Seeking Alpha's "Pro" articles always provide plenty of food for thought. I even once took advantage of a trade idea I found in a "Pro" article, which turned out to be a wonderful trade. I recently read the SA Pro article, "Caesars Entertainment Equity Still Has Essentially No Value: A Capital Structure Arbitrage Trade." The article did a nice job outlining some of Caesars Entertainment's (CZR) fundamentals and presenting a capital structure arbitrage trade to consider.

The arbitrage trade presented was the following:

• Sell short 1,000 shares of CZR for $15,170 and a ~7% annual cost to borrow.
• Buy 20 $1,000 par value December 2018 bonds at $615 for $12,300 plus accrued interest.
• Buy 10 Jan 2014 $20 CZR call options for $1,650.

The author continued:

"This would result in a total outlay of $13,950 + accrued interest. Of course, an investor could change the proportions and the

An investing mantra many equity investors live by is to "buy on the dip." It appears the same is true in the world of physical gold. As investors in gold futures and ETFs such as GLD and IAU seem to be tripping over themselves to get out of gold, demand for tangible gold is skyrocketing. A Reuters article from Friday morning highlights the rush across Asia to buy physical gold. In the United States, the Mint has already sold 153,000 ounces of gold coins in April, more than the combined totals from February and March. In fact, in the midst of the gold price collapse, on April 17, the United States Mint sold 63,000 ounces of gold. That one day total, by itself, eclipsed the 62,000 ounces of gold sold by the Mint in March.

In terms of silver, retail demand has also been quite remarkable, despite the breathtaking

I have long been a fan of holding gold (GLD) over the gold miners (GDX) as a means of gaining exposure to the precious metal. This largely stems from my belief that gold is a store of value, and that the miners are simply a derivative of a store of value. Additionally, an investor in the miners has to worry about things such as the costs of mining, profits, labor issues, and dealing with governments. Those are all thing I prefer to avoid.

Last year, however, as Newmont Mining (NEM) dipped into the low $40s on three different occasions, I built a small position (a couple of percentage points of my total gold exposure). I did so not as a call on Newmont's business, but instead because I think its enhanced dividend policy can turn the company's stock into a leveraged play on gold. Since I pay storage

After watching gold's (GLD) biggest two-day plunge in a few decades, it seems like an appropriate time for those who are long gold to do some reflecting on why exactly they own the precious metal. I would encourage silver (SLV) investors to join in as well, as silver too has had quite the recent plunge in fiat currency terms.

Every single asset/security I purchase has a role to play as a member of my portfolio. Gold (IAU) and silver (SIVR) are no different. When reflecting on the recent declines that precious metals have experienced, it is important to think about whether gold and silver are still doing what you intended them to do for your portfolio. The reasons I own gold and silver may be different from the reasons other investors own them. Therefore, we may come to different conclusions about what to do with our holdings in light of

Since November 16, 2012, the major U.S. equity indices have been on a tear. The relentless move higher likely left plenty of investors waiting for a decent sized pullback that never came. And now, many are surely thinking, "I don't want to buy now only to watch the market go down. But I also don't want to not buy now only to watch the market go higher."

This rally has been so persistent that not even broad-market earnings declines have been able to stop it. In case you are unaware, after 11 straight quarters of increases, S&P 500 (SPY) trailing 12-month operating earnings peaked in Q2 2012 at $98.69 and has been declining ever since. Q3 2012 checked in at $97.40 in trailing 12-month operating earnings and Q4 2012 was $96.82. We have just begun the Q1 2013 reporting season and will soon know whether the $98.03 estimate can be

In recent days, CNBC has been aflutter with talk of the S&P 500 (SPY) nearing a new all-time high. The all-time closing high in question occurred on October 9, 2007 at 1,565.15. The intraday all-time high was reached a couple of days later, on October 11, 2007, at 1,576.09. But just so we avoid any double standards, I would like to remind equity investors of something they remind investors in gold (GLD) and investors in bonds (AGG) all the time -- it's the "real" value, rather than the nominal value, that matters.

What do I mean by "real" value? The real value refers to the inflation-adjusted number, while the nominal value refers to the unadjusted number. Gold investors are constantly reminded that the highs it reached in 2011 were only nominal in nature. On a real basis, gold still has not made a new all-time high in over 30 years.

I recently read an article on CNBC.com called, "Why Consumers May Be On A Crash Course." Not surprisingly, the actual content of the article is not filled with the dire facts and figures one might expect from the title. But it did point out something interesting about consumer behavior and also reminded me of something else I've noticed happening in supermarkets over the past few years.

The article's focus is on Coupon.com's "Internet Coupon Index," which has been steadily rising since last spring and gone vertical in recent months, breaking out of the elevated range it began to establish just prior to the recession beginning in December 2007 (see article for chart). According to Coupon.com, the chart is showing an acceleration both in the demand for coupons and in the number of coupons being offered. The company's CEO, Steven Boal, told CNBC that he views the index as

In recent days, I have come across a couple of articles on Seeking Alpha debating whether or not the broad-based indices are in a secular bull or secular bear market. I spent some time thinking about which case I agree with more before concluding that the entire debate is rather pointless. It certainly can make for entertaining reading, and the Comments sections of the articles can add some food for thought. But what concerns me more than debating whether we are in a secular bull or secular bear market is understanding what is driving asset prices up and down and positioning my portfolio accordingly.

My portfolio is quite diverse in terms of the number of different assets and securities owned. The list includes numerous individual stocks, numerous individual corporate bonds, several individual Treasury bonds, gold, silver, platinum, and a small number of ETFs. Each asset class and each security plays

Given the Fed's large role in propping up asset prices and Congress' fixation with doing whatever it must not to anger equity investors, life must be quite stressful for short sellers. Despite anemic economic growth and lackluster earnings growth, the stock market has defied gravity. In fact, you might not be aware that while the S&P 500 rose 13.41% in 2012, operating earnings rose by a meager 0.57%. Yes, you read that correctly. Earnings rose by less than 1% in 2012, from $96.44 to just $96.99 (this number can still change as the Q4 reporting season wraps up).

On May 1, 2012, I wrote the article, "S&P 500 Earnings Summary And Forward Projections." In it, I included a table outlining the then current 2012 and 2013 EPS projections for the S&P 500 and its various sectors. At that time, the S&P 500 was projected to finish 2012 with

The recent statement by Japan's economic and fiscal policy minister, Akira Amari, about wanting to see the Nikkei reach 13,000 by the end of March is quite an eye-opener, although not a shocker. From my perspective, the explicit price target makes a mockery of investing in stocks, will surely drive even more traders into Japanese stocks, and will do nothing to improve the lives of the majority of Japan's citizens. Yes, Japanese stocks can rise on a nominal basis. But Japan should take a lesson from the United States of recent years. A rising stock market does not, in itself, beget well-paying, full-time jobs. A rising stock market combined with a relentless weakening of the currency (happening of late in Japan) does, however, have a history of making life more expensive for everyday people. And when the currency in question is fiat, and voracious foreign traders looking to make

The fear mongering surrounding a supposed imminent destruction of your U.S. bond portfolio is reaching fever pitch. Part of that fear mongering is the rampant talk surrounding a forthcoming "Great Rotation" out of bonds and into stocks. Cries from the world of equity investors about much higher bond yields have been heard for nearly four years now. Perhaps if the pundits keep saying it over and over, they will eventually be right. But for now, very normal seasonal moves in bond yields continue to be misinterpreted as something much more. For the purposes of this article, rather than enter into the debate about when yields might go higher, I'd like to address what might happen if they do go higher.

A "Great Rotation," whereby investors sell their bonds as yields rise and move that money into stocks, is something that I doubt is on the horizon any time soon, if

By now, pretty much anyone with even a mild interest in investing knows about the horrific performance of Apple's (AAPL) stock after the most recent earnings release. I suspect the nearly 40% slide from its all-time high has caused and will continue to cause much reflection among many Apple shareholders, both professional and so-called retail investors. My hunch is that the apparent cheapness of the stock based on commonly used valuation metrics versus the relentless price declines of the stock has caused considerable unease among fundamentals-based investors, and perhaps even shattered some investors' confidence in picking stocks.

If you are an Apple shareholder engrossed in reflection, I think some of my Apple-focused articles from last fall may be of interest. You can find them here. Additionally, the following sections from Chapter 9 of my book, "The 5 Fundamentals of Building a Retirement Portfolio," may be of interest

It was not the first time I've heard the words "bond equivalent" used to describe dividend paying stocks. But hearing a very well-known and widely followed CNBC host and co-anchor use them to describe Verizon Communications (VZ) the other day is what prompted me to write this article. In addition to being a shareholder of Verizon, if you are a shareholder of Johnson & Johnson (JNJ), Procter & Gamble (PG), McDonald's (MCD), AT&T (T), or The Coca-Cola Company (KO), the message of this article is applicable to you.

Companies that (1) pay regular dividends (and even increase them on a regular basis), (2) are known for being less volatile than the S&P 500, and (3) are generally perceived to have stable cash flows have been an attractive option for investors searching for income investments in an ultra-low-interest-rate environment. The stocks of these types of companies have become known as "bond

Selling puts is one strategy that can lead to long-term investing success. As part of any diversified portfolio, investors will have several allocations and strategies which are used to meet their long-term goals. I think the strategy of selling puts with just one to four weeks to expiration many times over the course of a year can be quite a rewarding strategy for long-term investors. Remember not to confuse long-term investing with buy-and-hold investing. Buy-and-hold investing is just one way for a long-term investor to meet his or her goals. There are other ways as well. The investor who learns how to sell puts on fundamentally sound companies over a period of many years can, in my opinion, absolutely outperform the broader-market during that time.

In my December 9, 2012 article, "Consider Selling Puts On These 3 Stocks," I said the following:

"In the world of options, a

I have lost track of the number of times I have seen on business television or read in the financial press a stock market pundit claim that equities are cheap because the S&P 500 (SPY) is trading below its historical average valuation. But why should investors use historical valuations as a guide when today's equity market drivers, as a collective group, are unlike anything the U.S. markets have ever experienced?

Let me remind investors about four drivers of earnings growth and stock prices over the past few years. Collectively, these four things have played a far larger role than I believe most investors appreciate in driving stocks higher since the 2009 lows. In no particular order, they are:

1. Massive cost cutting - Helps earnings per share.

2. Stock buybacks - Helps earnings per share.

3. Low bond yields - Helps lower the cost of capital for companies and provides

With many Americans experiencing anemic wage growth, watching the prices of consumer goods and services rise can be a frustrating experience. In recent years, I've noticed three areas in which the bulk of my annual spending increases (on a percentage basis) seem to be focused: health care premiums, homeowners insurance, and cable/internet services.

My health care plan is managed by a subsidiary of WellPoint (WLP). Over time, I have learned to expect double-digit annual increases in my health care premiums, and despite a shocking price decrease for the upcoming year, I continue to model hefty health care price increases into my future spending expectations. My homeowners insurance is managed by a subsidiary of Berkshire Hathaway (BRK.B), and, like my health care premiums, has experienced some pretty large increases in recent years. The two insurers (subsidiaries of WellPoint and Berkshire) seem to be competing for who can reach deeper into

'Twas the days before Christmas in 2012
The Fiscal Cliff was approaching, the Mayans as well.
Apple's (AAPL) stock was in freefall, the Utilities (XLU) too,
Investors getting long Xanax and a case of the blues.

"Buy the dip," "Sell the rip," gyrations galore,
Wrapping up ultra-low interest rates for year number four.
We're still dealing with Europe, Band-Aids à la mode,
And getting really darn good at kicking cans down the road.

When what to my wondering eyes did appear?
On TV, a politician says a deal is quite near.
The stock market rallies to investors' delight,
Until another politician says that no deal is in sight.

And so it continues, day after day,
While high-frequency traders, they play and they play.
Trading headlines and rumors, long-term investors abhor,
This isn't your Grandfather's market anymore.

LTRO, OMT,

This is the second piece in Seeking Alpha's Positioning for 2013 series. This year we have taken a slightly different approach, asking experts on a range of different asset classes and investing strategies to offer their vision for the coming year and beyond. As always, the focus is on an overall approach to portfolio construction.

The Financial Lexicon (See Seeking Alpha's policy on anonymous authors) has a decade’s worth of experience in the world of finance, the last seven years of which have been spent as a proprietary trader and investor. Before becoming a full-time trader and investor, The Financial Lexicon worked for one of the largest investment management companies in the world. Additionally, The Financial Lexicon is the author of the recently published book, The 5 Fundamentals of Building a Retirement Portfolio, and writes for LearnBonds.com and OilPrice.com.

Seeking Alpha's Jonathan Liss recently spoke with The

In the world of options, a patient investor willing to collect small amounts of money over and over can easily come out ahead of other investors who spend their time trying to capture larger returns from a position. For a seller of options, looking for opportunities with just a couple of weeks to go before expiration can sometimes yield surprising results. While making 1% to 2% over a two-week period may not be a very exciting trade, if the strategy is repeatedly executed over the course of a year, an investor can realize large annual returns.

With this in mind, I recently spent some time looking for short put opportunities in the December 22, 2012 expiring options. When shorting a put, an investor is selling a put option, collecting a premium, and taking on the risk of being assigned shares of the underlying stock at the strike price sold.

On Wednesday, Freeport-McMoRan Copper & Gold's (FCX) announcement that it is acquiring Plains Exploration & Production (PXP) and McMoRan Exploration (MMR) caused a massive 15.99% sell-off in the company's stock. With the acquisitions, Freeport-McMoRan will be expanding its business into oil & gas, a move that I believe could cause significant changes to the shareholder base over time.

If you polled a large number of equity investors seeking exposure to copper prices and asked them the first company they look to in order to get that exposure, I bet the overwhelming majority would have said "Freeport-McMoRan." I said "would have" because I think the recent acquisition of Plains Exploration and McMoRan Exploration could change the equation.

Take a look at the following chart of Freeport-McMoRan's stock and the iPath Copper Subindex Total Return ETN (JJC). Notice the incredibly tight directional correlation between the two from October 26, 2007 (when JJC