Three Reasons Why You Can Beat The Professional Investors [View article]
So, let me get this straight.....
There are three reasons why managers underperform and they all have to do(directly or indirectly) with appeasing the needs of the investors.
Yet, somehow, if we were to remove the managers, then these same investors would not experience these same issues. Somehow what investors forced the managers to endure, they would not endure. NONSENSE.
I put forth that most investors "bailed" in 2008, whether they had managers or not. The market cannot drop precipitously unless everyone is selling. Most investors missed the rebound, whether they had managers or not.
Now, I'm not defending managed money, but to imply that it is somehow related to those factors doesn't jive. Even in the best of times, when everything works right, when investors are pouring money in, managers still underperform.
Mutual funds are forced to meet diversification and concentration levels that forces them, over time to approach mean returns. And with so much institutional money, they are fighting each other.
The resultant drag on return is obvious....The universe of managers just aren't 50, 75 or 125 basis points better than the market, itself. Maybe they're 25 basis points better, but that still makes them losers.
The only metric that makes any sense is comparing managers to other managers not an index. Where the universe of managers underperforms, there are some stars that shine pretty bright. And these few, these happy few, are well worth the trouble.
Thanks for reading, but I think you completely miss the point.
Yes I was invested in 1987, 2000 and 2009.
If you pay attention to the article you would see that in those times, had a PUT selling strategy been available, it would have outperformed the market.
Please re-read the part that mentions that it is only in rapidly rising markets that the strategy trails.
I'm not sure you get it, but taking your example, if a $1 put turned into a $100 loss, then the corresponding amount invested in stock would have lost $101.
Right on. Why can't we go back to someone like Bush, who inherited a massive economic crisis from Clinton and through intelligent design managed to leave a strong economy, bristling with hope for everyone.
Then, in steps this guy Obama, and what does he do, loses millions of jobs between the time he's elected and takes office. Then, even with all the help offered to him by the Republicans in the Senate and House, he doesn't even reverse this immediately and get back to the way it was.
Am I better off than I was four years age---ABSOLUTELY NOT.. Four years ago I was 10x leveraged short the market, housing and this country, raking in seven figures from all the middle class suckers out there.
Now where am I--- the market has shot up over 200%, I've given it all back, and more. Damn that Obama, how did we ever miss the opportunity to get Palin in office?
Doesn't Obama have an obligation to all us 1%ers to repair all his damage and at least get us back to where we were when he took office. I'm not asking for more than he started with.
Disclosure: Reducing my quarterly tax estimates and nationalizing my offshore accounts (especially in Thailand)anticipating a Romney win.
Master Limited Partnerships: Stop The Insanity [View article]
Hi Hollydog,
Thanks for reading and commenting.
This article was not intended to be exhaustive on any of the points, but I believe it did address the issue as follows....
"Actually, through a series of very complex tax rules, MLPs detract from the usefulness of midstream energy in IRAs"
Furthermore, I think the article was clear in stressing use of the corporate rather than MLP form in IRAs.
I have pioneered the IRA/MLP tax issues in previous articles and some have noted that my articles actually brought about changes in the space. Perhaps I should have referenced my previous articles, such as (http://seekingalpha.co...) for those wanting more "meat on the bone".
I appreciate your offering me the opportunity to correct this perceived deficiency by adding this note.
Good Dividend Payer BreitBurn Energy Partners Brightens Its Future With New Oil Asset Purchases [View article]
Hi David,
The link you provided is only for people that actually own units and provides no researchable value to prospective purchasers.
Here's a link that provides detailed information on the tax issues and other items of interest to investors (current and proposed). It is from the National Assoc of Publicly Traded Partnerships (NAPTP) (http://bit.ly/QhxVBp)
One need only to click on PTP 101 on the drop down menu.
Good Dividend Payer BreitBurn Energy Partners Brightens Its Future With New Oil Asset Purchases [View article]
HI David,
It's not so much your lack of detail in the article as it is your response to rip2451 that is the root of the problem.
You dismiss these issues, in a very inappropriate manner, rather than acknowledge them. Now, to suggest it is "we" that need to get a grip, is a further diminution of the very real aspects of MLPs.
Bob Wenzel holds no punches in a speech this week to the NY Fed: "The noose is tightening on your organization, vast amounts of money printing are now required to keep your manipulated economy afloat. It will ultimately result in huge price inflation, or, if you stop printing, another massive economic crash will occur. There is no other way out." [View news story]
Hi Paulo,
Disagree. he makes statements that pre-suppose underlying constants. To wit ...."Don’t you think it would make more sense to stop these policies which are a direct factor in causing unemployment, than to add to the mess and devalue the currency by printing more money?"
Unless there is a constant in the background, somewhere, how can he conclude that "... these policies...are a direct factor in causing unemployment..."
No different than saying "... oxygen is a direct factor in causing rust..."
He even says, if it happened ten times in a row in the past, in economics, it is not predictive of the future.
Yet, in this one excerpt he links a cause and effect (actually two different cause/effects if you read carefully). Yet he says cause/effect doesn't exist in economics. Does it, over and over again.
Drilling For Dividends: 4 Oil Stocks Yielding Up To 9% [View article]
LINE is an MLP and does not pay dividends, the distributions are return of capital . There is quite a difference.
This technical error sheds doubt on your veracity.
This only adds to my wonderment of how someone can pick four stocks, give the reasons why one should consider owning them, yet does not currently own or plan to own them.
What is it you do own? and why do you find those stocks preferrable to these stocks?
As G-20 financial leaders met in Paris yesterday, Occupy Wall Street had one of its biggest days yet with protests in New York and other U.S cities. Meanwhile, thousands of the "indignant" marched across cities in Europe, including Paris, Madrid, and Rome, where the demo turned violent. [View news story]
I live 30 mile outside of Wall Street. In a local community citizens gathered on the streets holding signs--- "honk if you want to tax millionaires".
Practically every car passing by honked.
Before you reach conclusions, the community is one of the richest and most affluent in Southampton.
Third Point’s Daniel Loeb again wields his acid pen to criticize White House leadership: "It is increasingly difficult to avoid the conclusion that while Washington burns, Pres. Obama is fiddling away by insisting that the only solution to the nation’s problems - whether unemployment, the debt ceiling or deficit reduction - lies in redistribution of wealth." [View news story]
I agree totally. Bring back the good old days of "W" --the most intelligent, articulate and economically schooled president we ever had.
If only we had "W" back in charge we would never have gotten into this mess in the first place.
Dow Doomsday: Why It Might Happen Soon [View article]
"....history has always been a great predictor of the future. "
Really.
Which history are you referring to? Pre-historic, BCE, Dark Ages, Pre-Columbian, Renaissance, Industrial revolution, Roaring 20's, Great Depression, the '60s, or since the beginning of time?
History is no better at predicting the future than reading tea-leaves. You can pick your data points and support any proposition you want.
At best, history can serve as an indicator of possible outcomes, but it cannot predict anything.
You are mis-interpreting..."those that don't learn from history are bound to repeat it". Knowledge and innovation renders history impotent as a predictor.
Linn Energy Vs. LinnCo: And The Verdict Is... [View article]
Hi Alex,
Actually, it applies to any corporate stock that makes distributions that are not from current or accumulated earnings.
It would most likely take place in a corporation that has lots of Free Cash Flow, but not taxable net earnings. This usually happens if there are large depreciation or depletion allowances.
Since most of these types of businesses are energy related and also MLPs, you don't see it too often, but I suspect more and more will move in that direction.
Right now I don't know if LnCo will end up being a "one-of-a-kind" or a trend setter. We have somethig to look forward to.
Now, specifically regarding KMR, KMR's plan seems to be one tax step better, in that after LnCo's basis gets to zero and is taxed at LTCG, KMR continues to defer that taxation.
All else being equal, I'd give the edge to KMR for IRAs and those with no current income need, and LnCo the edge for those desiring current income.
There are so many MLPs and "clones" out there, each one has to be looked at for its own conclusion.
You Need Oil Exposure In Your Income Portfolio: Here Are The Best Ways To Get It [View article]
Nice article.
Curious why you didn't suggest LnCo instead of LINE. It is the same company, with a slightly lower yield and a much better tax picture and you don't have to "ask your CPA".
Three Reasons Why You Can Beat The Professional Investors [View article]
There are three reasons why managers underperform and they all have to do(directly or indirectly) with appeasing the needs of the investors.
Yet, somehow, if we were to remove the managers, then these same investors would not experience these same issues. Somehow what investors forced the managers to endure, they would not endure. NONSENSE.
I put forth that most investors "bailed" in 2008, whether they had managers or not. The market cannot drop precipitously unless everyone is selling. Most investors missed the rebound, whether they had managers or not.
Now, I'm not defending managed money, but to imply that it is somehow related to those factors doesn't jive. Even in the best of times, when everything works right, when investors are pouring money in, managers still underperform.
Mutual funds are forced to meet diversification and concentration levels that forces them, over time to approach mean returns. And with so much institutional money, they are fighting each other.
The resultant drag on return is obvious....The universe of managers just aren't 50, 75 or 125 basis points better than the market, itself. Maybe they're 25 basis points better, but that still makes them losers.
The only metric that makes any sense is comparing managers to other managers not an index. Where the universe of managers underperforms, there are some stars that shine pretty bright. And these few, these happy few, are well worth the trouble.
Selling Puts - Investing Made Easy [View article]
Thanks for reading, but I think you completely miss the point.
Yes I was invested in 1987, 2000 and 2009.
If you pay attention to the article you would see that in those times, had a PUT selling strategy been available, it would have outperformed the market.
Please re-read the part that mentions that it is only in rapidly rising markets that the strategy trails.
I'm not sure you get it, but taking your example, if a $1 put turned into a $100 loss, then the corresponding amount invested in stock would have lost $101.
Sep ADP Employment Change: +162K vs. consensus of +140K, 201K prior. [View news story]
Right on. Why can't we go back to someone like Bush, who inherited a massive economic crisis from Clinton and through intelligent design managed to leave a strong economy, bristling with hope for everyone.
Then, in steps this guy Obama, and what does he do, loses millions of jobs between the time he's elected and takes office. Then, even with all the help offered to him by the Republicans in the Senate and House, he doesn't even reverse this immediately and get back to the way it was.
Am I better off than I was four years age---ABSOLUTELY NOT.. Four years ago I was 10x leveraged short the market, housing and this country, raking in seven figures from all the middle class suckers out there.
Now where am I--- the market has shot up over 200%, I've given it all back, and more. Damn that Obama, how did we ever miss the opportunity to get Palin in office?
Doesn't Obama have an obligation to all us 1%ers to repair all his damage and at least get us back to where we were when he took office. I'm not asking for more than he started with.
Disclosure: Reducing my quarterly tax estimates and nationalizing my offshore accounts (especially in Thailand)anticipating a Romney win.
Master Limited Partnerships: Stop The Insanity [View article]
Thanks for reading and commenting.
This article was not intended to be exhaustive on any of the points, but I believe it did address the issue as follows....
"Actually, through a series of very complex tax rules, MLPs detract from the usefulness of midstream energy in IRAs"
Furthermore, I think the article was clear in stressing use of the corporate rather than MLP form in IRAs.
I have pioneered the IRA/MLP tax issues in previous articles and some have noted that my articles actually brought about changes in the space. Perhaps I should have referenced my previous articles, such as (http://seekingalpha.co...) for those wanting more "meat on the bone".
I appreciate your offering me the opportunity to correct this perceived deficiency by adding this note.
Good Dividend Payer BreitBurn Energy Partners Brightens Its Future With New Oil Asset Purchases [View article]
The link you provided is only for people that actually own units and provides no researchable value to prospective purchasers.
Here's a link that provides detailed information on the tax issues and other items of interest to investors (current and proposed). It is from the National Assoc of Publicly Traded Partnerships (NAPTP) (http://bit.ly/QhxVBp)
One need only to click on PTP 101 on the drop down menu.
Good Dividend Payer BreitBurn Energy Partners Brightens Its Future With New Oil Asset Purchases [View article]
It's not so much your lack of detail in the article as it is your response to rip2451 that is the root of the problem.
You dismiss these issues, in a very inappropriate manner, rather than acknowledge them. Now, to suggest it is "we" that need to get a grip, is a further diminution of the very real aspects of MLPs.
Bob Wenzel holds no punches in a speech this week to the NY Fed: "The noose is tightening on your organization, vast amounts of money printing are now required to keep your manipulated economy afloat. It will ultimately result in huge price inflation, or, if you stop printing, another massive economic crash will occur. There is no other way out." [View news story]
Disagree. he makes statements that pre-suppose underlying constants. To wit ...."Don’t you think it would make more sense to stop these policies which are a direct factor in causing unemployment, than to add to the mess and devalue the currency by printing more money?"
Unless there is a constant in the background, somewhere, how can he conclude that "... these policies...are a direct factor in causing unemployment..."
No different than saying "... oxygen is a direct factor in causing rust..."
He even says, if it happened ten times in a row in the past, in economics, it is not predictive of the future.
Yet, in this one excerpt he links a cause and effect (actually two different cause/effects if you read carefully). Yet he says cause/effect doesn't exist in economics. Does it, over and over again.
Drilling For Dividends: 4 Oil Stocks Yielding Up To 9% [View article]
This technical error sheds doubt on your veracity.
This only adds to my wonderment of how someone can pick four stocks, give the reasons why one should consider owning them, yet does not currently own or plan to own them.
What is it you do own? and why do you find those stocks preferrable to these stocks?
Master Limited Partnerships And Your K-1 [View article]
As G-20 financial leaders met in Paris yesterday, Occupy Wall Street had one of its biggest days yet with protests in New York and other U.S cities. Meanwhile, thousands of the "indignant" marched across cities in Europe, including Paris, Madrid, and Rome, where the demo turned violent. [View news story]
Practically every car passing by honked.
Before you reach conclusions, the community is one of the richest and most affluent in Southampton.
The movement is starting to get a voice.
Third Point’s Daniel Loeb again wields his acid pen to criticize White House leadership: "It is increasingly difficult to avoid the conclusion that while Washington burns, Pres. Obama is fiddling away by insisting that the only solution to the nation’s problems - whether unemployment, the debt ceiling or deficit reduction - lies in redistribution of wealth." [View news story]
If only we had "W" back in charge we would never have gotten into this mess in the first place.
Dow Doomsday: Why It Might Happen Soon [View article]
Really.
Which history are you referring to? Pre-historic, BCE, Dark Ages, Pre-Columbian, Renaissance, Industrial revolution, Roaring 20's, Great Depression, the '60s, or since the beginning of time?
History is no better at predicting the future than reading tea-leaves. You can pick your data points and support any proposition you want.
At best, history can serve as an indicator of possible outcomes, but it cannot predict anything.
You are mis-interpreting..."those that don't learn from history are bound to repeat it". Knowledge and innovation renders history impotent as a predictor.
Linn Energy Vs. LinnCo: And The Verdict Is... [View article]
Actually, it applies to any corporate stock that makes distributions that are not from current or accumulated earnings.
It would most likely take place in a corporation that has lots of Free Cash Flow, but not taxable net earnings. This usually happens if there are large depreciation or depletion allowances.
Since most of these types of businesses are energy related and also MLPs, you don't see it too often, but I suspect more and more will move in that direction.
Right now I don't know if LnCo will end up being a "one-of-a-kind" or a trend setter. We have somethig to look forward to.
Now, specifically regarding KMR, KMR's plan seems to be one tax step better, in that after LnCo's basis gets to zero and is taxed at LTCG, KMR continues to defer that taxation.
All else being equal, I'd give the edge to KMR for IRAs and those with no current income need, and LnCo the edge for those desiring current income.
There are so many MLPs and "clones" out there, each one has to be looked at for its own conclusion.
MLPs - A Reality Check ? [View article]
99.999% of my articles and 99.999% of my readers manage to focus a discussion on non-political biases.
If you want to start a political diatribe, I would respectfully ask that you seek out a forum where this is welcome.
You Need Oil Exposure In Your Income Portfolio: Here Are The Best Ways To Get It [View article]
Curious why you didn't suggest LnCo instead of LINE. It is the same company, with a slightly lower yield and a much better tax picture and you don't have to "ask your CPA".