Latest Stock Buy or Sell? Make More Informed Decisions!

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.

Thinks we are range bound in the oil industry. There is potential for a long term bottom developing. If we see it breaking resistance, that would be quite bullish. If it breaks support you don’t want to be there. Nibbling away here with a stop would be one way to play it.

Looks to be making a bit of a bottom. We are still in a pattern of lower highs and lower lows. If it starts making a higher low and higher high, then we should look at it. No technical evidence that the bottom is in yet.

Educational Segment. Effects of QE over the last 5 years. 2007-2012: There was a global wealth transfer from savers to the governments and the banks. Ultra low interest rates benefitted the governments because debt financing costs went down. If a lot of the money has to go back as we unwind it, there will be increased volatility. Low quality balance sheet companies will suffer. Can the US unwind this? He bets they can`t and have to step on the gas sometime next year.

Markets. Media is talking about tapering in December, but he doesn’t think so. Thinks there is zero probability of tapering in December and unlikely for the first six months of next year. Thinks you will have very strong returns in equities in the near term. Ultimately we are shifted towards growth and you should be focused there, eliminating defensive and cyclical equities. The resource sector will be fairly attractive. It is a longer term story. Energy looks quite attractive because it is linked to global growth. It has been phenomenal recently compared to the long term. Precious metals are the flip side of his growth argument. The safe heaven argument falls apart. The run has been over for two years.

This is the wrong time of year for beer stocks and the volumes are down anyway. Demographic is younger people not drinking beer. BUD sees volumes picking up next year. These names are seen as a little more growth.

Thinks it is fine. If you rate the N.A. companies, then go for GM-N who has outdone Ford. OEMs are running flat out right now. They are at a record high. A lot of younger buyers are now buying new cars. No problem with Ford specifically.

He is somewhat bearish on Europe but it is working right now. The financials should do well but this one is a hold. Europe is healing but problems are still there. Generally the German banks did take a lot of the subprime stuff. You are better with US names if you want to play the recovery story.

A long term play that will do very well. Been weak the last month. Thinks it is a core holding. They are long term projects. It is a patient play.