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Brad Kenagy

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  • Natural Gas Producers Could Soon Be Victims Of Their Own Success [View article]
    I think your selection of UNG is not very good even if hedged. There are two better natural gas ETFs that are worth owning, first if you want exposure to natural gas futures like UNG has, I would rather own The United States 12 Month Natural Gas ETF (UNL) which owns contracts accross 12 months vs 1 for UNG.

    Since UNL inception on 1/4/2010

    UNL: -69.84%
    UNG: -78.40%

    UNL performance is slightly better, but still horrible overall.

    The best choice I like for exposure to natural gas is First Trust ISE-Revere Natural Gas Index ETF (FCG) which The index is constructed by establishing the universe of U.S. listed stocks of companies involved in the exploration and production of natural gas.

    Using the same starting date of 1/4/2010 to compare to UNG/UNL, FCG has a return of +2.36%.

    Just my thoughts, and thought I should bring it up.
    Sep 24 09:51 PM | 2 Likes Like |Link to Comment
  • The 4% Plan - A Permanent Income Stream Solution [View article]
    Very good article, I have a suggestion that could increase the income of the portfolio even further. If you add for the precious metals allocation the Credit Suisse Gold Shares Covered Call ETN (GLDI) or Credit Suisse Silver Shares Covered Call ETN (SLVO), you could increase the income even further of the portfolio.

    Disclosure: No Positions in either fund
    Sep 20 10:36 AM | 2 Likes Like |Link to Comment
  • Creating A Portfolio To Outperform Obamacare [View article]
    I don't know what everyone is complaining about, I have never heard of the heritage foundation before this article. If you think the source is not credible, here is two recent Forbes articles, I chose the heritage article because it showed all 50 states. The numbers from the from each states department of insurance is pretty close to the estimate on the heritage page so I don't know what the big deal is.

    http://onforb.es/16HcfEO

    http://onforb.es/16Hchwc
    Aug 24 09:43 PM | 2 Likes Like |Link to Comment
  • A Bubble Continues To Form In The Stock Market [View article]
    I am long equities, I just have cut my exposure back.
    Aug 3 10:05 AM | 2 Likes Like |Link to Comment
  • Undervalued Stock Of The Week: SodaStream International [View article]
    Thank you for the comment. I disagree with you, because the growth of the company says otherwise, if consumers didn't like the product the sales of SODA would be going down, but they have grown every year the last 4 years.
    Jul 16 11:16 PM | 2 Likes Like |Link to Comment
  • Rentech Nitrogen Partners: Investors With An Eye Only On The Sky Might Miss Something [View article]
    I agree the article was very well written.
    Jun 17 01:41 PM | 2 Likes Like |Link to Comment
  • It Is Not Different This Time - It Is Worse [View article]
    Just saw this piece of info on Market Currents: "The hot market for corporate junk (HYG, JNK) has pushed the yield on high-yield corporates (4.88%) well below that of high-yield municipals (5.22% nominally, over 8% on a tax-equivalent basis). The nominal spread of 34 bps is down from 56 bps a week ago as investors take notice of the anomaly."

    http://seekingalpha.co...
    May 20 01:25 PM | 2 Likes Like |Link to Comment
  • Short Candidates For When The Tide Goes Out [View article]
    Thank you for your comments. I disagree with you. I used INTC as an example because it is the biggest player in the chip space.

    I bet from the close today, until to the end of the year, INTC, NVDA, ARMH, and QCOM will all outperform AMD.
    May 9 12:21 PM | 2 Likes Like |Link to Comment
  • Analyzing DuPont: 3% Yield And Undervalued [View article]
    Thank you for your comments. When you say "but from the inside hallways, we can tell you that it's already OVER-PRICED today." My question to you is, what hallways are you talk about [do you work for DuPont?] and who is the "WE" you are referring to??
    May 3 05:51 PM | 2 Likes Like |Link to Comment
  • AT&T: Financial Shenanigans, Painful Truth Coming [View article]
    Great call on T, down over 5% today.
    Apr 24 10:48 AM | 2 Likes Like |Link to Comment
  • 2 Popular Fixed Income ETFs I Would Never Own [View article]
    Comparing AGG and BND to the other funds is not an apples to apples comparison because AGG and BND are forced to own investment grade bonds, where as the mutual funds you described can hold high yield debt emerging market debt etc in addition to investment grade bonds, thus raising the yields, and still maintaining a short duration.

    DBLFX currently has a 12.20% allocation to emerging markets, and credit wise has a total of 17% of its holdings that are below investment grade or not rated.

    I can go on and on, but I agree with you active management in bonds can be good especially now with rates so low, but it is irresponsible to compare ETFs which CAN NOT own the same asset classes as the mutual funds you listed can. Im sure if AGG and BND were able to own emerging market bonds, or high yield bonds the performance gap would be much closer.
    Apr 11 04:12 PM | 2 Likes Like |Link to Comment
  • CNBC.com ETF Portfolios [View article]
    I agree with you that the portfolio give a good general framework but I see alot! of overlap that will add to transaction costs. I'll go through section by section

    CASH:

    GSY is a good choice, an alternative choice would be the PIMCO Enhanced Short Maturity Strategy ETF (MINT)

    US EQUITIES:

    SPY and SCHD have a 96% correlation so they are essentially the same thing except SCHD has a higher dividend. SPY also have a 96% correlation to VO, and 85% correlation to FXH. So I would replace SPY,and VO with an ETF like the Utilities Select Sector SPDR ETF (XLU) since SCHD only has around a 3% weighting to Utilities.

    EMERGING MARKETS EQUITIES:

    DEM and ECON have a 89% correlation so I would get rid of ECON and keep DEM because DEM has a higher yield.

    DEVELOPED INTERNATIONAL EQUITIES:

    When comparing the correlations of VEU and IDLV, to the two emerging market etfs it is clear that VEU is highly correlated to the emerging markets etfs, and IDLV has a 61% correlation to DEM, and 59% correlation to ECON. So I would keep IDLV and get rid of VEU.

    FIXED INCOME:

    I think the fixed income section is actually fine because AGG has roughly 35% in treasuries, 29% in MBS,and 22% in corporates, so there is a little overlap with LQD, but not that much. AGG and LQD have a 78% correlation.

    OPPORTUNITY:

    I like the list except I would remove, BKLN, UUP, GDX, put in a different ETF like IAU.

    So using the funds listed with my changes, it would look like

    Cash-GSY
    US Equities-SCHD,XLU
    Emerging Markets Equities: DEM
    Developed Equities: IDLV
    Fixed Income: AGG,LQD,ELD
    Opportunity: IAU,HYLD,VNQI

    11 ETFs is much more manageable than 17 and is not as overlapping and correlated as the CNBC portfolio is. Just my thoughts on the subject. Maybe I'll write an article with my own suggestion for a "CNBC" portfolio.
    Apr 10 08:36 PM | 2 Likes Like |Link to Comment
  • It Is Not Different This Time - It Is Worse [View article]
    Yes the refiners pay Brent prices when IMPORTING crude from the rest of the world. But when they get crude transported by pipeline, or rail that is from here, they get it at WTI prices.
    Apr 8 12:49 PM | 2 Likes Like |Link to Comment
  • Danger: Unexploded Bomb In Your Preferred Stock Portfolio [View article]
    Another option I was just looking at is the recently launched First Trust Preferred Securities and Income ETF (FPE) which is an actively managed Preferred stock ETF.

    The fund has really good volume for being fairly new and expense ratio is 0.85% which is higher than PFF, or PGX, but lower than most active ETFs.

    Seeking Alpha has the yield at: 5.07%

    Link to FPE fund page:

    http://bit.ly/14prTFs
    Mar 27 09:23 PM | 2 Likes Like |Link to Comment
  • Danger: Unexploded Bomb In Your Preferred Stock Portfolio [View article]
    Yes,the Market Vectors Preferred Securities ex Financials ETF (PFXF) it doesnt own financials, but it does own REIT preferreds which depending on what classification system you use are considered financials. But as far as owning preferred stocks of like banks, PFXF does not own them.
    Mar 27 07:18 PM | 2 Likes Like |Link to Comment
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