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Alternative Investments

Energy Royalty Trusts

Energy Royalty Trusts

Background Energy Royalty trusts are neither stocks nor bonds, although they share some of their characteristics. Investment trusts are created to hold interests in operating assets, which produce income and cash flows that are passed through to investors. A "trust" is a legal instrument, which exists to hold assets for others. A "trust" investment that uses a trust (the legal entity) to hold ownership of an asset and pass through income to investors is called a "securitization" or an...more

A Well-Rounded Portfolio Might Include REITs

A Well-Rounded Portfolio Might Include REITs

Mark Twain said to buy land - they're not making any more of it. That may still be good advice, even though a most popular way to invest in this finite commodity ' via a real estate investment trust (REIT) ' was shortchanged by the last major tax reform bill, the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA). A REIT uses pooled capital from many investors to manage income property and/or mortgage loans, and is traded on a major exchange just like a stock. So here is an...more

Equity and Index Put or Call Options:

Equity and Index Put or Call Options:

In my previous article, I talked about different methods of protecting your stock portfolio. As I explained there, the most commonly used technique is a stop loss order. With this technique, you identify a price and tell your broker to sell your stock if it drops below your target. I also explained how to use put options and covered call options as another way of protecting your stock portfolio. My preferred method of managing the down side is use of equity and index options. A put...more

Trade of the Decade

Trade of the Decade

The chart below shows that the multiyear downtrend in the Dow that began in 1999 looks set to continue with the recent breakdown early this year below the 2003 lows. 15400trade.jpg Most people will be surprised by this as the news is full of stories declaring new highs in the major stock indices. Well, it all depends on what you are measuring it by. In US dollars, stock indices may well be making new highs, but if you want to measure the stock market in real money, in other words Gold,...more

So, you want to invest in an oil deal?

So, you want to invest in an oil deal?

Why Me? Are you looking to join J.R. Ewing down at the Petroleum Club? Or, maybe you?re simply looking for an outsized return to make up for past hiccups. With oil hovering around $60 per barrel, more drilling prospects will be looking for funding. If you?re known about town as an investor, you?ll be seeing them more and more. If you?re considering jumping in, read on for further understanding of the risks (and rewards!?) "Why did this deal come my way?" This is an overriding...more

Employee Stock Options: Investing and Mitigating Risk

Employee Stock Options: Investing and Mitigating Risk

For clients who are employed in some capacity by a publicly traded company (and occasionally private companies), there may be the opportunity to receive stock options from your employer. These options are somewhat different from the options we may employ in your portfolio to either hedge or protect a position that we own or may be short. Options granted by your employer give you the right to buy a specific number of shares of your company's stock during a time and at a price that your...more

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