Sunday, August 24, 2014

Why I'm Passing On Mason Graphite - Mason Graphite Inc. (OTCMKTS:MGPHF) | Seeking Alpha

Why I'm Passing On Mason Graphite - Mason Graphite Inc. (OTCMKTS:MGPHF) | Seeking Alpha



As you probably know, graphite can be used in making electrodes for the batteries of electric powered vehicles.  We are also seeing a great expansion in sales of electric and hybrid electric cars.  For example, Tesla and Toyota are popular for electric and hybrid cars respectively.  So, the graphite miners matter a lot as long as electric car sales are growing.



The author of this article talks about Mason Graphite primarily, and he does not think Mason offers a lot of upside potential.  Focus Graphite and Northern Graphite are probably better choices in the graphite space.  Focus already has sales of its graphite locked up with a Chinese company contract.  Northern is the closest graphite miner to major roads, and transportation costs will be a big factor in the success or failure of graphite miners.  Graphite stocks could be one of your best choices in a lackluster stock market as long as you invest in the right company at the right time.


Saturday, August 23, 2014

iShares Aggressive Allocation ETF Is A Great Way To Diversify - iShares Aggressive Allocation ETF (NYSEARCA:AOA) | Seeking Alpha

iShares Aggressive Allocation ETF Is A Great Way To Diversify - iShares Aggressive Allocation ETF (NYSEARCA:AOA) | Seeking Alpha



This is an excellent article about AOA, iShares Aggressive Allocation ETF.  The name "aggressive" is somewhat misleading because AOA is actually a "fund of funds" including the S&P 500 (IVV), global stocks, and bonds.  Owning this stock is an excellent way to diversify globally and protect yourself.  Probably only an outright bear market would sent this broad fund down.  It has gained over 13% in the last 12 months although it is questionable how long it will have double digit gains.  I believe it will beat the S&P 500 alone, though, and I think it is great for a diversified portfolio.  I also recommend double-digit income stocks like CEFL, MORL, and ROYT.


Pacific Coast Oil Trust: Regulatory Fears Unfounded, While Units Yield 15% And Sell At A Discount - Pacific Coast Oil Trust (NYSE:ROYT) | Seeking Alpha

Pacific Coast Oil Trust: Regulatory Fears Unfounded, While Units Yield 15% And Sell At A Discount - Pacific Coast Oil Trust (NYSE:ROYT) | Seeking Alpha



Here is an outstanding article on Pacific Coast Oil Trust (ROYT).  The company operates stable oil fields in California, but the stock price has been negatively impacted due to environmental concerns which will most likely not prevail against the company.  Therefore, the 15% dividend which is distributed on a monthly basis is probably safe, and there will probably be a future capital gain as well.  Moreover, since the stock market is mostly topped out, you will probably only make single digit returns in the future in a lot of stocks.  ROYT is a great opportunity for a double-digit gain, and I plan to buy the stock very soon.


What We Can Learn From Margin Levels In The Stock Market | Seeking Alpha

What We Can Learn From Margin Levels In The Stock Market | Seeking Alpha



This is an interesting article about how margin calls affect the stock market.  When the next bear market finally arrives, broker margin calls will cause an avalanche decline in the market.  As the author noted, margin peaks can also predict an imminent bear market, and that is where we are now.  People are leveraged to squeeze all they can out of small general stock market gains.  Eventually, the gains will be so small that bonds will be more attractive, and then the market will fall as people sell stocks aggressively.

 

Thursday, August 21, 2014

The Not So Mysterious Lofty Stock Market Elevations | Seeking Alpha

The Not So Mysterious Lofty Stock Market Elevations | Seeking Alpha



Here is a balanced bullish article about how we don't need to panic, but we need to get used to single digit returns for stocks at the current elevated levels.  When the ten-year treasury bond starts paying 4%, that will be a fairly certain sign of the top.  By the time that situation occurs, the gain on stocks will probably be about 4% also, and bonds will be a lot safer.  Investors are already starting to buy long term bonds.  This can be seen in TLT and TMF which I own.  Currently, stocks can still go up on low volume while bonds go up at the same time on low volume.  The safest stock to own now is OEF, the S&P 100 ETF, and I own it also as well as dividend stocks.


Tuesday, August 19, 2014

The Bull Market In Equities Has A Long Way To Run | Seeking Alpha

The Bull Market In Equities Has A Long Way To Run | Seeking Alpha



As usual, the bulls are able to present evidence that stocks can continue to rise for quite a while.  This article gives several reasons why the bull market will continue.  I would only buy the best stocks on dips, though.  I am currently around 75% long and 25% treasury bonds.  With this mix, I have been able to advance on most days.  I will continue to monitor both bull and bear cases and invest accordingly.  We must take a certain amount of risk in order to accumulate significant wealth.  Then, on the other hand, we need to protect our wealth as much as possible to prevent large losses.


Margin Debt Peaks May Indicate End Of Cyclical Bull Market - SPDR S&P 500 Trust ETF (NYSEARCA:SPY) | Seeking Alpha

Margin Debt Peaks May Indicate End Of Cyclical Bull Market - SPDR S&P 500 Trust ETF (NYSEARCA:SPY) | Seeking Alpha



This is a great article about being able to predict stock market tops when margin debt has topped out and is declining.  The smart money usually knows when to get out of stocks.  The author presented some very good charts which showed that a margin debt peak preceded the start of a bear market by a short period of time.  A number of sources have talked about a recent decline in margin debt, but we don't know yet if margin debt is up again since global problems have currently subsided.  Also, one other difference in 2014 is that the S&P 500 is still amazingly climbing.  Stocks are not rolling over as they did at previous tops.  So, we will need to continue to monitor margin debt, stock patterns, and other indicators to know when to head for the exits.