophy accordingly. If you're not sure how to do that then give us a call, we'd love to help!

Back to the BDC thing!

OK, let's get back to the BDC. In these strange economic times we spend a lot of time searching out new and not so well know investment opportunities. A BDC is a Business Development Company. We first became aware of BDCs about a year ago and have been researching them ever since.

As with many other investments there are BDCs with different focuses. Some BDCs are geared to generate incomes streams far in excess of what you can get in CDs and things like that today. Now of course they aren't as safe as a CD either so you have to take that into account. Other BDCs are set up as more of an equity type investment It just depends what you are looking for.

If you would like to learn more about what a BDC is and what type of opportunity it presents, I found a short 9 minute video that explains what they, how they work, and what the risks are. If you'd like to learn more please feel free to take a look by clicking on the image below. That will take you to the webpage. Scroll down a bit and you will see the same image on the left. Click on the image, chose the state you live in and then it will take you to the video.

(Click to go to video)

If you found that interesting and are wondering if and how that may be able to work in your portfolio, just click on the link below to send us an email. All you have to do is put BDC in the subject and we'll be in touch.

preames@reamesfinancial.com

Until next week , Protect Your Wealth!

Sincerely,

China's Economic Growth Slowest in Nearly 3 Years(Bloomberg)

RF: How can this be? It wasn't more than about a year ago and the experts were telling us that the great economic engine of China would pull the rest of the world out of the economic mess we were in. As I've said all along folks, don't you believe it. This thing isn't even close to being over.

Yale's Shiller: Millions of Families Are Facing Eviction(Moneynews)

RF: And here is one of the main reasons why it's not even close to being over. Where did it start? Real estate. With millions of families facing eviction that means millions of more homes added to the current oversupply of millions of homes. Simple supply and demand equation here. More distressed homes hitting the market will further erode prices. That just delays any "real" recovery.

5 Most Useful Websites & Tools(TBP)

RF: Got this from Ritholtz's site. If you spend a lot of time on the internet then check out this article!

Bernanke: Banks Need More Capital to Stabilize(Reuters)

RF: Really? Then what was the point in being in such a hurry to have them pay the bailout money back if it left them in a weakened state?

Laughter

DownDaily 9-22-2011

(www.chartoftheday.com)

Growth

(Click to view)

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Phil Reames

Reames Financial

1856 Skyler Dr.

Kalamazoo, MI 49008

269-349-3966

preames@reamesfinancial.com

http://www.reamesfinancial.com