Old news and no big deal. Milton Friedman pointed out decades ago that as the supply of labor increases (more people in more countries throughout the world obtaining basic skills and entering the labor force) the returns to labor would FALL and the returns to capital would RISE. Are you a discouraged worker? Well too bad! There is a conga line of people willing to work all around the globe that will gladly replace you.
Excellent news all around. While I am being somewhat sarcastic in that statement, there is much truth to it. The sooner the teetering Euro welfare state collapses, the sooner they can do the necessary structural and economic reforms.
Ok...it is probably easiest at this point to just go to my list of articles and see the title: Higher Interest Rates? WHO CARES!."
"Interesting Times.": ===>I think bonds interest rates are rising because of QE'S causing inflation! BB knew this would eventually happen like Germany did in the 30's . History can repeat....<=====
If inflation expectations were rising then TIPs would be strong and Gold/Silver would be strong. Neither is the case.
I am making an argument and give reasons for it. It is best in your replies to address those arguments (strong or weak) and then go on. Time will tell if you or I are correct...let's hang in there!
Correct. Tapering is long overdue in the fourth year of a recovery. Correct: the market smells a stronger economy in the fall and rates are rising as a result.
The government's helping hand has been deadweight. Low interest rates have deprived savers and retirees of trillions of dollars in income, and we sit here flabbergasted about why consumer spending is punk.
Similar to a pattern seen a few times over the past few weeks, underneath a solid rally in the averages are big declines in a number of income favorites. The culprit again is falling Treasury prices, the long bond off more than a full point and yielding 3.32%. Some popular equity REITs: Equity Residential (EQR -1.3%), AvalonBay (AVB -1.4%), HCP (HCP -1.6%), Realty Income (O -2.6%), Senior Housing (SNH -2.9%), Omega Healthcare (OHI -1.3%), Government Properties (GOV -2%). Also: Continued rout in mREITs. [View news story]
Big deal. REITs and your other "income favorites" are merely bond proxies and ape bonds in their performance. Quality growth dividend payers...wmt, xom, cvx, jnj, etc....rallied in the last two days.
Market recap: Stocks ended at session highs, clawing back from declines when the dollar fell sharply vs. the Japanese yen. Trading was volatile with the markets thinner than usual as many investors wait for tomorrow's jobs report, which has taken on added focus as the Fed decides its next monetary policy move. The dollar's big losses helped push crude oil higher, but natural gas prices plunged as inventories rose. [View news story]
Reasonable test of the fifty day SMA. Solid rally, with good breadth after that. Let's see what tomorra' brings!
Own These World's Leading Brands And Never Fear A Recession Again [View article]
Very nice. Similar charts and valuation techniques can be found at Valueline.com, which has FREE (F.a.s.t. graphs you have to pay) charts and fundamental data on each stock in the dow 30. Thanks chuck...well done.
Perils Of Using Covered Calls To Generate Portfolio Income: Update [View article]
Well I'll be darned if I didn't do exactly that lately. You can roll in and out (or up down) if the market moves in your favor. It does involve more trading but It is a good way to augment income.
Other writers have also pointed out that you don't have to stick to a monthly cycle religiously. Thanks for the reminder!
Perils Of Using Covered Calls To Generate Portfolio Income: Update [View article]
No I do not mean to imply that at all. I am not saying I can forecast IV. I am just saying that if you wait for a timed when IV is more elevated, your premium income may be more attractive. With individual stocks (ISRG, for example) I.V. does follow a rather remarkable pattern. But for the market as a whole it seems not to.
Perils Of Using Covered Calls To Generate Portfolio Income: Update [View article]
Correct Pendragon (good name by the way. King Arthur fan, eh?) I am thinking of trimming some of my position in medical care ETFs,. and wrote some calls against the shares. I can pocket the income if they meander, or trim my position if they rise, which I don't mind because I think they are overbought.
Perils Of Using Covered Calls To Generate Portfolio Income: Update [View article]
"To say that a covered-call strategy is a poor mechanism to earn premium income is to imply that the other side of the trade should be a better mechanism".......
That is certainly the argument option writers use. My only caveat was to make sure the volatility is great enough to make the premium worth it.
5 Tax Tips And Tricks In Investing [View article]
2 Views Of Income Equality [View article]
Soaring Real Yields Are Good News [View article]
Europe's Lost Generation [View article]
FED Analysts Get It Wrong Again [View article]
"Interesting Times.":
===>I think bonds interest rates are rising because of QE'S causing inflation! BB knew this would eventually happen like Germany did in the 30's . History can repeat....<=====
If inflation expectations were rising then TIPs would be strong and Gold/Silver would be strong. Neither is the case.
I am making an argument and give reasons for it. It is best in your replies to address those arguments (strong or weak) and then go on. Time will tell if you or I are correct...let's hang in there!
FED Analysts Get It Wrong Again [View article]
IN any case...let's all see how this pans out. I think bonds are rising because rhe economy is getting stronger...plain and simple. Time will tell.
FED Analysts Get It Wrong Again [View article]
The government's helping hand has been deadweight. Low interest rates have deprived savers and retirees of trillions of dollars in income, and we sit here flabbergasted about why consumer spending is punk.
I have an article coming out about that soon.
Similar to a pattern seen a few times over the past few weeks, underneath a solid rally in the averages are big declines in a number of income favorites. The culprit again is falling Treasury prices, the long bond off more than a full point and yielding 3.32%. Some popular equity REITs: Equity Residential (EQR -1.3%), AvalonBay (AVB -1.4%), HCP (HCP -1.6%), Realty Income (O -2.6%), Senior Housing (SNH -2.9%), Omega Healthcare (OHI -1.3%), Government Properties (GOV -2%). Also: Continued rout in mREITs. [View news story]
Chevron Is A Strong Buy [View article]
Also there is a FREE Value Line chart and an analysis of Chevron (and all 30 dow stocks) at http://www.valueline.com, updated every 3 months.
I agree chevron has a compelling future.
Market recap: Stocks ended at session highs, clawing back from declines when the dollar fell sharply vs. the Japanese yen. Trading was volatile with the markets thinner than usual as many investors wait for tomorrow's jobs report, which has taken on added focus as the Fed decides its next monetary policy move. The dollar's big losses helped push crude oil higher, but natural gas prices plunged as inventories rose. [View news story]
Own These World's Leading Brands And Never Fear A Recession Again [View article]
Perils Of Using Covered Calls To Generate Portfolio Income: Update [View article]
Other writers have also pointed out that you don't have to stick to a monthly cycle religiously. Thanks for the reminder!
Perils Of Using Covered Calls To Generate Portfolio Income: Update [View article]
Perils Of Using Covered Calls To Generate Portfolio Income: Update [View article]
Perils Of Using Covered Calls To Generate Portfolio Income: Update [View article]
That is certainly the argument option writers use. My only caveat was to make sure the volatility is great enough to make the premium worth it.