The Buss: Looking back at the Swan Advisor Conference
The ugly from the Swan April newsletter:
- Coca-Cola is fighting 12 consecutive years of soda consumption decline. Its stock is at an all-time high.
- Tesla is "changing the world", and orders for its new car are off the charts. Its stock is lower than it was 18 months ago.
- Cigarette consumption has dropped 44% since 1981. Altria stock is up 71,000% since 1981.
- Walmart net income has tripled since 2000. Its stock has lost 1.5% since 2000.
- Apple has earned almost a quarter trillion dollars of profit since 2012. Its stock has barely budged.
Office Hours: Listener questions and comments
- Question from Njord: I would like the host to express their views on the following article. Is it time to raise the bar for becoming a financial advisor? How do options play into this?
http://blogs.wsj.com/moneybeat/2016/04/08/how-come-its-still-harder-to-become-a-hairdresser-than-a-financial-adviser/
Refers to the article: "How Come It's Still Harder to Become a Hairdresser than a Financial Adviser?" by Jason Zweig. - Question from JBigg: Does the presidential election cycle have any notable impact on the options market?
Question from Alan Riggs - There seems to be a volume of data recently about the effectiveness of selling weekly instead of monthly premium. Does the team at Swan utilize weeklies for any portion of the DRS? If not, have they considered incorporating them in the future? - Question from Nathan Jones: I have always been intrigued by options and as I expand my client services I would like to incorporate them. I have listened to your programs and reviewed the material provided by the OIC advisor team. I understand the mechanics of the strategies. At this point I find myself hung up on the starting point. What should be my initial objective when using options? Do you view them primarily as a hedging and risk management tool or primarily as an income generating tool? Also when your present them to potential clients how do you categorize them? Thanks and I am looking forward to finally pulling the trigger.
