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Eric Peterson

Eric Peterson
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  • Simplify Your Commodities Investing With This ETF [View article]
    For me DBC is not diversified enough, having over 50% in energy, which is too correlated with the stock market for my liking.
    Dec 4, 2012. 12:14 PM | Likes Like |Link to Comment
  • The S&P 500, Dow And Nasdaq Since Their 2000 Highs [View article]
    Maybe his point is why even show charts that don't include dividends? When you buy an ETF or individual stocks in the SP500, you get dividends. Only show the charts with dividends.
    Dec 4, 2012. 12:10 PM | Likes Like |Link to Comment
  • 3X Leveraged Gold: 1 Year Later [View article]
    Any leveraged fund that tracks daily moves in the underlying asset will lose money in a flat market. All investors should know that before buying. Leveraged funds are short-term trading vehicles, not investments to be held for months. If you hold for months, you will always under-perform what you expected.
    Dec 4, 2012. 12:07 PM | Likes Like |Link to Comment
  • Simplify Your Commodities Investing With This ETF [View article]
    "At this time, just two of the 14 commodities (held by DBC), RBOB gasoline and Brent crude oil, are being held via the front month contract."

    That's weird, since RBOB gasoline has one of the largest backwardations (distant months cheaper than front month) of any of the commodities that DBC holds. Right now January 2013 is $2.72 and December 2013 is $2.55.

    I am holding December 2013 long, because of the backwardation. I get a nice profit if spot unleaded gas prices stay level (and make even more if they go up). This is one of my "inflation protections".
    Dec 4, 2012. 05:46 AM | Likes Like |Link to Comment
  • ETFReplay.com Portfolio For December [View article]
    "Below is a performance graph of the portfolio (green) versus SPY"

    So, a lot of extra work (monthly trades), more taxes, and lower performance than SPY. Although the drawdowns do not look as bad as the SPY. That seems to be the only plus.
    Dec 4, 2012. 05:17 AM | Likes Like |Link to Comment
  • A Volatility Play With Significant Upside Should We Go Off The Fiscal Cliff [View article]
    I like outcastsearchers approach and comments.

    One minor quibble: XSP has nothing to do with futures. It's based on the SP500 cash index, not the futures. Options on the E-mini SP500 futures contracts (symbol ES) are traded only in a futures account, and can't be traded in a regular brokerage account like the XSP options.
    Dec 4, 2012. 05:06 AM | Likes Like |Link to Comment
  • A Volatility Play With Significant Upside Should We Go Off The Fiscal Cliff [View article]
    "if volatility remains stable, you could walk away at the end of Dec"

    with a significant loss because of the severe contango.
    Dec 4, 2012. 05:00 AM | Likes Like |Link to Comment
  • A Volatility Play With Significant Upside Should We Go Off The Fiscal Cliff [View article]
    The article should have mentioned the severe contango on the VIX futures. Not just the comments. In my opinion that was negligence.

    VIX could go up by December 22 and the recommended VXX call spread could still be worthless. That MUST be mentioned in the article, but it wasn't.

    Buying calls on VXX is one of the lowest-probability things you can do in the markets. It's a straight low-probability gamble, like betting on a single number on the roulette wheel.
    Dec 4, 2012. 04:52 AM | Likes Like |Link to Comment
  • Put A Collar On Your Portfolio [View article]
    Collars DO erode value. The CLL index performs much worse than the plain SP500.
    Dec 4, 2012. 04:47 AM | Likes Like |Link to Comment
  • Put A Collar On Your Portfolio [View article]
    The CBOE index CLL does this. Sells OTM calls to finance OTM puts. It performs much worse than the SP500. Check out the performance charts on the CBOE site.

    You get almost nothing for selling 10% OTM SP500 calls. It's not worth even selling them. 10% OTM puts cost a lot more.

    Instead of paying for insurance (buying puts), I prefer to put some money into investments that usually go up when the SP500 goes down: bonds, yen, gold.
    Dec 4, 2012. 04:41 AM | Likes Like |Link to Comment
  • Coming Week: 9 Reasons The 1% Are Bearish [View article]
    "The largest ever weekly inflow, ~ $132 billion, occurred just 2 weeks ago. Do these insiders know something we don't?"

    Bad market timing. The market bottomed two weeks ago. They missed out on a 4% rally. Would have been better to get out now.
    Dec 3, 2012. 05:10 PM | Likes Like |Link to Comment
  • Gold Little Changed In November, Could Surge In December [View article]
    Soros is ignorant?
    Dec 3, 2012. 06:51 AM | 1 Like Like |Link to Comment
  • Gold Looks Expensive [View article]
    dharmi, if you consider your paper money to be as worthless as toilet paper, I would be glad to send you a truckload of high quality toilet paper for all of your paper money! Deal?
    Dec 3, 2012. 05:13 AM | Likes Like |Link to Comment
  • RBS Rolls Out 5 Rogers Enhanced Commodity ETNs [View article]
    Thanks for the reply. It's interesting that investors in the "old" funds haven't switched any money over yet, considering that the new funds follow clearly superior indices. RJI (old version of RGRC) has assets of 642 million. If just 1% of that switched over, RGRC would have $10 million instead of $4 million.
    Dec 3, 2012. 05:08 AM | Likes Like |Link to Comment
  • Sector Rankings Stay Neutral While Charts Take A Bullish Turn [View article]
    Thanks for the reply. I see it went live in March 2008. Do you have any concrete performance numbers? Such as holding long the top two Outlook sectors each month from March 2008 to present, versus just buy and hold the SP500?

    Don't mean to be argumentative, but without knowing the performance, there's not much reason to pay attention to the Outlook numbers.
    Dec 3, 2012. 04:57 AM | Likes Like |Link to Comment
COMMENTS STATS
264 Comments
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