March 9, 2012 - Quote of the Day
If you can pick up any emerging market with a multiple of less than 20, it is a great long term investment,? said professor Jeremy Siegel at the University of Pennsylvania Wharton School of Business.
Entries by DougD
This Week, It?s All About Jobs
Don?t expect much market volatility until we get the February nonfarm payroll report on Friday at 8:30 EST. Consensus has them coming in at around 200,000. However, we may have just gotten a valuable preview to those figures. According to the Japanese broker, Nomura Securities, the ADP National Employment Report, a monthly analysis of the
Take a Look at Cheniere Energy (LNG)
I am constantly asked if there are any ways investors can take advantage of the collapse of the natural gas market, where at $2.34/MBTU prices are plumbing decade lows. I have recently made good money buying puts on the ETF (UNG), but these are not for the faint of heart. They call this contract the
March 8, 2012 - Quote of the Day
?We?ve had several false starts in this recovery. People jump on the train just before it runs off the tracks. You have to be wary about that,? said a well-known economist.
The Reception That 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 Senate Armed Services Chairman Sam Nunn. I said I?d be
March 7, 2012 - Quote of the Day
?We are about to do something terrible to you. We are going to deprive you of an enemy,? Soviet commentator, Georgi Arbitov, told Secretary of State George Schultz at the end of the cold war.
Oil Isn't What It Used to Be
Virtually every analyst has been puzzled by the seeming immunity of stock markets to soaring oil prices this year. In fact, stocks and crude have been tracking almost one to one on the upside. The charts below a friend at JP Morgan sent me a long way towards explaining this apparent dichotomy. The first shows
Why I?m Covering My Bank Short
I am going to use the weakness in Bank of America shares today to cover my short position through selling my existing position in the (BAC) May, 2012 $7 puts at $0.24 cents or best. There is such minimal volatility in the market these days that when a little bit comes along, you have to
March 6, 2012 - Quote of the Day
?What?s very different today is that when dividend yields are much higher than interest rates, you don?t need as much earnings growth and capital gains to have a great investment,? said professor Jeremy Siegel at the University of Pennsylvania Wharton School of Business.
Is Quantitative Easing Over?
That is certainly the conclusion of the financial markets. When Federal Reserve chairman, Ben Bernanke, failed to mention the magic words in his House Humphrey Hawkins testimony on Wednesday, risk assets were sent into a tailspin. Gold suffered a $100 move plunge in hours, the futures market seeing an almost instantaneous liquidation of $1.3 billion