Get ready for the CNBC Million Dollar Portfolio Challenge

  

It's the biggest, richest Million Dollar Portfolio Challenge ever!

This is your chance to win a cool $1,000,000 a Maserati GranTurismo Convertible Sport and 10 Exotic One & Only and Atlantis Resort vacations. All you need to do is sign-in/register with a CNBC.com account below; then on September 19th you can play with up to 5 different portfolios. Each with $1,000,000 CNBC Bucks - $100,000 for trading currencies and $900,000 for trading stocks and ETFs on the AMEX, ASX, LSE, NASDAQ and NYSE in real-time!

Go to the CNBC website and Register today.  In past contests I've placed in the top 15% to 25% and one day was #3.

The Shifting Sands of the Stock Market

In years, past investors could rely on charts, historical timing, and investment advice to profit from the stock markets and their investments.  Today's markets, global in reach, are influenced by events far from Wall Street.  Many of which are new in nature...disasters, wars, collapse of foreign banks, bailouts, and computerised trading.

Fortunately, investors can still make money the old fashion way...they earn it...by trading on the down side as well as up.  The "Virtual Portfolio" has generated a higher rate of return (ROI) shorting the markets with appropriate ETF's than being Bullish with ETF's and stocks.

With just a few weeks until the 1 year mark, the "Virtual Portfolio" has a current ROI of 47.8%. And that was from being conservative with 15% to 50% cash reserves.  I look forward to this years CNBC "Portfolio Challenge" contest.

GOLD...Did you bail out in time?

Well Gold stocks and ETF's...it was a nice ride!  Made good gains for the "Virtual Portfolio", got greedy and stayed in one extra day!  Bad idea...of course, that was partly due to relying on charts, and future data that was in error!  It may fall off another 5%, but will rise again, mostly because the US Dollar and Euro are worthless!  Save your cash!

All About The Futures Market

One aspect of investing in markets that people do not seem to know very much about is commodity futures trading.  Most of the trading that people are familiar involves an immediate transfer of whatever it is that was bought and sold.  However, futures trading are not like that.  When you trade futures, you are basically gambling about the value that something will have at a certain point in the future.

In this market, you buy and sell a predetermined quantity and quality of assets.  A price for those assets is determined and the official sale date is set.  The official transfer of the asset occurs on the specified date and the financial details are handled based upon the current value of the assets.  If the value is more than anticipated, you make money.  If the value is less than anticipated, you owe money. One way that the futures market is much different than the traditional stock market is the amount you have to pay when you purchase the contract.  When you invest in the stock market, you have to invest the entire sum of money. Typically when you buy a futures contract, you only have to provide 5 to 10 percent of the actual value of the contract.  This gives you many more options since you only have to have 10% of the cost.

The most common type of commodities that are sold in the futures market is related to agriculture.  This is because agriculture was the beginning of this type of trading.  These can be livestock, wheat, vegetables and fruit.  However, you can also buy and sell stock indexes, metals, oil, bonds, interest rates and many other things as well. Agriculture is a big area for the futures market because it allows farmers to sell their crops while it is still being grown.  They agree to sell their harvested crop for a fixed price.  It allows the farmer to know that his crops are sold instead of having to wait until the harvest has been completed.

Trading in this market gives you a very unique opportunity that you cannot find in very many other places.  In most types of trading, it takes several years before you actually see a profit off of your investment.  However, because your initial investment is only 10%, you have the possibility of generating substantial income with your first contract.  Of course, that will only happen if you do your homework and make the right investment.  If you do not do your homework or if you are unlucky, you can also lose a great deal of money.  As with any type of investing, it is important that you do not invest any money that you need to live on.

The people who keep track of this market are called hedgers and speculators.  The hedgers are the ones who buy the assets "hedging their bets" and hope to make money on the trade.  The speculators are the ones who follow the market and predict the future price of the commodity in question.

------------------------

Stewart Wrighter recently researched futures trading for an article on the stock market. For more information about futures trading go to
http://www.futurestrading411.com .


Source: http://www.submityourarticle.com

Permalink: http://www.submityourarticle.com/a.php?a=206581

Tweet Too Much to Blog!

I've been Tweeting to much on Twitter to Blog.  Seems like anything I would Blog about has been said on Twitter...my bad!  Also, I have been unmotivated, falling into a pit of personal despair, that only alcohol and prescription drugs can cure!  (not really, but it sounds dramatic) 

As this is posted on am working diligently of related new Posts for my Blogs...stay tuned !

Economic Musings

It is amusing to watch one of President Obama's speeches and the stock market at the same time on CNBC...one can watch the market fall, as he speaks.  The same applies to Fed Chairman Bernanke or Sec Geithner.  Obviously the Markets feel these folks are "bad news".

GOLD...it is still the number one commodity to hold.  Economic chaos in Europe and the Middle East make it a "safe haven" in lieu of the declining US dollar.  There is still, as of today, no verifiable proof to the rumour that over the counter trading of gold and silver will be banned on July 15th under the Dodd-Frank Wall Street Reform Bill.

Debt Limit and riots in the USA are a possibility.  Austerity in the USA is not that unrealistic and probably a good idea to reign in the "Socialist Agenda" of the current Administration.  After decades, welfare and handout loving Liberals can see the end to their "fleecing of America" and they don't like it.  Instead they prefer to Tax, Tax, Tax the job creators  of corporations and wealthy individuals to continue the funding of all their socialist programs!  No homeless person on the dole ever created one job.  Liberals, this TAX THE RICH SCHEME is not going to happen!

The Stock Market...Gloom and Doom coming?

The Great US Economic Recovery fades daily.  Stocks are down, housing, employment...debt increases.  The "Global Economy" is a serious factor in US Markets and daily life.  The US can not control the various factions that make up our economy, as they did 50 years ago.  The the US drove the world economy...now we are a mere player.

With that in mind, Global Forces need to factor into trading....world events such as war, famine, oil consumption, population growth drive market forces and can't be ignored.  (I have always thought this...global tensions more a factor than the
Federal Reserve interest rate hikes, for example).  On this basis, "The Virtual Portfolio" has continued to make daily gains and continued the long term goal of a 25% ROI.

Currently, 100% ETF trades, shorting the DOW & S&P, and gold IAU and GLD.  As of today, the portfolio is trading much higher compared to the DOW.

Global forces may also spell Gloom & Doom in the coming months...many forecast a "Market Correction"...analysts vary, but 15% to 25% is not unrealistic.  alas Capitalism and the Market allows on to make money on a rise or a fall...choose wisely.

Obamanomics

"Obamanomics"...I thought I coined this term, but probably not.  Our President seems to be clueless in regards to basic Economics.  The Administration continues to announce bogus (my opinion) data on oil production, job creation, economic recovery, etc.  Not only do many Americans doubt him, many foreign nations also doubt the road America is on, with regards to the World Economy.

Pundits like the  700 Club's Pat Robertson and Conservative Rush Limbaugh, have called the decline of the US Dollar and rise of Gold for months...yet are ridiculed, both in the press and by the talking heads on TV News.

We can barely survive 2 more years of Obamanomics, and certainly can not survive 4 more...until 2016.  His policies are destroying the free enterprise and capitalist system of America.  It must be stopped at the polls in 2012.

Obama Administration High Gas Price Solution!

First Obama destroys the market by killing Osama bin Laden...Markets tumble for a week, $Billions are lost...then his Administration releases  bogus Oil & Gasoline supply data, that causes Oil and Gasoline prices to dive 4%.  Obama will do anything to raise his approval ratings and his re-election prospects.

Obama obviously hates Wall Street and Capitalism.  His loves his socialistic dogma and handouts to his minions, "The People".  There is doubt as to the truth of such supply claims, in light of Middle East tensions, flooding, earthquakes, OPEC output, drilling bans, etc.  Such Market manipulation would get a Wall Street tycoon prison time, but manipulation by POTUS is evidently wonderful.  Obama must be defeated in 2012.  The United States can not survive him for another four years!

Sell Stocks...100% ETFs

OK, on or about April 24th, I sold out all stocks in the "Virtual Portfolio" and moved to a 100% ETF portfolio.  In the last five days of April it gained over $35 Million.  CNBC had a ETF Portfolio Advisement page which I used for some ideas...alas 7/10 lost money for the week.  Those have all been dumped and replaced with ETFs that gained at least .75% in the last 5 days.  One of my main overall goals for the "Virtual Portfolio" is to maintain a 25% ROI for the year.  Easily done so far in 2011.

All That glitters is not gold...But Also Silver!

Since creating the "Virtual Portfolio" with one billion dollars in assets in September of 2010, it has maintained a 25% return of about $289 Million.  

Current Portfolio Allocation

16.02%Cash

33.06%Stocks

50.93%ETFs

 

Most stocks and ETFs are in metals...with a high percentage in silver and gold.  Secondary stocks and ETFs are in Oil and oil service companies. We remain "Bullish" in these sectors, and expect our ROI the last week of April 2011 to exceed $300 Million.

Earthquake Financial Apocalypse?

Friday's Japanese earthquakes, tsunami, and nuclear meltdown is obviously a financial apocalypse not only for Japan, but also the world.  $100 Billion+ in damages alone.  Then there is the human toll...not only are there  huge losses of life, but there is also the huge loss of "consumers" in Japan.  The economic impact will be here for years.  While stock markets around the world are down today, they seem to have taken the disaster fairly well.  Middle East violence appears to have a larger impact.

Jump Out of a Perfectly Good Airplane?

Many, if not most investors invest in strong companies that consistently show good management, make great products, and show a strong return on investment.  Why, on a day like today, would investors dump those stocks?  The entire world decides that everything is "scary" and stocks, commodities, gold, & oil are bad-bad.  It's seems as Mr Spock would put it, ILLOGICAL!

Liberal Media Destroys the World

Today, the BBC maliciously spread the rumour that Qadaffi was leaving...the said rumour killed the Stock Markets in their tracks...Oil, Gold, and Stocks have all fallen, even though said rumour was 100% false.  In addition the BBC Web Site had no links to such a rumour!

Folks, this is irresponsible, Liberal journalism at it's worst, in their lame attempts to be FIRST with the story!  Much the same as the media on all major networks reported Congresswoman Gifford dead in the Tucson shooting!

Gold and Silver Miscalculation!

OK, after pondering cash position, of 1/3 of Portfolio value as Cash...I increased stakes in Russian and North Sea oil based companies...however did not decrease holdings in Silver and Gold ETF's...bad idea!  Virtual Portfolio is down $500,000 today....Gold and Silver holdings down $5 M...tomorrow is another day!

Go to Cash!

Dumping shares of stocks by the hundreds of thousands...going to cash, Gold, & Silver!  Idiot, market manipulators will be taking profits on Wednesday 3-2-11...screw Qadaffi & Bernanke!

Thank God for Commodities!

Stocks falling, but commodities like Gold, silver, and Oil are surging to all time highs.  Many are predicting (me) $175 /barrel Oil and $1800 Gold.  When this all smacks the average person up the side of his head, it will already be too late!

SEO Marketing on Twitter is Bunk!

WOW, only four Tweeters clicked on my "Win $10,000 Instantly" bait link.  This explains why I have never made one cent on Affiliate advertising in the 6 years my blogs have been on line!


Does this means no one clicks on any links on any site?  My affiliates were always national companies that I use myself, like "Go Daddy"  If no one clicks, what is the point?  It's almost like selling refrigerators to Eskimos!

WIN $100,000 Instantly (Are You Insane?) No!

Let's see how many gullible Tweeters come and look at this "BAIT"!  Really so many Tweeters make all kinds of offers (LIES) to get followers and have their links "clicked"...In 30 years of Marketing, I've never done that.  Never lied or exagerated just to get a sale.  Instead, I've always associated myself with the best products of their kind, told the truth and offered excellent customer service.  This may explain why I  never gotten rich.

So if you clicked on my Tweet and thought that was going to get you $100,000...your both insane and wrong!

World Chaos....Profits Can Soar!

Capitalism at it's finest...making profits on chaos and human misery!  Middle East violence and upheaval raise Oil, Ag Stocks, Gold, and Metals to all time highs! 

When the world collapses in 2012, some will be making a profit, right up to the end.  You can die poor, or you can die rich...but does it really matter in the end?

The End of the Middle Class

Today on CNBC, they have announced (in so many words) the end of the middle class!  Evidently, since 1978 the average per-capita income of $33,000/yr has remained flat into 2011...in statistics double speak, that is actually a huge degrease!  Meanwhile, the upper 1% of income earners has seen a 30% increase in the same time frame! Huh?

Are we all "Wage Slaves" getting the crumbs from the table of the wealthy?  Why would reasonable men put up with this crap?  Why aren't we rioting like in the Middle East?  Are we sheeple?


As I pointed out in a recent Tweet..."Aspire to be rich, not poor!"

Do we need a "Global Minimum Wage"?

Middle East unemployment ranges from 30% to 50%.   In the USA, new figures claim 9%...with real unemployment about 17%.  In Europe and Asia figures reflect the same poor economic numbers.

In Egypt, people live on $2 US per day...less in some African countries.  Jobs flee the US to foreign markets due to lower labor costs (Thanks to overpriced Labor Unions).

What would the repercussion be of a Global Minimum Wage?  In my state of Oregon, the minimum wage is $8.50/hr, one of the highest in the United States. If the GMW was say $3/hr, many jobs would stop fleeing industrialized countries.  The standard of living would rise in undeveloped countries, perhaps stemming illegal immigration.  

In the Global Economy, it sounds like a win-win situation.  Why hasn't such an idea been proposed?  Fear of "The New World Order"?  Ridiculous!

In 2011, with a Global Economy, I propose a Global Minimum Wage is a necessity, both for economic growth and world peace!

"State of the Dis-Union"

 Just in time for President Obama's speech on jobs and the economy, the Stock Market takes a nice nose dive,  jobs and hiring are in decline, commodities and other indicators are down to three month lows...an amazing coincidence?  The only area of the Global Economy that seems to shine is Asia.  One needs to ask, what are they doing different than Europe and the USA?

Bull Market or Bullshit?

Where is the surge in the Stock Market, predicted by some after the November election and Republican majority in Congress?  Where is the bull market & economic recovery touted by Economists the last six months?

Housing is still in the tank, with another significant downturn looming.  Jobs are week or non-existent.  The global industrial countries credit market is in debt to it's eyebrows.  Gas prices are rising, but oil stocks are falling.  I don't see it, my "Virtual Fund" doesn't see it, no one sees it because it isn't happening!  I guess it's all just bullshit!