The other shoe may have finally dropped here with the housing bubble.
Goldman Sachs is now telling clients to sell Citigroup, which means there are probably other banks that should be sold as well. Brokerages normally wait until the last moment before they tell their clients to sell. This is a very bearish signal and one that lets me know that the support tested at 13,000 might now break.
The tax list for Cook County came out last week and I was able to find properties in the city available for under $1,000.00 in taxes. I will be researching the owners and look for properties that I can put money on that will likely not be paid back.
Monday, November 19, 2007
Wednesday, November 14, 2007
low dollar problems
Hey
There is an interesting article below that talks about the level of petrodollar union being busted for a petroeuro system because of the falling value of the dollar. That could cause some trouble bond wise.
http://www.enn.com/energy/article/24437
The markets bounced yesterday. Continue to buy the basic companies with strong earnings and dividends (PEP, GE, GS) while continuing your research into oversold financials. I know there are some out there who didn't get sucked into the sub prime hype like Goldman Sachs. They are the ones to buy. Did I mention Goldman Sachs isn't in trouble? I just want to make sure I mentioned that Goldman has so far avoided the subprime mess.
Speaking of subprime, the Wall Street Journal has an article today talking about the smart banks and the dumb banks. As I do not have a subscription, I cannot provide a link. I can only let you know that it is on page A2 of today's paper.
Keep an eye on Apple. The stock was hit to a tune of 20% and that to me sounds alarms technically. If it does not eclipse its high during the Xmas shopping season with the new Ipod Touch (which is certainly possible), I would look to sell.
Like I said in a previous post, I am currently only holding retirement accounts while continuing my education. But come the first of the year, I will be investing again.
There is an interesting article below that talks about the level of petrodollar union being busted for a petroeuro system because of the falling value of the dollar. That could cause some trouble bond wise.
http://www.enn.com/energy/article/24437
The markets bounced yesterday. Continue to buy the basic companies with strong earnings and dividends (PEP, GE, GS) while continuing your research into oversold financials. I know there are some out there who didn't get sucked into the sub prime hype like Goldman Sachs. They are the ones to buy. Did I mention Goldman Sachs isn't in trouble? I just want to make sure I mentioned that Goldman has so far avoided the subprime mess.
Speaking of subprime, the Wall Street Journal has an article today talking about the smart banks and the dumb banks. As I do not have a subscription, I cannot provide a link. I can only let you know that it is on page A2 of today's paper.
Keep an eye on Apple. The stock was hit to a tune of 20% and that to me sounds alarms technically. If it does not eclipse its high during the Xmas shopping season with the new Ipod Touch (which is certainly possible), I would look to sell.
Like I said in a previous post, I am currently only holding retirement accounts while continuing my education. But come the first of the year, I will be investing again.
Tuesday, November 13, 2007
support
Hey
The Dow might be hitting a range here. It hit this level earlier in August and I think it will stay somewhere between 13,000 and 14,000. There are a few aspects that can change this such as world tensions, the subprime mess, and the dollar. But there is some major support around 12,900.
The Dow might be hitting a range here. It hit this level earlier in August and I think it will stay somewhere between 13,000 and 14,000. There are a few aspects that can change this such as world tensions, the subprime mess, and the dollar. But there is some major support around 12,900.
Speaking of the dollar, there are many different articles on SeekingAlpha in regards to the dollar's plunge during the Bush Administration.
Don't forget to check out the Trader Feed blog in my blog listings. Brett has some solid analysis on trading and the markets in general.
Monday, November 12, 2007
Etrade and last week
Hey
Etrade is now currently trading at 4 bucks a share. There is a chance that they might have to declare bankruptcy. The Yahoo article is below.
http://biz.yahoo.com/ap/071112/apfn_e_trade_out_of_the_gate.html
The slide in stocks will slow but I am starting to believe the market will be in a trading range. This might be a time to sell some out of the money calls to pick up some extra cash in stocks in markets such as food (MCD, PEP, KO). The extra cash could be used to pick up some shares within these companies that will continue to make money.
If you are looking to speculate, look no further than alternative energy. First Solar has continued to move up into the 200 dollar range. This might continue with the oil market consistently making new highs. As long as oil is up, so will the other energy markets.
Being that it is veterans day, the thought of investing in defense contractors seems like a solid bet for the forseeable future. But do your homework and find the right company. This is just a thought.
Good luck and happy veterans day!!!!
Etrade is now currently trading at 4 bucks a share. There is a chance that they might have to declare bankruptcy. The Yahoo article is below.
http://biz.yahoo.com/ap/071112/apfn_e_trade_out_of_the_gate.html
The slide in stocks will slow but I am starting to believe the market will be in a trading range. This might be a time to sell some out of the money calls to pick up some extra cash in stocks in markets such as food (MCD, PEP, KO). The extra cash could be used to pick up some shares within these companies that will continue to make money.
If you are looking to speculate, look no further than alternative energy. First Solar has continued to move up into the 200 dollar range. This might continue with the oil market consistently making new highs. As long as oil is up, so will the other energy markets.
Being that it is veterans day, the thought of investing in defense contractors seems like a solid bet for the forseeable future. But do your homework and find the right company. This is just a thought.
Good luck and happy veterans day!!!!
Monday, November 5, 2007
41 billion dollar question
Hey
This past week, the Federal Reserve decided to cut the interest rate to 4.5% from 5.25% in two months. They also just put 41 billion dollars into the banking system.
Now, if you look at these two headlines, you might think that the country is headed for a recession and in big economic trouble. The problem is that the government just reported a GDP increase of 3.9%! How bad do they think the future will be economically? What exactly is going on?
I think these cuts are not to serve the country but to save those in the financial industry who made large bets and lost big. You need to look no further than the irresponsibility of the major financial firms like Merrill Lynch and Citigroup. Their earnings reports look so terrible, they had to give their respective CEO's severance packages worth over $100 million just to go away so the companies could clean up their mess. What do the other banks' earnings look like?
I am worried about the continued descent of the dollar. This action by the fed will undoubtedly help the dollar continue to fall against other major currencies.
Please add your comments as I am not sure if there is even a model that this current economic situation falls in.
This past week, the Federal Reserve decided to cut the interest rate to 4.5% from 5.25% in two months. They also just put 41 billion dollars into the banking system.
Now, if you look at these two headlines, you might think that the country is headed for a recession and in big economic trouble. The problem is that the government just reported a GDP increase of 3.9%! How bad do they think the future will be economically? What exactly is going on?
I think these cuts are not to serve the country but to save those in the financial industry who made large bets and lost big. You need to look no further than the irresponsibility of the major financial firms like Merrill Lynch and Citigroup. Their earnings reports look so terrible, they had to give their respective CEO's severance packages worth over $100 million just to go away so the companies could clean up their mess. What do the other banks' earnings look like?
I am worried about the continued descent of the dollar. This action by the fed will undoubtedly help the dollar continue to fall against other major currencies.
Please add your comments as I am not sure if there is even a model that this current economic situation falls in.
Monday, October 29, 2007
trouble brewing ahead
I have been keeping up with recent news and feel out of whack with what is going on in the economy. I see the stock market is moving up but don't feel confident in why the market is up while the economy slows. I have a few reasons
1) The fed is trying to cover up the foreclosure disaster by lowering interest rates. In the meantime, commodity prices are flying through the roof and the dollar is getting its butt kicked like its an opponent of the New England Patriots. Ultimately, this action will create longer lasting economic problems for the US. I don't see a problem with the rise in foreclosures. People who bought houses without even reading what the adjusted interest rate would be were stupid and deserve some short term pain. Let them go back to renting.
2) The price of oil is skyrocketing. And there is no end in sight. The instability in the middle east is growing. Iraq cannot govern itself, Iran continues on its nuclear mission, and Turkey has joined in the mess with their squabbling with the Kurds. I feel that this is just the tip of the iceberg as Russia and China will become more involved. A barrell of oil currently costs over 90 dollars a barrell. The silver lining in this issue is that research and development into other sources of energy have also skyrocketed.
3) A larger percentage of the GDP is covering health care costs. To be fair, more Americans are living longer. But that is inconsequential to other issues like prescription drug legislation or the profiteering of HMO's and insurance companies on the health of Americans. Unless we find a way to curb these costs, they will impact our work productivity in the long term.
1) The fed is trying to cover up the foreclosure disaster by lowering interest rates. In the meantime, commodity prices are flying through the roof and the dollar is getting its butt kicked like its an opponent of the New England Patriots. Ultimately, this action will create longer lasting economic problems for the US. I don't see a problem with the rise in foreclosures. People who bought houses without even reading what the adjusted interest rate would be were stupid and deserve some short term pain. Let them go back to renting.
2) The price of oil is skyrocketing. And there is no end in sight. The instability in the middle east is growing. Iraq cannot govern itself, Iran continues on its nuclear mission, and Turkey has joined in the mess with their squabbling with the Kurds. I feel that this is just the tip of the iceberg as Russia and China will become more involved. A barrell of oil currently costs over 90 dollars a barrell. The silver lining in this issue is that research and development into other sources of energy have also skyrocketed.
3) A larger percentage of the GDP is covering health care costs. To be fair, more Americans are living longer. But that is inconsequential to other issues like prescription drug legislation or the profiteering of HMO's and insurance companies on the health of Americans. Unless we find a way to curb these costs, they will impact our work productivity in the long term.
Monday, October 1, 2007
taking profits and educating
Hey everyone
I have made a decision to go back to school. In the process I have found that I will need the portfolio's assets to pay for it. I look forward to the challenge and will continue to write about the topics concerning finance and wealth.
Mike Keane
I have made a decision to go back to school. In the process I have found that I will need the portfolio's assets to pay for it. I look forward to the challenge and will continue to write about the topics concerning finance and wealth.
Mike Keane
Thursday, September 20, 2007
The Pres said what?!!!
Hey everyone
I know it is all to easy to catch our fearless leader in a confusing phrase but this comment from Yahoo! regarding the economy shows just how clueless he really is.
"There is no question that there is some unsettling times in the housing market and credits associated with the housing market," the president said. But he said he didn't see that spreading to the broader economy.
Bush said he was optimistic about the economy. "But I would be pessimistic if I thought Congress was going to get their way — and they're not. We're not going to raise taxes," he added.
Pressed on whether he thought there was any risk of recession, Bush said: "You need to talk to economists. I think I got a B in Econ 101."
So, let me get this straight. He makes a judgement on the effects of the housing market on the rest of the economy and then comes back and explains that because he received a B in Econ 101, he isn't qualified to comment on whether or not we are headed for a recession? Unbelievable.
- This is the time to pick up some investment real estate. This is very similair to the stock bubble. I think the recovery will be just as profitable as the stock market recovery has been for the last four years.
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
AGG Bond ETF
SharebuilderMoney Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
I know it is all to easy to catch our fearless leader in a confusing phrase but this comment from Yahoo! regarding the economy shows just how clueless he really is.
"There is no question that there is some unsettling times in the housing market and credits associated with the housing market," the president said. But he said he didn't see that spreading to the broader economy.
Bush said he was optimistic about the economy. "But I would be pessimistic if I thought Congress was going to get their way — and they're not. We're not going to raise taxes," he added.
Pressed on whether he thought there was any risk of recession, Bush said: "You need to talk to economists. I think I got a B in Econ 101."
So, let me get this straight. He makes a judgement on the effects of the housing market on the rest of the economy and then comes back and explains that because he received a B in Econ 101, he isn't qualified to comment on whether or not we are headed for a recession? Unbelievable.
- This is the time to pick up some investment real estate. This is very similair to the stock bubble. I think the recovery will be just as profitable as the stock market recovery has been for the last four years.
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
AGG Bond ETF
SharebuilderMoney Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Thursday, September 13, 2007
starbucks straddle
Hey
Starbucks might be in for a good three to six month straddle at $27.50. The Bands are closer than they were before their most recent breakout. The volume has dried up. The Average true range has also shrunk. I believe there will be a breakout. I obviously just don't know which way which is why I am suggesting a straddle. A chart is below.
Starbucks might be in for a good three to six month straddle at $27.50. The Bands are closer than they were before their most recent breakout. The volume has dried up. The Average true range has also shrunk. I believe there will be a breakout. I obviously just don't know which way which is why I am suggesting a straddle. A chart is below.
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
AGG Bond ETF
SharebuilderMoney Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Thursday, August 30, 2007
Frito Lay Leads the Way
Hey
Even though I am not happy about some of the products that Pepsi and Frito Lay produce, their continuous stamp on the environmental cause is undeniable.
A Frito Lay plant has just earned a spot in the EPA's green leadership program. The text is below.
http://biz.yahoo.com/prnews/070830/lath025.html?.v=101
I believe their continued execution in advancing the environmental cause while making money will help Pepsi in the long run. With this market as it is, the companies with long run outlooks are the ones to be in.
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
AGG Bond ETF
SharebuilderMoney Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Even though I am not happy about some of the products that Pepsi and Frito Lay produce, their continuous stamp on the environmental cause is undeniable.
A Frito Lay plant has just earned a spot in the EPA's green leadership program. The text is below.
http://biz.yahoo.com/prnews/070830/lath025.html?.v=101
I believe their continued execution in advancing the environmental cause while making money will help Pepsi in the long run. With this market as it is, the companies with long run outlooks are the ones to be in.
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
AGG Bond ETF
SharebuilderMoney Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Wednesday, August 8, 2007
Etrade
It seems the recent ridiculous movement of the stock market has created some decent opportunities to pick up some valuable stock at a decent price.
The one that is screaming out to me is Etrade.
The PE is 11 (very low), the growth in earnings is projected to be in the 20% range, and their exposure to bad loans is little. In fact, the most recent earnings report showed their credit rating rose!
With the volatility rising, more people have traded this month than expected. Couple that with the big boys returning next month to their desks, the company should easily make their earnings estimates.
The stock has been hammered almost 20% since their earnings release.
I recommend taking a look at this stock. I currently do not own shares in Etrade.
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
AGG Bond ETFSharebuilder
Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
The one that is screaming out to me is Etrade.
The PE is 11 (very low), the growth in earnings is projected to be in the 20% range, and their exposure to bad loans is little. In fact, the most recent earnings report showed their credit rating rose!
With the volatility rising, more people have traded this month than expected. Couple that with the big boys returning next month to their desks, the company should easily make their earnings estimates.
The stock has been hammered almost 20% since their earnings release.
I recommend taking a look at this stock. I currently do not own shares in Etrade.
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
AGG Bond ETFSharebuilder
Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Thursday, July 5, 2007
Pepsi = Green
Hey
Pepsi just announced in a recent article that they will be talking about and offering recycling at the Live Earth concert. I also noticed they have a woman North American president. The article from Yahoo is below. On another Pepsi note, I just received the quarterly dividend from Pepsi. It was 25% more than last quarter. It will go towards purchasing more shares. Thanks for the free stock!
http://biz.yahoo.com/prnews/070705/nyth049.html?.v=101
I have just added the bond ETF AGG to the portfolio. I know that this will probably not garner much added income right away, but I believe that adding another safe income generating instrument to the portfolio continues the base formation of the portfolio. I don't need to get to the top of the mountain now. A few steps at a time. I have started to track the monthly interest and dividend income generated by my investments and will continue to see it grow with this purchase.
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
AGG Bond ETF
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Pepsi just announced in a recent article that they will be talking about and offering recycling at the Live Earth concert. I also noticed they have a woman North American president. The article from Yahoo is below. On another Pepsi note, I just received the quarterly dividend from Pepsi. It was 25% more than last quarter. It will go towards purchasing more shares. Thanks for the free stock!
http://biz.yahoo.com/prnews/070705/nyth049.html?.v=101
I have just added the bond ETF AGG to the portfolio. I know that this will probably not garner much added income right away, but I believe that adding another safe income generating instrument to the portfolio continues the base formation of the portfolio. I don't need to get to the top of the mountain now. A few steps at a time. I have started to track the monthly interest and dividend income generated by my investments and will continue to see it grow with this purchase.
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
AGG Bond ETF
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Wednesday, June 13, 2007
Solid Companies with Green actions
Hey
I have been thinking about the boon in "green" investments. I am going to be looking for companies that have solid business models while still finding ways to cut energy output and increase conservation.
This is one of the reasons I have chosen to invest in Pepsi. They are extremely innovative within the beverage/food sector. They have recently decided to purchase over 1 billion dollars worth of energy credits over the next three years.
My next stock purchase (at the end of the summer) will probably be either Goldman Sachs or JP Morgan. Both financial institutions are at the top of their game when it comes to their business model. But both companies are also taking large smart steps towards assisting energy usage and conservation.
You can find more detailed information at www.gs.com and www.jpmorgan.com or by going to yahoo finance (link in side bar).
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Checkpoint June 25 Call (www.checkpoint.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
I have been thinking about the boon in "green" investments. I am going to be looking for companies that have solid business models while still finding ways to cut energy output and increase conservation.
This is one of the reasons I have chosen to invest in Pepsi. They are extremely innovative within the beverage/food sector. They have recently decided to purchase over 1 billion dollars worth of energy credits over the next three years.
My next stock purchase (at the end of the summer) will probably be either Goldman Sachs or JP Morgan. Both financial institutions are at the top of their game when it comes to their business model. But both companies are also taking large smart steps towards assisting energy usage and conservation.
You can find more detailed information at www.gs.com and www.jpmorgan.com or by going to yahoo finance (link in side bar).
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Checkpoint June 25 Call (www.checkpoint.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Tuesday, June 5, 2007
Checkpoint bucks trend today
Hey
Checkpoint seemed to buck the trend on heavy volume closing the day up 2% while the rest of the market was clearly down. There was no news so I am unclear as to why there was such heavy buying. Stay tuned.
The Fed Chairman Bernanke came out with remarks about the economy suggesting that it will increase in the next six months. This brought some selling into the market as the thought of lower interest rates has gone away for a while. This might hurt some of the housing stocks going into the summer. The service sector jump seems to indicate some upcoming employment in the tech sector furthering the maturation of the internet economy.
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Checkpoint June 25 Call (www.checkpoint.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
If you have any more questions or comments, you can also email keanemd@gmail.com
Checkpoint seemed to buck the trend on heavy volume closing the day up 2% while the rest of the market was clearly down. There was no news so I am unclear as to why there was such heavy buying. Stay tuned.
The Fed Chairman Bernanke came out with remarks about the economy suggesting that it will increase in the next six months. This brought some selling into the market as the thought of lower interest rates has gone away for a while. This might hurt some of the housing stocks going into the summer. The service sector jump seems to indicate some upcoming employment in the tech sector furthering the maturation of the internet economy.
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Checkpoint June 25 Call (www.checkpoint.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
If you have any more questions or comments, you can also email keanemd@gmail.com
Friday, June 1, 2007
Spreading and Creating Wealth
Hey
This past week the University of Chicago (www.uofc.edu) received a donation of 100 million dollars to be used solely for tuition over the next 15 years. The grants are to be given to students whose families make 75,000 dollars or less a year. I feel that this donation will create far more wealth than the 100 million dollars given.
This type of donation will spread wealth by giving parents a break on the task of paying tuition and allow that money to go into investments for retirement or business. It will create wealth by allowing students to go into the workforce with minimal debt. That should allow a more robust saving and investing that will in turn help the economy.
This donor has recognized that the less debt students are able to leave school with, the more financially stable they will be in the future. I hope more affluent individuals realize the overall good this type of donation will create for the economy and society. Having buildings and scholarships in your name are great, but giving others the financial freedom to pursue their dreams at this high level is truly honorable.
This past week the University of Chicago (www.uofc.edu) received a donation of 100 million dollars to be used solely for tuition over the next 15 years. The grants are to be given to students whose families make 75,000 dollars or less a year. I feel that this donation will create far more wealth than the 100 million dollars given.
This type of donation will spread wealth by giving parents a break on the task of paying tuition and allow that money to go into investments for retirement or business. It will create wealth by allowing students to go into the workforce with minimal debt. That should allow a more robust saving and investing that will in turn help the economy.
This donor has recognized that the less debt students are able to leave school with, the more financially stable they will be in the future. I hope more affluent individuals realize the overall good this type of donation will create for the economy and society. Having buildings and scholarships in your name are great, but giving others the financial freedom to pursue their dreams at this high level is truly honorable.
Thursday, May 31, 2007
Seeking Alpha
Hey
I have come upon a site named www.seekingalpha.com. It is for investing and trading written by investors and traders. I was directed to it by Brett Steenbarger's blog www.traderfeed.blogspot.com.
At first glance, this site looks like the real deal. It has a Yahoo Marketwatch look and feel with more detail. I will continue to use it and have even put it on the blog. I have signed up for their alerts and will be posting their alerts to the blog.
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Checkpoint June 25 Call (www.checkpoint.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
I have come upon a site named www.seekingalpha.com. It is for investing and trading written by investors and traders. I was directed to it by Brett Steenbarger's blog www.traderfeed.blogspot.com.
At first glance, this site looks like the real deal. It has a Yahoo Marketwatch look and feel with more detail. I will continue to use it and have even put it on the blog. I have signed up for their alerts and will be posting their alerts to the blog.
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Checkpoint June 25 Call (www.checkpoint.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Wednesday, May 30, 2007
record high
Hey
The Dow reached a new record high today. It seems to me that this is a product of simply the organizing of companies that is making the index as a whole more expensive. With the monster stock buybacks and mergers and acquisitions, the index is simply being revalued.
I think the difference between this bull run and the last one is the lack of new products on the market. Whereas in the 90's, new internet products couldn't get to the market fast enough, this bull market is full of companies that are simply reaching the maturity of the internet product driven market. I feel that this bull run has opened the world to the rest of the world and at the same time flattened it for all to see.
With that said, I think this market has a long way to go to the upside. This market is going through a real estate correction, and some of the better known emerging markets (China, cough, cough) are going through some troubles. This tells me that investor's money is being put into companies in the dow and the nasdaq.
If you look at what the market has done technically, it has been steady. To look for a correction, look for a major move, then start to wonder. We have not had that 300 point day to the upside. I think that will come in the fall.
As for me, I have my few shares of Pepsi and the occasional option play.
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Checkpoint June 25 Call (www.checkpoint.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
The Dow reached a new record high today. It seems to me that this is a product of simply the organizing of companies that is making the index as a whole more expensive. With the monster stock buybacks and mergers and acquisitions, the index is simply being revalued.
I think the difference between this bull run and the last one is the lack of new products on the market. Whereas in the 90's, new internet products couldn't get to the market fast enough, this bull market is full of companies that are simply reaching the maturity of the internet product driven market. I feel that this bull run has opened the world to the rest of the world and at the same time flattened it for all to see.
With that said, I think this market has a long way to go to the upside. This market is going through a real estate correction, and some of the better known emerging markets (China, cough, cough) are going through some troubles. This tells me that investor's money is being put into companies in the dow and the nasdaq.
If you look at what the market has done technically, it has been steady. To look for a correction, look for a major move, then start to wonder. We have not had that 300 point day to the upside. I think that will come in the fall.
As for me, I have my few shares of Pepsi and the occasional option play.
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Checkpoint June 25 Call (www.checkpoint.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Tuesday, May 29, 2007
Continued Greening
Hey
For anyone wondering whether or not the green movement can be a profitable venture, please pick up this month's copy of SFO magazine. It has about ten different articles on green businesses and shows examples of both profitable green investments and losing money green investments. The cover article is on the CEO of Patagonia. The link is www.sfomag.com.
I wanted to bring up the topic of recent purchases of public companies by private equity firms. I am young to the business and would like some knowledge as to the pros and cons of this type of venture. Is this a reaction to Sarbaines-Oxley legislation?
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Checkpoint June 25 Call (www.checkpoint.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Either post a blog or email at keanemd@gmail.com and let me know.
For anyone wondering whether or not the green movement can be a profitable venture, please pick up this month's copy of SFO magazine. It has about ten different articles on green businesses and shows examples of both profitable green investments and losing money green investments. The cover article is on the CEO of Patagonia. The link is www.sfomag.com.
I wanted to bring up the topic of recent purchases of public companies by private equity firms. I am young to the business and would like some knowledge as to the pros and cons of this type of venture. Is this a reaction to Sarbaines-Oxley legislation?
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Checkpoint June 25 Call (www.checkpoint.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Either post a blog or email at keanemd@gmail.com and let me know.
Thursday, May 24, 2007
gap filled
Hey
The gap from Checkpoint has been filled with today's trading. I am not impressed with the volume but it did break the bollinger bands to the downside. That is telling me that the June call is very unlikely to produce a profit. I will be holding this call because my R loss (amount of total loss known or allowed) was the total call anyway.
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Checkpoint June 25 Call (www.checkpoint.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Either post a blog or email at keanemd@gmail.com and let me know.
The gap from Checkpoint has been filled with today's trading. I am not impressed with the volume but it did break the bollinger bands to the downside. That is telling me that the June call is very unlikely to produce a profit. I will be holding this call because my R loss (amount of total loss known or allowed) was the total call anyway.
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Checkpoint June 25 Call (www.checkpoint.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Either post a blog or email at keanemd@gmail.com and let me know.
Wednesday, May 23, 2007
graph for checkpoint
Hey
The following graph indicates that there is a good chance that there will be a move very soon. The last time the bands were this close (within 1.15 points), it popped 1 1/2 points. I am thinking it will happen again.
The Wikiwealth portfolio consists of the following:Pepsi Stock (www.pepsi.com)Checkpoint June 25 Call (www.checkpoint.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Either post a blog or email at keanemd@gmail.com and let me know.
Wednesday, May 16, 2007
checkpoint
Hey
I have been keeping close track of my checkpoint call and I am thinking that with options, there needs to be a longer time frame for if you are the purchaser. I will have to amend my rules to make sure that happens.
For those that don't know, I currently have a June 25 call. I still think that it will be profitable after this week's option expiration. But I could have managed the trade better.
I have been learning a lot since I started cataloging these trades and using the diary and my blog. I understand Fibonacci movements well and now am studying Gann movements (They seem a little tricky).
Oh, before I forget, Pepsi hit a new high today!
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Checkpoint June 25 Call (www.checkpoint.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Either post a blog or email at keanemd@gmail.com and let me know.
I have been keeping close track of my checkpoint call and I am thinking that with options, there needs to be a longer time frame for if you are the purchaser. I will have to amend my rules to make sure that happens.
For those that don't know, I currently have a June 25 call. I still think that it will be profitable after this week's option expiration. But I could have managed the trade better.
I have been learning a lot since I started cataloging these trades and using the diary and my blog. I understand Fibonacci movements well and now am studying Gann movements (They seem a little tricky).
Oh, before I forget, Pepsi hit a new high today!
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Checkpoint June 25 Call (www.checkpoint.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Either post a blog or email at keanemd@gmail.com and let me know.
Tuesday, May 8, 2007
Checkpoint
Hey
I just purchased a June call option on Checkpoint. The stock just finished a retracement and the candlestick formation seems to confirm this. It broke out of its top band and the MACD is bullish. The trend lines are also heading up. As always, a stop (hopefully) has been correctly placed.
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Checkpoint June 25 Call (www.checkpoint.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Either post a blog or email at keanemd@gmail.com and let me know.
I just purchased a June call option on Checkpoint. The stock just finished a retracement and the candlestick formation seems to confirm this. It broke out of its top band and the MACD is bullish. The trend lines are also heading up. As always, a stop (hopefully) has been correctly placed.
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Checkpoint June 25 Call (www.checkpoint.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Either post a blog or email at keanemd@gmail.com and let me know.
Wednesday, May 2, 2007
Pepsi raised dividend
Hey
Pepsi today announced that they are raising their dividend by 25% and that they will buy back another 8 billion dollars in shares once the current buyback is finished. They will basically take one billion dollars of shares off the market this year alone. News stories are below.
http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070502:MTFH36275_2007-05-02_12-35-31_WNAS9135&type=comktNews&rpc=44
http://biz.yahoo.com/ap/070502/pepsico_dividend.html?.v=1
This reminds me of a blog I did earlier about compound interest. I added dividends to the mix into the story. Any time a company wants to give you money for investing in their stock is wonderful. This is a principle to becoming wealthy.
Pepsi today announced that they are raising their dividend by 25% and that they will buy back another 8 billion dollars in shares once the current buyback is finished. They will basically take one billion dollars of shares off the market this year alone. News stories are below.
http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com:20070502:MTFH36275_2007-05-02_12-35-31_WNAS9135&type=comktNews&rpc=44
http://biz.yahoo.com/ap/070502/pepsico_dividend.html?.v=1
This reminds me of a blog I did earlier about compound interest. I added dividends to the mix into the story. Any time a company wants to give you money for investing in their stock is wonderful. This is a principle to becoming wealthy.
Monday, April 30, 2007
Pepsi's energy buy
Hey
This is big news. Pepsi plans to purchase over 1 billion dollars worth of energy credits over 3 years. This is a leader. The article is below.
http://biz.yahoo.com/ap/070430/pepsico_renewable_energy.html?.v=1
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Either post a blog or email at keanemd@gmail.com and let me know.
This is big news. Pepsi plans to purchase over 1 billion dollars worth of energy credits over 3 years. This is a leader. The article is below.
http://biz.yahoo.com/ap/070430/pepsico_renewable_energy.html?.v=1
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Either post a blog or email at keanemd@gmail.com and let me know.
Friday, April 27, 2007
retirement effect on market
Hey
With babyboomers starting to retire, I am wondering what effect that will have on the market. Are there stocks that will be heavily hit by mandatory 401K sales in the next decade? Is there enough capital from younger generations to support the level of investment made by the boomers?
If anyone has thoughts or direction on this, please pass it along.
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Either post a blog or email at keanemd@gmail.com and let me know.
With babyboomers starting to retire, I am wondering what effect that will have on the market. Are there stocks that will be heavily hit by mandatory 401K sales in the next decade? Is there enough capital from younger generations to support the level of investment made by the boomers?
If anyone has thoughts or direction on this, please pass it along.
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Either post a blog or email at keanemd@gmail.com and let me know.
Thursday, April 26, 2007
SFO
Hey
I wanted to write to let you know of a magazine that is worth its weight in gold. The magazine I speak of is SFO (short for stocks, futures, options).
This magazine covers most of what any investor needs. It is based on futures, but stock traders and investors can get a wealth of information from this magazine. I recommend you check it out and get a free copy.
The website is www.sfomag.com.
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Either post a blog or email at keanemd@gmail.com and let me know.
I wanted to write to let you know of a magazine that is worth its weight in gold. The magazine I speak of is SFO (short for stocks, futures, options).
This magazine covers most of what any investor needs. It is based on futures, but stock traders and investors can get a wealth of information from this magazine. I recommend you check it out and get a free copy.
The website is www.sfomag.com.
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Either post a blog or email at keanemd@gmail.com and let me know.
Wednesday, April 25, 2007
Pepsi's earnings
Hey
Here are some stories that explain the earnings for this past quarter.
http://www.businessweek.com/investor/content/apr2007/pi20070425_529061.htm?campaign_id=yhoo
http://www.thestreet.com/_yahoo/newsanalysis/food/10352721.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA
As for my GE trade, I think I was the last person to sell. I really sold at the bottom! Crazy, but it happens. Like I said before, on to the next trade.
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Email at keanemd@gmail.com and let me know.
Here are some stories that explain the earnings for this past quarter.
http://www.businessweek.com/investor/content/apr2007/pi20070425_529061.htm?campaign_id=yhoo
http://www.thestreet.com/_yahoo/newsanalysis/food/10352721.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA
As for my GE trade, I think I was the last person to sell. I really sold at the bottom! Crazy, but it happens. Like I said before, on to the next trade.
The Wikiwealth portfolio consists of the following:
Pepsi Stock (www.pepsi.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Email at keanemd@gmail.com and let me know.
Tuesday, April 24, 2007
stopped out
Hey
For all my and brilliance on the June 35 call, I was stopped out and sold. As much as I didn't want to be stopped out and hold on, the facts are the facts. The call reached the price, and I sold. On to the next trade.
Earnings for Pepsi come out tomorrow. I would assume they will match or beat by a penny as is customary for this company.
Cheers!
For all my and brilliance on the June 35 call, I was stopped out and sold. As much as I didn't want to be stopped out and hold on, the facts are the facts. The call reached the price, and I sold. On to the next trade.
Earnings for Pepsi come out tomorrow. I would assume they will match or beat by a penny as is customary for this company.
Cheers!
Monday, April 23, 2007
GE
Hey
As I mentioned on Friday, I have bought a June 35 call. There are a few reasons why I feel this is a correct trade.
- First off, I know what my max loss will be. Entries into a market are important, but if you don't know how or when to exit, you won't do very well.
- Secondly, this stock is technically ready to move. The 200,50, and 20 day averages are all together. The Bollinger Bands are within 1 1/2 points from eachother. That is a very tight range and a good indicator of upcoming volatility. There has been a 50% Fibonacci retracement from 38 back to 35 after a move from 32 to 38.
Earnings were good and positive. They mentioned a low exposure to the subprime sector. There are also 20 Million less shares shorted than in March.
These things combined with my rules for what I buy told me that this particular option is the one with the most reward for the least risk. I have my stops put in and I feel good about this trade.
As I mentioned on Friday, I have bought a June 35 call. There are a few reasons why I feel this is a correct trade.
- First off, I know what my max loss will be. Entries into a market are important, but if you don't know how or when to exit, you won't do very well.
- Secondly, this stock is technically ready to move. The 200,50, and 20 day averages are all together. The Bollinger Bands are within 1 1/2 points from eachother. That is a very tight range and a good indicator of upcoming volatility. There has been a 50% Fibonacci retracement from 38 back to 35 after a move from 32 to 38.
Earnings were good and positive. They mentioned a low exposure to the subprime sector. There are also 20 Million less shares shorted than in March.
These things combined with my rules for what I buy told me that this particular option is the one with the most reward for the least risk. I have my stops put in and I feel good about this trade.
Friday, April 20, 2007
New High
Hey
It looks like the Dow has exploded! I read a bit about the lack of supply recently from Cramer at www.thestreet.com.
I just purchased a June GE 35 call. I feel comfortable that it falls within my parameters. It is right at the money. It is at a support. The trend lines (200,50,20) have all converged at 35. The earnings were solid.
There seems to be plenty of volatility coming alive. Options might be a way to exploit it. But be smart.
Oh, Pepsi hit a new high! Yeah for retirement.
Cheers
The Wikiwealth portfolio consists of the following:
Pepsi Stock(www.pepsi.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
GE June 35 Call (www.ge.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Email at keanemd@gmail.com and let me know.
It looks like the Dow has exploded! I read a bit about the lack of supply recently from Cramer at www.thestreet.com.
I just purchased a June GE 35 call. I feel comfortable that it falls within my parameters. It is right at the money. It is at a support. The trend lines (200,50,20) have all converged at 35. The earnings were solid.
There seems to be plenty of volatility coming alive. Options might be a way to exploit it. But be smart.
Oh, Pepsi hit a new high! Yeah for retirement.
Cheers
The Wikiwealth portfolio consists of the following:
Pepsi Stock(www.pepsi.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
GE June 35 Call (www.ge.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Email at keanemd@gmail.com and let me know.
Thursday, April 12, 2007
Pepsi Upgraded
Hey everyone
Pepsi has been upgraded. Below is a link to one of the stories.
http://biz.yahoo.com/ap/070412/pepsico_ahead_of_the_bell.html?.v=1
I think the fact that Coke has been on a tear recently has helped the research analysis of Pepsi. This is a stock that you will want to buy. They have what Buffett looks for in a company. Now it might break out of the channel it is in. I hope I am able to buy more before it gets too expensive.
That thought brings to mind the idea of following your rules. Don't break the rules just to buy more Pepsi.
The Wikiwealth portfolio consists of the following:
Pepsi Stock(www.pepsi.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Email at keanemd@gmail.com and let me know.
Pepsi has been upgraded. Below is a link to one of the stories.
http://biz.yahoo.com/ap/070412/pepsico_ahead_of_the_bell.html?.v=1
I think the fact that Coke has been on a tear recently has helped the research analysis of Pepsi. This is a stock that you will want to buy. They have what Buffett looks for in a company. Now it might break out of the channel it is in. I hope I am able to buy more before it gets too expensive.
That thought brings to mind the idea of following your rules. Don't break the rules just to buy more Pepsi.
The Wikiwealth portfolio consists of the following:
Pepsi Stock(www.pepsi.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Email at keanemd@gmail.com and let me know.
Tuesday, April 10, 2007
Person to Person Loans
Hey
There has been a bit of press on peer to peer loans. I do not have a lot of knowledge with this type of lending. Normally, the interest rate you receive is decent. There are things such as credit rating, and other lending issues that you will want to read about before investing.
I love the fact that the internet has been able to make this type of thing possible. I'm not saying it will make you a lot of money. Remember the true Rule #1: Always research your investment as much as possible before giving it your hard earned money!
But the ability to help a small business get going would be a great feeling and exactly what the wiki philosophy is all about!
The two sites I am familiar with are www.prosper.com and www.kiva.org for international dealings.
Peace to all!
The Wikiwealth portfolio consists of the following:
Pepsi Stock(www.pepsi.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Email at keanemd@gmail.com and let me know.
There has been a bit of press on peer to peer loans. I do not have a lot of knowledge with this type of lending. Normally, the interest rate you receive is decent. There are things such as credit rating, and other lending issues that you will want to read about before investing.
I love the fact that the internet has been able to make this type of thing possible. I'm not saying it will make you a lot of money. Remember the true Rule #1: Always research your investment as much as possible before giving it your hard earned money!
But the ability to help a small business get going would be a great feeling and exactly what the wiki philosophy is all about!
The two sites I am familiar with are www.prosper.com and www.kiva.org for international dealings.
Peace to all!
The Wikiwealth portfolio consists of the following:
Pepsi Stock(www.pepsi.com)
Sharebuilder Money Market (www.sharebuilder.com)
Optionsxpress Money Market (www.optionsxpress.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Email at keanemd@gmail.com and let me know.
Sunday, April 1, 2007
Compound Interest/Dividend
Hey
This is one the best things about investing if not the best. You can actually find investments that will pay you cash just because you put money into that investment.
In fact, Pepsi just paid me my quarterly dividend payment last week. I simply reinvested it. Next quarter I will now get paid a higher dividend because I reivested the dividend into stock. I also just received my interest from my money market accounts which have earned interest on the interest received in the past.
For banks, it is interest. You can find a bank account that will pay you interest for keeping your money there.
For Wall Street, it is called dividends. You can find companies that will pay you a dividend normally every three months just for investing your money in their company.
Here is the thing about both options. They compound. That means you can use and reinvest that money given to obtain a higher interest paying bank account, or buy more stock with the dividend that the company paid you. It becomes so that the interest from the interest account or the dividend payment from the stock bought from previous dividend payment eclipses our wildest thoughts because it happens on a monthly or quarterly basis.
To put it bluntly ( I believe Andrew Carnegie is said to say), this is the goose that lays the golden egg.
Compounding Interest and Dividends are the sure way to wealth. Start now and don't stop. Take a percentage of your income (even 1%) and open and IRA and get busy becoming wealthy.
The Wikiwealth portfolio consists of the following:
Pepsi Stock(www.pepsi.com)
Sharebuilder Money Market (www.sharebuilder.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Email at keanemd@gmail.com and let me know.
This is one the best things about investing if not the best. You can actually find investments that will pay you cash just because you put money into that investment.
In fact, Pepsi just paid me my quarterly dividend payment last week. I simply reinvested it. Next quarter I will now get paid a higher dividend because I reivested the dividend into stock. I also just received my interest from my money market accounts which have earned interest on the interest received in the past.
For banks, it is interest. You can find a bank account that will pay you interest for keeping your money there.
For Wall Street, it is called dividends. You can find companies that will pay you a dividend normally every three months just for investing your money in their company.
Here is the thing about both options. They compound. That means you can use and reinvest that money given to obtain a higher interest paying bank account, or buy more stock with the dividend that the company paid you. It becomes so that the interest from the interest account or the dividend payment from the stock bought from previous dividend payment eclipses our wildest thoughts because it happens on a monthly or quarterly basis.
To put it bluntly ( I believe Andrew Carnegie is said to say), this is the goose that lays the golden egg.
Compounding Interest and Dividends are the sure way to wealth. Start now and don't stop. Take a percentage of your income (even 1%) and open and IRA and get busy becoming wealthy.
The Wikiwealth portfolio consists of the following:
Pepsi Stock(www.pepsi.com)
Sharebuilder Money Market (www.sharebuilder.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Email at keanemd@gmail.com and let me know.
Thursday, March 29, 2007
The Warren Buffet Way
Hey
I would like to put in my two cents on "The Warren Buffett Way. The book is simple, clear, and to the point. I fully believe that using this book's steps will make you very wealthy. It won't do it very fast. But if you have a period of 15 to 20 years, you will have enough to retire on.
This book is the basis for all my retirement investments. Period. If the company doesn't fit the Buffet profile, it is not in my retirement portfolio.
For instance the stock I own is Pepsi. Strange that I feel that the direct competitor of one of Buffett's largest investments (Coke) falls within his investing parameters.
The four rules are as follows:
- competetive edge (Is it a leader of its industry)
-solid management (This cannot be underemphasized)
- healthy financials (does it make money)
- price of investment (What is its current value)
If it is a leader of its industry, has solid honest management, makes money, and is at value or undervalued, then you buy.
If there is one book to buy, this is it!!!!!
Take care and happy investing
The Wikiwealth portfolio consists of the following:
Pepsi Stock(www.pepsi.com)
Sharebuilder Money Market (www.sharebuilder.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Email at keanemd@gmail.com and let me know.
I would like to put in my two cents on "The Warren Buffett Way. The book is simple, clear, and to the point. I fully believe that using this book's steps will make you very wealthy. It won't do it very fast. But if you have a period of 15 to 20 years, you will have enough to retire on.
This book is the basis for all my retirement investments. Period. If the company doesn't fit the Buffet profile, it is not in my retirement portfolio.
For instance the stock I own is Pepsi. Strange that I feel that the direct competitor of one of Buffett's largest investments (Coke) falls within his investing parameters.
The four rules are as follows:
- competetive edge (Is it a leader of its industry)
-solid management (This cannot be underemphasized)
- healthy financials (does it make money)
- price of investment (What is its current value)
If it is a leader of its industry, has solid honest management, makes money, and is at value or undervalued, then you buy.
If there is one book to buy, this is it!!!!!
Take care and happy investing
The Wikiwealth portfolio consists of the following:
Pepsi Stock(www.pepsi.com)
Sharebuilder Money Market (www.sharebuilder.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Email at keanemd@gmail.com and let me know.
Monday, March 26, 2007
Following rules
Hey
How many of you decided that making an investment or trade before finding out all the information you are supposed to or not following your rules?
I did recently and it kicked my butt!
I was following Electronic Arts (www.ea.com) for an options trade. In the middle of Feburary, I noticed a wedge forming and settling at $50.00. I thought over the weekend that whichever way it moves, I'm going that way.
That weekend there was a positive story in Barron's about the company and the stock appropriately shot up (see chart below). There was a big move with a lot of volume. So I bought the March 55 calls. Bad move. It was bad because I didn't take a look at resistance at the 53-54 range. The calls were out of the money. I'm not kidding you when I say that one of my rules is to buy in the money calls or puts only. I could have bought the 50's, but being greedy, I bought more of the 55's. I actually still had a profit for a couple of days. But then the stock corrected and I lost out and option price hit my stop loss target . At least I put in a stop loss! Otherwise, this was a Dumb Dumb Dumb trade and I threw away money.
Remember to follow your rules. If they don't work, change them. But you can't blame losses on the rules when you don't follow them!
My next blog will be to talk about education of options.
The Wikiwealth portfolio consists of the following:
Pepsi Stock(www.pepsi.com)
Sharebuilder Money Market (www.sharebuilder.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Email at keanemd@gmail.com and let me know.
Take care and happy investing!
How many of you decided that making an investment or trade before finding out all the information you are supposed to or not following your rules?
I did recently and it kicked my butt!
I was following Electronic Arts (www.ea.com) for an options trade. In the middle of Feburary, I noticed a wedge forming and settling at $50.00. I thought over the weekend that whichever way it moves, I'm going that way.
That weekend there was a positive story in Barron's about the company and the stock appropriately shot up (see chart below). There was a big move with a lot of volume. So I bought the March 55 calls. Bad move. It was bad because I didn't take a look at resistance at the 53-54 range. The calls were out of the money. I'm not kidding you when I say that one of my rules is to buy in the money calls or puts only. I could have bought the 50's, but being greedy, I bought more of the 55's. I actually still had a profit for a couple of days. But then the stock corrected and I lost out and option price hit my stop loss target . At least I put in a stop loss! Otherwise, this was a Dumb Dumb Dumb trade and I threw away money.
Remember to follow your rules. If they don't work, change them. But you can't blame losses on the rules when you don't follow them!
My next blog will be to talk about education of options.
The Wikiwealth portfolio consists of the following:
Pepsi Stock(www.pepsi.com)
Sharebuilder Money Market (www.sharebuilder.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Email at keanemd@gmail.com and let me know.
Take care and happy investing!
Friday, March 23, 2007
Options
To begin, I would like to say I am a beginner when it comes to investing in options. I currently have one call option open that is going to expire worthless because I didn't follow any rules whatsoever!
That said, I think that investing in options with clear entry and exit points clarified before making the investment is and will continue to be a huge money maker. I have set aside a small portion of my investment account to trade options. I recommend doing plenty of research (reading, seminars, webinars) before you do. Trading options can be very risky. I believe the key is to know your exit points and have a risk to reward ratio that is acceptable to have some lost trades for every winner.
If you are interested in looking at options, optionsxpress (www.optionsxpress.com) has an amazing website. For disclosure purposes, I do have an account with them. Their education section is second to none. They have practice accounts, risk/reward rations, and everything under the sun. They also embody the collaboration movement and are always looking for ways to improve their site. There are also not minimum deposit. They are traders themselves!
All next week I will be blogging about options and why they can be a great revenue generator.
The Wikiwealth portfolio consists of the following:
Pepsi Stock(www.pepsi.com)
March 55 Call for Electronic Arts (www.ea.com)
Sharebuilder Money Market (www.sharebuilder.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Email at keanemd@gmail.com and let me know.
Take care and happy investing!
That said, I think that investing in options with clear entry and exit points clarified before making the investment is and will continue to be a huge money maker. I have set aside a small portion of my investment account to trade options. I recommend doing plenty of research (reading, seminars, webinars) before you do. Trading options can be very risky. I believe the key is to know your exit points and have a risk to reward ratio that is acceptable to have some lost trades for every winner.
If you are interested in looking at options, optionsxpress (www.optionsxpress.com) has an amazing website. For disclosure purposes, I do have an account with them. Their education section is second to none. They have practice accounts, risk/reward rations, and everything under the sun. They also embody the collaboration movement and are always looking for ways to improve their site. There are also not minimum deposit. They are traders themselves!
All next week I will be blogging about options and why they can be a great revenue generator.
The Wikiwealth portfolio consists of the following:
Pepsi Stock(www.pepsi.com)
March 55 Call for Electronic Arts (www.ea.com)
Sharebuilder Money Market (www.sharebuilder.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Do you want to be notified when there is a new blog entry? Email at keanemd@gmail.com and let me know.
Take care and happy investing!
Wednesday, March 21, 2007
Interest Rates
Hey
I wonder if leaving the interest rates alone has something to do with the nation's high percentage of ARM mortgage holders? With all the news with the subprime market correction, you had to have a feeling that Mr. Bernanke would understand what adding a quarter point would do to the mortgage holders that are on the brink. You can look at parts of his speech at www.marketwatch.com.
The amazing thing is that interest rates are really low. There is also a ton of vacant housing still on the market. This market still has a ways to move down before the problem is corrected.
I have a feeling that other factors (underemployment, credit card debt, inflation, etc.) will tip this over the edge. I am looking at my Pepsi raising prices due to commodity price increases and am wondering when inflation and the housing problems will collide and cause the Fed some real problems related to interest rates. Maybe that time is now.
The Wikiwealth portfolio consists of the following:
Pepsi Stock(www.pepsi.com)
March 55 Call for Electronic Arts (www.ea.com)
Sharebuilder Money Market (www.sharebuilder.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Email at keanemd@gmail.com.
Take care and happy investing!
I wonder if leaving the interest rates alone has something to do with the nation's high percentage of ARM mortgage holders? With all the news with the subprime market correction, you had to have a feeling that Mr. Bernanke would understand what adding a quarter point would do to the mortgage holders that are on the brink. You can look at parts of his speech at www.marketwatch.com.
The amazing thing is that interest rates are really low. There is also a ton of vacant housing still on the market. This market still has a ways to move down before the problem is corrected.
I have a feeling that other factors (underemployment, credit card debt, inflation, etc.) will tip this over the edge. I am looking at my Pepsi raising prices due to commodity price increases and am wondering when inflation and the housing problems will collide and cause the Fed some real problems related to interest rates. Maybe that time is now.
The Wikiwealth portfolio consists of the following:
Pepsi Stock(www.pepsi.com)
March 55 Call for Electronic Arts (www.ea.com)
Sharebuilder Money Market (www.sharebuilder.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Email at keanemd@gmail.com.
Take care and happy investing!
Monday, March 19, 2007
Finding real estate
Hey
The most recent news on sub prime lenders should make an alarm go off! This is a fantastic opportunity to pick up some decent real estate or stocks of real estate companies that have sold off. I am sure there are mortgage companies and land out there that are selling for less than they are worth. But don't buy just to buy. Do your research first. Remember Rule #1; Know your investment inside out before you put money towards it. I would love to hear of any that you might know.
Take a look at this article from Marketwatch. There is a REIT out there thinking along the same lines.
This is just a thought but I believe Detroit will be a fantastic long term (10 + years) place for real estate.
http://www.marketwatch.com/news/story/fortress-managed-reit-steps-subprime-mortgage/story.aspx?guid=%7BD88FBE61%2DEC50%2D43CA%2DA439%2D83BF9B858778%7D
The Wikiwealth portfolio consists of the following:
Pepsi Stock(www.pepsi.com)
March 55 Call for Electronic Arts (www.ea.com)
Sharebuilder Money Market (www.sharebuilder.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Email at keanemd@gmail.com.
Take care and happy investing!
The most recent news on sub prime lenders should make an alarm go off! This is a fantastic opportunity to pick up some decent real estate or stocks of real estate companies that have sold off. I am sure there are mortgage companies and land out there that are selling for less than they are worth. But don't buy just to buy. Do your research first. Remember Rule #1; Know your investment inside out before you put money towards it. I would love to hear of any that you might know.
Take a look at this article from Marketwatch. There is a REIT out there thinking along the same lines.
This is just a thought but I believe Detroit will be a fantastic long term (10 + years) place for real estate.
http://www.marketwatch.com/news/story/fortress-managed-reit-steps-subprime-mortgage/story.aspx?guid=%7BD88FBE61%2DEC50%2D43CA%2DA439%2D83BF9B858778%7D
The Wikiwealth portfolio consists of the following:
Pepsi Stock(www.pepsi.com)
March 55 Call for Electronic Arts (www.ea.com)
Sharebuilder Money Market (www.sharebuilder.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Email at keanemd@gmail.com.
Take care and happy investing!
Friday, March 9, 2007
Rule #1
Wikiwealth's Rule #1 - Know your investment inside and out before you give any money to it.
This goes for any investment. It could be school, stock, bonds, a new pair of shoes, whatever. If you don't know your investment, the chances are that you will lose value. Plain and simple.
Military philosopher Sun Tzu (The Art of War, www.amazon.com) is known for saying that if a person knows himself and the enemy, he will almost always win; if he only knows himself or the enemy he will lose one for every win; and if he knows neither, he will lose almost every time (currently see the March 55 call for Electronic Arts, www.ea.com ).
Also, Warren Buffet's #1 rule is never lose money. But he fails to mention that he uses Green Wealth's #1 rule to correctly implement his own #1 rule.
The same goes for investing. You need to know the company that you are investing in. In future blogs, I will start to discuss strategy.
Remember that I am still continuing my own investment education and in no way recommend that any investments in the Green Wealth portfolio are good for everyone.
The Green Wealth Portfolio currently consists of:
Pepsi (www.pepsi.com)
March 55 Call for Electronic Arts (www.ea.com)
Sharebuilder Money Market (www.sharebuilder.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Email at keanemd@gmail.com.
This goes for any investment. It could be school, stock, bonds, a new pair of shoes, whatever. If you don't know your investment, the chances are that you will lose value. Plain and simple.
Military philosopher Sun Tzu (The Art of War, www.amazon.com) is known for saying that if a person knows himself and the enemy, he will almost always win; if he only knows himself or the enemy he will lose one for every win; and if he knows neither, he will lose almost every time (currently see the March 55 call for Electronic Arts, www.ea.com ).
Also, Warren Buffet's #1 rule is never lose money. But he fails to mention that he uses Green Wealth's #1 rule to correctly implement his own #1 rule.
The same goes for investing. You need to know the company that you are investing in. In future blogs, I will start to discuss strategy.
Remember that I am still continuing my own investment education and in no way recommend that any investments in the Green Wealth portfolio are good for everyone.
The Green Wealth Portfolio currently consists of:
Pepsi (www.pepsi.com)
March 55 Call for Electronic Arts (www.ea.com)
Sharebuilder Money Market (www.sharebuilder.com)
Have any ideas, questions, comments, web sites or different blogs to look at? Email at keanemd@gmail.com.
Wednesday, March 7, 2007
Introduction
Hello everyone
I am writing this blog to help expand the use of credible knowledge of investing in this world. This blog will be used to broadcast different investment ideas and provide reasons why, and when they are used. This blog will also be used to suggest other media outlets (to include tv, radio, print, blogs) that may be helpful.
I have over fifteen years investing experience with the stock market. I've read probably about 50 investing books covering the most basic and conservative to the complicated aggressive strategies. As a disclaimer, I will always mention my personal experience with a particular investment topic I am covering. I feel trading/investing ideas are only truly seen and felt if you experience them yourself.
Make sure and let your feelings on subjects known. I do demand that all ideas/opinions must be expressed in a respectful manner.
Please forward your email address to keanemd@gmail.com so that you can be notified of any new blogs I put out. As always, if you feel that you no longer want to receive posts, just reply to the email with delist as the subject.
I wish all investors good luck and may we all find Green Wealth!
I am writing this blog to help expand the use of credible knowledge of investing in this world. This blog will be used to broadcast different investment ideas and provide reasons why, and when they are used. This blog will also be used to suggest other media outlets (to include tv, radio, print, blogs) that may be helpful.
I have over fifteen years investing experience with the stock market. I've read probably about 50 investing books covering the most basic and conservative to the complicated aggressive strategies. As a disclaimer, I will always mention my personal experience with a particular investment topic I am covering. I feel trading/investing ideas are only truly seen and felt if you experience them yourself.
Make sure and let your feelings on subjects known. I do demand that all ideas/opinions must be expressed in a respectful manner.
Please forward your email address to keanemd@gmail.com so that you can be notified of any new blogs I put out. As always, if you feel that you no longer want to receive posts, just reply to the email with delist as the subject.
I wish all investors good luck and may we all find Green Wealth!
Subscribe to:
Posts (Atom)
