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.
Sunday, December 7, 2014
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.
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