This Bull Still Has 3 More Innings to Play

The S&P 500 has been on one of the longest bull runs in a long time. The last bull market lasted about 5 years and we are well past that now. The current bull market started in March 2009 and investors are starting to get a bit nervous that it will soon come to an end.

While I do think we may have a strong correction in the near future, I don’t think we are at the end of this bull. To use baseball parlance (my apologies to subscribers that aren’t sports fans), I think we are in the 6th inning. The pullback will be the 7th inning stretch that comes right before the home stretch.

Interesting Tidbit on Ring Energy’s Purchase of Delaware Basin Acreage

Oil Rigs

Ring Energy (REI), one of the portfolio companies in our PM101 Speculate Portfolio announced today that it has signed a purchase and sale agreement to acquire producing wells and leaseholds located in the Delaware Basin. With the acquisition, which currently has net daily production of 1300 barrels of oil equivalent (boe) per day, Ring will have net daily production of 2, 750 boe/d. So if you’re adding this up at home, that is now double the amount it was producing yesterday.

Portfolio Strategy – Is it Time to Dip a Toe Into Oil?

The decline in the price of oil has occurred rapidly and has shifted the balance of power and wealth back to countries that are net consumers of oil after many years of accumulating benefits to countries that are net exporters. For several years, article after article was written about how the emerging economies were poised to surpass those of the developed countries due to the growth of the middle class, higher productivity, and GDP growth that was oftentimes twice that of the developed world.

But now that oil prices are at a multi-year low, the balance of power has shifted back to countries that are net importers of energy.

With Fibria, You Do Want To Squeeze The Charmin

Charmin

It’s no secret that we consume less paper today than we did just 10 years ago. With the availability of iPads from Apple (NASDAQ:AAPL)and Samsung, and the ability to search for, read, and store information online, we just don’t have such a high need for newspapers and magazines. The trend has been a headache for most newspaper publishers and magazines that were slow to develop their online offerings and the adaptation of advertising that is used online.

But there is one type of paper that has actually seen growing demand, particularly from emerging market economies and their growing middle class. That type of paper is tissue paper, used to blow your nose or wipe your derriere. In either case, softer is better, and neither of those activities has an online alternative.

Thin Film Electronics: A Pure Play Investment On The Internet Of Everything

IOE

We hear quite a bit these days about the Internet of things ((IoT))and the number of devices that will soon be interconnected with one another. IDC defines it as

a network of uniquely identifiable endpoints that communicate without human interaction using IP connectivity. With uniquely identifiable networked endpoints, large quantities of data are managed and monitored by intelligent or traditional embedded systems.

The winners and losers in the Internet of Things have yet to be determined and while household names will certainly be mentioned as potential beneficiaries, Google (NASDAQ:GOOG), Cisco (NASDAQ:CSCO), Microsoft (NASDAQ:MSFT), and IBM (NYSE:IBM) to name a few, there are a few unknown players that are industry leaders in a fast growing piece of the IoT pie. An area that is primed for rapid growth within the IoT is the connectivity of non-connected items. They may also be termed passive products, that is, products that don’t necessarily require ‘human’ or any input for that matter but merely generate and distribute information about the product and the process in which that product arrived at its current location. I know the concept sounds nebulous right now but bear with me.

Ring Energy: Digging For Black Gold In All The Right Places

Oil Drilling

Some of the largest companies in the world operate in the oil and gas industry. Exxon Mobil (NYSE:XOM) has a market cap of $402 billion as of 9/29/2014; Royal Dutch Shell (NYSE:RDS.B) has a market cap of $243 billion; PetroChina (NYSE:PTR) has a market cap of $236 billion; and Chevron (NYSE:CVX) has a market cap of $230 billion. They weren’t always that big, even though it seems like forever that these companies sat atop the rankings of largest global companies by market cap.

Investing in any one or several of these companies is probably a pretty safe bet that you will generate some kind of positive return over the long-run. Sure, in the short-term, prices can fluctuate based on oil and gas prices or geopolitical tension across the globe, or even another war, as is the case in Iraq, Syria, Russia, Ukraine (it seems to never end). And while investing in some of these large mega cap names can reduce volatility and minimize the risk of losing your investment, the upside is limited by the fact that any new oil or gas discoveries made by these companies is a mere drop in the bucket and rarely moves the needle on their revenues and/or earnings. Investing in them would be a smart, albeit safe move. If, on the other hand, you’re willing to accept higher volatility or the risk of capital loss for a much higher potential payoff, you may also want to consider looking at the little guys in the oil and gas space.