"I'll take 'Kiss of Death Magazine Covers' for minus 7%, Alex," tweets a clever fellow as this week's The Economistcover shows Japan PE Shinzo Abe flying through the air like Superman. DXJ -6.9% premarket. [View news story]
It will happen everywhere when bond holders get fed up receiving negative yields.
Will It Be Inflation Or Deflation? The Answer May Surprise You [View article]
The fed has the power to prevent the melt down you expect and will use it. The real economy could dip into a full blown recession and the market will hold up if enough liquity is provided. Go ahead and fight the fed.
Dividends In The Ring Vs. Share Buybacks: Mathematically Solved [View article]
Share buybacks amplify gains per share but also amplify losses. Dividend yield usually puts a floor on the downside of a stock. I prefer companies that pay dividends as being shareholder friendly. Companies who do buybacks tend to be more management friendly.
How Does The Loss Limitation With MLPs Work? [View article]
Most investors do not understand the difference between a distribution and a dividend. Nor do they understand that a MLP can generate taxable income that has not been distributed. Unfortunately the IRS understands all of these complex rules and unwitting taxpayers can get into trouble.
I would never invest in a partnership unless I was the controlling partner.
"Sit down, James Bullard. Let the ECB manage its own affairs. I am sure they can mess it up on their own, without your help. And certainly, without your condescending advice!"
Jon Huntsman Funds Charitable Donations With Share Proceeds [View article]
The thing an investor needs to know about HUN Charitable Trust is it has the ability to buy HUN stock and did so after a bear raid caused a rapid 30% drop in the stock. I bought along side of the trust @ $11.45 and have been rewarded nicely. The trust, Huntsman family and the company itself can and will defend the stock price from bear raids. Nice thing to know about a cyclical stock.
A question about the dividend capture strategy. Do you hold the stock long enough to qualify for the qualified dividend tax preference? The rule is you have to hold for 60 days in the 121 day period that starts 60 days before the ex dividend date. Qualified dividends are taxed at lower rates. That can lead to increased after tax returns but would slow the turn over of the account.
The European investigation (I, II) into oil benchmark pricing raises rarely voiced questions about the appropriate way to set prices. FT notes that Platts' reporters cover 400+ wholesale energy prices everyday and the information available to them is limited to what commodities houses and Big Oil are willing to disclose. The process is complicated by the fact that myriad factors ranging from small discrepancies in quality to the type of hull on transport tankers, make the process inherently subjective. Nevertheless, the ordeal looks quite a bit like the Libor and ISDAFIX probes: a benchmark to which trillions of dollars of assets are tied is determined by key players away from the public eye. [View news story]
Ask the banks about interest rates -- we get LIBOR scandal. Ask the oil companies about oil prices -- we get..........
The Myth Of Liquidity And Bubbles In Financial Markets [View article]
All one has to do is remove the liquidity and the bubble will be exposed. Like Warren Buffett said during the financial crisis. "When the tide goes out we will see who swims naked."
Likewise if the liquidity is never removed we will not see the bubble.
Few observations: 1) Gold - was that a bubble? 2) Margin - expanding at a scary rate. 3) Subprime - These people are buying cars. 4) Real Estate - appreciating rapidly. 5) Equities - made new highs
Friday - Options Expire Today, Will The Rally Expire Too? [View article]
I have finally done it. I have doubled the amount I have invested in the market since 2008. In theory, I could sell half and play with the winnings (tax issues prevent that). That's not sporting. I say let's try to double it again by 2018.
The U.K.'s Serious Fraud Office says it is "urgently reviewing" whether it has the authority to investigate allegations of price fixing in the oil market, after unannounced inspections earlier this week by EU antitrust authorities of BP, Shell (RDS.A, RDS.B) and Statoil (STO). The SFO believes it could be the appropriate body to investigate such allegations. [View news story]
Ah big dollar litigation. Of course the UK wants in. Thinking of opening a new position in STO regardless.
More on Philly Fed: The big miss is another in a line of weak data points this morning. The decline was led by a steep drop in shipments to -8.5 from +9.1. Also notable is a big jump in inventories to +4.1 from -22.2. Employment worsened to -8.7 from -6.7. The percentage of firms reporting employment decreases was 22% vs. those reporting increases at 14% - a number sure to cross the desk of the FOMC doves this morning. Treasurys have had a tough May, but they're bouncing today, TLT +1.2%. The leveraged bear ETF: TBT -2.4%. Stocks give up early gains (DIA -0.2%). [View news story]
Bad news is good news. QE to continue. Go ahead and fight the tape shorts.
"I'll take 'Kiss of Death Magazine Covers' for minus 7%, Alex," tweets a clever fellow as this week's The Economist cover shows Japan PE Shinzo Abe flying through the air like Superman. DXJ -6.9% premarket. [View news story]
Will It Be Inflation Or Deflation? The Answer May Surprise You [View article]
State-of-the-Art Alcoa Facility to Cut in Half Energy Used to Recycle Aluminum for Forged Wheels [View article]
Dividends In The Ring Vs. Share Buybacks: Mathematically Solved [View article]
How Does The Loss Limitation With MLPs Work? [View article]
I would never invest in a partnership unless I was the controlling partner.
Bullard's Chutzpah [View article]
Plus +4.
Jon Huntsman Funds Charitable Donations With Share Proceeds [View article]
Vale's Coal Woes Continue... For Now [View article]
Shades Of 1999 [View article]
A question about the dividend capture strategy. Do you hold the stock long enough to qualify for the qualified dividend tax preference? The rule is you have to hold for 60 days in the 121 day period that starts 60 days before the ex dividend date. Qualified dividends are taxed at lower rates. That can lead to increased after tax returns but would slow the turn over of the account.
The European investigation (I, II) into oil benchmark pricing raises rarely voiced questions about the appropriate way to set prices. FT notes that Platts' reporters cover 400+ wholesale energy prices everyday and the information available to them is limited to what commodities houses and Big Oil are willing to disclose. The process is complicated by the fact that myriad factors ranging from small discrepancies in quality to the type of hull on transport tankers, make the process inherently subjective. Nevertheless, the ordeal looks quite a bit like the Libor and ISDAFIX probes: a benchmark to which trillions of dollars of assets are tied is determined by key players away from the public eye. [View news story]
Is anyone surprised???
The Myth Of Liquidity And Bubbles In Financial Markets [View article]
Likewise if the liquidity is never removed we will not see the bubble.
Few observations:
1) Gold - was that a bubble?
2) Margin - expanding at a scary rate.
3) Subprime - These people are buying cars.
4) Real Estate - appreciating rapidly.
5) Equities - made new highs
Friday - Options Expire Today, Will The Rally Expire Too? [View article]
The U.K.'s Serious Fraud Office says it is "urgently reviewing" whether it has the authority to investigate allegations of price fixing in the oil market, after unannounced inspections earlier this week by EU antitrust authorities of BP, Shell (RDS.A, RDS.B) and Statoil (STO). The SFO believes it could be the appropriate body to investigate such allegations. [View news story]
Steel Price Under Tremendous Pressure In Europe [View article]
More on Philly Fed: The big miss is another in a line of weak data points this morning. The decline was led by a steep drop in shipments to -8.5 from +9.1. Also notable is a big jump in inventories to +4.1 from -22.2. Employment worsened to -8.7 from -6.7. The percentage of firms reporting employment decreases was 22% vs. those reporting increases at 14% - a number sure to cross the desk of the FOMC doves this morning. Treasurys have had a tough May, but they're bouncing today, TLT +1.2%. The leveraged bear ETF: TBT -2.4%. Stocks give up early gains (DIA -0.2%). [View news story]