Wednesday, June 12, 2013

DOUBLE-EDGED

The following is one of the contrarian articles we often look for, not that what it proposes won't happen. That's not the point.

Note in the article the contrarian point a our drug stocks falling off patent-experiation cliffs. We've been riding those drug stocks higher for some time. No hubris intended. 

Without risk there's no upside. Period. Pepsi knocking out a recent all-time high notwithstanding. That's not the question. The question is how long and why do I want to own it and when did I buy it. 

It's snack food company and there is political risk here, too. Know why you're buying and owning a company.  We own Pepsi. And we will either sell covered calls, buy puts or whatever, but we will continue to own some shares.
http://investorplace.com/2013/06/4-high-fliers-that-could-crash-land-soon/view-all/
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Be careful what you wish for is an old bromide.

In reality, it's a newly sharpened blade of a double-edged sword, especially when it comes to liquidity. 

http://www.futuresmag.com/2013/06/12/us-30-year-bonds-tapering-proves-a-double-edged-sw?eNL=51b89b621b4f3aee33000053&_LID=287557&t=financials&page=2

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