Not great earnings last quarter. Disappointed on the transportation side. Things were a lot better on the aerospace side. There are 2 issues here. Cash flow has to come in from internal operations and the pipeline on new aircraft must be kept open. Came out with guidance that was a lot better than it had been before.
Came out with great earnings in the 2nd quarter. Stock looks really good here. You have to question where oil is going. Anything above $114 a barrel may slow down economic recovery but where we are right now, he likes the oil stocks right here. This is a solid company. Increased cash flow along with production increases.
There are a lot of Covered Call ETFs out there that enhance income and give you a lot more money. Haven’t been doing all that well and he thinks it is because it is how the Covered Call works. For instance, he is going to buy a stock for $10 and Sell a Call on it and bring in some money. Calls work wonderfully in a flat or slightly trending market, otherwise he is not big on Call Options. Feels there is more money to be made by strictly buying equities because a Call Option is going to limit your upside.
Gold. It has always been said that gold is a hedge against inflation as well as a currency play. Charting this from a way back, gold has never kept pace with inflation. Gold has been said to be something we are going to go to in times of economic turmoil. We went through that in 2007-2008 and gold dropped along with everything else. Gold is a currency play and that is all it is.
Markets. Pretty bullish and is buying a lot of stock these days. QE 3 has a lot to do with it. Also, investors’ sentiment has a lot to do with it. A rising tide floats all boats and it doesn’t matter where you are.