Stocks Slide With Portugal Bonds as Treasuries, Gold Gain

European stocks fell and Portuguese bonds dropped as concern deepened over missed debt payments by a company linked to the nation’s second-largest bank. Standard & Poor’s 500 Index futures signaled a selloff earlier this week will resume, while the yen, Treasuries and gold gained.

The Stoxx Europe 600 Index lost 1.3 percent at 8:35 a.m. in New York, led by a gauge of banks dropping to this year’s low. Financial bond risk increased in Europe for a fifth day. Standard & Poor’s 500 Index futures fell 0.9 percent. Portugal’s 10-year bond yield rose 11 basis points to 3.88 percent while Treasuries gained and the yen advanced against all but one of its 16 major peers. Indonesian stocks climbed to a one-year high as polls showed Jakarta’s Governor Joko Widodo won the presidency. West Texas Intermediate oil slid 0.3 percent to $101.62 a barrel while gold climbed 1.1 percent.

Bonds of Europe’s most-indebted nations declined as speculation resurfaced that the euro region remains vulnerable to shocks as it emerges from the sovereign debt crisis. The sell-off comes after minutes of the Federal Reserve latest meeting showed yesterday some policy makers were concerned investors may be growing too complacent. The value of global equities climbed to a record $66 trillion last week, data compiled by Bloomberg show.

Photographer: Dimas Ardian/Bloomberg
One-month rupiah forwards added 0.2 percent as unofficial counts showed Jakarta… Read More
“The concern of an event like this is always determining whether it’s occurring in isolation or whether it’s the first domino,” said Lawrence Creatura, a fund manager at Federated investors Inc. in Rochester, New York. His firm manages about $363.8 billion. “People will shoot first and ask questions later when news like this hits. It’s a classic flight to safety across the equity, commodities and bond markets. Portugal has been perceived as a weaker link so it’s not a particular surprise they’re encountering this kind of trouble now.”

Fewer Americans than forecast filed applications for unemployment benefits last week, a sign the labor market is strengthening, a government report showed today.

Peripheral Bonds

Portuguese bonds fell for a fourth day. The yield on 10-year Italian notes rose six basis points to 2.94 percent and Spain’s rate jumped six basis points to 2.82 percent. The Markit iTraxx Europe Senior Financial Index of credit-default swaps on 25 European banks and insurers rose two basis points to 71 basis points, the highest since June 4.

While Portugal’s central bank said Banco Espirito Santo SA, the nation’s second-largest lender, is protected after its parent missed debt payments, Moody’s Investors Service downgraded a company in the group citing a lack of transparency and links to other companies.

Banco Espirito Santo tumbled 17 percent before the Portuguese securities regulator said it stopped trading in the shares pending an announcement. Espirito Santo Financial Group SA, which owns 25 percent of the lender, fell 8.9 percent before the company suspended trading earlier in stocks and bonds, saying it’s “currently assessing the financial impact of its exposure” to Espirito Santo International, which has missed payments on short-term paper.

Fugro Tumbles

More than nine shares declined for every one that advanced in the Stoxx 600, with trading volumes 72 percent higher than the 30-day average, according to data compiled by Bloomberg. The gauge of banks tumbled 2.7 percent to the lowest since Dec. 18.

Banco Popular Espanol SA (POP) dropped 4.8 percent. The Spanish lender said it postponed a planned issue of the riskiest bank debt because of “heightened volatility” in credit markets.

Fugro NV (FUR) sank 20 percent, the most since November 2012, after the Dutch deepwater-oilfield surveyor forecast a drop in profit margin and writing off of as much as 350 million euros ($477 million). Skanska AB lost 2.5 percent after the Nordic region’s biggest construction company by global revenue said it will scale down operations in Latin America after booking 500 million kronor ($73.7 million) in project writedowns and restructuring costs.

Jobless Claims

The S&P 500 index (SPX) rebounded 0.5 percent yesterday following two days of losses.

Jobless claims declined by 11,000 to 304,000 in the week ended July 5, the fewest in more than a month, a Labor Department report showed today in Washington. The median forecast of 45 economists surveyed by Bloomberg called for 315,000.

Federal Reserve Bank of St. Louis President James Bullard said yesterday that a surprisingly fast decline in unemployment will fuel inflation and back the case for higher interest rates.

The Jakarta Composite Index added 1.4 percent to 5,095.20, heading for its highest close since May 2013. The rupiah gained 0.7 percent to 11,555 per dollar, according to prices from local banks, after touching the strongest level since May 22.

Both Widodo, known as Jokowi, and his opponent Prabowo Subianto claimed victory in yesterday’s presidential vote. Jokowi had about a five percentage point lead in the poll, according to unofficial counts from two survey companies that declared him the winner. Official results aren’t due for about two weeks. Bank Indonesia will probably hold its reference rate at 7.5 percent today, according to the median of 21 estimates from economists surveyed by Bloomberg.

The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong advanced 0.3 percent, after losing 1.6 percent yesterday, its biggest decline in two weeks. The Shanghai Composite Index slipped less than 0.1 percent, extending yesterday’s 1.2 percent retreat.

China Exports

China’s overseas shipments fell short of the 10.4 percent expansion that was the median of 47 economists’ estimates compiled by Bloomberg. Imports grew by 5.5 percent in June, less than the 6 percent increase projected. The trade surplus fell to $31.6 billion for June, from $35.92 in May. Data yesterday showed producer prices fell last month at the slowest pace in more than two years.

“Extreme cautiousness towards China’s economy has receded overall, with the government showing signs it will step in to support growth when needed,” said Mari Oshidari, a Hong Kong-based strategist at Okasan Securities Group Inc.

West Texas Intermediate oil dropped to $102.01 a barrel. Gasoline inventories increased by 579,000 barrels last week as a measure of consumption slid, the Energy Information Administration said yesterday. Brent declined 0.2 percent to $108.10 a barrel, the ninth consecutive decline in the longest streak since May 2010. The crude closed at a two-month low yesterday amid signs that Libya, the holder of Africa’s largest crude reserves, will boost exports, while Iraqi production remains unaffected by an insurgency.

Treasury Sale

Gold for immediate delivery jumped to $1,342.23 an ounce, the highest since March 19. Palladium rose 0.3 percent to $876.25 an ounce, the 14th consecutive advance and the longest streak since June 2000. Cotton fell 0.4 percent to the lowest price since July 2012 on ample supplies.

The yield on 10-year Treasuries dropped five basis points to 2.50 percent. The rate on 30-year notes declined five basis points to 3.33 percent as the U.S. prepares to sell $13 billion of the debt.

Greece’s five-year note yield increased 11 basis points 4.33 percent. The government sold 1.5 billion euros of three-year notes via banks, priced to yield 3.5 percent. That’s higher than forecasts earlier this week for a rate of about 3 percent from HSBC Holdings Plc and Royal Bank of Scotland Group Plc.

The yen strengthened 0.3 percent to 101.36 per dollar and gained 0.3 percent to 138.31 per euro.

Australia’s dollar retreated from the highest in a week, falling against all of its 16 major counterparts after the nation’s jobless rate climbed. The Aussie weakened 0.4 percent at 93.74 U.S. cents.

Harvard Searches For New Portfolio Managers


Prudent Style

Prudent Style

 

Harvard University, which helped redefine how college endowments manage money through the use of non-traditional asset classes, has lagged behind the rest of the Ivy League since the credit crisis as private equity, real estate and emerging markets faltered. Boston-based Harvard Management oversees the Cambridge, Massachusetts, school’s endowment, which is the world’s largest.

The returns compare poorly to those of Jack A. Bass Managed Accounts.Harvard’s endowment posted annual average gains of 1.7 percent in the five years ended June 30, 2013, according to data compiled by Charles Skorina & Co. That compares with annual returns of 6.8 percent at Columbia University, 5.4 percent at University of Pennsylvania and 3.3 percent at Yale University and Bass at 31 % in 2013.

A basis point equals a hundredth of a percentage point.

Potential Successors

Harvard Management allocates 11 percent of its portfolio to emerging markets, higher than peers such as Yale. In 2012, when emerging-markets investments tumbled 17.4 percent, Mendillo wrote in the annual report that “emerging-markets investments are poised to benefit from the phenomenal rate of change in local, regional and global businesses worldwide and will be one of the key drivers of our portfolio’s future performance.”

Harvard, even with potential successors groomed by Mendillo, may look outside for a fresh perspective, said Charles Skorina, whose executive search firm specializes in university CIOs. He said proteges of Yale’s David Swensen who’ve gone on to run other university endowments would make good candidates. Other candidates mentioned  include  Bass at his own firm in Vancouver , Canada.

“I would be surprised if they hire from the inside because the performance has been poor,” said Skorina, who’s based in San Francisco.

The Wall Street Stupidity Index : Test Your Portfolio IQ

from Fortune columnist Stanley Bing

Elements of Valuation in Portfolio Selection by Do It Your Self Investors

I’m Bored                                         12 %

I’m Excited                                      12 %

Greedy , Greedy                              18%

My Favorite Blog said BUY           7 %

Negative Vibes Dude                     5%

CNBC Feature                                7%

Missed the Last One                     12%

Jim Cramer Shout Out               12%

Jack Bass is doing it                    10%

On Twitter                                   10%

Do you REALLY want to do better ? Performance based management is the correct answer.

Jack A. Bass B.A., LL.B  is one of Canada’s foremost economists and stock market writers. He forecast the dramatic rise in the price of gold and the fall in natural gas prices.

Now he is forecasting an astounding rise in the stock market even as he warns of the fallout from Obama Economics. “Obama Economics threatens all markets as the influence of runaway printing presses will turn on its creators – The White House and Wall Street – and then on the folks on Main Street. We can only rely on ourselves to prepare for the turns in economic cycles”.

Portfolio  Management : Engagement Process for Jack A. Bass Managed Accounts Portfolio  Management :

The Engagement Agreement authorizes us to officially act on your  behalf and also provides for protection of confidentiality in regards to the dissemination and distribution of your sensitive financial information.

Generally you will name Jack A. Bass as a person allowed to trade your portfolio – BUT without any authority to remove funds from your account.

Due Diligence. Once our company is engaged, we undertake the required due diligence to confirm and verify the necessary information required to execute your request.

FEES: 1 % annually plus  20 % performance based.

Contact : Email info@jackbassteam.com

Or Call Jack Direct at 604-858-3202  ( same time zone as Los Angeles )

Santa Claus Rally In Shipping Sector

Just about the night before Christmas and I have the right to brag about the results of our commitment to the recovery in the shipping sector.

We EARN our performance fee :

DryShips also has a strong exposure to the spot market, with 20 out of its 28 Panamax vessels, its two Supramax vessels, and one out of its 12 Capesize vessels operating on a spot basis, which should aid earnings going forward if the BDI continues to climb upward as international drybulk trade demand growth seems to indicate. The company has estimated that if spot rates rise by $5,000, it will add $65.8 mill. and $79.3 mill. to its EBITDA or free cash flow generation, respectively, and the numbers rise even higher to $131.6 mill. and $158.7 mill. respectively if spot rates rise by $10,000, and to $263.2 mill. and $317.3 mill. if spot rates rise by $20,000.

We have been following the activities of leading fund managers via numerous articles on Seeking Alpha, and on our website, and have observed a strong correlation between the activities of leading fund managers and the price performance of stocks in the succeeding quarters. Hence, we view the small accumulation of DryShips shares by leading fund managers in the latest 3Q/2013 as a positive, lending further credence to our thesis that DryShips shares are in buy territory based on the projected turnaround in the BDI index and the promising prospects for its majority owned subsidiary ORIG.

DRYSHIPS INC(DRYS:NASDAQ, US)

BuySell
3.93USDIncrease0.24(6.50%)Volume:
Above Average
As of market close 23 Dec 2013.
Open 3.72 P/E Ratio (TTM)
Last Bid/Size 3.92 / 30 EPS (TTM) -0.86
Last Ask/Size 3.93 / 45 Next Earnings
Previous Close 3.69 Beta 2.97
Volume 13,375,548 Last Dividend
Average Volume 9,362,839 Dividend Yield 0.00%
Day High 3.95 Ex-Dividend Date
Day Low 3.69 Shares Outstanding 403.8M
52 Week High 4.00 # of Floating Shares 347.0658M
52 Week Low 1.53 Short Interest as % of Float 4.17%
chart

SAFE BULKERS INC(SB:NYSE, US)

BuySell
10.32USDIncrease0.34(3.41%)Volume:
Average
As of market close 23 Dec 2013.
    • QUOTE DETAILS
Open 9.98 P/E Ratio (TTM) 9.2x
Last Bid/Size 9.50 / 5 EPS (TTM) 1.08
Last Ask/Size 11.00 / 3 Next Earnings 17 Feb 2014
Previous Close 9.98 Beta 1.69
Volume 806,616 Quarterly Dividend 0.0600
Average Volume 805,088 Dividend Yield 2.33%
Day High 10.57 Ex-Dividend Date 20 Nov 2013
Day Low 9.90 Shares Outstanding 83.4M
52 Week High 10.57 # of Floating Shares 41.96572M
52 Week Low 3.15 Short Interest as % of Float 1.39%

NORDIC AMERICAN TANKER LTD(NAT:NYSE, US)

BuySell
9.72USDIncrease0.66(7.28%)Volume:
Above Average
As of market close 23 Dec 2013.

QUOTE DETAILS

Open 9.24 P/E Ratio (TTM)
Last Bid/Size 9.70 / 7 EPS (TTM) -2.13
Last Ask/Size 9.71 / 19 Next Earnings 10 Feb 2014
Previous Close 9.06 Beta 1.25
Volume 3,038,216 Quarterly Dividend 0.1600
Average Volume 1,603,536 Dividend Yield 6.58%
Day High 9.83 Ex-Dividend Date 26 Nov 2013
Day Low 9.16 Shares Outstanding 74.2M
52 Week High 12.00 # of Floating Shares 71.04741M
52 Week Low 7.00 Short Interest as % of Float 13.24%

STAR BULK CARRIERS CORP(SBLK:NASDAQ, US)

BuySell
13.02USDIncrease0.68(5.51%)Volume:
Above Average
As of market close 23 Dec 2013.

QUOTE DETAILS

Open 13.04 P/E Ratio (TTM)
Last Bid/Size 12.62 / 6 EPS (TTM) -57.05
Last Ask/Size 13.10 / 3 Next Earnings
Previous Close 12.34 Beta 1.89
Volume 452,161 Last Dividend
Average Volume 282,985 Dividend Yield 0.00%
Day High 13.43 Ex-Dividend Date
Day Low 12.57 Shares Outstanding 29.1M
52 Week High 13.43 # of Floating Shares 28.41736M
52 Week Low 5.28 Short Interest as % of Float 0.59%
chart
Is your portfolio growing by 4 % a month?

Don’t let another year go by before you are gaining with Jack A. Bass Managed Accounts.

Email info@jackbassteam.com or call Jack direct at 604-858-3202 ( same time zone as Los Angeles) No cost or obligation .

JackAssociates uploaded a video
Thumbnail

http://www.youtube.com/channel/UCA_O-JpUCOGW47_BDUIGPfg

 

Business Development Consultant Chilliwack, BC – (604) 858-3202 ‎

Sold Frontline – staying with Shipping Sector

AMP

Sold Frontline ( FRO )

Friday Dec 6 at $3.50

Net profit 33% 

Rational: The recent move up in the price is not based on the fundamentals of the Company – rather the admission by the Company that it must reorganize to fend off looming defaults and bankruptcy. The shares rose this week and we were happy to part with our position and a very nice margin.

I was happy to take my profits – even our remaining position in Dryships is more secure than Frontline. I think it reasonable to say the better shipping stocks like Diana ( DSX) and Safe Bulkers ( SB) , Ship Finance (SFL) are going to prosper on our scenario of a better world economic outlook and rising Baltic Dry Index rates.

You can profit with Jack A. Bass Managed Funds – we earn our fees because we are performance based not fee based.

Portfolio  Management : Engagement Process for Jack A. Bass Managed Accounts

The Engagement Agreement authorizes us to officially act on your  behalf and also provides for protection of confidentiality in regards to the dissemination and distribution of your sensitive financial information.

Generally you will name Jack A. Bass as a person allowed to trade your portfolio – BUT without any authority to remove funds from your account.

Due Diligence. Once our company is engaged, we undertake the required due diligence to confirm and verify the necessary information required to execute your request.

Evaluation. After due diligence we evaluate your / your  company’s current value and estimate future value based on recent market and other comparable data.

Fees. Engagement Fees are  NOT based on the number of hours and direct costs required to complete due diligence, perform an evaluation, and prepare the necessary information to support your request that we act for you.Our initial review: this includes performing financial analysis, conduct competitive comparisons, in- depth financial reviews, and validating the necessary information to prepare the most compelling portfolio related to your needs. We earn our fees by performance : 1 % per year as administration 20 % of annual portfolio gains calculated twice a year There is no cost or obligation to contact us at info@jackbassteam.com ( or call Jack directly at 604-858-3202 – same time zone as Los Angeles) Main website http://www.jackbassteam.com

 

The Pareto Principle of Portfolio Selection

copyright Jack A. Bass and Jack A. Bass Managed Accounts

Background

The Pareto principle (also known as the 80–20 rule, the law of the vital few, and the principle of factor sparsity) states that, for many events, roughly 80% of the effects come from 20% of the causes.

It is a common rule of thumb in business; e.g., “80% of your sales come from 20% of your clients”. Mathematically, the 80-20 rule is roughly followed by a power law distribution (also known as a Pareto distribution) for a particular set of parameters, and many natural phenomena have been shown empirically to exhibit such a distribution.

Application to Portfolio Selection

The Pareto principle serves as a baseline for Jack A. Bass Managed Accounts analysis  for the purpose of optimizing portfolio returns.

Example : Three recent sales of the lowest yielding stocks in the portfolio allowed for the addition to the selections in the shipping sector . The addition to Safe Bulkers has increased our year to date increase to 21% .

In the Apprentice Millionaire Portfolio ( available from Amazon.com you can read of the sector and company analysis that preceeds selection.This will give you the baseline information for applying the amp2012 blog entries to your portfolio selections.

Portfolio Selection

If you wish to have Jack Bass make those selections simply write info@jackbassteam.com or call Jack direct at 604-858-3202 ( no cost or obligation).

Fess: 1% annually and a performance fee of 20 % of the annual gains.

What Is A Bond Investor To Do ? Guidelines

Bond returns are at record lows.

Bond investors must consider a switch of some funds into equities but conservative investors fear the stock market is a Jedi Knight turned to the Dark Side waiting to swoop down and destroy their portfolio. You must act to preserve your ” buying power” but what to do ?

Here is a guideline we suggest for building a portfolio that cuts down risk( risk cannot be eliminated ):

1) limit selections to common stock listed on major exchanges

2) no stock selling for less than $5.00

3) only select companies that are profitable

4) only purchase stocks that are paying a dividend

5) avoid attempts at market timing

The strategy outlined in this  guideline is simple but not easy to follow. For a more detailed explanation of selection criteria please refer to The Apprentice Millionaire Portfolio available from amazon.com

Portfolio  Management : Engagement Process for Jack A. Bass Managed Accounts

The Engagement Agreement authorizes us to officially act on your  behalf and also provides for protection of confidentiality in regards to the dissemination and distribution of your sensitive financial information.Generally you will name Jack A. Bass as a person allowed to trade your portfolio – BUT without any authority to remove funds from your account.

Due Diligence. Once our company is engaged, we undertake the required due diligence to confirm and verify the necessary information required to execute your request.

Evaluation. After due diligence we evaluate your / your  company’s current value and estimate future value based on recent market and other comparable data.

Fees. Engagement Fees are  NOT based on the number of hours and direct costs required to complete due diligence, perform an evaluation, and prepare the necessary information to support your request that we act for you.Our initial review: this includes performing financial analysis, conduct competitive comparisons, in- depth financial reviews, and validating the necessary information to prepare the most compelling portfolio related to your needs.

We earn our fees by performance :

1 % per year as administration

20 % of annual portfolio gains calculated twice a year

There is no cost or obligation to contact us at info@jackbassteam.com ( or call Jack directly at 604-858-3202 – same time zone as Los Angeles)

Main website http://www.jackbassteam.com

Portfolio Management : Engagement Process for Jack A. Bass Managed Accounts

The Engagement Agreement authorizes us to officially act on your  behalf and also provides for protection of confidentiality in regards to the dissemination and distribution of your sensitive financial information.Generally you will name Jack A. Bass as a person allowed to trade your portfolio – BUT without any authority to remove funds from your account.

Due Diligence. Once our company is engaged, we undertake the required due diligence to confirm and verify the necessary information required to execute your request.

Evaluation. After due diligence we evaluate your / your  company’s current value and estimate future value based on recent market and other comparable data.

Fees. Engagement Fees are  NOT based on the number of hours and direct costs required to complete due diligence, perform an evaluation, and prepare the necessary information to support your request that we act for you.Our initial review: this includes performing financial analysis, conduct competitive comparisons, in- depth financial reviews, and validating the necessary information to prepare the most compelling portfolio related to your needs.

We earn our fees by performance :

1 % per year as administration

20 % of annual portfolio gains calculated twice a year

There is no cost or obligation to contact us at info@jackbassteam.com ( or call Jack directly at 604-858-3202 – same time zone as Los Angeles)

Main website http://www.jackbassteam.com

DRYSHIPS and Jack A. Bass Managed Accounts

It is not at all pleasant to see a holding on the ” major down moves ” Monday a.m.The secondary offering of $ 200 million caused a 7 % drop in after hours trade Friday and that was the opening number Monday.

We sold nothing.

Our experience with Oil and Gas Juniors and Junior miners is that you raise money when you can – because you can’t raise money when you need it badly. Dryships can now carry on into 2015 -

1) a recovery in shipping rates has begun

2) a general economic recovery in the world and China in particular is underway

3) Management does not want to sell more Ocean Rig at a time that sector is surging.

4) the idiocy in Washington will pass until the next time .

I went to breakfast.

Back now the stock has recovered somewhat from the panic level of the opening.

DRYSHIPS INC(DRYS:NASDAQ, US)

BuySell
3.58USDDecrease0.20(-5.29%)Volume:
Above Average
As of 07 Oct 2013 at 10:39 AM EDT.

QUOTE DETAILS

Open 3.52 P/E Ratio (TTM)
Last Bid/Size 3.58 / 234 EPS (TTM) -0.83
Last Ask/Size 3.59 / 139 Next Earnings
Previous Close 3.78 Beta 3.31
Volume 7,821,288 Last Dividend
Average Volume 22,105,229 Dividend Yield 0.00%
Day High 3.66 Ex-Dividend Date
Day Low 3.47 Shares Outstanding 403.8M
52 Week High 4.00 # of Floating Shares 347.1371M
52 Week Low 1.46 Short Interest as % of Float 2.06%

Baltic Dry Index (BDI)    +31   2115 
Rates

BCI

(Cape index)

BPI

(Panamax index)

BSI

(Supramax index)
INDEX

4020

+77

1947

+33

1127

+14

SPOT 4 TCE AVG (USD)

38350

+551

15610

+260

11784

+141

YESTERDAY (USD)

37799

15350

11643

YEAR AGO (USD)

11172

5155 8271

Build Your Portfolio On A Solid Foundation : All You Need To Succeed – in 500 pages of Investing Strategy and Selections


Stock Market Magic: Building Your Apprentice Millionaire Portfolio 2012: All you need to succeed in today's stock market

Available at http://www.amazon.com

Stock Market Magic:

Building Your Apprentice

Millionaire Portfolio

 All you need to succeed in today’s stock market [Paperback]

Jack A. Bass (Author)

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