Senior finance major at the College of William & Mary. Currently serving as a research extern for Closed-End Fund Advisors, Inc. under the direct supervision of John Cole Scott in Richmond, VA. Additional experience in corporate finance and investment research.
In 2015 I spent a lot of time learning about mREITs. I am left feeling they are almost as much a waste of IQ and education as doing my US taxes. I am trying to open an account with Interactive Brokers with the idea that I can do better than an MREIT..if I get 1.5% margin interest, not 6.5% to 8%
Luckily I was mostly a successful trader of mREITs and not a buy and hold guy. I did experience failure in bottom picking later in 2015 but noticed math genius, bond guru Jeff Gundlach seemed to get fooled worse in his "it's now safe to buy NLY" call in mid 2015.
I had an up year holding mostly build america bond CEF's NBB, & BBN. BUT I would have had the same money Feb 1 as Dec 31, 2015 if I sold everything Feb 1, as these CEF's fell about 11% into the summer before rebounding somewhat into year end.
I then fought to make it all back with mREIT Orchid Island ORC on a Scott Kennedy call. And some bottom fishing with MORL and CEFL...even using some margin.
So now I have a big tax bill on all the income I received when I could have sold FEB 1 with mostly long term capital gains taxed at only 15%.
Plus my margin interest of over $6k is LESS than the "standard deduction"...so I lose on that with no other deductible interest to add.
I ended 2015 holding about 90% cash. I expect stocks to be weak. I am looking for an entry point in High Yield funds with low commodity exposure. I am also interested in Muni's and BAB CEF's...But I enter January 2016 watching for some Puerto Rico effects on Muni's after their recent rally...& BAB's (tax free munis) trade similarly. I also like preferred stock CEF's but they can selloff with either stocks or bonds so I am looking for a better entry point. Midstream MLP's look interesting but have just had a furious Dec rally to the downtrend and may weaken with more bad oil sentiment.
There is a mortgage CEF I used to own that I like again. It yields over 6% but I need to update on the bid ask spread and general liquidity..
Bond rates are still weighed down by low yields in EU and Japan, and many other issues you can read about at sites like Kessler and Hoisington Investments but possibly we will get short term rise in yields due to weak foreign buying of Treasuries as in the December auctions.
This is a 'note to self' but if anyone reads it, feel free to msg me.
John Cole Scott is Chief Investment Officer at the firm and holds the Series 66 FINRA Licenses. In 2002 he earned the Certified Fund Specialist designation (CFS). For over 15 years John has specialized in closed-end fund/BDC research, analysis and trading.
He has been quoted or interviewed by Bloomberg, SmartMoney, Investment News, The Street, Morningstar, Registered Rep, Reuters, Bond Buyer, Better Investing, USA Today and The Richmond Times Dispatch and published in SR Consultant. He has presented at conferences or events in Atlanta, GA, Charlotte, NC, Boca Raton, FL, Chicago, IL, Denver, CO, Houston, TX, Miami, FL, Minneapolis, MN, Naples, FL, Newark, NJ, Richmond, VA, New York, NY, San Francisco, CA, Tampa, FL and Washington DC including several keynote addresses.
In April 2008 John founded CEFA's Closed-End Fund Universe, a comprehensive weekly data service covering the closed-end fund industry currently with 185+ data points per traditional CEF and 115+ per Business Development Companies (BDCs). We launched BDCUniverse.net in August 2015 as the first BDC Research website covering all public BDCs. In November 2008 he founded "The CEF Network" on LinkedIN with 1375+ members.
John is a long time member and current Board Member of The Richmond Association for Business Economics (RABE) and serves on the Investment and Standing Committee for The New York State Society of The Cincinnati. He can be reached via: email@example.com or (804) 288-2482.
I am a Financial Analyst and maintain my own Site http://www.everythingaboutinvestment.com where i put the articles regarding investment so that it can help each and everyone around the globe to get an detail insight into Investing and Investment.