March 28, 2011

Investment in Education

I wanted to let you all know that a few days ago I spent $49 to get the "Safe Money Report" from Weiss Research.  The purchase also included: Money and Markets, MAM Weekly Addition, The Safe Money Gold Strategy, Weiss Portfolio Defender, The Great American Apocalypse of 2011-2012, SMR Welcome Package, Safe Money Video Library, and Weiss List: Strongest Banks and Thrifts in the U.S..

I must admit that I can get sucked into infomercials.  PBS pledge week has drawn me in several times; not that I regretted any of the things that I purchased from them.  Also, Carlton Sheets made great points for his "No Money Down" system at 12 a.m. in the early morning.  Although, over 10 years later, I have yet to buy a rental property.  I can not say that I didn't learn anything from the "No Money Down" plan, just that I didn't use the information to the best of its ability.

But I digress.....

The Weiss Research company asks that people who republish their work give attribution to the author(s) and include the following information:

"This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com."

If I think something is important for you to know, I will try to fill you in.

For example, Mike Larson sent a file titled "What to Buy (or Sell) First".  In it he recommended buying 200 shares of the ProShares Short Financials (SEF) at the market, buying 100 shares of the Short S&P 500 ProShares (SH) at the market, and avoiding long-term bonds; particularly Treasuries.  The first two recommendations are inverse ETFs.  They go up when the corresponding index declines.  He based this recommendation on a $100,000 portfolio, and said to adjust the number of shares you buy to best fit your situation. 


A year or so ago, I read in one of Money and Markets free articles that people should avoid long-term Treasuries.  This was probably around the time of the crash.  So, I moved my IRA funds into PRTXX-U.S. Treasury Money Fund; which invests in short-term Treasuries.  I have not made a lot with the money in it, but I also have not lost it either.  This is my safety money, and I don't want to lose it.


As always, do your own research.

Option pick for April

I decided to sell $12.50 puts for the month of April on CZZ.  The stock price is really close to the strike price, allowing me to make more money. 

I am thinking that the stock price will touch down on $12.50 in the next few days, where the red line crosses the lower blue line on the chart below.   The stock price will then bounce up staying within the blue channel.

There has been a lot of talk in the news about the price of food going up. Which I think will only drive the stock price up.

Chart 1: Cosan LTD (ticker symbol: CZZ)