Are preferred stocks the place to be for yield?
A new guest, Jason Carrier, Managing Partner at Scranton Financial Group, shares his strategies for finding clients higher yields that he considers safer investments. Jason has been focused on preferred stocks recently. As he argues these can provide higher yields but also have a safety factor that he likes.
Click download link to listen on this device: Download Show
A major rally has started.
Europe, in general, is a good place to not be too long.
http://www.zerohedge.com/news/2016-12-07/france-decomposing-front-our-eyes
With regard to the US, my key word is not bull, not bear, not long, not short, but ROTATE.
http://www.zerohedge.com/news/2016-12-07/david-rosenberg-throws-trump-rally-heres-why
John Williams must go !
Keep draining the swap !
The SGE closed today at Gold %1202.01, Silver $18.59
Mish reports on the economy:
https://mishtalk.com/2016/12/07/gdpnow-4th-quarter-estimate-sinks/#more-42610
Anything that relies on yield is going to get crushed along with bonds.
Based on the daily RSI(14), DIA (Dow ETF) has not been this overbought since October, 2006. Should it be a surprise that the masses are so confident when while stocks have almost never been so overvalued?
http://stockcharts.com/h-sc/ui?s=DIA&p=D&yr=1&mn=4&dy=0&id=p18349610960&a=433404534
DIA:GLD is now 18% above the 200 day MA…
http://stockcharts.com/h-sc/ui?s=DIA%3AGLD&p=D&yr=0&mn=9&dy=0&id=p98805052869&a=486910439
Nice charts. Stocks are in the upper atmosphere where there’s not much oxygen. I expect volatility to return within a week as this rally runs out of steam.
Matthew did you see the news releases posted from Americas Silver Corp and Scorpio Gold?
Yes I did. It helps to put yourself on their email lists. 😉
Gotcha. Just making sure amigo.
1) I’m impressed with the development progress with Americas Silver Corp at their San Rafael Project (coming on-line for production next year). What do you think of them getting an NYSE listing and doing a reverse split (likely a 10:1) ?
2) With Scorpio Gold, it would be nice to see Integral Wealth Securities Limited get things moving for them with a bit more liquidity.
Cheers!
I think getting the listing is a good idea but there’s no need to rush it. If silver performs the way I think it will next year, then the reverse split that is needed might be 5:1 or less.
My position is now 5.82x what it was two or three weeks ago.
The weekly “golden cross” is coming soon…
http://stockcharts.com/h-sc/ui?s=USA.TO&p=W&yr=4&mn=1&dy=0&id=p12180497104&a=445290028
Wow, the weekly golden cross hasn’t happened in years. Well I’ve got a nice position in it as well and have been adding to it the last few weeks. My concern was that I thought the reverse split was being voted on Dec 19th, but maybe they’ll wait to implement it until later? I was just wandering what that may do to the share price going into the end of the year, as that isn’t much time to get the share price up. They said the stock must be above $2 for the NYSE listing.
If the details will be settled on the 19th, then the rollback would obviously have to be close to 10:1, but if it’s just a yes or no vote with the details TBD, then we could get a lot less than 10:1.
Either way, I think it is pretty much priced-in so I am not concerned about it. The juniors that really tend to get pounded on rollback news are the serial diluters that must sell shares to finance everything they do. That is obviously not USA and I can’t think of a better, more shareholder-friendly reason for a rollback than to gain access to U.S. investors while simultaneously benefiting from an increase in confidence that such a listing would bring.
Yes, I think the dual listing is worth it, and the higher share price would attract other institutional buyers that won’t touch it at current levels. It would definitely open up a larger investing universe.
I know folks on this website often refer to GDX or SIL, or GDXJ or SILJ as their major ETFs they look at in mining, but have you ever considered an ETF I mentioned several months ago as a better pick?
This one is new to me, but looks like a decent choice for the smaller investor. However, the current price is nearly 15% above its 50-day moving average. It’s had a nice run this year, but not a good entry point here. Low expense of 0.39%, 1.73% 12-mo yield, sells at 0.98% premium at close today. 174 diversified metals & mining stock holdings, 8% turnover.
Compare with XME, which has only 26 stocks with more of a small-value tilt. Their performance is nearly identical over the past 4 years, but XME has performed much better in 2016. XME has more liquidity since the fund size is triple that of PICK, i.e., ~1 billion to ~300 million.
http://stockcharts.com/freecharts/perf.php?XME,PICK
See also: morningstar.com
https://www.ishares.com/us/products/239655/ishares-msci-global-metals-mining-producers-etf
https://www.spdrs.com/product/fund.seam?ticker=XME
PICK is probably a fine pick but it is too different from GDX/SIL, etc. to say that it is better or worse. For those who are focused on the new bull market in the monetary metals, PICK is definitely worse — both for exposure and analysis purposes.
PICK is very heavily exposed to industrial metals so it would have been perfect to stick with the gold/silver miners for the first half of the year and then rotate into PICK for the second half.
GDX:PICK…
http://stockcharts.com/h-sc/ui?s=GDX%3APICK&p=D&yr=1&mn=1&dy=13&id=p12787566379
PICK owners should now start rotating into GDX, etc…
http://stockcharts.com/h-sc/ui?s=GDX%3APICK&p=W&yr=5&mn=0&dy=0&id=p64843978199
Thanks for bringing it up. I want to take a closer look at it.
https://www.ishares.com/us/products/239655/ishares-msci-global-metals-mining-producers-etf
Matthew “if silver performs the way I think it will next year”
You have been thinking it will perform that way for how many years now?
You sound like the Brooklyn Dodger fans, there is always next year
It performed the way I thought it would in 2016 and I was positioned for it. My top three positions were silver juniors. I was extremely over-weight them before they went up 1,000%+ from their lows. I was buying while you were paralyzed and crying.
You sure think highly of yourself as an investing authority for a guy who’s been unable to take any rational actions since at least 2011.
JTL/Birdman:
You have to be the BM. No one else could be so consistently wrong and so arrogant at the same time. I suppose when you get on board and finally admit silver is still in a bull market, that will start a silver correction just as you did when you jumped on the gold bull. You are incapable of learning from experience.
And by the way, you are not wrong from when you admit it. You are wrong from the first time you are wrong and that’s been all along. Go away like you promised swamp rat.
Hey jerk, I “jumped on the gold bull” in 1999 when it was $272 and silver was $4
If you don’t know the facts you should shut your mouth
JTL/BM:
Of course you jumped on silver at $4 in 1999 except for the fact that it didn’t go to $4 until November of 2001. You can’t even read a chart. Silver was never $4 in 1999 and gold got to $252 in late August of 1999, not $272. I know because I was buying it at $252 but you damned sure weren’t in that line.
Like everything else you say, you made it up.
Now go peddle your $3 garbage
JTL/BM;
Is that the best you can do?
You can’t even imagine the best I can do
Hey jerk, if you want to start questioning whe I bought gold we can make a mans wager.
I will pull out the invoices and you will look like a jerk.
Al can hold the money and you will lose like the loser you are
You wanna bet?
Let’s go !
JTL/Birdman:
Why don’t you contact Al and tell him I will bet $1000 to his favorite charity that you do not have an invoice for $4 silver from 1999. You made it up. Yes, you could have bought gold at $272 but the low was $252 in August.
You lied about buying silver at $4 in 1999 just like you lied about leaving and several other lies I have caught you in. You are a liar.
And why are you dragging Birdman into this?
He wasn’t even involved in this thread
Hey ahole, I said I jumped on the gold bull in 1999 for around $272 an ounce.
I didn’t say I bought silver IN 1999 for $4 you jerk.
I started buying silver when it was $4’amd change, my earliest recollection was $4.65
Could be lower.
What you think I am going to give you the exact day, hour and moon phase you jerk a
Now,you claim you,caught me in several other LIES? Really
I would love to hear them you jerk
This is what you said
Hey jerk, I “jumped on the gold bull” in 1999 when it was $272 and silver was $4
In 1999 silver was not $4. You said …jumped on the gold bull” in 1999… and silver was $4
Get someone who understands English to explain subjects, adjectives and verbs to you.
And I still want to get you, and not for ALS charity either.
I have my own charities, why would I bet on someone else’s.
Name your so called lies and I will bet you 10k
And I am not Birdman.
I’ve been JTL lesser the last 5 years or so, and don’t attack me if I don’t know the exact day I started posting here you jerk.
You wanna bet I am not Birdman?
It’s swamp creatures like you who probably drove him off
i never understand people that have a “long only” mentality.
Sure, most of the time, one should be long because, measured in fiat, fiat slowly loses value.