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Eric Parnell

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  • Danger: Unexploded Bomb In Your Preferred Stock Portfolio [View article]
    Hello rhk123,

    Thanks for your comment and you make an excellent point about Fannie, Freddie and Lehman. You are right - they should have been included here as well! I actually owned a Bear Stearns preferred that I sold at the first sign of trouble back on 8/7/07 at $23.66 per share. Fortunately, holders ended up making out OK with the JP Morgan Chase rescue the following March, but once the Bear Stearns domino fell, I used the opportunity to get out of a Lehman preferred once they bounced back to $20.15 per share on 4/8/08. While the sale hurt at the time as it resulted in a modest realized loss, the decision felt much better come later in the year. As for Fannie and Freddie, I was always skeptical of their business model and their business practices under the cover of the GSE label and stood clear of ever owning these preferreds as a result.

    Great comment and thanks for raising this point. I appreciate it!
    Mar 27 10:50 PM | Likes Like |Link to Comment
  • Danger: Unexploded Bomb In Your Preferred Stock Portfolio [View article]
    Hello johnking3 - Thanks for your comment. I agree completely on your points here. Thanks again.
    Mar 27 10:38 PM | 1 Like Like |Link to Comment
  • Sell In April And Go Away? How To Capitalize [View article]
    Hello Julakanti,

    Thanks for your comment. You raise an important point. Any allocations to long-term bonds should be viewed with a short-term to medium-term time horizon in mind barring some sustained deflationary outcome for the US and/or global economy for the reasons that you've mentioned here. Gold, on the other hand, is more of a longer term allocation that I believe will make sense until we arrive at the beginning of a new secular bull market, but this is still likely several years away, particularly since policy makers can't seem to allow the financial system to cleanse itself, thus prolonging the crisis.

    Great point. Thanks again.
    Mar 24 11:37 PM | Likes Like |Link to Comment
  • Sell In April And Go Away? How To Capitalize [View article]
    Hello Unsure Now - Thanks as always for your comment and for sharing this news. Interesting times continues! Thanks again
    Mar 24 11:25 PM | Likes Like |Link to Comment
  • Sell In April And Go Away? How To Capitalize [View article]
    Hello ValueSeeker2013 & jhooper,

    Thanks for your comments and I agree with the points that you've raised here completely. Adding on to my reply to Jeffrey Robinson above, my previous article on this topic from Thursday actually gets to this very point that the fact that QE is not scheduled to end this year may cause stocks to break this April peak pattern.

    http://seekingalpha.co...

    jhooper - As a matter of fact, my motivation for writing the previous article linked here was born out of a series comments that you have made on past articles to this very point. As a result, I have you to thank for inspiring the idea to write this previous article. As I've said before, yours are some of the best insights on SA.

    Thanks again.
    Mar 24 11:21 PM | Likes Like |Link to Comment
  • Sell In April And Go Away? How To Capitalize [View article]
    Hello Jeffrey,

    Thanks for your comment and I absolutely agree. This was actually the theme of my article that preceded this one on the topic that I posted late last week. I've included a link below for reference. And to your point, the fact that QE is set to continue indefinitely may be a primary reason why the rally does not end in April but continues not only through the remainder of the year but also beyond any fundamental comprehension.

    http://seekingalpha.co...

    Excellent point. I also look forward to reading your recent article on Intel later this evening. Your lead with the reference to Glengarry Glen Ross already has my attention.

    http://seekingalpha.co...

    Thanks again.
    Mar 24 11:16 PM | Likes Like |Link to Comment
  • Sell In April And Go Away? How To Capitalize [View article]
    Hello mr clark,

    Thanks for your comment. I agree with you completely on your stock portfolio strategy. Taking big gainers off the table while maintaining stock exposure with those that still have room to catch up to the upside is prudent at this juncture both from a risk control as well as total returns perspective.

    Great point. Thanks again.
    Mar 24 11:12 PM | Likes Like |Link to Comment
  • Sell In April And Go Away? How To Capitalize [View article]
    Hello Ifader,

    Thanks for your comment. To be honest, I hope that you're right and we see another +1000 points on the S&P 500, just as long as these gains are derived from strong fundamentals, as this would imply that we are free from the crisis and a new secular bull market is underway. However, if the next 1000 points is due to Fed liquidity, then we could be facing a Nikkei 1989 or Nasdaq 2000 scenario only worse. I hope if it does come to pass it is the former instead of the latter, but nonetheless you highlight one of the key reasons why it remains important to maintain an allocation to stocks as part of an overall portfolio strategy to be ready for this very possible outcome.

    Thanks again.
    Mar 24 11:10 PM | Likes Like |Link to Comment
  • Sell In April And Go Away? How To Capitalize [View article]
    Hello Michael,

    Thanks as always for your comments and your insights. Of course, I have you to thank for inspiring my writing of this article based on the thoughts that you shared with me during our recent discussion. Your knowledge and perspective are invaluable and always greatly appreciated.

    I look forward to talking with you again soon.
    Mar 24 11:07 PM | 1 Like Like |Link to Comment
  • Sell In April And Go Away? How To Capitalize [View article]
    Hello Rich W,

    Thanks as always for your great commentary not only here but throughout the SA. You have provided some excellent information here and I share your genuine concerns about stocks at these levels, particularly given the persistent bullishness of equity investors overall despite a variety of warning signs. To me, a healthy market is one that shows logical response patterns to various events, both good and bad. Similar to when a doctor tests the patellar reflex on a patient - you want to see the knee jerk reaction to make sure that there is no signs of nerve system disruption. So when the stock market completely disregards potentially sizable and immediate event risk, even if it is the result is a continued move to the upside, it demonstrates that something isn't firing right in the central nervous system of financial markets. This is worrisome and has the potential to end badly.

    Thanks again for your comment and I look forward to reading your future posts.
    Mar 24 11:02 PM | Likes Like |Link to Comment
  • Sell In April And Go Away? How To Capitalize [View article]
    Hello Joseph,

    Thanks for your comment and for sharing your insights. Excellent points as always. Even though a deal has been announced tonight in Cyprus, there are fallout effects from this episode that are likely to have far reaching consequences that we may only see begin to evolve over time. Capital controls and the potential future threat to depositors in other EU countries, particularly those that have uninsured accounts are likely to cause many to reconsider where and how they are placing their cash.

    It will be interesting to see how it all plays out and I look forward to following your thoughts as events unfold.

    Thanks again.
    Mar 24 10:52 PM | Likes Like |Link to Comment
  • Sell In April And Go Away? How To Capitalize [View article]
    Hello hahaha48 - Thanks for your comment and for providing your perspective. These are some interesting behavioral points that you've raised here. Thanks again.
    Mar 24 10:47 PM | Likes Like |Link to Comment
  • Sell In April And Go Away? How To Capitalize [View article]
    Hello Allstreets,

    Thanks as always for your comment. You make some great points here about the permanent portfolio strategy. Thanks also for passing along the ETFdb link with information on the Global X Permanent ETF, as this is interesting material for people to explore further. As for the Permanent Portfolio family of funds, their 10% allocation to the swiss franc is one that has made sense in the past but I wonder about today given all of the challenges that Switzerland has had trying to manage their currency against the euro.

    Great comment as always. Thanks again.
    Mar 24 10:45 PM | Likes Like |Link to Comment
  • Sell In April And Go Away? How To Capitalize [View article]
    Hello sheldond,

    Thanks for your comment. You raise an important point, for if stocks continue to climb higher on the fuel of the steady flow of monetary stimulus from the Fed, bonds are likely to continue to move sideways to lower. I do think, however, that if the bond market eventually blows up at some point that it will take the stock market down with it. Lastly, I think you are right that there is still some pockets of value out there even after the run by the overall market so far this year.

    Thanks for your comment. I appreciate it.
    Mar 24 10:39 PM | Likes Like |Link to Comment
  • Are The Markets Rigged? [View article]
    Hello kbononi - Thanks for your comment. While it certainly has been a tough road for the gold miners and SLW over the past month, they are finally starting to show some renewed strength in recent weeks. It will be interesting to see if this trend can continue through resistance levels from here. Thanks again!
    Mar 23 12:11 AM | Likes Like |Link to Comment
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