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/
------

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

WEDNESDAY READS

Trouble Ahead
http://www.cnbc.com/id/100810640

Market Turmoil Opportunity
http://finance.fortune.cnn.com/2013/06/12/market-turbulence-el-erian/?iid=HP_Highlight

Money At The Fed
http://finance.fortune.cnn.com/2013/06/12/federal-reserve-bank-deposits/?iid=HP_LN

Bubbles Not Jobs
http://www.testosteronepit.com/home/2013/6/10/proof-feds-qe-is-great-for-bubbles-for-jobs-not-so-much.html

Most Bang
http://investorplace.com/2013/06/podcast-how-to-get-the-most-bang-for-your-tuition-buck/

Economy On The Mend http://www.marketwatch.com/story/former-fed-president-talks-qe3-tapering-2013-06-11?dist=tbeforebell

Bourses Sink
http://news.investors.com/investing-international-leaders/061113-659594-asia-europe-bourses-tumble.htm?ref=HPLNews

EXIT STRATEGY AND SOME MUSINGS

Musings of a Cut Man

Just waiting

Lying here in my hotel room waiting to go down to breakfast with trainer and fighter. It's Saturday, 6-8-13. Got a fight later today at Home Depot Center in Compton.

There are 11 fights, all outside. We're scheduled to go in around 4 or 5. But they make you show up hours early. So there's a lot of waiting. Usually the night before go to a movie. Saw decent one last night, The Internship, a comedy. Good to have some laughs.

You want your fighter relaxed, rested and ready. The three Rs. And they ain't readin', 'ritin' and 'rithmetic.

Walking back to hotel saw one of those white big Ford F 150 jobs. Ford has made a decent comeback. It reminded me of you. Think you had one of those once. Maybe still do. 

Anyway, brought to mind a piece I wrote a while back while I was waiting. Here it is. 

Many of us aren't grateful enough.

We don't fully grasp the importance of gratitude. It's such an easy, simple take-it-for granted thing.

No, this isn't going to be another of those motivational pieces that makes you feel great for the next 30 seconds or until your IBS flares up again. This is much more serious.

Country songs, especially the slower ones, usually tell a story. Often a heart-ripping one.

A few years ago on the backroads of my more energetic youth I first learned about the magical power of gratitude. I'll try to make this brief and not too heavy or sad.

Me and my significant other, as they say, had tried and tried and tried.Things got bad, they got worse and I had no idea what to do. Then one day driving home from work in my big white Ford F-150 with the Montana mud flaps, moose antlers on the hood and the empty gun rack in the back, I heard it on the radio for the first time, a song about a guy and his significant other.

Like us they had tried and tried. He grit his teeth, tried not to complain. While she continued to spend money like it was so much falling rain. And one day without warning or cause she announced it was pack-up the suitcase time. 

He sounded more than sad as he walked her to the door and she said she wasn't coming back anymore.

He tossed her bags in the truck and headed for the bus station. After he dropped her off, he just sat there in silence until the bus slowly pulled out of sight. 

That's when it really hit him. It was finally final. She was gone. Every time I think about that song it makes me appreciate gratitude even more. Especially the chorus: "Thank God and Greyhound. You're gone."

For me it was Amtrac. And all I can say is, thank God and Joe Biden for government subsidies.

So here's an investing tip. Make sure your exit strategy's in place. But it's mobile. You can move it. If it goes off, be grateful you have some cash to get a better position. If you miss it, so what.

Opportunities are a lot like IBS. You never know when they're going to show up. But you always have to be ready. 

Ok old friend when you find work, drop me a line.

TUESDAY READS

Beware Stinking Thinking http://www.minyanville.com/trading-and-investing/stocks/articles/Rotation-from-Non-US-Stocks-to/6/10/2013/id/50249

Gold Falls http://www.bloomberg.com/news/2013-06-11/gold-trades-near-two-week-low-on-stimulus-outlook-assets-gain.html

Book's Sales Soar
http://www.zerohedge.com/news/2013-06-11/sales-george-orwells-1984-have-surged-6884-last-24-hours

Cultural Split http://www.reuters.com/article/2013/06/10/us-turkey-protests-cultures-insight-idUSBRE9590GS20130610

Off At Open http://money.cnn.com/2013/06/11/investing/stocks-markets/index.html?iid=HP_LN

Senior Income http://money.cnn.com/2013/06/10/retirement/retirement-income/index.html?iid=HP_Highlight

Labor Market Turmoil
http://online.wsj.com/article/SB10001424127887324904004578537251643591248.html?mod=ITP_pageone_2

Spying On World http://www.spiegel.de/international/world/prism-leak-inside-the-controversial-us-data-surveillance-program-a-904761.html

Positive At Last
http://blogs.marketwatch.com/thetell/2013/06/10/tips-yield-turns-positive-on-10-year-note-for-first-time-since-2012/

Six Ways Low Rates Hurt http://www.thefiscaltimes.com/Articles/2013/06/10/6-Ways-Low-Interest-Rates-Hurt-Retirees.

MONDAY READS

Asian Stocks up 
http://www.bloomberg.com/news/2013-06-10/asian-stocks-rise-on-u-s-jobs-data-japan-shares-rally.html

Tax Cut Possibility http://www.testosteronepit.com/home/2013/6/9/made-in-america-renaissance-begins.html

Trouble In Paradise
http://www.thefiscaltimes.com/Articles/2013/06/10/Obamas-Scandals-Help-the-Tea-Party-Hurt-His-Friends.aspx#page1

Better World?
http://www.reuters.com/article/2013/06/09/us-usa-security-identity-idUSBRE9580DW20130609

They Won't Say
http://www.marketwatch.com/story/10-things-economists-wont-tell-you-2013-06-08

Big Brother Rides Again
http://news.investors.com/ibd-editorials/060713-659266-nothing-modest-about-obamas-encroachments-on-privacy.htm?ref=HPLNews

Consider The Source Article
http://money.cnn.com/2013/06/07/technology/security/nsa-data-prism/index.html

When Bond Yields Rise
http://www.marketwatch.com/story/where-to-put-your-money-when-bond-yields-rise-2013-06-08?link=MW_home_latest_news

Market In Knots?
http://www.marctomarket.com/2013/06/currency-positioning-and-technical_8.html

THURSDAY READS

Keep Your Eye On Food Prices
http://www.financialsense.com/contributors/jr-nyquist/food-energy-prices-may-skyrocket

Are You Ready? http://www.financialsense.com/contributors/christopher-quigley/get-ready-to-be-cyprused-at-a-bank-near-you

Conquer Wrap Rage
http://www.moneytalksnews.com/2013/06/05/how-to-open-plastic-packaging-without-injuring-yourself/?utm_source=newsletter&utm_campaign=email-2013-06-05&utm_medium=email

It's Back
http://www.creditwritedowns.com/2013/05/us-declining-savings-and-deleveraging-leads-to-releveraging.html

Get Ready
http://www.reuters.com/article/2013/05/31/pimco-ecb-idUSL5N0EA3DA20130531

Mini Dictators Come In All Professions
http://www.pharmalive.com/how-docs-can-get-rid-of-sales-reps-in-a-few-easy-steps

UP DATE ON MENDELEZ

We've written about this company before, most recently just a few days ago and befor that back in March.  So we won't repeat ourselves. Here's another link.

http://www.marketwatch.com/story/3-value-stocks-the-smart-money-is-buying-now-2013-06-04?pagenumber=2
________

Interesting gold graph from Visualizing Economics about real price of gold.

http://visualizingeconomics.com/blog/2013/6/4/the-real-price-of-gold-since-1791?utm_source=Email+Subscribers+for+Blog&utm_campaign=44b3ac0208-RSS_EMAIL_CAMPAIGN&utm_medium=email&utm_term=0_98db807ad8-44b3ac0208-3309561
________

WEDNESDAY READS

Sorry Now
http://wallstreetsectorselector.com/2013/06/sellers-remorse-for-gold-stocks/#

Abe's Big Plan
http://www.marketwatch.com/story/japans-abe-unveils-major-new-policies-2013-06-05

June Swoon?
http://news.investors.com/investing-mutual-funds/060413-658757-mutual-funds-gained-again-in-may.htm?p=full

JP Morgan In The News Again
http://www.bloomberg.com/news/2013-06-05/jpmorgan-s-alabama-debacle-set-to-cost-bank-1-5-billion.html

Here It Comes Again
http://online.wsj.com/article/SB10001424127887324423904578525701936124838.html?mod=ITP_pageone_0

Fed Policy Hurts Retirees
http://www.foxbusiness.com/personal-finance/2013/06/03/low-rates-make-retirees-gnash-their-teeth/?cmpid=prn_investorplace

Safe Water?
http://www.medscape.com/viewarticle/772712

Good Jobs? What Good Jobs?
http://blogs.wsj.com/economics/2013/06/04/feds-raskin-bemoans-quality-of-new-jobs/

MORE ON MERCK

Lots of investors have been frightened by Obama Care and it's so-called negative implication on health care in general. Rather than saving money or lowering overall costs, as its proponents propose, we believe just the opposite.

It will prove a disaster of major proportions. Disasters draw attention.

With that theme in tow, as pointed out previously, pebbles tossed in water have ripples. Those ripples often take the form of necessity leading to adjustments or altered behavior. Big pharma will adjust, people want cures, wanting cures crosses all boundaries, cultural, racial, religious, age and gender.

Once upon a time Merck ran one of the finest research units. Despite some obvious potholes ahead, we believe they are headed in that direction again though it won't necessarily look or act exactly like the previous one.

http://online.wsj.com/article/SB10001424127887324063304578523560981960152.html?mod=WSJ_qtoverview_wsjlatest

http://online.barrons.com/article/SB50001424052748704509304578515391643495844.html?mod=BOL_hps_highlight_top

TUESDAY READS

Problems Everywhere
http://www.zerohedge.com/news/2013-06-03/18-signs-massive-economic-problems-are-erupting-everywhere

Interesting Read
http://cafehayek.com/2013/06/quotation-of-the-day-652.html

Losing Momentum
http://www.cnbc.com/id/100786488

Not Everyone Wants To Cut Austerity
http://www.bloomberg.com/news/2013-06-03/slovenia-shows-why-the-eu-shouldn-t-discard-austerity.html

Natural Gas Boom
http://money.cnn.com/2013/06/04/news/economy/natural-gas-exports/index.html

Fed-Inspired Move
http://www.marketwatch.com/story/us-stocks-mixed-ahead-of-manufacturing-data-2013-06-03?pagenumber=2

Weak Manufacturing Numbers
http://online.wsj.com/article/SB10001424127887324563004578523100247860088.html?mod=ITP_pageone_0

EU Fiddles
http://www.thefiscaltimes.com/Columns/2013/06/03/Post-Austerity-Europe-Gropes-for-a-Game-Plan.aspx#page1http://www.zerohedge.com/news/2013-06-03/18-signs-massive-economic-problems-are-erupting-everywhere