Wednesday, January 22, 2025
If you only read mainstream news, you probably think that crude oil consumption is falling and that fossil fuels will soon be replaced as an energy source by renewable sources and natural gas. That assumption is far from reality. Let’s start with global crude oil consumption. A decade ago, the planet consumed 83.65 million barrels […]
Energy midstream stocks appeal to investors with attractive yields and steady dividend growth. These days, with the focus on providing energy for data centers and AI, midstream companies with natural gas assets get the attention. Plains All American Pipeline LP (PAA) provides midstream services focused on crude oil, meaning it’s not on the radars of […]
This week, we are doing a covered call analysis on Mara (MARA). The stock has been an interesting covered call candidate because it has mostly remained range-bound despite the strength of cryptocurrencies in general. Volatility is also quite high in the stock, due primarily to how volatile the crypto market can be. We are looking […]
When I did my ex-pat tour in Uruguay, many of the foreigners living in Montevideo were British. I found it interesting that the British gave a “happy Christmas” wish instead of the “merry Christmas” I grew up with. Now, a decade after returning to the States, I still have “happy Christmas” in my head. So, […]
This can be a frustrating time of year for investors in the types of stocks I follow and recommend. With little to no news about smaller companies, share price movement can be very random, and a random down will make investors ask: “why?” The real news is scarce for stocks that aren’t in the news […]
FOMO—the fear of missing out—might be the most powerful force in the markets. Price action is normally driven by fear and greed. Fear, of course, drives bear markets. Eventually, in a bear market, greed replaces fear and drives prices relentlessly higher. And sometimes, greed gives way to FOMO. At these times, we tend to see […]
As I work with a minus-14-degree wind chill outside, my thoughts often turn to natural gas. Four weeks ago, natural gas traded for $2.00. In mid-December, it’s at $3.37, up 68% over the last four months. While trading natural gas futures is not a good idea for anyone but professional traders, investing in upstream energy […]
This week, we are doing a covered call analysis on Netflix (NFLX). The stock has been an interesting covered call candidate because of its relatively consistent upward trend for much of the past year. Volatility hasn’t been all that high in the stock, likely due to the consistency of the trend. We are looking at […]
Until fund sponsors developed ETFs that pay big dividends, I viewed cryptocurrencies as products without any practical use. But now, with the advent of covered call ETFs that use Bitcoin as the underlying asset, I have become a Bitcoin fan. A recent Wall Street Journal article discussed why the limited supply is fueling the Bitcoin […]
FOMO—the Fear of Missing Out—has permeated human behavior long before the term entered popular lexicon. It taps into a universal desire: to seize opportunities, avoid regret, and partake in collective excitement. History offers no shortage of examples of its pull, even among the most disciplined and brilliant minds. Isaac Newton, one of history’s greatest scientists, […]
