Thursday, March 28, 2013

Discussing Cyprus on Fox

Today's Discussion on Cyprus on Fox News Live with host Lauren Simonetti and Financial Time columnist Liz Peek.

Click this link to view the video.

Video - Market Wrap

Short video to cover today's market and the end of the quarter - indices at all-time highs!


Wednesday, March 27, 2013

More on Water Investments

I recently posted an article on my favorite water investments based on infrastructure upgrades that are needed in the US and abroad.

The most recent report from the American Society of Civil Engineers (ASCE) shows the ratings for the country's water system just above failing - a grade of a D. The one silver lining is that the drinking water and wastewater did improve slightly as they went from D- to D.

A big issue are the pipes that are carrying the water underground throughout the country. Many of them were originally buried over a century ago. The intention was not for the pipes to be in the ground for over 100 years when they were originally installed. But due to a lack of future planning and now more than ever a lack of funds this is the situation the US has to deal with.

Because of the age of the current infrastructure there are an estimated 240,000 water main breaks each year and nearly 14,000 dams (or 1 out of every 7) is rated "high hazard" by the ASCE. This implies that if one of the high hazard dams breaks it will likely kill people.

According to the American Water Works Association the price tag for upkeep and replacement of the outdated water systems is about $1 trillion over the next 25 years.

You can spin that any way, the bottom line is that water-related companies are well positioned to profit from a need for increased spending.

Click here to read my article on my Favorite Water Stocks and ETFs.

Tuesday, March 26, 2013

New ETF Newsletter - Only $5

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Thursday, March 21, 2013

Super Income ETF via Preferred Stocks

On 2/21/13 the Global X SuperIncome Preferred ETF (SPFF) was trading at $15.06 and today the ETF is trading at $15.13 - a minimal gain. But in that time there was a dividend of $0.082 paid. This is a net gain of $0.15 or 1%.

In the same timeframe the S&P 500 is up 2.1%. This may sound like a bad investment, but in reality SPFF is doing exactly what it should be doing.

  • The goal of SPFF is to provide consistent, above-average income through a monthly dividend payout to investors. The current yield of SPFF is currently yielding 5.8% based on last months dividend payout (the monthly payout varies and could be higher in the coming months
  • Low Correlation - the ETF moves a few pennies per day on average. Thus providing high income without the sleepless nights. Look at the chart below over the last week as an example - it compares SPFF to the SPDR S&P 500 ETF (SPY). The blue line is SPFF and the red line is SPY - notice the lack of volatility for SPFF versus the market.
  • Diversification even in an Income-only portfolio.
  • SPFF is a true income ETF and a great addition to any ETF Income Portfolio.

ETF of the Day - AMLP

The market is selling off on more negative news out of Cyprus, but that has not had an affect on the master limited partnerships (MLPs). The sector is moving higher in the face of a broad market sell-off and a 1% drop in the price of oil.

The Alerian MLP ETF (AMLP) is a basket of 25 market-cap weighted energy infrastructure MLPs that earn the majority of their revenue through the transportation, storage, and processing of energy commodities. The ETF is up 1.1% today and is breaking out of a two-month consolidation pattern to a new historic high.

Why AMLP?
  • Current dividend yield = 6.1%
  • Billions of dollars will be spent in upgrading and expanding the U.S. energy infrastructure system
  • Low correlation to the S&P 50 offers portfolio diversification
  • Inflation hedge
  • No K-1's for tax reporting, only a 1099 (very important for many investors)
  • AMLP is an ETF, not an ETN like many of its competitors
The chart below shows the breakout on the right-hand side of the chart. AMLP is flashing a buy signal today!!

Stocks for Improving Jobs Market

The weekly jobless claims number was out this morning and it came in better than expected once again. The number rose slightly to 336k from 334k last week, but was below the 340k expectation.

The 4-week moving average fell to 339,750, a decline of 7,500 from last week and it is now at the lowest level since February 2008.

This chart shows the a long-term snapshot of the weekly jobless claims.





As the numbers continue to improve it bodes well for the companies that will be involved in placing workers both temporary and permanent.

Here are a few to watch:

  • Robert Half International ($RHI) - A staffing and risk management firm that offers both part-time, temporary, and full-time employees in a range of industries.
  • Barrett Business Services ($BBSI) - Offer human resource outsourcing and professional management consulting along with staffing and recruiting services.
  • Kelly Services ($KELYA) - Offers staffing services for various industries worldwide. The company offers trained employees in everything from word processing to maintenance workers to accountants.
  • Team Health Holdings ($TMH) - Provides outsourced healthcare professional staffing and administrative services to hospitals and other healthcare providers.