GDP Report Rallies Bonds but Ignores Inflation; Short and Hurting

The yield on the ten year US treasury bond is back under 5%. I went back to my maximum short (bet that rates would rise) when rates hit 5.05%. What do I do now? I thought of buying back my futures and cutting my losses - but that is what everyone else is doing. Also, I really wish I could sell more here, but to do that would violate my rules on size in any one bet. Instead, I bought out of the money call options. Bond volatility (and thus options) seems cheap relative .

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Trades IAC/Interactive Corp (IACI), DELL, Conoco Phillips (COP)

I continue to look at companies that are in the doldrums now that will come alive in November as the holiday buying and advertising season approaches. IAC/Interactive Corp is being ignored right now and they own Home Shopping Network and numerous internet properties. At a price earnings ratio of under 15 - this stock is on sale. Trades for Thursday July 27th. Bought IACI $24.00 for a friend's account*. Bought DELL $20.48Bought COP $68.56 *I do not management money but I do help a few friends manage their accounts where they have given me trading access.

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Buying now and waiting for the holiday shoppers: Hardware, Software and Internet Media (AMD, IACI, INTC)

Semi conductors, software and hardware manufacturers nearly always do poorly in the summer. That when I like to buy them. Today I did some shopping as these stocks continued to underperform the overall market. I say just wait until Winter:1. The market wakes up and remembers that online holiday shopping will kick in (good for hardware and media)2. Focus on Microsoft's new operating system will come back (pent up demand from computer buys waiting for the new operating system will spur computer demand - and even if it doesn't the market will still talk up the hardware.

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MANHATTAN DATE IDEA: Chess Lessons in Washington Square Park

Have an experience right out of the movie Searching for Bobby Fisher. Go to Washington Square Park during the day. In the southwest corner you will find a bunch of chess tables with men in various levels on kemptness. Play chess with one of the chess experts. Normally, the rules are like this: you give them $5 and play a game of chess. If you win they give you the $5 back if you draw you play again. The games are fast with chess clocks set to 2, 5 or 10 minutes.

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Homeland Security

In my never ending search for clever satire - I found this in Union Square.

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Neubie's Top Ten Investment Holdings

One of my readers in Western Pennsylvania asked what my top holdings are. Here is a list of the top holdings that make up the core of my portfolio. I left out the following types of holdings: - Positions in my highly speculative futures and currency trading accounts - Shares or securities of past employers - Short term instruments like t-bills and money market funds used to park cash

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Pace MacGill Gallery: Flickr Self Portrait Exhibit

You don't even have to go to the gallery to participate in this Flickr Exhibit at the Pace Macgill Gallery. My friend and Emily Davidow describes it on her blog.

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Master Limited Partnerships (MLPs) versus Integrated Oil Companies

One of the regular readers of this blog asked me about MLPs (Master Limited Partnerships). In many ways, MLPs are like REITS. They pay no income tax if they pass through all of their income to shareholders. However, since these trusts are technically partnerships they also pass through expenses and tax benefits. Many of these were issued in the 80's as a type of tax shelter. Long since then the tax benefits have been used up and now they are simply income vehicles. Most MLPs own the royalties associated with oil and gas wells.

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Back into Yahoo buy/write

I bought Yahoo (YHOO) at $31.40 and sold Jan 2008 35 strike calls for $4.70. I am doing this ahead of the earnings report tonight. I think that there is some upside limits to YHOO (hence I sold the calls) but I do think that below 27.5 there is value. Yahoo is a real business and is not going to be eliminated by Google (GOOG). I own the position described above.Disclaimer: Nothing in this blog is meant to be specific financial advice or a recommendation to buy or sell. I do not give investment...

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Ford Motor Company: Protect My Investment and Build Hybrids

Moody's cuts Ford's bond rating. The company prudently cuts dividend (stop giving out all that cash when you are in trouble), Ford Motor company is cutting back on production and trying to figure out what to do. Much as General Motors has been, I think Ford will be the focus of the bond destruction watch for the months to come. The global car business is not in trouble, other companies are doing well. Why are Ford and GM in so much trouble? Is it just the Unions and healthcare? Well, that's part of it...

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