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  • mREITs Impacted By Enormous Price To Book Swing - MORL Yielding 27.6% [View article]
    Did you read my first article?

    'My Viewpoint

    The 2x leveraged ETNs are trading vehicles. They are not meant for a buy and hold strategy. They are not suitable for a long-term investor. They are specifically designed to be used by active traders. Some might argue the following points to make their case for safety:

    MORL rebalances monthly not daily.
    MORL's dividends are high enough to make it a safer buy and hold then other ETNs.
    In my opinion, the monthly rebalancing and the current 18.5% + yield will not save MORL from a large decrease in share price that will not recover"

    I meant all 2x and 3x leveraged ETN's /ETF's.

    Shorting is for the best traders in the world! Not you!

    The products you mention are worse, I focused on MORL because it seemed to have more people here interested, thats one reason there are others.

    **** I am done commenting. Time to go outside and have FUN!!!
    Aug 31, 2015. 09:59 AM | Likes Like |Link to Comment
  • MORL Is A 'Too Good To Be True' Investment: Update #2, 13 Months Later [View article]
    31October,

    Thank you!

    People do not want to see reality.

    I am not equipped to provide the data you want.

    *** I have had very good success in the market and I am fortunate to have retired at 54. Since retiring 25 months ago, my Retirement portfolio is + 36.5%!!! Not bad for someone who doesn't know what they are doing!!!

    I pointed out several issues with MORL in my first article, one being liquidity and no one blinked!

    I would like to see you write the article you have asked me to write!

    I will continue with my own style of writing.

    I am here to help people. I certainly don't need the money from writing articles nor the abusive comments.

    My Retirement dividend income is currently 30% above our needed expenses, 77% of my money is in ROTH IRA's! I continue to reinvest all dividends! We live off of our taxable account as I sell shares when needed to pay expenses. We do not touch the Retirement stocks.

    I also have a lot of cash in my TAXABLE account and I am waiting for blue chips to go on sale!
    Aug 31, 2015. 09:46 AM | Likes Like |Link to Comment
  • MORL Is A 'Too Good To Be True' Investment: Update #2, 13 Months Later [View article]
    Bert Mariani,

    There will be more panic selling at some point in time and it will get worse when the next bear market hits, the next bear will be vicious because we have had a huge run without a 20% correction for over 4 years.

    I am done commenting on this article. Be well.
    Aug 31, 2015. 09:36 AM | Likes Like |Link to Comment
  • Altria Outperforms; Smoking Marlboros Back On The Rise? [View article]
    Retired One,

    I knew you were being sarcastic.

    You stated:

    "I did not mean to scare you and was just in a bad mood, because of the Superior earnings report and dividend increase that Altria just released the week before, and the way the stock has been treated is an affront to all of the hard working men and women at Altria. I personally worked 7 days a week, 12 hours a day, for almost 30 years, and missed many moments in my life and the lives of my family to "enhance shareholder value" and provide for the needs of my own family and their futures. "

    Thanks for your hard work at MO.

    You also know when the smoke clears { pun not intended initially, but since it is appropriate, I now intend it} meaning when the market sorts out the real QUALITY MO will start increasing in price as it always does, the panic sellers can't keep the best down for too long.

    I do have an order in for MO GTC at $44.50 (TAXABLE Account) just in case the market gets insanely irrational, if it does not fill, I lose nothing, if it fills I got a huge gift!

    I will not sell a single share in my Retirement accounts.
    Aug 31, 2015. 07:47 AM | 1 Like Like |Link to Comment
  • MORL Is A 'Too Good To Be True' Investment: Update #2, 13 Months Later [View article]
    I have copied and pasted an exchange between Lance Brofman and
    learning to be patient with... from his article http://seekingalpha.co...


    learning to be patient with...
    @Prof Lance Brofman- regarding UBS redeeming the 2X etn's. What is your pov on which of these etn's are the Least likely to reach $5 based on their holdings and the sector(s) they invest in? (Barring a total stock market collapse) Example, I believe that LMLP is less likely to reach $5 than compared to say MORL or CeFL....your thoughts pls
    30 Aug, 12:59 PM

    **********************

    Lance Brofman ,
    Author’s reply » Barring a catastrophic event, the re-leveraging every month makes it highly unlikely that UBS would redeem any of the 2X ETNs in the foreseeable future.
    30 Aug, 01:45 PM

    **********************

    I also asked Lance Brofman the below question in his articles comment section and have not received an answer yet!

    Lance Brofman ,

    You say baring a catastrophic event. Does that include 3 days like 8/24/15 where MORL hits $12.75 and instead of buyers coming in, we get capitulation!

    This market is ready for an overall 20%+ bear market correction of all the major indexes and when there is true capitulation, MORL will be in a world of trouble and maybe go below $5 or get close to it. All people on margin calls will be called and the price will drop more.

    I am NOT short, as I NEVER short any securities!!!
    Aug 30, 2015. 05:25 PM
    Aug 31, 2015. 07:25 AM | 1 Like Like |Link to Comment
  • MORL Is A 'Too Good To Be True' Investment: Update #2, 13 Months Later [View article]
    Below is another comment of mine to Rob,


    Rob1492,

    All your logic does not apply to MORL. It applies to mREITs but not MORL.

    Did you notice that MORL went from $16.66 on 8/20/15 to $12.75 on 8/24/15 { a 23.5% drop}, what if no buyers came in? You do understand that when capitulation occurs that there are NO buyers. We have not seen a bear market in 4 years. This is only the 3rd time in history that 4 years have passed without a 20% correction.

    When we get a week of capitulation and they throw out the baby with the bath water, and the indexes correct 15-20% from their all time highs, the leveraged ETF's /ETN's will get demolished.

    AGNC only dropped 6.6% from 8/20/15 high of $20.07 to 8/24/15 low of $18.70, the same short time frame MORL dropped 23.5%, now we are talking about almost a 4x drop in MORL compared to AGNC!!!!!

    This will be magnified when the DOW drops 1,000 3 out of 5 days in a week, and the SELLERS PANIC!! Don't tell me this can't happen. I have been around too long and seen a lot of ugly sell off's.
    No one here wants to see this reality.

    Lance Brofman states:
    "the re-leveraging every month makes it highly unlikely that UBS would redeem any of the 2X ETNs in the foreseeable future."

    ** The problem will be that the damage will occur within 1-3 weeks in between re - leveraging, in other words, it will happen so quick that UBS will not have time to make a difference.

    PS: Rob, you know I never would buy ORC unless Scott recommended it!!!
    Aug 30, 2015. 05:37 PM
    Aug 31, 2015. 07:23 AM | 1 Like Like |Link to Comment
  • MORL Is A 'Too Good To Be True' Investment: Update #2, 13 Months Later [View article]
    Below is a comment made by SeatleView on another thread regarding some of my previous comments:

    SeatleView

    Dividends#1,
    You raise an excellent point. As you note, it derives from Monday's experience.
    MORL may potentially reach $5 due to LIQUIDITY ISSUES, not necessarily because that $5 price corresponds to the underlying holdings NAVs.
    Unless I am missing something, this is a critical point. When MORL hit $12.75 last Monday, that price did not correspond to the underlying holdings' NAVs according to the way the MORL price is supposed to be calculated. It reflected a lack of liquidity.
    Re: redemption, UBS literature says "$5," it doesn't say "$5 as accurate representation of MORT index NAVs."
    30 Aug, 09:56 PM

    **********************...

    Here is my response below to him:

    SeatleView,

    You are finally seeing the light!!

    This will happen again and the next time, no buyers, capitulation. Bad results for investors. I am trying to help people.

    I pointed out the liquidity issue in my first article's conclusion, see below { and many shrugged it off, you might have shrugged it off yourself, now you are starting to get it}

    From my first article, I quote myself below:

    "Liquidity is not very good. When high volume selling starts (panic selling), the exits will be too crowded to get out without investors getting hurt. The last 10 day average volume was 428,117 shares. This is truly chasing yield and only problems can arise from doing so. The dividend yield is " too good to be true." http://tinyurl.com/oxu...

    Additionally from my first article, I quote myself below:
    " I have seen 2x leveraged index products drop 30% after the index dropped 10%. So it dropped 3x even though it was only supposed to drop 2x. Does anyone know for sure, that if the mREIT sector dropped 10% in one day, MORL would not drop 25%-30% that same day"?"

    PS: *** The latest stats from Charles Schwab Avg. Volume (10 day) 247,810, the volume is drying up!!

    On the big sell off day 8/24/15 the volume was 721,900.

    Why would anyone "risk" a lot of their money in this product is beyond me. I understand the people who have a small amount of exposure, I am not talking to them, I am reaching out to the ones who are overexposed and they know who they are!!!
    Aug 31, 2015. 06:47 AM
    Aug 31, 2015. 07:21 AM | Likes Like |Link to Comment
  • mREITs Impacted By Enormous Price To Book Swing - MORL Yielding 27.6% [View article]
    SeatleView,

    You are finally seeing the light!!

    This will happen again and the next time, no buyers, capitulation. Bad results for investors. I am trying to help people.

    I pointed out the liquidity issue in my first article's conclusion, see below { and many shrugged it off, you might have shrugged it off yourself, now you are starting to get it}

    From my first article, I quote myself below:

    "Liquidity is not very good. When high volume selling starts (panic selling), the exits will be too crowded to get out without investors getting hurt. The last 10 day average volume was 428,117 shares. This is truly chasing yield and only problems can arise from doing so. The dividend yield is " too good to be true." http://tinyurl.com/oxu...

    Additionally from my first article, I quote myself below:
    " I have seen 2x leveraged index products drop 30% after the index dropped 10%. So it dropped 3x even though it was only supposed to drop 2x. Does anyone know for sure, that if the mREIT sector dropped 10% in one day, MORL would not drop 25%-30% that same day"?"

    PS: *** The latest stats from Charles Schwab Avg. Volume (10 day) 247,810, the volume is drying up!!

    On the big sell off day 8/24/15 the volume was 721,900.

    Why would anyone "risk" a lot of their money in this product is beyond me. I understand the people who have a small amount of exposure, I am not talking to them, I am reaching out to the ones who are overexposed and they know who they are!!!
    Aug 31, 2015. 06:47 AM | Likes Like |Link to Comment
  • mREITs Impacted By Enormous Price To Book Swing - MORL Yielding 27.6% [View article]
    I knew that in 2011. I do my homework!

    You still dont get it!!
    Aug 30, 2015. 09:21 PM | Likes Like |Link to Comment
  • mREITs Impacted By Enormous Price To Book Swing - MORL Yielding 27.6% [View article]
    SeatleView,

    I am exhausted, so a brief incomplete response is the best I can do.
    You are 85-90% correct. To be continued.
    Aug 30, 2015. 09:18 PM | Likes Like |Link to Comment
  • mREITs Impacted By Enormous Price To Book Swing - MORL Yielding 27.6% [View article]
    Glad to entertain you. They should pay me more!!

    The futures are down.

    I raised a ton of cash on Friday in my taxable account and will be patiently waiting to buy quality stocks on sale, not " UBS created products for the greedy".

    I have a GTC limit order in for MO at $44.50 and a GTC limit order in for AAPL at $65.50. If they never fill, I lose nothing, if they fill I have a gift.

    I will be looking to buy quality blue chips after the next bear market correction. The bear will be here soon. It has been too long without a bear. I am going to be patient with my taxable account.

    I am not selling any shares in my Retirement portfolio.
    Aug 30, 2015. 08:01 PM | 1 Like Like |Link to Comment
  • mREITs Impacted By Enormous Price To Book Swing - MORL Yielding 27.6% [View article]
    GGjr,

    And they let you have a check book and a brokerage account?

    PS: Seeking Alpha contacted me to contribute after I made such wonderful comments, much better than yours!! I actually have a good track record.
    Aug 30, 2015. 06:45 PM | 1 Like Like |Link to Comment
  • mREITs Impacted By Enormous Price To Book Swing - MORL Yielding 27.6% [View article]
    Rob1492,

    All your logic does not apply to MORL. It applies to mREITs but not MORL.

    Did you notice that MORL went from $16.66 on 8/20/15 to $12.75 on 8/24/15 { a 23.5% drop}, what if no buyers came in? You do understand that when capitulation occurs that there are NO buyers. We have not seen a bear market in 4 years. This is only the 3rd time in history that 4 years have passed without a 20% correction.

    When we get a week of capitulation and they throw out the baby with the bath water, and the indexes correct 15-20% from their all time highs, the leveraged ETF's /ETN's will get demolished.

    AGNC only dropped 6.6% from 8/20/15 high of $20.07 to 8/24/15 low of $18.70, the same short time frame MORL dropped 23.5%, now we are talking about almost a 4x drop in MORL compared to AGNC!!!!!

    This will be magnified when the DOW drops 1,000 3 out of 5 days in a week, and the SELLERS PANIC!! Don't tell me this can't happen. I have been around too long and seen a lot of ugly sell off's.
    No one here wants to see this reality.

    Lance Brofman states:
    "the re-leveraging every month makes it highly unlikely that UBS would redeem any of the 2X ETNs in the foreseeable future."

    ** The problem will be that the damage will occur within 1-3 weeks in between re - leveraging, in other words, it will happen so quick that UBS will not have time to make a difference.

    PS: Rob, you know I never would buy ORC unless Scott recommended it!!!
    Aug 30, 2015. 05:37 PM | 1 Like Like |Link to Comment
  • mREITs Impacted By Enormous Price To Book Swing - MORL Yielding 27.6% [View article]
    Lance Brofman ,

    You say baring a catastrophic event. Does that include 3 days like 8/24/15 where MORL hits $12.75 and instead of buyers coming in, we get capitulation!

    This market is ready for an overall 20%+ bear market correction of all the major indexes and when there is true capitulation, MORL will be in a world of trouble and maybe go below $5 or get close to it. All people on margin calls will be called and the price will drop more.

    I am NOT short, as I NEVER short any securities!!!
    Aug 30, 2015. 05:25 PM | 2 Likes Like |Link to Comment
  • mREITs Impacted By Enormous Price To Book Swing - MORL Yielding 27.6% [View article]
    GGjr,

    Do you know why I plugged my article? Because Lance plugged his article (this one) first on my article! DUH.

    Your starting date for AGNC using MORL's IPO date is meaningless!!!

    Use AGNC's IPO date vs. MORL's IPO date and AGNC crushes MORL!!!!!

    And don't give me the BS that AGNC went public at the best time for a mREIT. AGNC crushed many other mREITs that went public around the same time or already existed.

    You were lucky on Monday that hte market turned around. If the DOW closed down 1,100, etc. And the next day was a huge down day. MORL could have closed at $10
    Aug 30, 2015. 04:57 PM | 1 Like Like |Link to Comment
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