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Eric Parnell Positions For 2012: Getting Defensive With Utilities,

Eric Parnell Positions For 2012: Getting Defensive With Utilities, Consumer Staples, Precious ... http://seekingalpha.com/article/316497-eric-parnell-positions-for-2012-getting-defensive-with-ut...

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Articles that link to this one

Positioning For 2012: Guide To The Seriesby SA Editors

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Comments(30)

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O. Young KwonComments (910)

Hi Eric.

Broad, well-focused, and sound investment goals and strategies. Investors and traders can benefit from your views and assessments on

markets in 2012. TIPS and Agency MBS are in my allocation. Thanks. Happy New Year.

Young29 Dec 2011, 01:31 PMReplyLike3

Eric ParnellComments (1643)

Hi Young,

Thanks for your comment. I've appreciated your excellent thoughts and perspectives throughout the year and look forward to collaborating

more in 2012. Happy New Year!29 Dec 2011, 01:41 PMReplyLike3

Emailed to: 52,917 people who get ETFs & Portfolio Strategy daily.Tagged: ETFs & Portfolio Strategy, Portfolio Strategy & Asset Allocation, 2012 Outlook, CFA charter-holders, Editors' Picks, Interviews

Problemwith this article? Please tell us. Disagree with this article? Submit your own.

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ETFSuperfreakComments (35)

Eric,

Nice article. Are you buying any commodities other than gold and silver, i.e. precious metals? Personally as a hedge in this choppy market, Iprefer broader commodities exposure that includes items with real utility such as ag, oil/nat. gas and industrial metals.

29 Dec 2011, 01:53 PMReplyLike4


Hello ETFSuperfreak,

Thanks for your comment. I appreciate it. I actively monitor the entire commodities complex, as I share your view about commodities withreal utility including those that you've mentioned.

Right now, I have a zero weight to the commodities sector outside of Gold and Silver mainly due to my concerns about the cyclical outlookfor the economy particularly given the situation in Europe. With this being said, if we see the launch of QE3 or some aggressive monetarystimulus program in the coming months, I will be actively looking to reinstate long cyclical commodity positions.

From a secular standpoint, I'm very interested in the natural gas space, although it still seems far too early at this point. But I watch it closely

including several of the key equity names that are most concentrated in the domestic space (for example, I had owned Petrohawk but sold itprior to the BHP Billiton acquisition, a miss that I still regret (also owned BHP for about a decade prior to the crisis - one of my favoritestocks)).

I am interested in your perspective. What instruments are you using to establish exposure to the commodities markets?

Thanks again for your comment. I look forward to reading your reply if you have the opportunity. Happy New Year!30 Dec 2011, 12:01 PMReplyLike3

At1223Comments (18)

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Hello At1223,

These are some very interesting points. Thanks for sharing your perspective.

In regards to your point on lean hogs, are you playing this directly or through the grains instead?

Thanks again.1 Jan 2012, 11:58 PMReplyLike0

FitzGeraldComments (69)Agency MBS appears over valued simply because its a crowded trade. Non-agency looks to be a much better value especially for mortgages

written post the 2009 crash as lending standards tightened significantly.29 Dec 2011, 10:43 PMReplyLike2


Hello FitzGerald,

Thanks for your comment. You raise an excellent point here. Are you currently allocating to Post 2009 Non-Agency MBS in your portfolio?

If so, are you buying individual issuance or are you using any exchange traded instruments? I'm interested to learn more about your approachon this specific area of the market.

Thanks for your comment and Happy New Year!

30 Dec 2011, 11:44 AMReplyLike0

farmland investmentsComments (173)

This is one of the better written investment pieces I've seen. I enjoy reading articles that a broad view rather than going into minute detail onindividual stocks. I think the non-agency MBB seems like a good trade as well. I read an article somewhere about the best bond investortoday (no, not Bill Gross!) Jeffrey Gundlach being extremely well disposed towards non-MBB. A little nervous about TIPs though, as they've

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had quite a run-up.29 Dec 2011, 11:03 PMReplyLike3


Hello farmland investments,

Thanks for your comment and your kind words. I appreciate it. I agree with you on Gundlach, as I've followed him as well for some time. Hisopinions are always worth hearing/reading.

Thanks also for your point about TIPS. I've actually been in an ongoing conversation over e-mail with one of my readers and we recently

talked about TIPS in the current environment. As a result, I'm planning on putting together an article for SA on TIPS sometime soon.Hopefully next week.

Thanks again and Happy New Year!30 Dec 2011, 11:48 AMReplyLike2


Hello farmland investments,

I saw your profile and visited your blog at the link below. Great information and I'm interested in reading your future commentary.

http://bit.ly/sFcPDs

Thanks again.

30 Dec 2011, 12:18 PMReplyLike0

farmland investmentsComments (173)

Thank you for your kind words Eric! Needless to say, relation to the points above, I am very big on the ag sector. Food prices will continue tostay high for a variety of reasons, and in the long run, those in the ag space will do extremely well. I prefer farmland as I don't like trying toguess what this or that futures ETF will do over a short-term, as I am convinced a lot of financial speculation goes into the prices. Its kind of

like holding real gold, as opposed to playing gold futures.2 Jan 2012, 12:58 AMReplyLike0

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Good overview. Would be a bit more defensive in current environment, but each investor has to make that decision.



Hello untrusting investor,

Thanks for your comment. I think you raise a good point about managing risk in the current environment, as the prudent choice when makingallocation decisions right now is to fall on the side of being defensive.

Thanks also for your outstanding commentary and analysis on my and many articles on the SA over the past year. Have a Happy New Yearand I look forward to following more of your commentary in 2012.


CrankyComments (2959)

Eric, awesome article. Thanks so much. Many (professionals as well) do not understand what true diversification and protection requires.

I really appreciate how you weave in the effect of government manipulation and how it will afffect your investment decisions.

Thanks again...30 Dec 2011, 07:19 AMReplyLike3

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