Tesla Motors Inc (TSLA) news: When Is Tesla Going To $1000? [SolarCity Corp] - Seeking Alpha
This is a very good article with calculations and projections that Tesla (TSLA) will be worth $1,000 per share in 2020. The article also states that the current value should be $279 per share in keeping with the projected success of Tesla. That means today's price of $244 is a slight bargain but worth taking. I own the stock, and I plan to buy more on any pullbacks if I have cash available.
Currently, Tesla is just one part of my diversified portfolio. I have dividend stocks as well as a large position in TVIX, the leveraged volatility index. TVIX is just a short term trade. I recently made 37% when I bought and sold the stock during the 6% stock market drop earlier this year. An investor needs to have a strict allocation strategy where certain funds stay in certain areas such as dividend stocks, long term growth stocks like Tesla, and short term trading like TVIX. In other words, my market volatility money should stay in cash while I wait for the next TVIX cycle. Future contributions to my 401K should go to long term stocks like Tesla. In this way, each section of your portfolio will be adding to your bottom line in various percent amounts.
There will always be a temptation to put all of your money in the part of your portfolio where you are making the most money, but never give in to this temptation! For example, something could go wrong with Tesla if other car companies succeed in making a better electric car. If only 10% of my money is on Tesla, and it falls 50%, I will have lost only 5% in my overall portfolio. Strict diversification must always be followed to prevent financial disasters.
Friday, February 28, 2014
Thursday, February 27, 2014
Stocks Unquestionably Hesitant, But Is That Bearish? [SPDR S&P 500 ETF Trust] - Seeking Alpha
Stocks Unquestionably Hesitant, But Is That Bearish? [SPDR S&P 500 ETF Trust] - Seeking Alpha
Here is another very good article by Chris Ciovacco about why we are not in a 1929 crash situation currently. Certainly, the stock market cannot seem to go much higher, but Chris made a good point that IWO small caps compared to the S&P 500 are staying strong. The IWO versus S&P 500 chart of 2008 shows what real trouble looks like. The 2008 chart shows a clear downtrend while the 2014 chart is positive. Also, the recent Chicago Federal Reserve National Activity Index (CFNAI) was just -.39 while a really bad economic figure would be -1.00 or greater.
Here is another very good article by Chris Ciovacco about why we are not in a 1929 crash situation currently. Certainly, the stock market cannot seem to go much higher, but Chris made a good point that IWO small caps compared to the S&P 500 are staying strong. The IWO versus S&P 500 chart of 2008 shows what real trouble looks like. The 2008 chart shows a clear downtrend while the 2014 chart is positive. Also, the recent Chicago Federal Reserve National Activity Index (CFNAI) was just -.39 while a really bad economic figure would be -1.00 or greater.
Tesla lifts curtain on $5 billion 'gigafactory'- MSN Money
Tesla lifts curtain on $5 billion 'gigafactory'- MSN Money
This is an outstanding article about Tesla (TSLA). The stock has nearly doubled in just three months, and people thought that it was overvalued back when it was 50% less. Tesla is a great story stock that could turn into a fantastic dream like Priceline (PCLN) which went $5 per share after the dot.com bust to more than $1,300 per share today. Another good stock is Western Lithium (WLCDF) which is rumored to be a possible future partner with Tesla. I am a buyer of Tesla and Western Lithium.
This is an outstanding article about Tesla (TSLA). The stock has nearly doubled in just three months, and people thought that it was overvalued back when it was 50% less. Tesla is a great story stock that could turn into a fantastic dream like Priceline (PCLN) which went $5 per share after the dot.com bust to more than $1,300 per share today. Another good stock is Western Lithium (WLCDF) which is rumored to be a possible future partner with Tesla. I am a buyer of Tesla and Western Lithium.
Wednesday, February 26, 2014
Chatham Lodging Trust: I May Be Adding SALSA To This Hotel REIT That Pays Dividends Monthly - Seeking Alpha
Chatham Lodging Trust: I May Be Adding SALSA To This Hotel REIT That Pays Dividends Monthly - Seeking Alpha
Here is a good article about a hotel REIT that pays a 4% dividend in monthly installments. I also like some of the hotel brands that they hold such as Hampton Inn and Courtyard by Marriott. The stock had a 39% capital gain in 2013, too. Chatham (CLTD) is probably a good stock to hold in a diversified portfolio.
Here is a good article about a hotel REIT that pays a 4% dividend in monthly installments. I also like some of the hotel brands that they hold such as Hampton Inn and Courtyard by Marriott. The stock had a 39% capital gain in 2013, too. Chatham (CLTD) is probably a good stock to hold in a diversified portfolio.
Sunday, February 23, 2014
Stock Market Returns Cannot Exceed Intrinsic Value Growth Forever - Seeking Alpha
Stock Market Returns Cannot Exceed Intrinsic Value Growth Forever - Seeking Alpha
This is an interesting article by Grey Owl Capital. If you take the long view over the last 14 years, aggregate bonds have outperformed stocks as well as being safer. I am not saying we should exit stocks, but a substantial bond allocation should be part of a person's portfolio at all times. Grey Owl is also correct that 2014 will most likely not be a repeat of 29% on the S&P 500. The return for stocks will be less and less until the bull market rolls over and starts giving losses. Thus, another part of your portfolio should be invested in shorting the market or betting on volatility with VXX or TVIX. Around 10% of my portfolio is currently in TVIX because I believe stock market trouble could occur again just like the 6% pullback we recently experienced. I made a 37% profit on TVIX then. You must be certain to sell while you have a profit, though.
This is an interesting article by Grey Owl Capital. If you take the long view over the last 14 years, aggregate bonds have outperformed stocks as well as being safer. I am not saying we should exit stocks, but a substantial bond allocation should be part of a person's portfolio at all times. Grey Owl is also correct that 2014 will most likely not be a repeat of 29% on the S&P 500. The return for stocks will be less and less until the bull market rolls over and starts giving losses. Thus, another part of your portfolio should be invested in shorting the market or betting on volatility with VXX or TVIX. Around 10% of my portfolio is currently in TVIX because I believe stock market trouble could occur again just like the 6% pullback we recently experienced. I made a 37% profit on TVIX then. You must be certain to sell while you have a profit, though.
Saturday, February 22, 2014
The 2 Most Important Questions For Investors [SPDR S&P 500 ETF Trust] - Seeking Alpha
The 2 Most Important Questions For Investors [SPDR S&P 500 ETF Trust] - Seeking Alpha
This is another great article by Chris Ciovacco. No one knows how the future of the stock market will turn out, but certain charts can give a reasonable direction for the market. As Chris explains, the charts show what the aggregate opinion is for stocks advancing or declining. In a bull market, the S&P 500 generally always stays above the 200-day moving average, and the slope of the 200-day line is upward. The 50-day line is more volatile, but the slope of the line is going up most of the time.
Chris also presented tables to show the amount of money you would either make or keep if you correctly decipher the stock market's direction. For example, he stated that the market rose 91% between 1997 and 2000. If you had stayed in stocks during those three years, you would have almost doubled your money. If you had stayed on the sidelines, you would not have gained anything significant for your retirement money.
Then, on the bear side, if you stay in the stock market when it is going down, you can easily lose more than 50% of your money. If you have $50,000 saved up, your money would drop to less than $25,000. So, it is highly important to pay attention to the charts and buy either bullish or bearish stocks depending on the general market direction.
What happens if the S&P 500 or Dow drops below the 200-day line? How do you know if the market is still in bull mode or has changed to a bear market? The first way is to look at the slope of the 200-day line as I mentioned above. If it has not gone flat or down, you are safe, and it is a buying opportunity. The second condition to check when the market is going down is the economic situation. If the Federal Reserve still has positive economic numbers, then you need to stay in the market as long as the 200-day slope is upward. By checking both the 200-day chart and the economic picture, you will not get whipsawed around on big stock market pullbacks.
This is another great article by Chris Ciovacco. No one knows how the future of the stock market will turn out, but certain charts can give a reasonable direction for the market. As Chris explains, the charts show what the aggregate opinion is for stocks advancing or declining. In a bull market, the S&P 500 generally always stays above the 200-day moving average, and the slope of the 200-day line is upward. The 50-day line is more volatile, but the slope of the line is going up most of the time.
Chris also presented tables to show the amount of money you would either make or keep if you correctly decipher the stock market's direction. For example, he stated that the market rose 91% between 1997 and 2000. If you had stayed in stocks during those three years, you would have almost doubled your money. If you had stayed on the sidelines, you would not have gained anything significant for your retirement money.
Then, on the bear side, if you stay in the stock market when it is going down, you can easily lose more than 50% of your money. If you have $50,000 saved up, your money would drop to less than $25,000. So, it is highly important to pay attention to the charts and buy either bullish or bearish stocks depending on the general market direction.
What happens if the S&P 500 or Dow drops below the 200-day line? How do you know if the market is still in bull mode or has changed to a bear market? The first way is to look at the slope of the 200-day line as I mentioned above. If it has not gone flat or down, you are safe, and it is a buying opportunity. The second condition to check when the market is going down is the economic situation. If the Federal Reserve still has positive economic numbers, then you need to stay in the market as long as the 200-day slope is upward. By checking both the 200-day chart and the economic picture, you will not get whipsawed around on big stock market pullbacks.
PowerShares QQQ Trust, Series 1 (ETF) (QQQ) news: Yes, The Nasdaq Bubble Is Definitely Here - Seeking Alpha
PowerShares QQQ Trust, Series 1 (ETF) (QQQ) news: Yes, The Nasdaq Bubble Is Definitely Here - Seeking Alpha
Here is an interesting article about why the Nasdaq is in a bubble similar to the year 2000. It remains to be seen how this scenario will play out, but caution is certainly warranted for stocks currently. The Dow and Russell 2000 already have bearish charts as another author, David Moenning, pointed out. Of course, the Nasdaq could continue higher, but I am keeping my eyes open for an exit door.
Here is an interesting article about why the Nasdaq is in a bubble similar to the year 2000. It remains to be seen how this scenario will play out, but caution is certainly warranted for stocks currently. The Dow and Russell 2000 already have bearish charts as another author, David Moenning, pointed out. Of course, the Nasdaq could continue higher, but I am keeping my eyes open for an exit door.
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