SGOL is working. Little else is.
Oil continues to crash. The world is awash in it. If the sanctions on Iran are lifted and it pumps (which it will), oil will fall even further.
You’d think that lower prices would be great for most companies. It lowers their costs. And, for retailers, customers can get to them cheaper.
But so far, most earnings reports haven’t shown that. Which means that, for now, we have weak stock prices.
My dear friend Pete Rawlings, who’s been traveling recently, emailed me:
Why, oh, why, did I ever leave WY/CO? Where there was no TV and no high-speed internet.
I’ve been home a day and I wish I was back there watching and listening to the birds on the massive Prairies, Lakes, Rivers, Rocky Mountains and two days of great live folk music — instead of the watching & listening to the talking heads on CNBC.
Naturally I asked him for proof. He delivered.
Sinks Canyon State Park, Wyoming.
Schwabacker’s Landing, Grand Teton, Wyoming
Double rainbow. Rocky Mountain Folk Festival, Lyons, Colorado.
Gore Range, Rocky Mountains.
Ayres Natural Bridge, Douglas, Wyoming.
Oxbow Bend sunset, Grand Teton, Wyoming
Skip the tape. Skip the talking heads. Join me out west. I’m in Bend, Oregon visiting with granddaughter, Eleanor, aged 21 months.
Harry Newton, who drove down I5 on his way from Portland, Oregon (where the plane landed) to Bend, Oregon. My cursory impressions: This place is booming. The farms are awash in crops. Water doesn’t seem to be a problem. Real estate is exploding — strip malls, a huge discount “premium” outlet, normal chain box stores and residential apartment complexes everywhere. If I lived out here, I’d be building apartments near hospitals and renting them for $900 to $1000 a month to hospital workers. This part of the world is gorgeous. Californians are flocking here in droves. There’s no sales tax in Oregon. I repeat no sales tax. Think how much you save if you a buy a car in Oregon versus buying one across the border in California, where they charge (I believe) around 10%.
Arch Coal up 50% today…I must track down that fellow who told me to dump coal.
Rest of US “rediscover” Bend, OR every 10 years or so. It went through massive boom but also took a huge fall faster than you can sneeze. It is gorgeous. Try Sister, OR for more “local” feel.
I guess I’m an Oregon ‘old timer’ having lived in Sisters for 30 years now! Like Pete, I have stayed un-invested by climbing every Cascade volcanic peak in Oregon, exploring hundreds of caves across the state, photographing dozens and dozens of lakes and waterfalls and preferring to spend my time among the hidden gems of Oregon. Our beautiful state is growing rapidly, but the remote areas of the state remain quiet. Oh…I had the good fortune of meeting Harry today at the Sparrow Bakery in Bend. I liked him from the minute I met him. I hope he enjoys his visit here, and thanks Harry, you just might have provided me the name of my book!
Wyoming is a must see…I emailed my broker this morning to get his opinion on what to do in this market along with his thoughts on investing in UA. Here is his response (what do you think):
We have been getting more defensive in the portfolio. Added some higher dividend and lower beta names like MRK, T and XOM as well as raise a little cash. Liquidity is not great in the summer so I think that is adding to this. China concerns weighing on commodities and anything industrial related.
Fed is a non issue in my mind but I am getting concerned they should have raised rates last year so they have some ammunition if economy stalls. Now they have nothing.
I need to dig a little deeper into UA – product wise it’s great need to study valuation.