N/A

Markets. For the debt ceiling on the 17th of October, the problem is not that the government will get shut down. Investors will probably just wait and see what happens. We’ve seen this movie before. Fundamentals are the major driver in the markets but there is always something in the news that can provide some question. As long as governments are providing markets with liquidity we should be okay. Thinks, however, that the debt problems in the world are much more significant that strategists suggest. For now as long as earnings continue to grow the markets can be pretty stable.

PARTIAL SELL

If you write a call a year out then if it falls you get some premium. He would cut a position in this in half at this point. Crude oil prices belong in the low to mid-$90s for the next year. Thinks oil will correct to this point and so SU could fall 10%.

BUY ON WEAKNESS

Could be part of most people’s portfolios. What the government does to tapering could have a lot of impact on yield plays. Add to this on weakness and sell on strength.

BUY ON WEAKNESS

There is a risk with what is happening in Russian with the potash space. Analysts are not sure where prices will be a year from now. In the next 20 years there will be another 20 billion on the planet so owning stocks like this when they have corrected makes a lot of sense. Nibble at it now.

BUY

Double bear ETF for crude oil. Price of oil is already starting to break down. This is a reasonable trade. If we get back to $105 then something has changed with oil.

BUY

Rising rates are much more favorable to insurance than to the banks. A lot of that is already built into the price of insurance companies. There is probably a little more to go.

WATCH

It is developing another support base. If it breaks ($55 range) then it is breaking down in a big, big way. If we get through the recent highs then we will run up to the 52 week high. If the support holds then he would step into it.

WATCH

Japan had a great run this year. But he thinks they have some serious problems. Aging demographic. Weakening their currency is going to help and this is why they have done so well, but thinks it won’t be repeated in the next couple of years. If we saw a pullback of 15-20% he would get interested.

WATCH

Holds VIX futures. You have to understand the premium in the front month futures and the spot VIX. Very difficult tools to use. Typically when the market breaks an important level, it leads to some technical selling and usually you get a spike in the VIX. Don’t play it for more than a couple of days at a time.

BUY ON WEAKNESS

Home builders have started to correct quite a bit. He is not sure that interest rates are going up. If we come back to the $28 area and that support holds that is a good entry point.

N/A

Educational Segment. Emotional part of investing. Most major markets did not move in the last week. He wants to swap fixed income into equities in the near future. Gains in a portfolio don’t increase an investor’s happiness. Incremental losses do add up emotionally. The average return in a portfolio has been 7% over the last decade.

N/A

Markets. He is more concerned about the shutting down of the tapering than the debt ceiling and shutting down the government. Thinks the market sees though these events. What worries him is the global and US economies. There is a lot of debt in the system and it requires the stimulus in the system for growth. 12-36 months he is negative. Thinks we are due for a cyclical recession.

BUY

A disruptive company in the insurance claims software application market. They are taking market share. Thinks they could go from 5% to close to 50% over the next three years so valuation is not at all challenging. Recurring revenue from the software as a service business. The risk is on execution, but so far so good. All his consultants tell him they have a superior solution.

RISKY

Long on convertible debentures and short the stock. It is very speculative at this point because of debt and the wells are deep water wells costing 80-100 million dollars per well.

SELL

We are getting late in the game for gold in terms of seasonality. Sector has been so weak that there will be a lot of tax loss selling.