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Wager On Tranquility


The market has settled.

Calm should prevail.

Peace is the watchword.

In regard to the Striking Price by Steven M. Sears, the market does not have whims as much as it has supply-and-demand dynamics. While CBOE shares do offer a way to wager on volatility, CBOE shares are not designed to track the index itself. For that, I would recommend the ETFs VXX and EXIV.

I have long been bullish on palladium because of the trend away from diesel and towards battery (i.e. electric) cars. While I do not currently have a position in the metal, I have held the ETF PALL. My investment representative at Edward Jones disapproved of such an esoteric investment so I sold it to increase my position in select Asian emerging markets.

I was saddened to hear about the passing of titan Jack Bogle. He made it possible for anyone (including myself) to invest. For that, he will not be forgotten. Nor will the author of A Random Walk Down Wall Street, a book I read while I overlooked the Grande Ronde valley at the main vantage point (where the road ends at the top of Owsley Canyon). His name, if I recall, is Burton Malkiel. He demonstrated the redundancy of professional asset managers. Pin-stripe-wearing buffoons was, if memory serves, the takeaway. Your average dart-throwing chimpanzee can do better when (here's the rub) given a copy of the Wall Street Journal.

This non-professional wishes to express condolescence to all the investment professionals who are now looking for work. Safeway and Dollar Tree (my companies) are always looking for good help. Please apply on LinkedIn. I would be glad to give my personal advice to any former money manager who now looks for a career in retail. Broadly speaking, the consumer goods industry (which constitutes seventy percent of the U.S. economy) needs help.

Andrew Bary recommends certain gold miners. I recommend gold miner ETFs. Those looking for extra variance from the benchmark may purchase the junior gold miner ETF, which holds less-stodgy gold miners. Gold miners are leveraged to the price of gold, so it is not necessary to leverage the ETFs. This helps keep things simple. Just buy the ETF. Also, there is not the higher capital gains tax rate that is incurred by holding the physical metal or one of the ETFs that hold the physical metal. The metal is considered a collectible, thus taxed at a higher rate than stock.

I continue to hold both biotech ETFs. Between the two, nearly every biotech company on the NYSE and NASDAQ are held.

I advise against investing in real estate or any REIT (Real-Estate Investment Trust) at this point in the economy's cycle. Read former posts to ascertain the right time.

I continue to endorse GARP (Growth-At-a-Reasonable-Price) style investing. See the four ETFs I recommended for this stage in the stock market's cycle.

Internet router Cisco, a company from the early days of the internet, represents value, according to Barron's. I have not researched the company myself, hence have no opinion on the stock.

Brexit continues to be a monumental fiasco for the people of (formerly) Great Britain. Broadly speaking, isolation is not conducive to growth. At any rate, not in their current position. Please see any of my first seven articles for the explanation.

Regional banks continue to show promise, please see blog post that mentions regional banks in the title. They are more directly tied to the United States. Specifically, her people who are her greatest asset. Again, I recommend ETFs to hedge against company-specific risk. See recommended ticker symbols.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Additional disclosure: This article was cribbed from page 2 of Barron's, volume XCIX, NO. 3. It is the January 21, 2019 issue. All research, including this article is the sole property of Dow Jones. This blogger accepts no responsibility for how the information contained in this post is used. Think for yourself. Make your own investment decisions. That's what I did. Judge the results for yourself.