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  • Low Risk Way To Use Silver As An Inflation Hedge [View article]
    User 205068961- I intend to keep writing about SLW quarterly from now on since I will probably hold onto shares for a long time. Thanks for joining the conversation.
    Apr 15 04:17 PM | Likes Like |Link to Comment
  • Protecting Your Equity Portfolio For Less - Part I [View article]
    wbarilka,

    Glad you enjoyed the article. It is the first in a series that I intend to continue until after the next major correction (whenever that is).
    Apr 14 03:32 PM | Likes Like |Link to Comment
  • Protecting Your Equity Portfolio For Less - Part XIII [View article]
    dabjr123 - Short answer is no! This strategy is not designed to protect specifically against adverse movements in interest rates or to fixed income holdings. I generally buy munis very selectively when they are out of favor and with the intent of holding to maturity. Strictly use bonds for income and don't hedge that portion of my portfolio. Sorry, but that is not an area included in my research. But thanks for asking.
    Apr 10 11:22 AM | Likes Like |Link to Comment
  • Protecting Your Equity Portfolio For Less - Part XIV [View article]
    SeekingTruth - You make a good point. I had planned on covering that issue once the hedge was completed as I thought that would be a good time to explain when and how to unwind positions or roll them over as market actions dictate. Thanks for the reminder.
    Apr 9 09:40 PM | 1 Like Like |Link to Comment
  • Protecting Your Equity Portfolio For Less - Part XIII [View article]
    Topcat - That is in my queue of articles to do but not imminent yet. I was planning on writing that one when the market downturns gets started in earnest to be more timely.
    Apr 9 02:32 PM | Likes Like |Link to Comment
  • Protecting Your Equity Portfolio For Less - Part XIV [View article]
    mfulton22 - the ETFC option should be Jan. 2015. The 2016 is a typo I need to fix. Thanks for pointing that out to me. I was considering the 2016 but the return ratio was not adequate.

    Yes. I am still considering the RCL Jan 15 strike of 25. It still looks like the best option contract on RCL to me at this time.
    Apr 9 10:48 AM | Likes Like |Link to Comment
  • Protecting Your Equity Portfolio For Less - Part I [View article]
    That's the one.
    Apr 9 10:44 AM | Likes Like |Link to Comment
  • Protecting Your Equity Portfolio For Less - Part XIII [View article]
    stratti - I can appreciate your dilemma in dealing with a large position like that. In your case I might consider just buying a combination of puts that are more directly related to the position. You could protect your shares from more than an 11 percent lose using DFS Jan. 2015 puts with a strike of $50 and premium of $2.60 pr 100. That works out to about 4.6% of your position. So, I would only employ about a 50% hedge to bring the cost down to 2.3% for that portion of the hedge. Then I would consider using another financial stock, such as MS or ETFC for the other 50%. I would also consider moving up to a strike that is not as far out of the money as I am proposing in this series because with less diversification you can't afford to be off on one of your positions. I would use either one but ladder the strikes in even amounts starting with (on MS) equal portions of the Jan. 2015 $27 strike, $25 strike, $22 strike and $20 strike. This approach can bring your average cost down considerably and provide rising protection as the market moves lower allowing you to make up some of the portion that is uncovered at the top. My assumption is that MS will fall further and faster than DFS. ETFC may be even weaker at present but because of the lower price you would need more contracts and would adjust the strikes accordingly.

    Bottom line is that since your position is not diversified you should consider a less diversified hedge position that correlates better with your holding. If DFS gets hit, it is highly likely that the broader financial sector will hit, too. So, think in terms of pairing your long position with a short position in a weaker peer or two.
    Apr 8 11:03 AM | Likes Like |Link to Comment
  • Protecting Your Equity Portfolio For Less - Part XIII [View article]
    Topcat - I am working on the next article as I write this. I hope to have it published by tomorrow a.m. I do not have specific target prices on individual stocks at which to sell but am paying closer attention to the overall market. I am also looking at valuations and want to get positioned on those that appear to me to be over valued now or as that occurs.

    Thanks for asking
    Apr 7 05:49 PM | Likes Like |Link to Comment
  • Protecting Your Equity Portfolio For Less - Part I [View article]
    YCL - Here is the link of the simplified article that works for me:

    http://seekingalpha.co...

    Here is the link to the paper from Princeton:

    http://www.princeton.edu~sircar/Public/ARTICLE...

    If the Princeton link does not work again just go to http://www.princeton.edu the search (upper right box) for - optimal static hedge - and it should be the first entry at the top. Click on the link.
    Apr 7 12:17 PM | Likes Like |Link to Comment
  • Dividend Investors' Guide 2014 Review - Retail And Wholesale Food Industry [View article]
    Paul - You could by right about 1st year earnings. However, I actually do think the company can wring some significant costs out of the combined units from overhead. I will be watching, though. The main thing I'll watch is the cash flow. I want to know if management can keep increasing the dividend without borrowing to do so. Thanks for the comment.
    Apr 5 06:47 PM | Likes Like |Link to Comment
  • Dividend Investors' Guide 2014 Review - Retail And Wholesale Food Industry [View article]
    Louverture - That is an error that I'll have to get cleaned up, but it was actually 2012!
    Apr 5 12:53 PM | Likes Like |Link to Comment
  • Dividend Investors' Guide 2014 Review - Retail And Wholesale Food Industry [View article]
    Paul - First, I actually recommended SYY in June 2012. I need to get that fixed. Thanks for pointing it out.

    US Foods is equal to 44% of SYY (in terms of sales), but I do not expect either sales or earnings of the new entity (after acquisition) to immediately reach that level. The reason is that in order to get the combination approved by the FTC, the companies will need to shed some assets (warehouses and operations) which will move some of the pre-acquisition sales to competitors. So the increase will be somewhere below the 44% size currently represented by US Foods. The savings from synergies will most likely take some time to capture and often there are investments or costs associated with those efforts. So, in the first year, I expect the impact to be less and for the combined entity to see improvements to both top and bottom lines after that.

    Thanks for the question. I hope my answer helps explain my views.
    Apr 5 12:53 PM | Likes Like |Link to Comment
  • Dividend Investors' Guide 2014 Review - Household Products Industry [View article]
    frrizzo - I like more history of dividend increases before I add a company to my list. But that does not mean ENR isn't a good company. It just means it does not meet my requirements. Thanks for commenting.
    Apr 5 12:41 PM | Likes Like |Link to Comment
  • Another Debt Milestone [View article]
    "There was a widespread default on World War I debts to the United States by both advanced and emerging nations. Those debts were never repaid. In today's extremely leveraged environment, a similar outcome is not out of the question."

    Point well made! The question is moving away from "which countries WILL pay the massive debt being accumulated?" to "which countries CAN pay the massive debt being accumulated?" Nobody seems to be concerned with the question of HOW the debt gets paid or when; all that seems to matter is that there is still more that can be borrowed so what's there to worry about? At some point someone will do the math and the math won't work. But then that too will probably go unnoticed!

    The system only works when the excess, unsustainable portion of debt is cleansed from the system. That would require a lot of losses to be taken by a lot of people around the globe, even the ultra-rich. It seems that day must be kept from happening as long as possible by those in positions of power.

    While that sounds like a dooms day statement, it is really from one who believes that to get to where we need to be for sustainable growth and greater opportunities we may need to absorb some pain first. It isn't doom, it is a more like a refresh to a better state of being. But there is absolutely no way I can tell to determine when it might happen. It could be many years away. The hole may not be deep enough yet. So we'll just keep digging until we can not longer see the light of day. Then we all get to start over. The young will have a lot more to which to look forward then.
    Apr 5 12:38 PM | 5 Likes Like |Link to Comment
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