This Gold Slam Is A Massive Wealth Transfer From Our Pockets To The Banks [View article]
Chris, Great piece of financial investigative journalism--it was worth burning the oil for it! HFT is making these sort of sophisticated dumping schemes possible and you're so right in saying that nobody's going to do anything about it.
Doing my chart surfing everyday I see front-running all the time. It someone knows something a few minutes before a major release, you'll see it show up in the stock market; if it's more than a few hours up to a couple of weeks before, you'll see it in the options market. Again, nobody does anything about it (because if they did everybody would be in jail) and if they do, it's on very rare and special occasions.
I'm sure the late-night HFT-type of dumping is done not only in commodities but in stocks, too. How else does one explain those unexplained sell-offs? Wondering if this type of manipulation wasn't responsible in part for some of Apple's sell-off...
This Gold Slam Is A Massive Wealth Transfer From Our Pockets To The Banks [View article]
James,
From your article, you're saying that the gold etfs are to blame for the rise in gold prices. For one thing, the GLD is not a paper product; in fact it is one of the largest owners of physical gold in the world.
You claim that rampant gold etf buying was the cause of gold's big rise, but I'm not seeing anything concrete to substantiate your thesis. This article's author really dug into his subject and performed extensive data collection to either prove (or disprove) his thesis. His results are provocative and based on verifiable facts.
I'm probably the last person to diss another author as I understand what hard work it takes to bring a thoughtful article to publication, but I've found in the past that theStreet.com authors to tend be long on opinion and short on facts. They also negate any other point of view other than their own.
This might be one of the biggest monetary settlements in SEC history but more than that it is certainly one of the largest miscarriages of justice in its history. I'm betting that after this settlement was pronounced Goldman held a champagne party on its rooftop.
23 High Quality, High Dividend Stocks [View article]
Thanks for noting my error on LFL. (I have no idea what company description I could have been looking at!) LFL is indeed an airline company (LAN airlines) and it's based in Chile, not Colombia. It does not own any airports but it does have interests in a couple of concessionaries. I also apologize for my misspelling. (The spell catcher doesn't know the difference between Colombia and Columbia.)
As for the "quality" rating of these dividend stocks: I don't have time to research every single stock that was output from the stock screener. These results are meant to be a springboard for your own research. It appears that most of the people here understand that, but I guess I should have stated it in the article. I shall do so in the future.
Thanks for everyone's comments and for keeping me honest!
It's a Good Time to Consider Insuring Your Portfolio With the VIX [View article]
The author presents good reasons why one should definitely consider portfolio protection (and I've been harping on this subject with my subscribers). However, trying to play the VIX ETN's is a losing game. I was going to write an article on this very subject but after looking at the VXX & VXZ charts, I saw no viable strategy worth the considerable risk (except in one case) for the reasons others have mentioned above.
I also looked at options strategies on these ETNs and couldn't find anything where the risk was worth the reward. The ONLY time I would recommend using these ETNs is if you have specific inside information regarding a major event such as your canary is telling you that the West Coast will be hit with a 12.0 earthquake tomorrow. (I hope not!) This is the only time I would put my money into such a risky vehicle.
If you're looking to protect your portfolio, buying index puts during periods of low volatility, such as we have right now, carries considerably less risk than VIX strategies.
GCVRZ: A Potential 16 Bagger Worth The Risk [View article]
Chris,
Excellent article! I do think, though, that this *is* a rather speculative play because if the drug does not get FDA approval, the stock goes to zero. While your probability analysis is probably correct, there is the likelihood that a) Sanofi pulled the drug because it was showing serious side effects, and b) the FDA didn't ask for more tests because it already concluded the drug is a dog. Just another possible scenario.
I've seen too many people lose their entire nest egg by putting all their money into that one "sure thing." Yes, the upside is very attractive but, as you mentioned, it should be considering the possibility of losing your entire investment.
Also, it would be nice to know when those milestones kick in. It could be years before the stock's full value is realized.
Glad to see that you tackled CVR's--haven't seen anyone else explain them. Thanks for another "odd lots" trade!
Marijuana May Be The Next Big Growth Sector In The U.S. Stock Market [View article]
I think the real winners will ultimately be big tobacco. Why? For one, their tobacco audience is shrinking daily and for two, because they're the big boys on the block. They're probably just waiting for the Federal government to bow out before pouncing.
"Panasonic, the world's leading high performance Li-ion battery company, is likely to supply Tesla three years from now with batteries at least as good as ANL's licensees have already demonstrated."
The big take-away from your article (as I read it) is to buy Panasonic, not Tesla. Battery capacity is the all-important ingredient in a clean energy vehicle.
In transportation, the most efficient and clean power source is a critical issue right now.
You're Retiring: Where Is Your Income Going to Come From? [View article]
I'm surprised no one has mentioned dividend paying etfs, mutual funds, and closed-end funds. There are a lot of them out there, most of which are paying in the 3-4% range. You want to find those that are following one of the Mergent's Dividend Achiever's indexes. (Do your own research on this). There are international dividend funds, too, if you don't want the hassle of dealing with foreign issues.
FYI: One fund that is paying a 6.4% yield is the Blackrock Dividend Achievers (BDY). Of course, there are management and fund fees associated with any of these products but it could be well worth the trade-off in trying to find and manage your own basket of stocks.
Tesla Motors: This Hot IPO Is Headed for Trouble [View article]
Not coming from a car enthusiast position, I do love the look of the car but also wonder like everyone else what happens when the car runs out of juice?
Right now, any limited mileage car is dead in the water unless it's cheap. And I do think your assessment of the company's positioning as to be viewed in the sexiest of lights in the attempt to sell itself off to the highest bidder is right on target.
Unless this company holds an ace in its bonnet, I'd avoid it.
This Gold Slam Is A Massive Wealth Transfer From Our Pockets To The Banks [View article]
Great piece of financial investigative journalism--it was worth burning the oil for it! HFT is making these sort of sophisticated dumping schemes possible and you're so right in saying that nobody's going to do anything about it.
Doing my chart surfing everyday I see front-running all the time. It someone knows something a few minutes before a major release, you'll see it show up in the stock market; if it's more than a few hours up to a couple of weeks before, you'll see it in the options market. Again, nobody does anything about it (because if they did everybody would be in jail) and if they do, it's on very rare and special occasions.
I'm sure the late-night HFT-type of dumping is done not only in commodities but in stocks, too. How else does one explain those unexplained sell-offs? Wondering if this type of manipulation wasn't responsible in part for some of Apple's sell-off...
Dr. K
This Gold Slam Is A Massive Wealth Transfer From Our Pockets To The Banks [View article]
From your article, you're saying that the gold etfs are to blame for the rise in gold prices. For one thing, the GLD is not a paper product; in fact it is one of the largest owners of physical gold in the world.
You claim that rampant gold etf buying was the cause of gold's big rise, but I'm not seeing anything concrete to substantiate your thesis. This article's author really dug into his subject and performed extensive data collection to either prove (or disprove) his thesis. His results are provocative and based on verifiable facts.
I'm probably the last person to diss another author as I understand what hard work it takes to bring a thoughtful article to publication, but I've found in the past that theStreet.com authors to tend be long on opinion and short on facts. They also negate any other point of view other than their own.
My two gold coins--for what that's worth.
Dr. K
Great Day for Goldman [View article]
I am so appalled I can barely contain myself.
Dr. K
23 High Quality, High Dividend Stocks [View article]
As for the "quality" rating of these dividend stocks: I don't have time to research every single stock that was output from the stock screener. These results are meant to be a springboard for your own research. It appears that most of the people here understand that, but I guess I should have stated it in the article. I shall do so in the future.
Thanks for everyone's comments and for keeping me honest!
It's a Good Time to Consider Insuring Your Portfolio With the VIX [View article]
I also looked at options strategies on these ETNs and couldn't find anything where the risk was worth the reward. The ONLY time I would recommend using these ETNs is if you have specific inside information regarding a major event such as your canary is telling you that the West Coast will be hit with a 12.0 earthquake tomorrow. (I hope not!) This is the only time I would put my money into such a risky vehicle.
If you're looking to protect your portfolio, buying index puts during periods of low volatility, such as we have right now, carries considerably less risk than VIX strategies.
Just my opinion.
Dr. Kris
Will Tesla Disrupt? [View article]
Can Seeking Alpha User Behavior Predict Stock Market Direction? [View article]
You mean the people I'm speaking with on Twitter aren't human? I feel so stupid and sullied...
Dr. K
Too Big To Fail: The Inside Story Of How Wall Street And Washington Fought To Save The Financial System -- And Themselves [View article]
GCVRZ: A Potential 16 Bagger Worth The Risk [View article]
Excellent article! I do think, though, that this *is* a rather speculative play because if the drug does not get FDA approval, the stock goes to zero. While your probability analysis is probably correct, there is the likelihood that a) Sanofi pulled the drug because it was showing serious side effects, and b) the FDA didn't ask for more tests because it already concluded the drug is a dog. Just another possible scenario.
I've seen too many people lose their entire nest egg by putting all their money into that one "sure thing." Yes, the upside is very attractive but, as you mentioned, it should be considering the possibility of losing your entire investment.
Also, it would be nice to know when those milestones kick in. It could be years before the stock's full value is realized.
Glad to see that you tackled CVR's--haven't seen anyone else explain them. Thanks for another "odd lots" trade!
Dr. K
Marijuana May Be The Next Big Growth Sector In The U.S. Stock Market [View article]
Dr. K
Will Tesla Disrupt? [View article]
The big take-away from your article (as I read it) is to buy Panasonic, not Tesla. Battery capacity is the all-important ingredient in a clean energy vehicle.
In transportation, the most efficient and clean power source is a critical issue right now.
Dr. Kris
3 REITs Yielding 15% And 2 To Avoid [View article]
Thanks so much for your terrific article which I mentioned in my Trade of the Day instablog as well as on my website and Facebook page.
A 15% return is hard not to love.
Dr. K
Major Events for Zalicus Loom Large in Q2 [View article]
Dr. K
You're Retiring: Where Is Your Income Going to Come From? [View article]
FYI: One fund that is paying a 6.4% yield is the Blackrock Dividend Achievers (BDY). Of course, there are management and fund fees associated with any of these products but it could be well worth the trade-off in trying to find and manage your own basket of stocks.
Just my two cents.
Dr. K
Tesla Motors: This Hot IPO Is Headed for Trouble [View article]
Right now, any limited mileage car is dead in the water unless it's cheap. And I do think your assessment of the company's positioning as to be viewed in the sexiest of lights in the attempt to sell itself off to the highest bidder is right on target.
Unless this company holds an ace in its bonnet, I'd avoid it.
Dr. K