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jarco

jarco
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  • With the Right Dividend Stocks, How Much Money Would You Really Need to Retire? [View article]
    While a 1% fee certainly is fair and within industry norms, if you're earning 5% on your portfolio, this fee represents 20% of you're income stream, yes?
    Dec 8, 2010. 11:52 AM | 5 Likes Like |Link to Comment
  • With the Right Dividend Stocks, How Much Money Would You Really Need to Retire? [View article]
    Do your calculations include the cost of the home ownership alternative; namely, the rent one pays? And the ability to write off mortgage interest ?
    Dec 8, 2010. 11:35 AM | Likes Like |Link to Comment
  • With the Right Dividend Stocks, How Much Money Would You Really Need to Retire? [View article]
    <One area of funds I need, though are in high-yield bonds. I figure the managers earn their keep just by avoiding land mines and the usual `asteroid risk.' I have no business trying to pick and choose in that area. Even though I find that precious few large-cap "junk" bonds actually go under....>

    You state "Other pearls I reject are owning mutual funds and annuities. Almost a sure bet for mediocrity" and yet ID a need for high-yield bonds. Bond funds, especially in an era of rising interest rates (like now), should be avoided. In my view, mutual funds other than those dealing with off-shore positions where local management is essential offer little up side when it comes to investing for income.

    Granted, analyzing and buying stocks is easier than bonds for a number of reasons especially lack of market size and liquidity. However, bonds in the same high dividend stocks such as public utilities should be of interest to you. In large measure, they are not junk rated and therefore there are no more land mines to avoid any more than when one owns the equivalent common stock.
    Dec 6, 2010. 08:38 AM | 3 Likes Like |Link to Comment
  • Who Would Buy Citgo From Chavez? [View article]
    First of all, shame on the author for his Citgo ownership ignorance. While some commenter's may have not been aware, that's no excuse for a contributor (but you're forgiven).

    That aside, Gitgo is not considered a "branded" gas so it exists with all the other "off brands" and is generally discounted for that and other reasons.

    Of substance, the only way Citgo has remained in the retail business is assurances of crude supply albeit heavy and sour from Venezuela. Chavez's real problem is having to buy supply to feed the entire Citgo network. Some relief came from BP taking over stations but the supply problem continues.

    Chavez would be happy to pull out of the US market especially for the cash level he's suggesting. The buyer of Citgo would do the US a disservice and simultaneously shout to others, such as the author, just exactly what kind of scum is behind the deal. Let's not do Chavez a favor!
    Nov 29, 2010. 03:47 PM | 4 Likes Like |Link to Comment
  • How to Build a Low Risk, Income Producing Portfolio With Higher Returns [View article]
    I understand your point(s) but again just like the US domestic market of old when "transparency" wasn't a disclosure term, investors need to do their homework. You're spot on regards risk with reporting and similar weaknesses but we should all be reminded the 2007-08 tsunami, affecting the western economies, was US born and bred despite our more sophisticated regulations. Losses in the US and Europe far exceeded reasonably vetted currency risks.
    Nov 29, 2010. 10:18 AM | Likes Like |Link to Comment
  • Shale Gas Rush Presents Another Problem for Russia and Gazprom [View article]
    Thanks for the additional comments. A couple of questions, if I may. First, is the 168mm dia drilling you refer to horizontal on a shale play and where is the play?

    In an earlier post you suggested looking . . " at the impediments to the shale gas revolution in Europe you will note a series of obstacles that must be confronted - lack of drilling rigs (and you can't just export US rigs due to the metric differences), water supplies, fractured ownership, density population, deeper formations amongst other issues". How & why are Exxon and others willing to provide the resources including the rigs to explore in Eastern Europe?

    Also, where is the evidence that Chesapeake Energy has ceased or drastically reduced shale drilling? It seems clear they are running out of money hence selling their field interests and further slowing down as the market demand declines. Since the buyer was a major energy company, one may question why they made this investment.

    Finally, in a recent interview, the CEO of Dominion Resources (a prior NG explorer now strictly a transporter) referenced the demand decline but more specifically identified a lack of pipeline and gathering infrastructure a the major impediment particularly in Marcellus.
    Nov 27, 2010. 12:33 PM | 1 Like Like |Link to Comment
  • Ford's Drive Towards an Investment Grade Credit Rating [View article]
    Ford wasn't "advised" not to take the bailout. They simply didn't need it. Ford was relatively debt free until it mortgaged the farm before the economic tsunami so has sufficient cash to weather the storm.
    Nov 26, 2010. 11:00 PM | 4 Likes Like |Link to Comment
  • How to Build a Low Risk, Income Producing Portfolio With Higher Returns [View article]
    As someone who has consistently beat the market for over 30 years, I agree with your assessment entirely. Ignoring the obvious that the domestic market will be hampered by the inevitable and permanent decline of the US economy is rather foolish. The US standard of living has been declining for some time and is about to take a steeper path given the emergence of BIC (BRIC less Russia) augmented by the South American and Far East minors.

    While some have forecasted China to surpass the US in GDP by 2050, I suggest it could be as soon as 2025. Aside from the continued dominance of US technology companies such as Google and Apple, research and product innovations will occur outside the US especially within China. The influx of foreign students (MIT, Cal Poly, etc.) who stayed in the US after college is an economic engine no longer. Recent grads have returned to the "homeland". Current students are opting to stay home and build their dreams, albeit within an oppressive government, domestically. Just like the Berlin Wall, economic freedom and success will bring down the Red China Wall sooner than later, in my view.
    Nov 25, 2010. 01:03 PM | Likes Like |Link to Comment
  • Return of Kinder Morgan: Mammoth GP IPO Filed [View article]
    KMI is a managable alternative to KMP for IRA holdings.
    Nov 25, 2010. 12:12 PM | 1 Like Like |Link to Comment
  • With the Right Dividend Stocks, How Much Money Would You Really Need to Retire? [View article]
    <Lastly, I am one English major who is a CNBC addict, loves this world of finance, and who enjoys managing my own portfolio.>

    A bit off the thread, but I find CNBC is more "talking over fellow panelist" than useful information and find myself switching to Bloomberg. Have you ever listened to Maria what's her name at a distance? Perhaps having the TV on in another room while your on the computer? Shriek; big time ear punishment and she rarely knows enough about the subject to ask intelligent questions of her guests. This is especially annoying when the guest is an obvious expert and a rare interview. Too many panelists; too much competition for air time.
    Nov 24, 2010. 11:34 AM | 4 Likes Like |Link to Comment
  • Shale Gas Rush Presents Another Problem for Russia and Gazprom [View article]
    Comment away . . .
    Nov 24, 2010. 09:02 AM | Likes Like |Link to Comment
  • How to Build a Low Risk, Income Producing Portfolio With Higher Returns [View article]
    <The domestic market is liquid, broad and diverse enough for nearly all investors. There really is no need to take currency risk and unknown market risks by investing off shore. Keep in mind that many domestic companies have currency exposure/risk inherent in their operations. Some have a large foreign exposure for revenues and profits>

    But there is an equally compelling argument for investing "offshore". Aside from the "internationals" you mention such as PG, KO, among others, many foreign companies are becoming direct competitors with US domiciled entities. In addition, emerging countries are insisting upon goods and services be produced within their borders. A prime example is the edict that National Oilwell Varco [NOV] produce the bulk of its Brazil bound equipment within Brazil. Ship builders in Korea and Singapore are facing the same pressures.

    No longer will American companies be able to build in the US and export to the emerging world. While profits may flow home, bottling plants, oil refineries, chemical and plastic production, etc. will be "off-shore" and many controlled by off-shore companies albeit private, publicly owned, or government owned.

    Investment opportunities outside of the US will be an important realm for US domiciled investors especially those many years from retirement.
    Nov 20, 2010. 01:31 PM | 2 Likes Like |Link to Comment
  • With the Right Dividend Stocks, How Much Money Would You Really Need to Retire? [View article]
    Over 250 comments and all worth the time reading. A couple of thoughts for your consideration.

    A friend with an elderly mother claims the average life span after one enters long-term care is less than 24 months. Hence his reluctance to buy the coverage for himself. Does anyone have supporting data, opinion, etc.?

    The argument of renting verses buying and paying 2-3 times for interest over the life of the mortgage cannot be overlooked. However, it is highly dependent on where the house was located. Values vary greatly throughout the country. If you were fortunate to live in metro NYC, DC, LA, or Boston (as I was) to name a few, home values skyrocketed. I suspect 75-90% of the country did not fare as well. How was is where you lived?

    To those who have saved in a disciplined manner, my congratulations. For me, I was unable to but fortunately worked at a time for a public company who granted stock options. Far fewer during my working years as is the current growing practice. That plus the previously mentioned real-estate gains has done it for me.

    Now comes the challenge of generating a comfortable income stream. Thanks to all those commenting to this article for your insight and recommendations.
    Nov 20, 2010. 11:23 AM | 5 Likes Like |Link to Comment
  • Four ETFs to Watch as China Fights Inflation [View article]
    Investing with ETF's within such a large and emerging economy is problematic, in my view. China appears to be a classic managed mutual fund opportunity where management fees will pay dividends. On the ground boots verses paper games.

    ETF's in Brazil and Mexico, for example, can fully embrace to entire country's economy. China is too big and unsettled.
    Nov 19, 2010. 11:22 AM | Likes Like |Link to Comment
  • With the Right Dividend Stocks, How Much Money Would You Really Need to Retire? [View article]
    You might want to look at your high-yield bond fund(s). Unlike investors who buy individual bonds with certain maturity values, bond funds do not offer the same degree of protection. With current all time interest rate lows, bonds and associated funds values have grown proportionally. Now may be the time for you to cash out and capture that asset growth. You should consider a similar posture as your CD's mature. CD's are safe but otherwise a very poor investment.

    Investing for retirement involves calculated risk taking and, as such, a fair amount of work to achieve ones goals
    Nov 18, 2010. 02:18 PM | 3 Likes Like |Link to Comment
COMMENTS STATS
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