Friday, April 17, 2015

Why new stock market highs are ‘inevitable’ - Yahoo Finance

Why new stock market highs are ‘inevitable’ - Yahoo Finance



This is a very good article presenting the bullish case for stocks.  The most convincing argument is that pullbacks are being quickly bought.  That is why we are not having any big market declines.  Secondly, the author spoke about how bonds have such a low return that stocks look better even while they are overvalued.  Nobody knows when the plug will be pulled on our inflated market, but we need to make money while we can.  If you don't, you will also lose time in the process as well, and you only have so much time to get rich.

Is Saudi Arabia Setting The World Up For Major Oil Price Spike? - Yahoo Finance

Is Saudi Arabia Setting The World Up For Major Oil Price Spike? - Yahoo Finance



This is an interesting Yahoo article about how Saudi Arabia is producing more oil than normal to keep the price of oil low.  This is also happening at a time when Iraq and Libya are putting more oil on the market.  The end result is that the rally in U.S. oil stocks may be over for now even when our output is expected to decline in May.  Dennis Gartman said the same thing at CNBC that the rally in the price of oil has peaked presently.  Profits were being taken from MDR on Friday although the stock price recovered some at the day's end.  So, it might be a good idea to take some money off the table in oil stocks next week.

 

Tuesday, April 14, 2015

EIA Predicts Natural Gas Production Starts Declining In May - The United States Natural Gas ETF, LP (NYSEARCA:UNG) | Seeking Alpha

EIA Predicts Natural Gas Production Starts Declining In May - The United States Natural Gas ETF, LP (NYSEARCA:UNG) | Seeking Alpha



Here is a great article predicting that natural gas prices will soon rise again.  The EIA previously miscalculated the effect of the falling rig count.  Nat gas production will be declining instead of building, and this could have a huge effect on the price.  The author also pointed out that the price of oil is determined worldwide while the price we pay for natural gas is determined only here in North America.  So, the analysts are terribly wrong in linking oil and natural gas together for prices.  UGAZ will probably give you the most profit for investing in the trend reversal.

Monday, April 13, 2015

SPY/TLT And SPXL/TMF Strategies Work Because Of Positive Alpha, Not Negative Correlation | Seeking Alpha

SPY/TLT And SPXL/TMF Strategies Work Because Of Positive Alpha, Not Negative Correlation | Seeking Alpha



This is an excellent article about combining bond and stock ETFs to form an above average return as long as the stock market trend is up.  This SPY/TLT or SPXL/TMF strategy works because people often buy bonds or bond stocks in volatile times.  They want the security of bonds because they seldom trust stocks.  This is why TLT (long bonds) and TMF (leveraged long bonds) have been going up the past six years along with stocks.  Certainly, there are times when TLT and SPY will go in opposite directions, but the overall trend of both has been up.  Thus, you can probably make money with one of these bond/stock pairs until we enter the next bear market, and nobody knows when that will happen.  This is a good plan to try as part of a diversified portfolio.


Priced To Imperfection: Natural Gas Undervalued And Poised To Rally - The United States Natural Gas ETF, LP (NYSEARCA:UNG) | Seeking Alpha

Priced To Imperfection: Natural Gas Undervalued And Poised To Rally - The United States Natural Gas ETF, LP (NYSEARCA:UNG) | Seeking Alpha



Here is an outstanding article on why natural gas is being priced too low with many excellent charts and statistics to prove this case.  He also presented a good explanation of how natural gas futures contango works.  The expected return from a price rally is going to be less than the rally percent due to contango.  Moreover, the author talked about how contango is even worse on leveraged ETFs like UGAZ.  So, he suggested that we should buy the non-leveraged UNG or a stock like RRC in order to profit from the eventual rise in the price of natural gas. 


Sunday, April 12, 2015

$48k Per Year With A Half A Million Portfolio | Seeking Alpha

$48k Per Year With A Half A Million Portfolio | Seeking Alpha



This is a great article about how to live off your savings through high dividend stocks.  I especially like the UBS REIT 2x ETFs, MORL and CEFL.  MORL is paying 25% each year, and CEFL is paying almost 19%.  The only problem here is when you buy the stocks at a high price.  You will lose money when the stock price drops.  Just be certain to buy these stocks when they are at a low point.

Friday, April 10, 2015

The Planets Align For Investment In Wind | Seeking Alpha

The Planets Align For Investment In Wind | Seeking Alpha



This is an excellent article about wind energy.  The author mentioned several stocks for wind investments, but you can play it safe by investing in FAN, the wind ETF.  I own shares of FAN, and I plan to buy more this year because according to the EIA, wind additions will make up the biggest portion of electrical generating capacity in 2015. 



The author also brought up the fact that birds being killed by windmill blades is insignificant.  Far more birds are killed by cats and by flying into windows.  I know the latter for certain is true because I had a kingfisher bird crash into my sliding glass door one time, and it killed him instantly.  Now is the time to invest in wind power before the masses catch on that wind energy is here to stay and it is growing.  Click on the EIA report below to expand it and see how big wind investments are becoming!