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RM13

RM13
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  • What Is The Best Way To Hedge S&P 500 Exposure? [View article]
    I've noticed the same thing. From mathematical point of view, SPY and VQT have to fall few percentage points for VQT's VIX hedging to kick in. One could create an interesting trade strategy for long VQT based on fall off of SPY.
    Mar 27 10:03 AM | Likes Like |Link to Comment
  • What Is The Best Way To Hedge S&P 500 Exposure? [View article]
    Correction - August 2011..
    Mar 27 09:44 AM | Likes Like |Link to Comment
  • A Safe And A Shotgun, Or Public Sector Banks? The Battle Of Cyprus [View article]
    That's the point - not being a gold or platinum bug - but yes, that's the point.
    Mar 26 08:29 PM | Likes Like |Link to Comment
  • Build A Reliable All-Weather Portfolio With 4 ETFs [View article]
    Fair comment - past is not a predictor of the future. In defense of portfolio I listed above, mixture of intermediate and international bonds (JAFIX and PREMX) is predominantly hedged against inflation by stocks and gold in PRPFX. US Treasuries in JAFIX are hedged by both international bonds as well as stocks and gold in PRPFX.
    Mar 26 08:24 PM | Likes Like |Link to Comment
  • What Is The Best Way To Hedge S&P 500 Exposure? [View article]
    Actually, best way is not to sell. VQT had its highest gain in month of August 12 when VIX hedges took over and it rocked to the tune of close to 15%.
    Mar 26 08:20 PM | Likes Like |Link to Comment
  • What Is The Best Way To Hedge S&P 500 Exposure? [View article]
    Brad, great article.

    I actually utilize VQT as a hedge for my whole portfolio, realizing that it's a limited hedge - it needs few days trading time to wind up it's hedges. I think that's okay - it's worked well so far. The only issue may be 9/11 type of event or west coast earthquake - hedges may not be in place.

    I wonder whether PHDG follows the same trading system OR whether ETF can follow the same tracking index as well as VQT, an ETN. Those are issues in MLP markets - ETF vs ETN structures.
    Mar 26 03:48 PM | Likes Like |Link to Comment
  • Weighing The Week Ahead: Can The Cyprus Fallout Be Contained? [View article]
    Yes, Europe doesn't know how to deal with fundamental issues involving birth of single currency without national integration. Yet, they have managed to 'kick the can' down the road and they will continue to do so. Sooner or later, one of members will no longer consider it beneficial to remain part of eurozone, and will pull out of the union - be it Slovenia, Spain, Italy, or France. That will be thrashing to the euro markets, but from long term prospective a buying opportunity - just as 2008 was.

    From long term investors perspective - 'A crisis is a terrible thing to waste'. I don't think now is the time to buy, but there will be a time, there will be at time.
    Mar 25 03:34 PM | Likes Like |Link to Comment
  • A senior official says Cyprus has reached an agreement with the Troika to impose a 20% tax on accounts over €100K at the Bank of Cyprus and a 4% levy on similar accounts at other domestic banks. The same source told Reuters the country would not nationalize pension funds.  [View news story]
    The problem isn't that accounts over 100k will likely lose money - problem is that under consideration is loss of money in accounts under 100k. It shows that when push comes to shove, secured debtors (aka ECB and related entities) take no losses while depositors protected under current eurozone statues take some losses.

    I stand by my prediction this crisis will be far more costly for eurozone that giving Cyprus 6 billion euros. This almost certainly assures withdrawal of depositors money from eurozone periphery towards the core and away from the zone. This makes further banking bailouts in eurozone periphery a certainty.
    Mar 24 12:36 AM | 2 Likes Like |Link to Comment
  • Facing a Monday deadline to craft an acceptable deal, the Cypriot parliament granted the government authority to impose capital controls and voted to nationalize some pension funds as part of an asset pooling plan that may ultimately back an ad hoc bond issue. The country may also adopt a good bank/ bad bank model under which Cyprus Popular Bank will be wound down. Parliament will vote over the weekend on a new iteration of the deposit tax and EU officials will convene in Brussels Sunday. Without a resolution, the country faces an all but certain bank run Tuesday morning. [View news story]
    No one said anything about waiting or dreading an apocalypse. High beta is what is needed to make money, so utilize high beta to one's advantage.
    Mar 23 02:32 PM | Likes Like |Link to Comment
  • Facing a Monday deadline to craft an acceptable deal, the Cypriot parliament granted the government authority to impose capital controls and voted to nationalize some pension funds as part of an asset pooling plan that may ultimately back an ad hoc bond issue. The country may also adopt a good bank/ bad bank model under which Cyprus Popular Bank will be wound down. Parliament will vote over the weekend on a new iteration of the deposit tax and EU officials will convene in Brussels Sunday. Without a resolution, the country faces an all but certain bank run Tuesday morning. [View news story]
    Being of northern European origins, I have to agree that Italy and Spain run in their own ways, those that are difficult for Americans or northern Europeans to completely understand. In Italy, it seems to go back to complexity of papal elections and political/familial connections that I have difficult time comprehending. And Italy has functioned just fine in that regard.

    I don't think Germany or northern Europe can change that way of life by force. It's entirely possible that economic situation and global integration may force Italians to change their way, but in that regard, Europe would be much more boring.
    Mar 23 02:31 PM | 1 Like Like |Link to Comment
  • SandRidge Permian Trust: What Every Investor Needs To Know [View article]
    Yes, trusts generate K1 reports.
    Mar 23 02:24 PM | Likes Like |Link to Comment
  • SandRidge Permian Trust: What Every Investor Needs To Know [View article]
    To address basic deficiency in your statement, PER is not a stock, it's a trust. That has completely different meaning in terms of financial evaluation of investment structure.
    Mar 23 02:23 PM | 1 Like Like |Link to Comment
  • Facing a Monday deadline to craft an acceptable deal, the Cypriot parliament granted the government authority to impose capital controls and voted to nationalize some pension funds as part of an asset pooling plan that may ultimately back an ad hoc bond issue. The country may also adopt a good bank/ bad bank model under which Cyprus Popular Bank will be wound down. Parliament will vote over the weekend on a new iteration of the deposit tax and EU officials will convene in Brussels Sunday. Without a resolution, the country faces an all but certain bank run Tuesday morning. [View news story]
    No, war is now off the table - Europeans live too comfortable of a life to want to slaughter each other like in the past.
    Mar 23 12:04 AM | Likes Like |Link to Comment
  • Facing a Monday deadline to craft an acceptable deal, the Cypriot parliament granted the government authority to impose capital controls and voted to nationalize some pension funds as part of an asset pooling plan that may ultimately back an ad hoc bond issue. The country may also adopt a good bank/ bad bank model under which Cyprus Popular Bank will be wound down. Parliament will vote over the weekend on a new iteration of the deposit tax and EU officials will convene in Brussels Sunday. Without a resolution, the country faces an all but certain bank run Tuesday morning. [View news story]
    What do you mean? Last year Italian banks lost 60 billions of euros in deposits, Spain on the order of 50 billion. Greece suffered something like 20% deposit loss, 30-40 billions.

    Current situations does nothing but accelerates this trend.
    Mar 23 12:03 AM | 1 Like Like |Link to Comment
  • Chesapeake Granite Wash Trust: Updated Reserves Show Major Downward Revision, Buyers Beware [View article]
    The only problem with that trade is that CHKR share price will be reduced by its distributions until Nov 2013 - that's few dollars worth of distributions. You are very likely to hit close to 10/share at that time point.
    Mar 22 01:27 PM | Likes Like |Link to Comment
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