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Here Comes the Rolling Top

The S&P 500 is now at 1,564, and most strategist forecasts for the end of 2013 hover around 1,550-1,600, plus or minus some spare change. So the next nine months are going to be incredibly boring. Or they won’t. Even in a bull market, one expects to see pullbacks of at least one third of […]

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A Different View of the US

My mother lives in Pakistan, my daughter in Greece, and I have a ski chalet in Peru. What’s more, I have strategy luncheons planned for Australia, Thailand, and Turkey. At least these would be my conclusions after looking at a map of the United States prepared by my esteemed former employer, The Economist magazine, renaming […]

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March 25, 2013

Global Market Comments March 25, 2013 Fiat Lux Featured Trade: (AIRLINE STOCKS ARE CLEARED FOR TAKEOFF), (UAL), (DAL), (LUV), (AAMRQ), (LCC), (ARE JUNK BONDS PEAKING?), (JNK), (HYG), (TESTIMONIAL) United Continental Holdings, Inc. (UAL) Delta Air Lines Inc. (DAL) Southwest Airlines Co. (LUV) AMR Corporation (AAMRQ) US Airways Group, Inc. (LCC) SPDR Barclays High Yield Bond […]

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Airline Stocks Are Cleared for Take Off

When I was a young, clueless investment banker at Morgan Stanley 30 years ago, the head of equity sales took me aside to give me some fatherly advice. Never touch the airlines. The profitability of this industry was totally dependent on fuel costs, interest rates, and the state of the economy, and management hadn’t the […]

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Are Junk Bonds Peaking?

There is no happier corner of the fixed income universe than junk bonds (JNK), (HYG), which have been soaring like a bat out of hell for the past four years. Average yields for the bond class most sensitive to the economy have collapsed from 18% to near an all-time low of 6%, a scant 400 […]

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March 22, 2013

Global Market Comments March 22, 2013 Fiat Lux Featured Trade: (BUY EVERY BLACK SWAN), (SPY), (QQQ), (IWM), (AAPL), (UAL) (REVISITING CHENIERE ENERGY), (LNG), (UNG), (USO), (DVN), (CHK) SPDR S&P 500 (SPY) PowerShares QQQ (QQQ) iShares Russell 2000 Index (IWM) Apple Inc. (AAPL) United Continental Holdings, Inc. (UAL) Cheniere Energy, Inc. (LNG) United States Natural Gas […]

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Buy Every Black Swan

At least that’s what Ben Bernanke thinks. He said as much in his press conference yesterday in the wake of the latest Fed statement. He might as well have waved a red Flag at a bull. The central bank took the opportunity to downgrade its US growth forecasts going forward as a result of sequestration […]

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Revisiting Cheniere Energy (LNG)

Occasionally, I so totally knock the ball out of the park that I qualify for a place in the stock picker’s Hall of Fame. That was the case when I put out a recommendation to buy LNG exporter, Cheniere Energy (LNG), a year ago (click here  for Take a Look at Cheniere Energy (LNG). Since […]

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March 21, 2013

Global Market Comments March 21, 2013 Fiat Lux Featured Trade: (TRADE ALERT SERVICE SEIZES 31.8% GAIN IN 2013), (SPY), (FXY), (IWM, (BAC), (AIG), (FCX), (FXE), (FXB), (GLD), (USO), (THE BULL CASE FOR BANK OF AMERICA), (BAC), (WHEN STERILIZATION IS NOT A FORM OF BIRTH CONTROL), (TLT), (PCY), (MUB), (JNK), (TESTIMONIAL) SPDR S&P 500 (SPY) CurrencyShares […]

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Trade Alert Service Seizes 31.8% Profit in 2013

The Trade Alert Service of the Mad Hedge Fund Trader has posted a 31.8% profit year to date, taking it to another new all time high. The 27-month total return has punched through to an awesome 86.9%, compared to a miserable 18.5% return for the Dow average during the same period. That raises the average […]

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The Bull Case for Bank of America

I’ll give you the quick and dirty argument behind buying Bank of America. For the past four years, the main argument for avoiding this stock like the plague was the hidden book of bad home loans it was hiding on its back bookshelf, thought to be in the tens of billions of dollars. This is […]

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When Sterilization is Not a Form of Birth Control

I received a flurry of inquires the other day when Ben Bernanke mentioned the word “sterilization” in his recent congressional testimony. And he wasn’t giving advice to the country’s wayward teenaged girls, either. Sterilization refers to a specific style of monetary policy. Sterilized policies seek to manipulate the money markets without changing the overall money […]

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March 20, 2013

Global Market Comments March 20, 2013 Fiat Lux Featured Trade: (THE RECEPTIONS THE STARS FELL UPON), (NLR), (CCJ), (CORN), (WEAT), (SOYB), (DBA), (BECOME MY FACEBOOK FRIEND), (OIL ISN’T WHAT IT USED TO BE), (USO), (DIG), (DUG) Market Vectors Uranium+Nuclear Enrgy ETF (NLR) Cameco Corporation (CCJ) Teucrium Corn (CORN) Teucrium Wheat (WEAT) Teucrium Soybean (SOYB) PowerShares […]

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The Reception the Stars Fell Upon

My friend was having a hard time finding someone to attend a reception who was knowledgeable about financial markets, White House intrigue, international politics, and nuclear weapons. I asked who was coming. She said Reagan’s Treasury Secretary George Shultz, Clinton’s Defense Secretary William Perry, and former Senate Armed Services Chairman Sam Nunn. I said I’d […]

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