Second Half 2014 Trading Portfolio

Our current trading portfolio for the last half of 2014.  Of course changes can be made at any time.  But we continue to favor stocks that have low PE's and are have been sold down for reasons we believe are temporary.   Going into the last half of 2014 we find the market fully valued and sometimes overvalued and prefer less risk exposure. Hence four of our selections are mobile phone related that young people will buy with their very last dollar. Three are insurers who have been beaten up a good bit since the recession and now have gotten back on their feet and have upside potential.   Risk happens fast and we prefer to be prepared just in case. 

AAPL...we continue to hold a large position in this stock.  We believe there is little downside risk and trading offers significant opportunities for short term profits. Strike prices range from $70 to $85. 

AFL...The duck insurance company continues to trade a single digit PE, which makes it a safe pick for trading.  Strike price of $57.50

ARCP...We still own this security, but will likely drop it in July due to the lack of forward guidance.  As a long term holding it still looks good and  offer a significant dividend.   Strike price $12.50

CHL...China Mobile is new for us and we like it for the same reason we like AAPL above, young people are addicted to their cell phones and will let other consumer buys go to have this drug.  Strike price $45. 

HFC...As long as Obama keeps the Keystone Pipeline from going forward we see nothing but up sized profits for Texas based refiners.  Strike price $43

IBM...This stock carries some risk, but as long as Warren Buffet has shares we see good trading profits here. Strike price $175

JPM...Still an undervalued large cap bank.  Strike price $50. 

MET..Insurer that is selling for single digit PE and has upside and little downside risk. Strike price $50. 

O...Safe blue chip triple net REIT, priced a bit high now, but we will wait for it to back off some and trade. Strike price $40. 

PRU.. Insurer with single digit PE and little downside risk.  Strike price $80

SF.. We continue to like this medium sized financial firm for the long haul. Strike price $40. 

SHLD...The risk profile has increased and so have the option premiums.  Trade carefully, but use the real estate play to make some cash. Strike price $36.

T...Note the comments under CHL. Strike price $33.

VZ...Note the comments under CHL. Strike price $44.