Latest Stock Buy or Sell?

Markets. They are hoping to get a US budget before this Friday when they go home. If they get a deal together the market might see that as a small positive. They are going to come up with some kind of a deal but it will be the bare minimum. They have some serious long term problems that they just cannot address. The market expects tapering to begin between January and March of next year. He is looking for a modest consolidation sometime.

Fixed income for 2014. 10 year bonds could go to 3.50% by the middle of the year. Tapering would push it there. So a 10 year bond bought now would get a capital loss of about 3.5% - 4%. He suggests shifting to preferreds or ETFs with senior debt. If you cut your duration (1-5 year corporate laddered ETF such as ZCS-T) there is less risk. Short term bond ladders are the best place to be. As interest rates shift up you can then move out in duration.

Natural Gas ETFs. Some hold underlying futures contracts. Double leveraged are not good to hold for more than a couple of weeks. The rebalancing is too hard on the net asset value. HNU-T participates when natural gas goes up. FCG-N is a basket of larger Nat. gas players and ZJN-N is the juniors.

Fine, but an interest rate sensitive holding. We are getting another correction at some point with more talk of tapering. Thinks it will give back a dollar or two over the next 2 to 6 months and then it is probably another good buying opportunity.

Drilling space is exciting for the next decade. There is some technical resistance and for the next year or two he thinks these stocks are range bound now.

Average dividend is 3.2% in the banks, but this ETF has that exposure and a covered call overlay on half of the portfolio so yield is 5 to 5.5%. Valuation targets on banks are not for much more growth so you want to use this to get the higher yield.

You have to be relatively short term focused. Thinks gold has more upside in the long term but next year it will have a tough time. On the down side, if we stay below $1200, a lot of gold production gets shut in. Thinks there is a floor between $1100 and $1200. We need inflation to be the next catalyst to get gold going. It’s range bound next year and he doesn’t think you should be aggressively trading it.