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sethmcs

sethmcs
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  • Boost Your Dividend Yield [View article]
    A few comments. First, never sell a covered call on a stock that you don't want to sell. Selling a call gives the buyer the right to buy your stock at the strike price (at anytime prior to expiration). Second, for tax purposes you must hold a stock for at least 60 days to get qualified dividend tax treatment and at least a year to get qualified long term gains treatment. Keep this in mind when executing covered call trades. Third, timing is important when selling calls. Dividends, earnings and company news will affect call premium prices. Also consult VIX. Higher VIX the higher the premiums. Remember someone who is buying your call is betting the stock will go higher than the strike price and premium. Ask yourself why would they do that.
    Jan 16 12:30 AM | 9 Likes Like |Link to Comment
  • Zero Hedge Is Wrong About Gold [View article]
    The contrarian in me likes gold miners. I am not concerned about the next quarter or two. $1,200 looks like the bottom or at least real strong resistance. The sideways movement means it can breakout in either direction. All this talk of all in costs is stupid. The real cost is a lot lower. A few big write downs will prove that. NEM took a big write down in the 3rd quarter and miraculously got all in cost down to $993 in 4th quarter. I like investing in companies after big write downs but then again I am accountant and understand effects. Seems to me the miners are undervalued and there is more upside than downside. Long NEM and adding to position.
    Dec 17 05:50 PM | 9 Likes Like |Link to Comment
  • Wall Street Breakfast: Must-Know News [View article]
    Why buy insurance at all unless you are sick? Since insurance companies cannot deny you for a pre existing condition it does not make sense to carry coverage at all. Pay the penalty and if you become sick buy coverage. Obamacare depends on healthy people being financially stupid to work.
    Nov 12 11:12 AM | 9 Likes Like |Link to Comment
  • Can Ethanol Overcome The Blend Wall? [View article]
    I hate ethanol in gas. I'd even pay more to get pure gas. Congress and EPA have no business telling oil refiners how to make gas. As a matter of fact this stifles competition and innovation. How are we going to get better gas under these rules? Further ethanol burns hotter than gasoline which damages older vehicles and gets less mileage. How is burning more fuel going to help the environment or the economy. You would think the government has better things to do.
    Jul 28 10:30 PM | 9 Likes Like |Link to Comment
  • 2 Storms Coming [View article]
    Want to bet on an upset?
    Oct 29 09:15 PM | 9 Likes Like |Link to Comment
  • Is Joe Sixpack Better Off Today? [View article]
    The losers are in debt and the winners have the capital. Can't make winners out of losers with an installment plan. The math just doesn't work.
    Sep 16 02:13 AM | 9 Likes Like |Link to Comment
  • What Good Could Come for the U.S. From the Turmoil in Egypt? [View article]
    It is amazing how history repeats itself. Remember the Shah of Iran? Remember Jimmy Carter's response? Remember the outcome? Now look at Obama's response? What do you think the outcome will be?
    Jan 29 11:22 PM | 9 Likes Like |Link to Comment
  • Why Future Asset Bubbles Can Be Expected [View article]
    Whenever a country gets into financial trouble (default) the correct policy is to renegotiate the debt and devalue the currency. This usually involves the IMF. The United States controls the IMF so that is not necessary. The United States does not have to negotiate with anybody and can devalue anytime. What will devaluing do? It should theoretically reduce the current account deficit the balance of payments going to other countries and limit the ability of the government to borrow. What will happen in practice is the cost of imports will go up and the current account deficit will widen. Theoretically interest rates should go down but in actual practice interest rates will rise as investors perceive inflation risks. Ironically the United States will export inflation to the emerging markets causing a crisis that will eventually strengthen the dollar. Bubbles all over the place. Once unemployment starts to drop people will demand more wages and inflation will take off. There will be all kinds of ways to make fast money and lose fast money. Remember that Chinese curse may you live in interesting times. These are interesting times.
    Nov 13 10:24 PM | 9 Likes Like |Link to Comment
  • Weighing the Week Ahead: It's All About the Dollar [View article]
    "The stock market is moving inversely with the dollar. The mystery is why?"

    The correlation is so high that it becomes a hedge to protect against a pullback. Calls on UUP may provide some relatively cheap downside protection.

    Normal correlations are becoming meaningless. One would not expect bonds priced for depression, gold priced for hyperinflation, oil priced as if there is a shortage when there is in fact a surplus and the stock market rising at the same time. This breakdown of normal relationships makes risk diversification extremely difficult. The only common denominator is the dollar and therefore the only real hedge. My understanding is someone is extremely wrong and either the bond bubble will break or the commodity bubble will break. The fate of the stock market will depend on the flow of money.
    Oct 25 02:11 AM | 9 Likes Like |Link to Comment
  • BP's Eventual Bankruptcy Is Certain [View article]
    The best time to buy BP is right before the well is capped. End of July or early August. At this rate of decline maybe for $22.00 - $25.00 per share. All these negative stories and comments are good and will get us to the bottom quicker.
    Jun 25 06:22 PM | 9 Likes Like |Link to Comment
  • Why We All Should Share the Cost of the Gulf Oil Spill Cleanup [View article]
    "I propose we tax all foreigners living abroad." Monty Python
    May 9 03:22 PM | 9 Likes Like |Link to Comment
  • U.S. GDP Growth Rate Unsustainable; Recovery Will Fade [View article]
    Restructuring? Cut government in all levels in half. Force Medicare and Medicaid to pay the same rate as anyone else. Do the same with colleges. Make a national right to work law. Rise the retirement age to 70. Review annually all social security disability cases. Stop extending unemployment beyond normal expiration. Lower corporate tax rates. End the wars in Iraq and Afghanistan. Make loser pay lawsuits and limit legal fees from awards to 10 %. End class action lawsuits. I can go on and on but you get the idea. Get the government off the backs of the people or if you will, get the government out of our business so that we can get on with business.
    May 2 06:56 PM | 9 Likes Like |Link to Comment
  • Hidden Benefits of a Greek Debt Default [View article]
    Maybe Greece is a start of the failure of Socialism. The state can't afford to give the public everything it feels its entitled to. The numbers just don't work. Also I agree that cheap money is the root cause of the failures today. Cheap money leads to malinvestment. In general governments do not create wealth rather they consume it. To have half of your population working for the government means that there is no way for the Greeks to pay for the monster they created. Default in the short run would cause a panic and deflation. Wealth in the form of bonds would disappear and the domino effect is real. Anyone who feels the Greek crisis is about Greece is sadly mistaken. Germany will provide aid to protect Germany. USA will bail out Greece via IMF to protect the USA. Meanwhile the Greek people will suffer no matter what the outcome. There is no such thing as a fresh start bankruptcy for countries. War is usual result if this situation is not correctly handled.
    May 2 10:35 AM | 9 Likes Like |Link to Comment
  • Kinder Morgan scrapping MLP structure in $44B deal [View news story]
    My guess is the exchange will be a taxable event. Anytime you receive cash automatically is a taxable event. Receiving shares of a C corp for LP units most likely will cause a taxable event as well unless KMI can do some magic I am not aware of. Nevertheless KMI is going on my watch list because of this announcement.
    Aug 10 10:01 PM | 8 Likes Like |Link to Comment
  • Bonds Are Expensive, Stocks Are Expensive: The Long-Term Investor's Conundrum [View article]
    Not everything is expensive and stocks do go on sale. The funny thing is no one wants them when they are on sale. I disregard allocation strategies and buy whatever is on sale. Best place to look is stocks making new lows and betting against analyst's recommendations. When they say sell. I buy. After doing my work. Now my strategy requires patients and nerves of steel. To wait out a cyclical downturn is not for everyone but the eventual rewards are multi baggers.

    At the moment bonds offer no value whatsoever and tons of downside risks. I do not see them as a safe haven. If the ten year should get back to 3.25% I may buy some preferred stocks that generate qualified dividends but that would mean they have gone on sale.
    May 16 11:18 PM | 8 Likes Like |Link to Comment
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