FTO is up 3% today and has been on a tear! Refiners are rocking. Why?
Because the economy is improving. Because we are entering the summer driving season. Because, because... It doesnt matter why!
Zen and the Art of Investing 101: It is.
Even a 25bp increase in Chinese interest rates does not matter. This market wants to go up and will not be denied. That is a fact, not an opinon.
Thank you very much. Elvis has left the building.
" Most important thing for me is to establish as low a cost basis as possible to lock in gains "
This should be THE most important rule to investing . You know buy cheap , sell high ! Be fearfull when others are greedy , greedy when others are fearfull , ect... However, much easier said than done.
The second buy dividend stocks and reinvest dividends , especially if you are not a trader. That is more easy.GL
Hi Arwen,I don't really worry too much about dividends. I look at growth factors mostly and then try and buy when the general market is sold off. This gives me a "relatively" cheap price. Some stocks will naturally have higher p/e's given their own story and sector.
I have lost money in the past buying semis(WFR,SIGM) at the wrong point in their cycle. Semis are also subject to too much competition. Now I'm staying away from them as well as refiners and other cyclical businesses. I try to find good management in businesses that aren't too cyclical. Just trying to keep my turnover low.
Most important thing for me is to establish as low a cost basis as possible to lock in gains. If you pay too much, the odds are against you in the long run. Since I'm not a trader, this is important.
It's even FDIC insured. I think the Chinese will screw us and start selling our debt on the open market eventually. It will cripple us and we will default on our debt when we are forced to pay 15% to borrow money.
I might sound extreme but, I don't have a good feeling about China's role in our demise. They are making it way to easy for us to hang ourselves.
I hear they will be launching their first aircraft carrier this summer. They are buying hulls from the Koreans and outfitting them w/ their own gear and technology learned in USA universities.
I am not kidding.
I just watched a piece on the tube last night showing a shop owner(Camera store) in Hong Kong taking payment for a camera in reminbi. The shop owner said more and more people are paying him this way. I Can't blame him.
I like your idea and I have considered this.
If the yields get real I will take the risk.
Bernanke wants to pump up the market to get every in the game then take his needle and pop the bubble so the banks can scoop up the rest of the real assets in the country (real estate).
He wants to monetize the US debt, devaluing everyones savings. He doesn't care. He will buy US debt at .25%, which the taxpayer pays and the treasuries held by sovereign nations will be worth zilch.
I also opened an a statement savings account w/ the Madison Ave. branch of the Bank of China and they converted half of the balance to reminbi. I plan on keeping a portion of my savings in reminbi. It was a pain, since I don't live in NYC, but worth it. I am anticipating rmb:usd parity and that rmb based savings will have hedged that portion of savings.
Eventually the FRBNY will start withdrawing the, recently printed, currency from circulation and rates will hit the roof. It might take one, five or ten years, but IT WILL HAPPEN. My plan is to have as much cash on hand as possible.
Even Faber isn't that bearish. Who knows how low it can go. I hope you aren't right about 666....ouch!
I've been on the fence about gold. If we get a nice correction, then I'll take a position in GLD. I'm still afraid of treasuries though.
wow, interesting pics/stocks, you must really do your homework , all close to 52 week highs, well done.
Interesting , i thought you would have a least a couple dividend plays.
Just to be a contrarian i don't like apple.
As long as QE continues there is nowhere else to put the money other than the market. The market will continue to climb as long as yields are, artificially, suppressed.
FOMC meeting minutes released this week indicate a continuation of purchases through the end of the fourth quarter but, all the FRBNY needs to do, to tighten the M2, is stop their interference in the market and yields/interest rates will skyrocket and the
S&P 500 will go om a death spiral.
The SOMA has already purchased (printed) 3.5 trillion and I don't think the NYFRB is prepared to go much further w/ their program for fear that sovereigns will start selling Treasuries on the open market.
I think QE is finished, other Central Banks are coordinating the this end and a, substantial, correction is eminent.
I am selling a keeping cash at this time. I might be 6 months early but, better than 6 months late.
I don't see this as hurting PBR though. I will buy more on next significant correction.