MLPs Weren’t Supposed To Decline

At times, MLPs have been revered as a holy grail of investment products for the general belief that they benefit from the energy market without being vulnerable to price swings in the energy market. That’s true except for the times that it isn’t which is to say any market segment can do the unexpected at any time and it is important remember that both in terms of position sizing as well as not succumbing to emotion when a segment, like MLPs, hits a rough patch. From the post; We often see articles published in numerous places suggesting very large weightings to various income vehicles including MLPs and BDCs. Someone who put 15% in each increased their chances of being put in a position where they panic sell. It is much easier to be rational now after the worst of it (or maybe now is just a respite) than during the heat of the decline. Please click through to read the entire post.   A panoramic shot of Bernabeu Stadium, home of the Real Madrid Futbol...

Weekly Market Update

The Weekly Market Update is posted at AlphaBaskets and includes the following; On the economic front third quarter GDP was revised to 5.0% which on its face supports the FOMC’s expectation to hike rates next year. With rates currently so low the Fed has less ammunition (little to no room to cut rates again) to combat a slowdown should one start unexpectedly. Please click through to read the entire update.   Walker Fire Patrol 85 in the Prescott Christmas...

Holiday Randoms

My latest for AlphaBaskets looks at several topics including Black Swans and Tiny House income ideas. From the post; I won’t try to predict the next Black Swan as the definition says that is impossible but there will be Black Swans large and small that come along and the key to successfully navigating them is the awareness to recognize them in real time and not succumb to emotion when they do occur. Please click through to read the entire post.       The Prescott Courthouse on Christmas...

Jorge Posada’s Financial Slump

My latest for AlphaBaskets looks at Jorge Posada’s financial troubles from having made what turned out to be bad investments. There is nothing new about this story, it is simply unfortunate and unnecessary. From the post; Add Yankee great, Jorge Posada to the long list of names of professional athletes who have been done in by their investment advisors. There are of course several accounts of this around the web but according to the NY Post he lost millions on a real estate deal and in a hedge fund run by his advisors. Please click through to read the entire post. Also the Weekly Market Update is posted and includes; Related to oil, Russia had an arguably wilder week. The Russian currency, the ruble, has been losing ground against the dollar all year, giving up about half its value. The selling has accelerated in the wake of the crash in oil prices so overnight Tuesday the Russian central bank raised rates from 10.5% to 17% to try to stem the selling which promptly sent the USDRUB from 66 up to 76 Please click through to read the entire...

But Falling Oil Prices Was Supposed To Be Good For Stocks

This week’s market update is posted at AlphaBaskets looks at the havoc being wrought by oil as well as checking the latest on the deflation trade. We also found a magazine feature about Pips the dog that Joellyn and I took to the University of Washington to join the Conservation Canines program. His story keeps getting better. From the update; West Texas Intermediate Crude fell 4% on Friday alone and over 11% for the week making this the second week in the last three that this market has crashed. Crude has fallen almost 50% since June. Gold, hated metal that it is, is down roughly 35% in three and half years. Please click through to read the entire update.   I got back from Spain very late on Friday night. I’ll have more to say on the experience in a subsequent post (I went because my father who lives there is having serious health...