All Things ETF

The Old Reality is Still the New Reality

2017-08-20T08:01:00.000-07:00

The Old Reality is Still the New Reality

Dodd Frank Illustration

I sat at my desk last week wondering what went wrong. Was I experiencing some type of trading depression? I checked my models, macro numbers, company profits, software, pricing etc. Some of my option contracts were either worthless or were on their way to being worthless.

The pricing of the contracts were not in-line with the actual underlying price of the securities that I was trading. The options' pricing per contract were either priced 40% or more above what the underlying security was worth or priced 40% or more below what the securities were worth.

This old reality was still the new reality even after all of financial fixes implemented to fix these same problems that contributed to the financial meltdown in 2007-2008. The new Dodd-Frank Wall Street Reform and ConsumerProtection Act which was supposed to clean up many of the abuses in the financial system such as accountability, transparency and pricing unfortunately is not working.

Sophisticated computer driven algorithms, trading groups arbitraging on different exchanges, unregulated billions in dark pools of money trading silently in the background from undisclosed traders, lax oversight of the Options Clearing Houses are still causing a nasty mix of asset mispricing, and investor angst, especially in the options and derivative markets here in the U.S..

Mispricing of assets costs everyone, especially small investors billions in dollars daily. It prevents, many whom may want to invest from not investing due to fear; it contributes to misallocation of investors’ money from flowing to real companies to instead flow to zombie or otherwise bankrupt entities’ and finally it contributes to financial fraud on such a large scale that regulators may seem overwhelmed or incapable of tackling the problem.

I am proposing tougher regulation with teeth, not less, that will help alleviate asset mispricing. So that small investors like myself can confidently make better decisions in the financial markets without being fleeced of our hard-earned money.

By Rick Walter

Write to Rick Walter at invest@ucsinv1.com

Using State Power The Right Way

2017-05-08T11:29:00.001-07:00

The Beginning of the End of the Populist Wave

Macron won the French election stemming the populist political wave that was spreading around the globe. Populism is not in of itself a bad thing but left unchecked may not mesh well with the overall political goals of the state or the majority of the people!

Macron

There is one event that caught my attention during the French election though. It was how fast the French moved to shutdown damaging leaks and misinformation. When it was alleged that Macron's campaign was hacked, the French government moved rapidly to shutdown the site where the emails were posted and instituted a complete blackout and shutdown of any news or hint of news that would affect the outcome of their election.

In the

U.S.

, the former president's actions were completely the opposite. After months and months of allowing leaks and web posts coming from Julian Assange, Russian agents and other foreign agents located in the U.S and abroad related to Clinton's use of a private email server, the Obama administration did absolutely NOTHING. Even praising Director Comey for his good work and honesty. President Obama “doesn’t believe Director Comey is trying to influence the outcome of an election,” White House press secretary Josh Earnest said during his daily briefing.

Mr. Obama failed to act when he should of relying instead on "American Exceptionalism" and his belief that in the end the people will vote correctly and in the most rational and logical manner. Wrong!! It will be interesting to see what develops over the next 3 years and 7 months of our new populist administration.

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Pure Airline Play ETFs

2017-04-27T11:09:00.000-07:00

Boost your IRA or Roth Returns with our Pure Airline Play ETF. This account is designed for individuals that do not want to buy individual stocks in the airline industry but would like to profit in an industry that may be on the upswing!

Call 1-866-801-3359 for Details or go to Website for more information.

Privacy: It All Comes Down to Location

2017-04-03T07:38:00.000-07:00

How secure is your privacy in regards to your browsing activities and online files? Social media has been a boon to many people and companies, creating billions in jobs and opportunities globally. Social media has seemingly shrunk our huge world, making the most distant places on the planet as accessible as your backyard neighborhood store.

But how private is your browsing activities and data online? The government says that it should be able to access your electronic records even if that data is located overseas based on the Stored Communications Act - "A pre-internet age statute authorizing the government to compel the disclosure of electronic records with a judge approved warrant." See article on the Wall Street Journal-"For Google 's Data Wars, It all comes down to Location."

In a landmark ruling last year declaring private online communications stored overseas, off limits to prosecutors, Google quickly filtered out all data that was located overseas. The government says that Google and other online companies are impeding investigations. Who is right?
The Government or online search and internet providers like Google, Facebook and other ISPs? Should the Government have access to your browsing activities and online files, whether the data is located overseas or here in the U.S. or not?

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UCS Investment 2016 In Review

2016-12-30T09:50:00.002-08:00

2016 was a tough year. There were 3 main drivers that I believe contributed to the high volatility in the stock market this year, 'political uncertainty', 'Dow Jones volatility' and the 'tepid economic recovery.

Political uncertainty

It was a tough year to make consistent profits using our index-based approach to investing (but we did anyway) because rather than moving in-line with earnings announcements, markets moved lockstep with political events such as the continuing 'War on Terror', Brexit and the U.S. election.

Dow gains

Just because the Dow Jones Industrial Average made new highs this year does not mean that your should just as high also. The DJIN index is made up of selected stocks based on their market capitalization. The index may slightly over-represent the health or the strength of the economy. I think a better indicator of the strength and health of the economy are the earnings from companies that make up the S&P 500. The fact that many investors buy stocks based on different investment strategies which does not include Dow stocks suggest that any movements in the Dow, whether up or down, may not affect your investments.

Tepid recovery

Finally, I was expecting a robust economic recovery but that did not materialize even though job growth picked-up in the third quarter of this year. Many companies still did not hire and instead laid off employees i.e.. ATT layoffs. Not even the best productivity software could bridge the gap between 2016 business friendly federal economic policies and the fear of another recession.

I look forward to a better year in 2017. However, I think this year will also be politically driven. For example, The Jobs Act of 2015 and The Cures Act of 2016 will make a huge difference for many businesses and individuals next year in the biotechnology and pharmaceutical industry. I believe both bills will be strong drivers of the economy in 2017 and beyond.

Thank you for joining UCS Investment Co and have a great 2017!

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Overlooked Sectors: Video Game Industry

2016-12-01T09:48:00.001-08:00

We believe that the Video Game industry has been overlooked. There are not many ETFs or mutual funds that are solely dedicated to this sector. It is considered a niche market, although it is supported by large industry players like Sony, Microsoft and Asian industry giants like Tencent and TakeTwo. However, the industry is a money-making cash machine for many businesses, and hit games like 'Pokeman Go' help firms generate gross margins of over 40% in the industry. .

For large software and hardware behemoths like Microsoft, the video gaming segment is wrapped in its Personal Computing Operating Segment which includes Gaming, Xbox hardware; Xbox Live, comprising transactions, subscriptions, and advertising; video games; and third-party video game royalties. This segment may only represent about 10% of total Revenues for Microsoft but the profit margins from this segment are tremendous.

Our current Subscriber Pool called TEAM contains 5 of the top video gaming stocks in the industry. Subscriptions are as low as $50 per month for this Pool but the returns are expected to be fantastic. Join our current 'Hunt' and subscribe to Pool TEAM. See previous pool results.

The PureVideo Gamer ETF (GAMR) is the only ETF that concentrates on companies in the gaming market. This ETF is currently trading at $30.50 per share. The fund has had a total return since inception of over 27%.

Editor's Comment: I believe that the video game industry as a whole will continue to be generate large amounts of profits and companies will do extremely well when they report earnings in the first and second quarter of next year. I am projecting a successful Hunt. Join us on Pool TEAM!

Thank you for joining UCS Investment Co and have a great day!

UCS Stock Market News Today: Oil and Gas update

2016-10-28T17:25:00.001-07:00

The Oil and Gas markets continues to recover with many issues that we follow maintaining their gains over the last 4 trading sessions this week.

Complete Text of Video:

A current WSJ article states that with the prospects of rising oil prices, Big Oil companies are considering a strategy that has been unthinkable for much of a two-year-long market slump, 'making new investments'. "Big oil companies are moving ahead with new spending again", says BP PLC Chief Executive Bob Dudley on the sidelines of the Oil and Money conference in London. The British oil company he heads, "has taken final investment decisions on a handful of projects this year and is expected to approve more in 2017", he said. Major oil companies are beginning to invest in projects as oil prices show signs of recovery. Bob Dudley, CEO of BP, said "Investments are back. But it’s only going to be the very best." Is there light at the end of the Tunnel?

Our Commentary: Only time will tell if new spending will make a difference in oil prices. I read those comments with healthy skepticism. There is still an oversupply of oil on the global markets. To suggest that since oil companies have begun spending again that the markets have somewhat recovered is very premature.

My advice is to continue to look for diversified oil and gas producers whose stocks may still be undervalued and stock price reflects that. Stay away from oil and gas companies with high debt loads as their stocks are more susceptible to huge drops on negative market news.

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Investment Word of the Day: Price-To-Sales-Ratio

2016-10-17T07:02:00.000-07:00

Valuing a company is one of the toughest things to do Wall Street. Many investors look at a company's Price-to-Sales ratio to help them determine the value of a company.

The price-to-sales ratio (Price/Sales or P/S) provides a simple approach: take the company's market capitalization (the number of shares multiplied by the share price) and divide it by the company's total sales over the past 12 months. The lower the ratio, the more attractive the investment. Price-to-sales provides a useful measure for sizing up stocks.

For example, The Price-to-Sales ratio of Alphabet ($Google) is 6.76, whereas the Price-to-Sales ratio of GoPro Inc Class A ($GPRO) is 1.56. Which stock is a better buy? You may leave your comments below.

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5 for 5 Every Month

2016-10-03T09:04:00.000-07:00

You don't need to have a million dollars to trade with us. Earn up to 5% or $250 a month on a minimum $5,000 investment with a Professional Trader or start with one of our Subscriber Pools for as low as $100 a month!

Invest Like a T-Rex in China's AlphaShares China's Technology Index

2014-07-17T08:51:00.000-07:00

Invest Like a T-Rex in China's AlphaShares China's Technology Index

The Dow Jones Industrial Average (DJIA) and the Standard and Poor's 500 (S&P500) are doing really well. Both market indices are trading at historic highs. And the question you should ask yourself right now is, should you still be investing in the U.S. equity markets or should you be taking money off the table? Should you a take a contrarian view and sell short, since everyone else seems to be still buying or should you just look elsewhere? I say look elsewhere.

The above decision also depends on whether you expect continued growth in the U.S. economy, albeit slow growth. Of course, there are other economies that are doing well also, such as the Chinese economy. I believe that the Chinese economy, although saddled with some serious structural issues, can provide a great place to receive spectacular returns on investment. Without getting into all the macro and micro economic niceties of trying to explain why and how and because this blog is not the venue for such a serious economic discussion, I will try to sum up as quickly as possible a few points of interest that bolsters the argument for investing in that country.

Before the U.S. recession, the Chinese economy, tethered to the U.S. economy, grew and enjoyed rapid, awesome growth. After the U.S. recession, China's regime came away with hard lessons learned, of which, one of them was that they could no longer rely on the U. S. economy to drive their export heavy, capital intensive economy. "As the U.S. economy has been slowly recovering, China has been trying to shift its economy from a capital-intensive and highly polluting industrial base to a consumer spending and service industry."¹

China's regime has sought to achieve this goal by tackling their serious problem of overproduction and overcapacity in many of its industries. "The changes are just part of the central government's economic reforms, many of which could be more difficult than controlling capacity. Beijing's agenda includes restructuring inefficient state-owned firms, revamping China's agricultural land system and remaking the tax system. Those changes also pit the central government against local officials and their allies in industry."²

Rolls of Steel Sheets

One such industry in China is the steel industry. The central government has called for many steel mills throughout the country to shut down. This has not been so easy though, for many steel mills are located in cities that are responsible for their own well-being and economy. Government officials in those cities in attempting to comply with the wishes of the regime are faced with the issue of protecting jobs and businesses in those cities, even if it means keeping these same factories open and operating in the red.

However, the economy is still growing there. "China's gross domestic product for the second quarter of this year rose 7.5 percent from a year earlier, up from 7.4 percent growth in the first quarter."³ "While here in the U.S. Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- decreased at an annual rate of 2.9 percent in the first quarter of 2014 according to the "third" estimate released by the Bureau of Economic Analysis."⁴

The keyword again is growth. 7.5 percent is still awesomely great! One fund that I believe will continue to do well in an economy that is still growing is the Guggenheim China Technology ETF (Ticker: CQQQ). It has a 4 star rating by Morningstar. It's year-to-date return is 5.0 percent. I'ts 1 year return is 38.8 percent and its 3 year return is 10.6 percent. Awesome returns on investment. The Fund, using a low-cost “passive” or “indexing” investment approach, seeks to replicate, before fees and expenses, the performance of the AlphaShares China Technology Index. The fund shares, through American Deposit Receipts (ADRs), Global Depository Receipts (GDRs) and International Depository Receipts (IDRs), represents some of the top-traded companies located in China, Hong Kong or Macau.

The index itself has done well and this fund may be a good place to diversify your portfolio holdings in case of an American market pullback, in addition to benefitting from the low cost fees and the adverse consequence of trying to predict and time the markets, this fund is a great place to park some dough. If you would like to know more about this fund, call me (Rick) at 1-866-801-3359 or visit our website and fill out the secure form on the Wealth Products page with a description of your request in the comments section of the form.

References:

¹ Lingling Wei, Bob Davis, "In China Beijing fights Losing Battle to Reign in Factory Production: Some Chinese Localities Stymie Efforts to Curb Industrial Overcapacity and Pollution", The Online Wall Street Journal, July 15, 2014, July 17, 2014. http://online.wsj.com/articles/in-china-beijing-fights-losing-battle-to-rein-in-factory-production-1405477804?mod=WSJ_hp_EditorsPicks

² Lingling Wei, Bob Davis, 2.

³.Lingling Wei, Bob Davis, 3

⁴ Lisa Mataloni, "Gross Domestic Product: First Quarter 2014 (Third Estimate)", Bureau of Economic Analysis U.S. Department of Commerce, June 25, 2014, July 17, 2014. http://bea.gov/newsreleases/national/gdp/2014/pdf/gdp1q14_3rd.pdf

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**We are not paid to promote, or sell any of the Guggenheim family of funds. Our recommendations are based solely on our own research. If you are interested in any of our recommendations, please call us first or your own financial advisor before you invest. Some investments are not suitable for some investors and involve a certain amount of risk.

New Pure Style ETFs by Guggenheim Investments

2014-07-10T13:01:00.000-07:00

Out looking for new products today. Guggenheim Investments has a new class of ETFs called Pure Style ETFs.

The funds are based on the concept that the, "potential drawback of actively managed mutual funds and traditional cap‐weighted style indices is a lack of style purity. This may undermine portfolio optimization and Guggenheim Pure Style ETFs seek to address this shortcoming with a unique approach, offering only “pure” exposure to value and growth investing."

Guggenheim lists about 7 funds in this new class of funds. If you would like more information on how this class of funds can help you grow you wealth, call us at 1-866-801-3359 or visit our website at UCS Financial Advisors and fill out and submit the secured form on our Wealth Products page requesting more information in the comments section of the form.

**Please note we are in no way affiliated with Guggenheim Investments or any of its funds or investments, nor are we paid to recommend any of their funds or investments. Our research and recommendations are based purely on our own in-house research methods and abilities.

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Yesterday's Financial Content Links

2014-03-05T07:00:00.001-08:00

Financial Content Links:

Peruse our daily financial content picks for ideas and relevant financial content at UCS. Our daily lists brings you resourceful, inventive, original, clever, imaginative financial content that helps solves financial problems and gives you ideas to meet your challenges.

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Bond Outflows

2013-08-23T07:14:00.000-07:00

There is a lot of confusion in the markets right now with investors seemingly undecided about what to do with their bond holdings. Do they sell now and lock in profits or do they hold positions and risk losing principle as yields rise.

Here is an article by Olly Ludwig of IndexUniverse.com- Bonds ETF Outflows Spikes as Rates Rises, pointing out that investors have been pulling money out of exchange-traded bond funds in record amounts due to the Fed's quantitative easing, which may suggests that higher interest rates may be a bad thing for bond investors.

However, Anthony Mirhaydari, of MSN Money in his article- Why higher rates are a good thing, makes the point that quantitative easing may be just what the markets need to get back to that level of competitive free markets. Mr. Mirhaydari makes the argument that the markets have been artificially propped up for too long, lulling many investors into a false sense of stable fixed-income return expectations.

No matter your point of view or preference on whether to buy or sell bonds now, we suggest that investors take a careful approach to bond buying over the next six months by sticking to investment grade issues or just holding back on new purchases for at least the next 6 months until clearer interest rate trends develops.

Tip of the Week: Take advantage of the tax-deferred benefits of a Roth. A Roth account is a great account for estate planning. Your money grows tax-deferred and passes tax-free to your heirs. Call us for free consultation at 1-866-801-3359 to speak with a consultant today.

Room for Profits in the Clean Energy Business

2013-05-30T15:10:00.000-07:00

I am still very keen and excited on the energy industry. There's lots of opportunities to make a lot of money but avoiding the potential land mines that still exist in the solar, wind, stored energy and natural gas plays, can be very stressful. However, that's where the safety of exchange-traded funds comes in. Although all exchanged-traded funds can be volatile, many positions in these funds are researched exhaustively before they are included in the respective indexes that they track, making these funds a good candidate for an investment.

I am not recommending any particular fund, although I may be impartial to a few out there. I believe that investors still need to be very patient until many of the heavily subsidized sectors in this industry to bear fruit.

One could start by taking a look at Invesco's PowerShares Wilderhill Progressive Energy Portfolio, which is based on the Wilderhill Progressive Energy Index. The index is composed of companies focused on the following areas: alternative energy, better efficiency, emission reduction, new energy activity, greener utilities, innovative materials, and energy storage. The fund have performed decently over the last 6 months but I am unsure on what type of performance an investor could expect to reap in a fund like this over the next six months. I am mentioning this fund because of the stability and diversification of it holdings, and for investors who may want to cautiously get involved in the industry using a managed fund approach, not because I have any particular affinity to the fund, its management or the fund's performance.

For a more detailed explanation on the fund or for a complete prospectus or other additional information on this fund give us a call at 1-866-801-3359.

If you are looking to rollover a 401k or a 403b plan from your last job, call us at 1-866-801-3359 for a free consultation on the tax advantages and disadvantages to completing your rollover.

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Goldman Sachs CD's Available

2012-03-18T11:16:00.000-07:00

This offering was originally offered last week Thursday, 3/15/2012; I am still posting this offering even though it's a very limited offering and the entire issue may already be sold-out by Monday morning. If you're an active retired investor looking for stable, safe income, this may be the issue for you. If you're interested give us a call at 1-866-801-3359.
By UCS Investment Co.

Daily Corporate Bond Offering: 5.05% Coupon

2011-12-09T07:55:00.000-08:00

Today's Corporate Bond Offering has a 5.05% coupon with a 5 year maturity. This is a short-term bond play. The bonds are currently trading at a premium; 500M available; Moody and Standard & Poors rated.

Review our daily list of corporate, government and municipal bond offerings and Banks CDs, for better income on your current investments and higher yields for your savings. Point your browser to our bond list website to review our current bond offering.

Rick Walter, Chief Investment Advisor
UCS Investment Co.

Daily Corporate Bond Offering: 11.875% Coupon

2011-12-01T06:23:00.000-08:00

Today's Corporate Bond Offering has a 11.87% coupon with a 3 year maturity. This is a short-term bond play. The bonds are currently trading at a premium; 250M available; Moody and Standard & Poors rated.

Review our daily list of corporate, government and municipal bond offerings and Banks CDs, for better income on your current investments and higher yield for your savings which can be found by pointing your browser to our bond list website.

Rick Walter, Chief Investment Advisor
UCS Investment Co

Daily Corporate Bond Offering: 5.75% Coupon

2011-11-21T05:39:00.000-08:00

Today's corporate bond offering is from an oil refining major. The bond's coupon rate are 5.750% and are rated BB+ from Standard and Poors; Approximately 300M bonds available.
For more information on this offering, please call 770-572-2715 and ask for Rick or go to Bond list for more information.

Rick Walter, Chief Financial Advisor
UCS Investment Co.

Daily Corporate Bond Offering: 7.625% coupon, 7 year maturity

2011-11-07T05:10:00.000-08:00

Today's Corporate Bond Offering has a 7.625% coupon and 7 year maturity. The bonds are currently trading at a discount; 230M available; Moody and Standard & Poors rated.

Review our daily list of corporate, government and municipal bond offerings and Banks CDs, for better income on your current investments and higher yield for your savings which can be found by pointing your browser to our bond list website.

Rick Walter, Chief Investment Advisor
UCS Investment Co.

FDIC Insured CDs available with Average Coupon of 3.05%

2011-11-01T08:29:00.000-07:00

FDIC Insured CD's with Average Coupon of 3.05% with varying of 6 mos, 1 yr, 2 yr and 3 yr maturities. Call 770-572-2715 for more details.

If you are still cautious about investing in the stock market and would like to stay in a cash or liquid position, invest or purchase a FDIC insured CD. We have available Certificate of Deposits with varying maturities and coupons from some of the top banks in the US.
We will be updating our Bond list later this morning. Review our daily list of corporate, government and municipal bond offerings and Banks CDs, for better income on your current investments and higher yield for your savings which can be found by pointing your browser to our bond list website.

Rick Walter, Chief Financial Advisor
UCS Investment Co.

Daily Corporate Bond Offering, 6.05% Coupon

2011-10-28T07:50:00.000-07:00

United States Steel corporate bond offering, 6.05% coupon, with yield to maturity of 7.38%. Call 770-572-2715 for more info.

Review our daily list of corporate, government and municipal bond offerings and Banks CDs, for better income on your current investments and higher yield for your savings which can be found by pointing your browser to our daily bond list.

Rick Walter, Chief Financial Advisor
UCS Investment Co

Corporate Bond Offering w/6.5% coupon

2011-10-27T07:14:00.000-07:00

Owens-Corning, Inc corporate bond offering, w/6.5% coupon and yield-to-maturity of 4.5%.
Call 770-572-2715 for more info.

Review our daily list of corporate, government and municipal bond offerings and Banks CDs, for better income on your current investments and higher yield for your savings which can be found by pointing your browser to our bond list web-site.

Rick Walter, RIA, CFC
UCS Investment Co.

Stocks on Buy List: QEP Resources

2011-08-01T18:36:00.000-07:00

We like QEP Resources, Inc very much because it has performed well over the last 12 months and it’s in an industry that we love to invest in. We started accumulating this stock in July of 2010 at $34-36 per share and have not been disappointed with its performance. However, the stock has recently been downgraded by Goldman Sachs to Neutral with a price target of $49 even though Standard and Poor's has a Buy rating on the stock with a target price of $52 per share.

I still like the stock especially since our clients received an Average Total Return on Investment (ROI) of 29%, but I have sold most of the position from our client portfolios. I believe that there are better opportunities elsewhere in the oil and gas industry but we might still get back into the stock in the near future.
This stock is a solid performer, which makes it a good addition for investors that are looking for stable, solid growth.

Call now at 1-877-788-1732 for a free consultation or visit or wealth management site at Plouthus.com to open a PLT account and receive a $150 off any financial plan which can go towards analyzing your current portfolio for risky investments that are not making you any money and robbing you of your hard earned retirement dollars.

By Rick Walter
UCS Investment Co.

Online Advice Service- Real answers for your investment problems

2011-07-13T07:20:00.000-07:00

If you need a quick answer to an investment or tax issue, visit our new Wealth Managment Services site. I am online from 10:00 am to 3:30 pm today to answer any questions you may have via IM, Video chat or Email.

By Rick Walter

Withdrawing from a fixed or variable annuity

2011-07-01T18:07:00.000-07:00

Can you withdraw funds from your variable or fixed annuity? The answer is in our short weekly 401(K) and IRA weekly video guide.

Visit our 401(K) and IRA Rollover Center weekly video guide on 401(K), IRA rollovers and new Roth's IRA for help, tips and investment guide on rolling over your 401K or IRA at Plouthus.com