As an entrepreneur, I am constantly thinking in terms of opportunities. A little over a year ago my mother, who lives in Florida, had a car accident. She had a visiting nurse come in for a few weeks and I thought what a great business this would be. With an aging population, especially in Florida, there would be a tremendous demand for such services. Other services such as a personal shopper popped into my head. When I came back to Boston, that idea would fade and would be replaced with others.
Reading a report “Five Key trends in Chinese economy: Merrill Lynch,” about a month ago and a television commercial put my opportunistic mind in gear. I had been thinking about creating another BBO like basket. I am sure by now you know that the BBO is a basket of stocks based on the industrialization of the emerging markets. It leverages the infrastructure boom as the emerging markets build railways, airports, highways, etc. This is actually #2 on the Merrill Lynch list. I have investing in this theme for the last three years.
Their #1 trend has captured my attention: Continue reading ‘Introducing The Big Spend Portfolio’
Published May 28th, 2007
in Portfolio - Updates (all).
Greenspan reminds me of a retired heavyweight boxer. After the last big fight, retirement sounded like a good idea. However, retirement turns out to be boring especially since he is not the center of attention anymore. The desire for the cheers and the admiration draws the boxer out of retirement for one more fight.
Greenspan has been the most powerful person in the financial universe for so long that it is driving him nuts not to be the “man” anymore. He relished in his capacity to move markets with stupid little things like how thick is his briefcase. His desire for the spotlight led to utterances like a few months ago when he said that there is a 33% chance of a U.S. recession this year. Now all of a sudden he knows how to speak in plain English. When he was Fed Chairman, he talked in riddles.
Continue reading ‘Week in Review 5/25 - Greenspan Opens His Trap Again’
This thread tracks real trades in one of my portfolios. Refer to backgrounder for more info.
What a week? Volatility ruled and it forced a few moves. Once again I said good-bye to Cresud. That stock has been a thorn in my side all year. Also made a couple partial sells. Let’s take a look at the action.
Continue reading ‘Real Money Portfolio - Update 5/27′
Published May 25th, 2007
in Trading School.
Three or four years ago I owned a gold mining stock that was acquired. Since the transaction wasn’t going to be completed for a number of months, I sold the stock a few days later. I vaguely remembered from the internet boom days that the greatest upside was on the merger announcement. So, I figured that the gold stock would react in the same manner - its upside would be capped by the offer.
Continue reading ‘Mergers: Sit Back and Relax’
Published May 24th, 2007
in Young Investors.
Source: Morningstar
By Sue Stevens, CFA, CFP, CPA
Summer offers a perfect time for kids to learn about the joys of putting in a good day’s work. Work can also help a child learn about money–how to make it, how to spend it, and how to invest it.
The best way to learn anything is to make it fun. So you can help your children find the “right” jobs by talking to them about what they like to do. Keep in mind that grandparents tend to be prime customers for kids looking to help out and earn some extra cash. Not only can they spend more time together, they can help each other in the process.
More …
Published May 23rd, 2007
in Real Estate.
Since bottoming on April 12th, the SPDR Homebuilders ETF (XHB) is up 12.5%; twice as much as the S&P 500’s gain of 6%. If you are surprised by that statement you are not alone. I still find it hard to believe even after staring at the chart. Continue reading ‘Homebuilders Rallying: How Could This Be?’
Published May 22nd, 2007
in Trading School.
My regular readers may have noticed that I have become bullish in areas other than commodities. The Merrill Lynch report on Key Trends in the Chinese Economy really impacted my thinking. As wages rise in the industrializing emerging markets, it is perfectly reasonable that consumption of consumer goods will increase. Therein is the opportunity. Over the past two months, I have been building a new portfolio called The Big Spend. To date it includes: Apple, Nokia, Research in Motion, MasterCard and as of yesterday Sony. I am considering adding China Mobile. This sector will only get hotter as signified by yesterday’s private equity deal where Alltel was bought out for $27.5 billion.
Continue reading ‘Traders Must Evolve with the Market’
Published May 20th, 2007
in Portfolio - Updates (all).
Another up week for the DOW. Matter of fact it is the seventh up week in a row. I love it when the market goes up, but how long can this continue? I imagine as long as people continue asking that question. Everyone is expecting a pull-back, but the market seldom accommodates everyone. The DOW may prove that trees can grow to the sky.
CNBC will switch its record watch to the S&P 500 this week. It only needs 5 points to break its all-time high. Professionals consider the S&P 500 to be a much better barometer of the market than the DOW. So, the champagne will definitely flow when this record falls.
The metals laid down this week, but oil was the shining star in the commodity patch. If you bought gas this week - you know what I am talking about. Oil was up 2.9% and the oil stocks followed its lead. Actually the oil stocks have been strong for nearly two months and oil is finally playing catch up. This bodes well, as equities normally lead the commodity in bull markets.
Since the portfolios are biased towards commodities, more specifically the metals, they missed out on much of the excitement this week. So, let’s take a look at the damage. Continue reading ‘Week in Review 5/18 - Metals Lag While Market Continues Onward’
Published May 19th, 2007
in Investing - General.
While alternative energy proposals are on the drawing boards, Echelon is addressing energy conservation today. Here is some interesting information from their website:
As the cost of energy continues to rise, businesses are turning to Echelon’s control technology to protect their bottom line — and show their commitment to the environment.
Our products make energy conservation painless. For example, the Balanced Office Building (BOB) in Aachen, Germany, slashed its energy costs by installing an integrated HVAC and lighting system based on LonWorks technology. BOB is now one of Germany’s most energy-efficient buildings, with HVAC and lighting costs 80% lower than those found in similar buildings.
Our technology is starting to save energy in other markets as well. For example, Oslo, Norway, which uses LonWorks technology to manage and control its streetlighting system, has reduced its energy use by 62% while also improving lighting quality and lowering maintenance costs.
Continue reading ‘Echelon a Tech Star in the Making’
This thread tracks real trades in one of my portfolios. Refer to backgrounder for more info.
Options expiration week is always interesting. There is a lot of money at stake and the big money is determined to have as many options expire worthless as possible. Real Money member, PCU, is a great example. It opened on Monday around $90 and was pounded all day closing at $86.50. On Tuesday, it floated back up to $89. Then around 2PM the pounding continued non-stop. The stock closed the day where it started at $86.50. It closed on Friday at $85.09. Surprisingly it closed over $85, but there was no way in the world that it was going to close over $90. The games people play.
For the week the Real Money portfolio was down -1.4% v. +1.1% for the S&P 500. There were a few changes in the portfolio, so let’s take a look.
Continue reading ‘Real Money Portfolio - Update 5/19′
FEED
Reviews