This is an excellent article explaining the trailing 12-month yield (TTM) of dividend companies, and the article also talks about the 30-day SEC yield which can give a more current picture of what the company is doing. The article also discusses big bond funds like Vanguard's BND which has an excellent safety record but a lower yield return. Holding dividend stocks will never be as flashy as the S&P 500 in some of its movements, but quality bond funds should definitely be part of your portfolio to help you sleep better at night. You don't want to be at retirement age right when the stock market drops 50%, and you were 100% invested in stocks.
Wednesday, December 31, 2014
REITs Notch Biggest Gains in Nearly a Decade
REITs Notch Biggest Gains in Nearly a Decade
Here is an interesting article about REIT stocks although it mostly concerns business REITs rather than high-risk family housing mortgage REITs. VNQ is a business REIT ETF which is good to own in order to safely maximize gains in the sector, and I own VNQ myself as part of a balanced portfolio. As the article mentioned, I believe triple-net business REITs will continue to rise in 2015, and the sector may beat the S&P 500 again due to the S&P high PE.
Here is an interesting article about REIT stocks although it mostly concerns business REITs rather than high-risk family housing mortgage REITs. VNQ is a business REIT ETF which is good to own in order to safely maximize gains in the sector, and I own VNQ myself as part of a balanced portfolio. As the article mentioned, I believe triple-net business REITs will continue to rise in 2015, and the sector may beat the S&P 500 again due to the S&P high PE.
Tuesday, December 30, 2014
The Coming Bear Market In 2015: Why There Will Be No Happy New Year Before We See QE Reloaded - SPDR S&P 500 Trust ETF (NYSEARCA:SPY) | Seeking Alpha
The Coming Bear Market In 2015: Why There Will Be No Happy New Year Before We See QE Reloaded - SPDR S&P 500 Trust ETF (NYSEARCA:SPY) | Seeking Alpha
This is a very good article on why a large market decline is coming soon. I bought more TMF today, the 3x long government bond ETF. As the author noted, the only thing holding up the stock market now is the Christmas seasonality. January and February will be downhill in 2015 just like early 2014. Once we hit a bottom on $NYMO, the NYSE McClellan Oscillator, I will sell most of my TMF and buy UDOW, the 3x Dow ETF, for another ride up. This cycle could happen several times in the next year even while the economy will appear to be okay.
This is a very good article on why a large market decline is coming soon. I bought more TMF today, the 3x long government bond ETF. As the author noted, the only thing holding up the stock market now is the Christmas seasonality. January and February will be downhill in 2015 just like early 2014. Once we hit a bottom on $NYMO, the NYSE McClellan Oscillator, I will sell most of my TMF and buy UDOW, the 3x Dow ETF, for another ride up. This cycle could happen several times in the next year even while the economy will appear to be okay.
Saturday, December 27, 2014
Ben's Top 3 Gold Miners For 2015 | Seeking Alpha
Ben's Top 3 Gold Miners For 2015 | Seeking Alpha
This is an excellent article about three gold mining companies which can make a profit in today's depressed gold market. They are also located in mining friendly places. Whether the price of gold comes back or not, these companies will have earnings to show for their work, and this is important in an overvalued stock market. It is also noteworthy that institutions are willing to own these stocks. So, I believe these gold companies are worth buying as part of a diversified portfolio.
This is an excellent article about three gold mining companies which can make a profit in today's depressed gold market. They are also located in mining friendly places. Whether the price of gold comes back or not, these companies will have earnings to show for their work, and this is important in an overvalued stock market. It is also noteworthy that institutions are willing to own these stocks. So, I believe these gold companies are worth buying as part of a diversified portfolio.
Higher Dividends With Less Risk (Part 3): Global X SuperDividend U.S. ETF - Global X Super Dividend U.S. ETF (NYSEARCA:DIV) | Seeking Alpha
Higher Dividends With Less Risk (Part 3): Global X SuperDividend U.S. ETF - Global X Super Dividend U.S. ETF (NYSEARCA:DIV) | Seeking Alpha
Here is an outstanding article which discusses the great value of owning dividend ETFs. While DIV is the primary focus of this article, the author compares DIV to the gold standard DVY and two other dividend ETFs. DIV has around a 6% dividend which is distributed monthly. This might not sound like much, but DIV is a worthwhile holding for a diversified portfolio.
The author lists the 50 companies which are held in DIV along with the dividends that the companies are paying. DIV is comprised of many MLPs and REITs. By holding this ETF, you can participate in MLPs without having to fill out time consuming K-1 tax forms.
Another interesting fact about DIV is that the total return has been 28% during the past 21 months although DVY did better with 36%. So, you can make money through quality dividend stocks with price gains as well as dividends. As long as we are not in a bear market, both of these stocks would be great for holding.
Here is an outstanding article which discusses the great value of owning dividend ETFs. While DIV is the primary focus of this article, the author compares DIV to the gold standard DVY and two other dividend ETFs. DIV has around a 6% dividend which is distributed monthly. This might not sound like much, but DIV is a worthwhile holding for a diversified portfolio.
The author lists the 50 companies which are held in DIV along with the dividends that the companies are paying. DIV is comprised of many MLPs and REITs. By holding this ETF, you can participate in MLPs without having to fill out time consuming K-1 tax forms.
Another interesting fact about DIV is that the total return has been 28% during the past 21 months although DVY did better with 36%. So, you can make money through quality dividend stocks with price gains as well as dividends. As long as we are not in a bear market, both of these stocks would be great for holding.
2014's Trash Could Be 2015's Treasure | Seeking Alpha
2014's Trash Could Be 2015's Treasure | Seeking Alpha
Eric Parnell has written another fantastic article about the stock market. While the S&P 500 has returned another double-digit gain year, TLT has done even better with a 26% gain. Investors will run to the safety of long-term government bonds whenever market uncertainty exists. I have been invested in a 3x long-bond ETF called TMF. It mirrors what TLT is doing although you will probably not get the 3x returns as advertised. The TMF gain is still more than TLT.
I hold a core position in TMF, and I also make money by trading in and out of the stock during times of volatility like we had in October and early December. As Eric mentioned, government bonds will normally be sold in a rising interest rate environment, but that is not what we got this year. Even while interest rates are supposed to rise in 2015, I think people will still be buying bonds because of fear in the stock market. I intend to hold TMF, and I will continue to trade part of it during volatile periods.
Secondly, Eric brought up the phenomenal gain of XLU, the utilities ETF. XLU increased 32% this year on top of a modest 3% dividend. I am buying XLU Monday morning because I believe the stock will continue to rise. First, XLU is a defensive stock, and I believe we will still have fear in the market in 2015. Secondly, the price of oil is expected to stay low throughout the next year, and cheap oil will be good for utilities. Thirdly, utilities will be making a lot of money during the winter, especially for the companies which are using cheap natural gas.
Thirdly, Eric talked about the tremendous gain of VNQ, Vanguard's REIT ETF. It gained 32% this year just like XLU, and making more than 30% each year is a stock investor's dream. VNQ's top ten holdings are mostly business REITs. This means that VNQ is a lot more stable than other REIT stocks which focus primarily on residential mortgages. In addition, the economy is doing great, and businesses which comprise VNQ will continue to do well in 2015. This is another stock that I will also be buying on Monday morning.
Eric Parnell has written another fantastic article about the stock market. While the S&P 500 has returned another double-digit gain year, TLT has done even better with a 26% gain. Investors will run to the safety of long-term government bonds whenever market uncertainty exists. I have been invested in a 3x long-bond ETF called TMF. It mirrors what TLT is doing although you will probably not get the 3x returns as advertised. The TMF gain is still more than TLT.
I hold a core position in TMF, and I also make money by trading in and out of the stock during times of volatility like we had in October and early December. As Eric mentioned, government bonds will normally be sold in a rising interest rate environment, but that is not what we got this year. Even while interest rates are supposed to rise in 2015, I think people will still be buying bonds because of fear in the stock market. I intend to hold TMF, and I will continue to trade part of it during volatile periods.
Secondly, Eric brought up the phenomenal gain of XLU, the utilities ETF. XLU increased 32% this year on top of a modest 3% dividend. I am buying XLU Monday morning because I believe the stock will continue to rise. First, XLU is a defensive stock, and I believe we will still have fear in the market in 2015. Secondly, the price of oil is expected to stay low throughout the next year, and cheap oil will be good for utilities. Thirdly, utilities will be making a lot of money during the winter, especially for the companies which are using cheap natural gas.
Thirdly, Eric talked about the tremendous gain of VNQ, Vanguard's REIT ETF. It gained 32% this year just like XLU, and making more than 30% each year is a stock investor's dream. VNQ's top ten holdings are mostly business REITs. This means that VNQ is a lot more stable than other REIT stocks which focus primarily on residential mortgages. In addition, the economy is doing great, and businesses which comprise VNQ will continue to do well in 2015. This is another stock that I will also be buying on Monday morning.
Friday, December 26, 2014
Permian Basin Royalty Trust: A Trust With Both Upside And Risk - Permian Basin Royalty Trust (NYSE:PBT) | Seeking Alpha
Permian Basin Royalty Trust: A Trust With Both Upside And Risk - Permian Basin Royalty Trust (NYSE:PBT) | Seeking Alpha
This is a very good article on the Permian Basin Royalty Trust. I have owned PBT in the past, and I am thinking about buying it again while oil prices are low. There is possible upside in the stock price and the dividend when oil prices rebound. However, as the author mentioned, we can never expect oil prices to be very high again in the future because too much supply is available.
The question is how much can you gain from PBT in the next year versus the S&P 500? It is true that the economy is doing well, but the S&P already has a high PE. Thus, I don't expect the S&P to gain more than 10% in the next 12 months, and a lot of volatility will be involved with it due to possible rising interest rates. Therefore, PBT might be able to beat the S&P this next year. I believe the company has an upside of close to 20% counting both the stock price and the dividend. In fact, I am going to buy PBT right now because I am fairly certain about this scenario.
This is a very good article on the Permian Basin Royalty Trust. I have owned PBT in the past, and I am thinking about buying it again while oil prices are low. There is possible upside in the stock price and the dividend when oil prices rebound. However, as the author mentioned, we can never expect oil prices to be very high again in the future because too much supply is available.
The question is how much can you gain from PBT in the next year versus the S&P 500? It is true that the economy is doing well, but the S&P already has a high PE. Thus, I don't expect the S&P to gain more than 10% in the next 12 months, and a lot of volatility will be involved with it due to possible rising interest rates. Therefore, PBT might be able to beat the S&P this next year. I believe the company has an upside of close to 20% counting both the stock price and the dividend. In fact, I am going to buy PBT right now because I am fairly certain about this scenario.
Thursday, December 25, 2014
We May Have Reached “Peak Shale” – Here’s Why That’s Good News!
We May Have Reached “Peak Shale” – Here’s Why That’s Good News!
Here is an outstanding article which explains the inner workings of the shale oil industry. As the article mentions, shale oil wells produce 30% of all their oil production in the first year. Therefore, oil companies must constantly keep drilling more wells just to stay even with their production levels or to increase production.
Now, with the low price of oil projected to stay in the $50 to $64 range for many months, this means that drilling will be cut back substantially, and less production will occur in 2015. This will cause an increase in oil prices since we will have less oil supply. Therefore, we should have several chances in the next year to make money on oil trades through owning an ETF like ERX or by owning oil companies like OAS, WLL, or RDS/A. The hard part will simply be picking the bottom.
Here is an outstanding article which explains the inner workings of the shale oil industry. As the article mentions, shale oil wells produce 30% of all their oil production in the first year. Therefore, oil companies must constantly keep drilling more wells just to stay even with their production levels or to increase production.
Now, with the low price of oil projected to stay in the $50 to $64 range for many months, this means that drilling will be cut back substantially, and less production will occur in 2015. This will cause an increase in oil prices since we will have less oil supply. Therefore, we should have several chances in the next year to make money on oil trades through owning an ETF like ERX or by owning oil companies like OAS, WLL, or RDS/A. The hard part will simply be picking the bottom.
Whiting Petroleum: Higher Proved Reserves Aren't The Only Reason Why I'm Long - Whiting Petroleum Corporation (NYSE:WLL) | Seeking Alpha
Whiting Petroleum: Higher Proved Reserves Aren't The Only Reason Why I'm Long - Whiting Petroleum Corporation (NYSE:WLL) | Seeking Alpha
This is an excellent article about Whiting Petroleum. I have owned WLL in the past, and I will probably buy shares in the company in the near future. Of course, the price of oil will make it risky in the short term. In this case, you could make money by trading in and out WLL. You could have gained 20% recently if you bought at $28 per share and you sold at $36. The rest of the stock market is volatile also, but you can still make money if you buy quality stocks at the lows and sell at least part of your position when a high is reached.
This is an excellent article about Whiting Petroleum. I have owned WLL in the past, and I will probably buy shares in the company in the near future. Of course, the price of oil will make it risky in the short term. In this case, you could make money by trading in and out WLL. You could have gained 20% recently if you bought at $28 per share and you sold at $36. The rest of the stock market is volatile also, but you can still make money if you buy quality stocks at the lows and sell at least part of your position when a high is reached.
Saturday, December 20, 2014
Recent Hindenburg Omens Signaled Caution, Now What? | Seeking Alpha
Recent Hindenburg Omens Signaled Caution, Now What? | Seeking Alpha
Chris Puplava has written another outstanding article about the stock market and the economy. As you know, we experienced a 5% pullback in December which was an excellent buying opportunity. I have made a handsome profit so far through buying UDOW and some oil stocks near the bottom. Since I knew the economy was doing well, I was not afraid to buy stocks.
Chris mentioned several reasons for the stock market going higher in his article. He believes like me that the economy is in good shape. He cited the improving employment market and the Philly Fed six month states economic outlook as proof that we are nowhere near a recession. The author also examined advance-decline lines and new highs/new lows historically at stock market tops. If the new highs spike higher than the new lows, the bulls are in charge. That is where we are in mid-December of 2014 with a bull rally going on.
However, Chris warned that all is not completely well. You can still have a mini bear market while we are not in a recession, and August to October of 2011 is one example of this. He also talked about how the monthly MACD line of the S&P 500 is sloping downward. This usually precedes a large pullback, and there may be another decline on the way. I plan to book profits on some of my stocks like UDOW this next week because I think the Christmas rally is just about over.
Chris Puplava has written another outstanding article about the stock market and the economy. As you know, we experienced a 5% pullback in December which was an excellent buying opportunity. I have made a handsome profit so far through buying UDOW and some oil stocks near the bottom. Since I knew the economy was doing well, I was not afraid to buy stocks.
Chris mentioned several reasons for the stock market going higher in his article. He believes like me that the economy is in good shape. He cited the improving employment market and the Philly Fed six month states economic outlook as proof that we are nowhere near a recession. The author also examined advance-decline lines and new highs/new lows historically at stock market tops. If the new highs spike higher than the new lows, the bulls are in charge. That is where we are in mid-December of 2014 with a bull rally going on.
However, Chris warned that all is not completely well. You can still have a mini bear market while we are not in a recession, and August to October of 2011 is one example of this. He also talked about how the monthly MACD line of the S&P 500 is sloping downward. This usually precedes a large pullback, and there may be another decline on the way. I plan to book profits on some of my stocks like UDOW this next week because I think the Christmas rally is just about over.
Wednesday, December 17, 2014
UDOW Interactive Stock Chart | Yahoo! Inc. Stock - Yahoo! Finance
UDOW Interactive Stock Chart | Yahoo! Inc. Stock - Yahoo! Finance
Here is a chart of UDOW, the 3x Dow ETF. I bought UDOW today because I believe there will be a Christmas rally although I don't know how long it will last. I will probably sell UDOW when it gets to around $142 per share in order to preserve my profit for a 12% gain. I performed a similar trade back in October-November for a 7% gain in UDOW. So, in the space of three months, I am expecting to book a total of 19% profit on UDOW trading money for one quarter of the year while this represents only 15% of my portfolio just in case I am wrong.
My reason for buying UDOW today was two-fold. First, the stock market had declined by about 5% from its previous high similar to the October pullback of 9%. Since I knew the economy was doing okay, I was willing to bet on a bull rally. Secondly, $NYMO, the NYSE McClellan Oscillator, showed a very oversold condition of -81 on December 16. It was also oversold back in October when the market bounced off the bottom. So, these two reasons prompted me to buy UDOW today soon after the market opened.
As good as this trading plan sounds, you still never know what the stock market will do. That is why I maintain a diversified portfolio with the other 85% comprised of long stocks for either capital gain or dividends along with bond stocks for additional diversity. I don't know how many pullbacks we will have in 2015 that will be a big enough decline for a worthwhile trade, but I want to seize the opportunities when I get them. I am hoping for 6 to 8 chances per year. If I make an average of 9.5% on 6 trades per year, I will be making 57% each year on my 15% allocation of trading money.
Here is a chart of UDOW, the 3x Dow ETF. I bought UDOW today because I believe there will be a Christmas rally although I don't know how long it will last. I will probably sell UDOW when it gets to around $142 per share in order to preserve my profit for a 12% gain. I performed a similar trade back in October-November for a 7% gain in UDOW. So, in the space of three months, I am expecting to book a total of 19% profit on UDOW trading money for one quarter of the year while this represents only 15% of my portfolio just in case I am wrong.
My reason for buying UDOW today was two-fold. First, the stock market had declined by about 5% from its previous high similar to the October pullback of 9%. Since I knew the economy was doing okay, I was willing to bet on a bull rally. Secondly, $NYMO, the NYSE McClellan Oscillator, showed a very oversold condition of -81 on December 16. It was also oversold back in October when the market bounced off the bottom. So, these two reasons prompted me to buy UDOW today soon after the market opened.
As good as this trading plan sounds, you still never know what the stock market will do. That is why I maintain a diversified portfolio with the other 85% comprised of long stocks for either capital gain or dividends along with bond stocks for additional diversity. I don't know how many pullbacks we will have in 2015 that will be a big enough decline for a worthwhile trade, but I want to seize the opportunities when I get them. I am hoping for 6 to 8 chances per year. If I make an average of 9.5% on 6 trades per year, I will be making 57% each year on my 15% allocation of trading money.
Monday, December 15, 2014
Cramer Remix: What I'm waiting to see in oil
Cramer Remix: What I'm waiting to see in oil
This is a good article by Jim Cramer on why the stock market continues to fall along with the price of oil. Certainly there is a connection between oil and the S&P 500 since many oil companies are in the S&P group, but good companies like Apple and Skyworks should not be falling. The healthcare stocks like XLV and PJP should not be declining either. Thirdly, December is the best month of the year for stocks, and the magnitude of this pullback is hard to understand. As Cramer said, it could be the hedge fund computers giving bad information, or it could be year-end tax selling.
This is a good article by Jim Cramer on why the stock market continues to fall along with the price of oil. Certainly there is a connection between oil and the S&P 500 since many oil companies are in the S&P group, but good companies like Apple and Skyworks should not be falling. The healthcare stocks like XLV and PJP should not be declining either. Thirdly, December is the best month of the year for stocks, and the magnitude of this pullback is hard to understand. As Cramer said, it could be the hedge fund computers giving bad information, or it could be year-end tax selling.
Saturday, December 13, 2014
Energy Sector Woes Continue To Weigh On Market As Risks Of Default Increase | Seeking Alpha
Energy Sector Woes Continue To Weigh On Market As Risks Of Default Increase | Seeking Alpha
Chris Puplava has written an outstanding article about how oil prices have fallen so far and so fast. This happened to a lesser extent in 2011 and 2012 when speculators sold off massive long positions. I have made money on oil in the past and I have lost money. It all depends on being on the right side of the trade at the right time.
Chris mentioned that we also have a high oil supply chart while demand for oil has been dropping. He stated that Americans are using 2 million barrels of oil less today than we used in 2007. This is also at a time when America is pumping millions of barrels of extra oil that we have not had in years. Moreover, electric cars and natural gas vehicles are finally having an impact. Therefore, oil will probably be a losing trade for quite a while.
Chris Puplava has written an outstanding article about how oil prices have fallen so far and so fast. This happened to a lesser extent in 2011 and 2012 when speculators sold off massive long positions. I have made money on oil in the past and I have lost money. It all depends on being on the right side of the trade at the right time.
Chris mentioned that we also have a high oil supply chart while demand for oil has been dropping. He stated that Americans are using 2 million barrels of oil less today than we used in 2007. This is also at a time when America is pumping millions of barrels of extra oil that we have not had in years. Moreover, electric cars and natural gas vehicles are finally having an impact. Therefore, oil will probably be a losing trade for quite a while.
Crude Oil Futures Quotes - CME Group
Crude Oil Futures Quotes - CME Group
Here is a website page from the CME Group where you can view oil futures. As you can see, oil prices have been revised downward, and the price of oil is expected to remain low for quite some time. Therefore, it will be difficult to make any money on oil stocks. However, cheap oil should be good for transportation stocks and the economy. I am buying IYT, the transportation ETF, on Monday and I will probably add to my position on any significant downturns as long as the economy remains intact. IYT has gained 26% so far in 2014, and I expect continued gains going into 2015 and possibly 2016.
Here is a website page from the CME Group where you can view oil futures. As you can see, oil prices have been revised downward, and the price of oil is expected to remain low for quite some time. Therefore, it will be difficult to make any money on oil stocks. However, cheap oil should be good for transportation stocks and the economy. I am buying IYT, the transportation ETF, on Monday and I will probably add to my position on any significant downturns as long as the economy remains intact. IYT has gained 26% so far in 2014, and I expect continued gains going into 2015 and possibly 2016.
A Growing Black Cloud Over The Market | Seeking Alpha
A Growing Black Cloud Over The Market | Seeking Alpha
Eric Parnell has written a great article about how the high yield bond market as represented by HYG is intertwined with the stock market in general. He mentioned specific oil companies that are involved with HYG, and he talked about how some of these companies have experienced a large downturn. Moreover, Eric discussed how the stock market could be eventually pulled down by the tanking of the oil sector.
My best performing stock right now is TMF, the 3x long treasury bond ETF. It goes up when the market goes down because people will rush to safety in government bonds. I think the downturn is just temporary, though, because the economy is okay currently. The hard part will be picking an intermediate bottom from which stocks will rebound. I will be monitoring $NYMO, the NYSE McClellan Oscillator, for a possible bottom around -60 or lower. At that point, I will sell most of my TMF and go long on stocks like UDOW or MIDU.
Eric Parnell has written a great article about how the high yield bond market as represented by HYG is intertwined with the stock market in general. He mentioned specific oil companies that are involved with HYG, and he talked about how some of these companies have experienced a large downturn. Moreover, Eric discussed how the stock market could be eventually pulled down by the tanking of the oil sector.
My best performing stock right now is TMF, the 3x long treasury bond ETF. It goes up when the market goes down because people will rush to safety in government bonds. I think the downturn is just temporary, though, because the economy is okay currently. The hard part will be picking an intermediate bottom from which stocks will rebound. I will be monitoring $NYMO, the NYSE McClellan Oscillator, for a possible bottom around -60 or lower. At that point, I will sell most of my TMF and go long on stocks like UDOW or MIDU.
Friday, December 12, 2014
U.S. Stocks Sink With Global Equities as Oil Rout Worsens
U.S. Stocks Sink With Global Equities as Oil Rout Worsens
The expected December rally probably won't come this year. We are already in a 4% hole for December, and if a rally does occur this month, we will just get back to even. The Dow lost 3.8% for the week, the S&P 500 lost 3.5%, and the S&P 100 (OEF) lost about the same. Large cap stocks are no longer a safe haven.
We don't know yet how far the market will fall. It could be another 9% decline like we had in October. TMF and other treasury stocks are among the few current winners. When the stock market finally finds the December bottom, I will probably be buying UDOW for the ride back up. The economy is actually in good shape, and that is why I think the market will eventually recover.
The expected December rally probably won't come this year. We are already in a 4% hole for December, and if a rally does occur this month, we will just get back to even. The Dow lost 3.8% for the week, the S&P 500 lost 3.5%, and the S&P 100 (OEF) lost about the same. Large cap stocks are no longer a safe haven.
We don't know yet how far the market will fall. It could be another 9% decline like we had in October. TMF and other treasury stocks are among the few current winners. When the stock market finally finds the December bottom, I will probably be buying UDOW for the ride back up. The economy is actually in good shape, and that is why I think the market will eventually recover.
Thursday, December 11, 2014
iBillionaire – Investment Ideas from Wall Street Billionaires
iBillionaire – Investment Ideas from Wall Street Billionaires
Here is an excellent website where you can get acquainted with successful billionaire investors and some of their holdings. The site lists the top 10 index holdings on one page along with a chart of how the billionaires are doing compared to the S&P 500. The home page shows current billionaire winners and losers. Another page gives a link to Direxion's website where you can learn about the billionaire ETF, IBLN. You can't go wrong for long by following the billionaires although nobody will be right all of the time. I intend to stay in touch with what the great investors are doing.
Here is an excellent website where you can get acquainted with successful billionaire investors and some of their holdings. The site lists the top 10 index holdings on one page along with a chart of how the billionaires are doing compared to the S&P 500. The home page shows current billionaire winners and losers. Another page gives a link to Direxion's website where you can learn about the billionaire ETF, IBLN. You can't go wrong for long by following the billionaires although nobody will be right all of the time. I intend to stay in touch with what the great investors are doing.
Overview of the Direxion iBillionaire Index ETF | Direxion
Overview of the Direxion iBillionaire Index ETF | Direxion
This is a website by Direxion where you can get information about billionaire investments. They also have an ETF, IBLN, that you can buy so that you can be invested like the billionaires are doing. They select 30 mid to large cap stocks to hold in the fund. Each stock is equally weighted in the fund, and the choices are based on billionaire 13F filings. IBLN is a great way to make money safely for at least part of your portfolio.
This is a website by Direxion where you can get information about billionaire investments. They also have an ETF, IBLN, that you can buy so that you can be invested like the billionaires are doing. They select 30 mid to large cap stocks to hold in the fund. Each stock is equally weighted in the fund, and the choices are based on billionaire 13F filings. IBLN is a great way to make money safely for at least part of your portfolio.
Wednesday, December 10, 2014
Never Let A Good Bear Market Go To Waste: Energy Gems Amidst The Rubble | Seeking Alpha
Never Let A Good Bear Market Go To Waste: Energy Gems Amidst The Rubble | Seeking Alpha
Here is an outstanding article about oil company bargains that should be bought now or very soon. All three of the oil companies mentioned will most likely gain double-digit returns in the next year even if oil stays below $80 per barrel. I am buying RDS/A (Shell) tomorrow because of its great current price and because its recent dividend exceeds the junk bonds dividend rate. So, you have almost certain capital gain along with a super dividend that is most likely safe.
The other two companies discussed in the article were HAL and EOG. I agree 100% with the author that these two oil giants are great buys also. I plan to buy both of them in the near future, but my cash has already been spent on other bargains this week. HAL will rebound because fracking will continue as soon as the oil price swoon is over. EOG will rise again because it is one of the biggest oil companies in the Bakken as well as Texas. There is no way that these two companies will be held down for long.
Here is an outstanding article about oil company bargains that should be bought now or very soon. All three of the oil companies mentioned will most likely gain double-digit returns in the next year even if oil stays below $80 per barrel. I am buying RDS/A (Shell) tomorrow because of its great current price and because its recent dividend exceeds the junk bonds dividend rate. So, you have almost certain capital gain along with a super dividend that is most likely safe.
The other two companies discussed in the article were HAL and EOG. I agree 100% with the author that these two oil giants are great buys also. I plan to buy both of them in the near future, but my cash has already been spent on other bargains this week. HAL will rebound because fracking will continue as soon as the oil price swoon is over. EOG will rise again because it is one of the biggest oil companies in the Bakken as well as Texas. There is no way that these two companies will be held down for long.
AI Capable US Anti-Ship Missile Spooks Russia, Lavrov Vows To Retaliate - International Business Times
AI Capable US Anti-Ship Missile Spooks Russia, Lavrov Vows To Retaliate - International Business Times
As I occasionally do, I will talk about subjects other than the stock market. Since the Russian support of Crimea and eastern Ukraine began this year, this situation has alarmed NATO, and both Russia and the West have been doing some muscle flexing. Other articles have talked about advanced Russian aircraft. This current article talks about counter defenses that the U.S. has deployed. Certainly, we hope nothing will happen, but it is interesting to note that neither side has overwhelming dominance in everything.
As I occasionally do, I will talk about subjects other than the stock market. Since the Russian support of Crimea and eastern Ukraine began this year, this situation has alarmed NATO, and both Russia and the West have been doing some muscle flexing. Other articles have talked about advanced Russian aircraft. This current article talks about counter defenses that the U.S. has deployed. Certainly, we hope nothing will happen, but it is interesting to note that neither side has overwhelming dominance in everything.
Tuesday, December 9, 2014
Stocks in Turmoil as Fifth Hindenburg Omen Appears
Stocks in Turmoil as Fifth Hindenburg Omen Appears
This is another good article about how shaky the stock market has become. China is not helping either since they are also subject to pullbacks. The author did a good job to show the $NYA NYSE Composite Index and the $NYHILO NYSE new highs/lows index. These charts show that we may be headed for another scary decline like we had in September and October of this year. Once the bottom is known through a -60 to -90 indication on $NYMO, the NYSE McClellan Oscillator, you could make 10% or more riding the market back up through MIDU or UDOW.
This is another good article about how shaky the stock market has become. China is not helping either since they are also subject to pullbacks. The author did a good job to show the $NYA NYSE Composite Index and the $NYHILO NYSE new highs/lows index. These charts show that we may be headed for another scary decline like we had in September and October of this year. Once the bottom is known through a -60 to -90 indication on $NYMO, the NYSE McClellan Oscillator, you could make 10% or more riding the market back up through MIDU or UDOW.
Sunday, December 7, 2014
Recent Asset Class Performance | Seeking Alpha
Recent Asset Class Performance | Seeking Alpha
Here is an outstanding article about which ETFs have performed the best and the worst this year and recently. For example, the S&P 500 has gained a respectable 12% in 2014, but TLT (long government bonds) has beaten it with almost 19%, and XLV (healthcare) has beaten everyone with 27% except for INP (India) with 29%.
Other noteworthy ETFs include the Nasdaq QQQ with 20%, Utilities XLU with 20%, and Technology XLK with 17%. This goes to show you that you need a diversified portfolio utilizing sector specific ETFs along with a usual S&P 500 allocation. Another ETF which was not on the list was RUSS, short Russia shares, which is up over 100% for the past 12 months. RUSS will probably continue to gain because oil is still tanking, and it will not be coming back anytime soon. The Russian economy also depends a lot on oil.
Here is an outstanding article about which ETFs have performed the best and the worst this year and recently. For example, the S&P 500 has gained a respectable 12% in 2014, but TLT (long government bonds) has beaten it with almost 19%, and XLV (healthcare) has beaten everyone with 27% except for INP (India) with 29%.
Other noteworthy ETFs include the Nasdaq QQQ with 20%, Utilities XLU with 20%, and Technology XLK with 17%. This goes to show you that you need a diversified portfolio utilizing sector specific ETFs along with a usual S&P 500 allocation. Another ETF which was not on the list was RUSS, short Russia shares, which is up over 100% for the past 12 months. RUSS will probably continue to gain because oil is still tanking, and it will not be coming back anytime soon. The Russian economy also depends a lot on oil.
A Trend Following Bond Portfolio For Any Environment | Seeking Alpha
A Trend Following Bond Portfolio For Any Environment | Seeking Alpha
This is great article which explains the benefits of owning bonds. I agree with the author that bonds can produce significant returns if you stay with it and if you have a good plan like a couple of those strategies that were mentioned in the article. You never know when the stock market will fall, and government bonds will be the best place to be at that time.
You can also sleep better at night if you know you have a well diversified portfolio. If half of your money happens to be invested in good stock picks, you will get ahead just fine with your 50% stock allocation while your 50% bond allocation will protect you if your stock picks go bad because 50% of your money will be safe. We must always be prepared for the worst while we hope for the best.
This is great article which explains the benefits of owning bonds. I agree with the author that bonds can produce significant returns if you stay with it and if you have a good plan like a couple of those strategies that were mentioned in the article. You never know when the stock market will fall, and government bonds will be the best place to be at that time.
You can also sleep better at night if you know you have a well diversified portfolio. If half of your money happens to be invested in good stock picks, you will get ahead just fine with your 50% stock allocation while your 50% bond allocation will protect you if your stock picks go bad because 50% of your money will be safe. We must always be prepared for the worst while we hope for the best.
The Only 2 Charts You Need To Understand The S&P 500 - SPDR S&P 500 Trust ETF (NYSEARCA:SPY) | Seeking Alpha
The Only 2 Charts You Need To Understand The S&P 500 - SPDR S&P 500 Trust ETF (NYSEARCA:SPY) | Seeking Alpha
Here is an excellent article about how to tell if the S&P 500 will go higher. The author showed charts of the S&P buybacks index and the Japanese yen, FXY, to prove his point. As long as companies are buying back stock and the Japanese yen is going down, the stock market will rise.
Currently, we are in no man's land. The market does not know which direction it wants to go as illustrated by the S&P 500 flat price chart and the MACD. We need to be willing to adjust our positions as soon as we know where the stock market is headed. Also, we need to take profits when we have them.
Here is an excellent article about how to tell if the S&P 500 will go higher. The author showed charts of the S&P buybacks index and the Japanese yen, FXY, to prove his point. As long as companies are buying back stock and the Japanese yen is going down, the stock market will rise.
Currently, we are in no man's land. The market does not know which direction it wants to go as illustrated by the S&P 500 flat price chart and the MACD. We need to be willing to adjust our positions as soon as we know where the stock market is headed. Also, we need to take profits when we have them.
Friday, December 5, 2014
Boswellia for RA, OA, Asthma, and Cancer
Boswellia for RA, OA, Asthma, and Cancer
As I occasionally do, I will talk about topics other than the stock market. The above link to Healthline discusses the health benefits of Boswellia. It is a great anti-inflammatory herb that is useful for joint health. It not only soothes joints but helps to prevent the loss of cartilage. In theory, Boswellia could also help back discs just like studies have shown it helps people with knee problems.
Other benefits include reducing asthma symptoms and fighting against cancer. It also increases blood flow in women's genital areas, and it probably does the same for men. I have been using Boswellia through a Synerflex supplement for quite some time for knee and back pain. I definitely believe it works. You need to take it twice per day with a minimum of 300 mg of Boswellia.
As I occasionally do, I will talk about topics other than the stock market. The above link to Healthline discusses the health benefits of Boswellia. It is a great anti-inflammatory herb that is useful for joint health. It not only soothes joints but helps to prevent the loss of cartilage. In theory, Boswellia could also help back discs just like studies have shown it helps people with knee problems.
Other benefits include reducing asthma symptoms and fighting against cancer. It also increases blood flow in women's genital areas, and it probably does the same for men. I have been using Boswellia through a Synerflex supplement for quite some time for knee and back pain. I definitely believe it works. You need to take it twice per day with a minimum of 300 mg of Boswellia.
Thursday, December 4, 2014
Bad News About This Year’s Flu Shot - weather.com
Bad News About This Year’s Flu Shot - weather.com
As I occasionally do, I will talk about other subjects in addition to the stock market. The above link involves flu vaccinations which are only about half effective in preventing the flu. The vaccine cannot cover all flu strains. Another point was that other strains of the flu virus become prevalent toward the end of flu season in the early spring. In fact, that is exactly when I caught the flu earlier in 2014. I thought I was safe since winter was past, but the flu bug was still around. So, be aware that there is not a perfect flu shot, and you need to act quickly if you get the flu because drugs like Tamiflu will work after you have been infected.
As I occasionally do, I will talk about other subjects in addition to the stock market. The above link involves flu vaccinations which are only about half effective in preventing the flu. The vaccine cannot cover all flu strains. Another point was that other strains of the flu virus become prevalent toward the end of flu season in the early spring. In fact, that is exactly when I caught the flu earlier in 2014. I thought I was safe since winter was past, but the flu bug was still around. So, be aware that there is not a perfect flu shot, and you need to act quickly if you get the flu because drugs like Tamiflu will work after you have been infected.
Tuesday, December 2, 2014
Stocks Bounce as 'Hindenburg Omen' Strikes
Stocks Bounce as 'Hindenburg Omen' Strikes
I am not alone in believing that stocks have more volatility ahead. Please read the article about the Hindenburg Omen above. I am making a little money in dividend stocks like MORL and AGNC that have held up fairly well in downturns while they continued to pay high dividends. However, I am a great believer in diversification and strict allocations of my money.
For example, I always want to have money ready to deploy on market pullbacks. So, I allocate around 20% or more of my money to cash. Since I know the economy is okay, and the long-term trend of the stock market is still up, I am not afraid to buy at intermittent bottoms. If you can make a 10% return on your trading money from the bottom just five times per year, you will make 50% each year with that money.
As much as I think the market will be volatile enough to make money trading, I always remain diversified in case I am wrong. Quality dividend stocks can be your bread and butter while trading allows you to hit home runs if the opportunities come along. I like playing ETFs for the home runs because you never know what might happen to individual stocks, and ETFs like UDOW and SOXL follow general market or sector trends. Just buy at the lows and sell when you are up 10-15% because we will always get downturns again sooner or later.
I am not alone in believing that stocks have more volatility ahead. Please read the article about the Hindenburg Omen above. I am making a little money in dividend stocks like MORL and AGNC that have held up fairly well in downturns while they continued to pay high dividends. However, I am a great believer in diversification and strict allocations of my money.
For example, I always want to have money ready to deploy on market pullbacks. So, I allocate around 20% or more of my money to cash. Since I know the economy is okay, and the long-term trend of the stock market is still up, I am not afraid to buy at intermittent bottoms. If you can make a 10% return on your trading money from the bottom just five times per year, you will make 50% each year with that money.
As much as I think the market will be volatile enough to make money trading, I always remain diversified in case I am wrong. Quality dividend stocks can be your bread and butter while trading allows you to hit home runs if the opportunities come along. I like playing ETFs for the home runs because you never know what might happen to individual stocks, and ETFs like UDOW and SOXL follow general market or sector trends. Just buy at the lows and sell when you are up 10-15% because we will always get downturns again sooner or later.
34 Percent Cash
These are troubled times for the stock market even though the Dow was up over 100 points today. Apple is still down $5 from last week's high after losing most of it on Monday. AAPL is now $114 per share. I was one of the people who got cut in Apple's downfall because I was expecting the stock to get over the $120 mark by mid-December. That was when I had planned to sell. Instead, I got shaken out on Monday. I lost most of my profit, but I still had a positive gain
when I sold for $115.73 to be safe.
After selling Apple and a few other stocks, I am now 34% cash. That is money that the market cannot take away from me, and I will use the cash on big sell-offs to buy quality stocks or ETFs. I don't believe we are headed for a bear market, but I believe we will experience a lot of volatility over the next few months. Since the economy is actually doing well, that is why I believe the market will always come back some, and I can make money riding up from the bottom of each downturn.
As for predicting the extent of each downturn, I cannot possibly know the numbers at the bottom, but I can get close. I believe we will have several 5-10% declines over the next six months. $NYMO will most likely be below -55 in all of those cases. That is when I plan to buy. UDOW, the Dow 3x ETF, is one of the stocks I plan to buy at each bottom. So, a lot of the money I make in the next six months will be from buying at the bottom and attempting to sell at the top.
when I sold for $115.73 to be safe.
After selling Apple and a few other stocks, I am now 34% cash. That is money that the market cannot take away from me, and I will use the cash on big sell-offs to buy quality stocks or ETFs. I don't believe we are headed for a bear market, but I believe we will experience a lot of volatility over the next few months. Since the economy is actually doing well, that is why I believe the market will always come back some, and I can make money riding up from the bottom of each downturn.
As for predicting the extent of each downturn, I cannot possibly know the numbers at the bottom, but I can get close. I believe we will have several 5-10% declines over the next six months. $NYMO will most likely be below -55 in all of those cases. That is when I plan to buy. UDOW, the Dow 3x ETF, is one of the stocks I plan to buy at each bottom. So, a lot of the money I make in the next six months will be from buying at the bottom and attempting to sell at the top.
Subscribe to:
Posts (Atom)