2016 Outlook For MLPs And Pipelines

Posted on by Adam Feik

Adam Feik - INO.com Contributor - Energies


I suppose my 2016 outlook for MLPs and pipelines should begin with a mea culpa about something I wrote earlier in 2015. On September 24th, I wrote:

“I generally regard pipelines as being a historically defensive area of the stock market, comprised of relatively steady, fee-for-service businesses. (Pipeline companies’ stocks) may be receiving undue punishment in the midst of the oil crash of the past 15 months. (Their) prices are down about 16% since June 20, 2014, compared to nearly a 38% decline for the overall energy sector, and a 63% crash in oil prices.”

The First Trust North American Energy Infrastructure ETF (EMLP) closed at $22.17 that day; and while EMLP did rise to nearly $24 over the next couple weeks, it then plateaued in October and plunged below $20 again by December 4th. It closed Tuesday at $20.15.

I regret having used adjectives like “defensive” or “steady” to describe these stocks. The past 7 or 8 months have certainly demonstrated otherwise!

The jury is still out on whether these stocks are “receiving undue punishment,” though. Perhaps 2016 will provide the verdict on that. Continue reading "2016 Outlook For MLPs And Pipelines" →

Veteran Investor Rick Rule Reveals a Unique Arbitrage Opportunity

Posted on by admin

One of the hardest things for a mining executive to do may be nothing. But in a market that is not rewarding companies for pulling resources out of the ground, Sprott US Holdings Inc. CEO Rick Rule would prefer to see what he calls "optionality" rather than dilution from companies looking to justify salaries. In this interview with The Gold Report, he praises innovative precious metals streams on base metal projects and one Canadian company that is adding value and being rewarded for it.

The Gold Report: In November, you called the bottom for precious metals. Do you still believe that we're in the bottom?

Rick Rule: Yes, as long as you can define a bottom gently. I said in that same interview that the most important factor in gold pricing was the fact that it was priced in U.S. dollars, and we see a topping in the U.S. dollar. In fairness, Karen, if you had asked me that same question two years ago, I would have responded in the affirmative and been quite wrong. But I do think the upside in gold is both larger and closer than the downside in gold.

TGR: Now that the Federal Reserve has increased the key interest rate slightly, the expectation is that the value of the dollar will increase relative to other currencies. How could that be the sign of a bottom for gold? Continue reading "Veteran Investor Rick Rule Reveals a Unique Arbitrage Opportunity" →

Will Political Headwinds For Biotech Subside In 2016?

Posted on by Noah Kiedrowski

Noah Kiedrowski - INO.com Contributor - Biotech


As the political cycle unfolded throughout 2015, the entire healthcare cohort posted shape declines, this was particularly true for the biotechnology sector. Using the iShares Biotechnology Index ETF (ticker IBB) as a proxy for the biotechnology sector, this cohort fell from $401 in July to $284 in September or alternatively a 29% decline. This shape decline coincided with heated political rhetoric aimed at the collective cohort of healthcare and more specifically biotech related companies. This cynical sentiment by political frontrunners was largely rooted in the pricing of drugs. As candidate threats via legislative action geared towards reining in the costs of drugs unfolded, these actions negatively reverberated through healthcare and biotech stocks alike. The political posturing surrounding potential plans to reign in drug costs are now largely priced into many stocks within the healthcare umbrella. I contend that after the recent sell-off the biotech cohort looks attractive at these levels. Once the political cycle is complete in 2016, these stocks will likely benefit from the mere absence of political headwinds. Additionally, as the candidate pools thin out many remaining candidates gradually move towards the middle to appease a broader audience. Taken together along with the difficulty of enacting any legislative action to regulate the industry this may represent a buying opportunity that’s been presented by extraneous political events. Continue reading "Will Political Headwinds For Biotech Subside In 2016?" →

How To Synergize Oscillators With Advanced Trend-Following Indicators

Posted on by The INO.com Team

Thousands of other traders already have learned how to revolutionize their trading through Synergy – the use of a wide variety of studies, tools and techniques to make a trading system more accurate, more powerful and a lot more profitable!

For years, Tom Bierovic, President of Synergy Futures has conducted private workshops for traders and has presented highly-rated trading seminars all over the world.

In today's video, you'll Discover the secret to combining oscillators and trend-following indicators for consistent profits.

WATCH NOW: Synergetic Technical Analysis - Volume 2

Best,
The INOTV Team

GPS vs. Road Map: Which Works Best? (Part 1)

Posted on by The INO.com Team

By: Elliott Wave International

Some of the best stories about global positioning systems (GPS) are the weird detours they sometimes recommend.

A while back, while on a family trip through Great Smoky Mountains National Park, I decided to use my GPS to drive around the park's western boundary to see the wildlife. My old-fashioned map made it look like it would take the better part of the day. But my GPS said the trip would only be about 20 miles long. Little did I know -- until I got there -- that the road from the GPS was only the remnant of an old wagon trail. I had to backtrack and take the path my paper map had originally suggested.

Sometimes, the old-fashioned way of doing things is still the best way.

I believe that's true when it comes to analyzing markets, too. Financial markets can also make you take weird "detours" -- just when you expect the price to go straight up or down, depending on how you've positioned your trades. Continue reading "GPS vs. Road Map: Which Works Best? (Part 1)" →