Markets

For the small investing crowd here, I was wondering what the oil/energy folks were up to. Still short? Personally I've been going long, dividends are too attractive not to for me. We have time, well hopefully anyway HAHA. Is anyone still in pipelines, the high div. MLPs? I'm pretty big on ETP, KMI is still paying a good div.and has proven a reliable payer.
Anyone else into the upstream players? Just curious.ETP's paying 9.2%. Hard to resist if you have time. They're definitely not going out of business anytime soon, that's for sure.
As far as pure energy, I keep reading on how "safe" diividends are from the majors, and the returns(if saftiness is true) are so attractive it's hard to resist. I absolutely applaud the guys shorting oil and hope they make a ton of dough. I've put a few bucks down on BP(7.75%) and CVX(5 1/2%) to name a few.

In absolute, positively no way am I advocating buying or selling any equitys' whatsoever, in fact, do the opposite of what I say, you'll make money, almost guarantee it.

Up 300, down 300, this thing's being a true roller coaster although it is in a downtrend overall. Crazy.

I went long a couple days ago. So far, it's a bad move. I'm down 10%.

I own me some ETP in my Roth IRA. Just sit back and enjoy the dividends. Won't be taking anything out for 20 years so no worries

DonDiego remains on the market sidelines. He supposes he will remain there for some time.

He really, really wishes he could get a higher yield on his cash, . . . but that itself is one of the indicators of why the markets are heading for trouble, artificially low rates maintained by Central Banks. Members of the board of the US Fed are actually contemplating "setting" negative interest rates ! This is a strange world, in which DonDiego chooses to stand apart from the investor crowd; maybe they understand it, but DonDiego does not.




With regard to oil companies (of which he sold all his Exxon."thank you very much") he expects the Saudis to keep downward pressure on the price of oil to attain greater market share; this policy is already working to the extant that much of the oil sands crude operations are shutting down, as they are unprofitable at current prices. DonDiego wonders how some of these operations will ever pay down their debts, . . . especially if interest rates rise and refinancing becomes problematic.

DonDiego pretty much exited the equities markets because he cannot square present valuations with expected business conditions in the near future. And, even moreso, because he observes prices being influenced more by expectations/interpretations/divination of public policy pronouncements, . . . when he'd prefer that equities reflect the realities of (at least partially) free markets determining appropriate market prices.

Also DonDiego opines hard times are a'coming not in spite of but because of worldwide government policies. And when Governments eventually provide necessary bailouts, instead of letting the markets sort things out, he anticipates currency devaluations as well, i.e. a rise in prices of real things like materials, food, etc..

So DonDiego will wait for the dust from the near-term unpleasantness to settle. Then, f'rinstance with specific reference to energy stocks, DonDiego recognizes some quality companies (e.g. Exxon) that he expects will be available at a lower price in the intermediate future as economies slow and demand falls and at significantly higher prices in the more distant future as Governments intervene. Same goes for agicultural stocks. And investments in such things as bio-techs, e.g. Amgen, may be even more volatile, both down and then back up.

Nonetheless, poor old DonDiego does not sell the markets short; that is dangerous. As expressed by 19th century financier Daniel Drew: "He who sells what isn't his'n, must buy it back or go to pris'n".

As always DonDiego does not suggest, imply, advocate, state, or infer that the reader follow DonDiego's policies. In fact, DonDiego would prefer that he does not.

The mkt didn't take too kindly to the deal with Williams.At all.

Better do some homework MLP's in IRA accounts. You have to pay tax on them if your distributions go over a certain amount any year...I want to say its 2k but that may be incorrect.

Apple just broke a record for Iphone sales .... and they are buying back a ton of stock at very cheap prices. I already own a few hundred shares. I'll buy more if it breaks $110.

Billionaire investor Carl Icahn has released a 15-minute video on his website today [29 September 2015] addressing his concerns with the present condition of the economy and markets.

DonDiego suggests it is worth the time to take a look/listen: "Danger Ahead"

Or, if one doesn't have 15 minutes, Reuters presents a summary of Mr. Icahn's views at www.reuters.com .

Indeed ... Icahn addresses the fallout of corporate greed that has systematically put short term profits for executives and shareholders above everything else - mostly profits for workers...but also at the expense of long term sustainability of the company itself.

The Mitt Romney voters have a very different reaction to class warfare and government intervention in the economy based upon the messenger advocating it. Icahn/Trump are largely touting the same problems Obama was in 2012.

Icahn's summary


"“…the American worker is also getting 'screwed' …boards and CEOS have allowed property, plants and equipment of our companies to become the oldest on record and, as a result, the growth rate in productivity per hour of our workers has also become the worst on record and has actually decreased compared to last year. The average age of corporate property, plants and equipment is an astounding 22.3 years, the oldest it has reached since 1941. But I do not believe that most boards and CEOs really give a damn. With many exceptions, CEOs only care about short term results. Perhaps you can’t really blame them because unfortunately, Wall Street judges them based on quarter to quarter results and CEOs receive their egregious compensation based on those short-term results.”

I miss being directly involved in the stock market. A little more than 10 years ago, I opened ScottTrade account with $11,000. I enjoyed making my buys and sells based on my own research, and I focused on industry sectors that interested me. I managed to turn that $11,000 into $17,500 in 14 months buying and selling individual stocks before I got out. I made about half of that ROI on gaming stocks. Gaming Partners International was particularly good to me as they merged with or bought a significant segment of businesses that supply casinos with the tools of their trade. I really enjoyed the challenge of picking winners!