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James Bjorkman  

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  • REIT ETF/ETN Showdown: REM Vs. MORL [View article]
    I'm not taking sides on anything going on here, but just want to say that that is a terrific disclaimer, Dividends#1. Investing is still one of those frontiers where everyone is individually responsible and accountable for their own actions. We provide information and analysis, but the final decision is up to the individual investor.
    Mar 29, 2015. 09:42 PM | 1 Like Like |Link to Comment
  • REIT ETF/ETN Showdown: REM Vs. MORL [View article]
    Thanks, bruce20, for the kind words. I especially appreciate them because I try to write in a way that everyone can easily understand. I see little value in wonky articles that please only the accountants out there - though I want to please them, too - but which fail to reach the broad swathe of investors I know are hungry for new ideas. Thus, I orient my articles in such a way as to give a broad overview and also dive into issues that I have seen most investors would consider critical. In this article, I focused on the price aspect of the security because that is what most concerns people, everyone sees the big dividend and simply touting that helps nobody.
    Mar 29, 2015. 09:32 PM | Likes Like |Link to Comment
  • REIT ETF/ETN Showdown: REM Vs. MORL [View article]
    Yes, waiting for 'just the right moment' is a dangerous strategy, GGjr. It is a terrific way to waste both time and money. Having a longer time horizon gives you more options. You can take more chances and plant the garden a bit deeper. I disagree with those who say if it is iffy in the short term, then it also is a bad long-term play. Once you adopt that philosophy, you have become a market timer. You will always be second-guessing yourself, waiting and waiting and then buying impulsively at the wrong time. You will be wasting your most precious asset - time - and limiting the chance to grow your portfolio by trying to catch things at 'just the right time' - which could be devastating if you're wrong when you finally pull the trigger. And to think that things will be 'clearer' and 'more predictable' at some future date is just a way to procrastinate and do nothing.

    One other thing - it is just when things look 'perfect' and 'safe' that you are extremely likely to be wrong and in the most danger. The market is cruel that way.

    Much better to adopt a disciplined approach, scale in and scale out, take a few chances that hopefully will even out over time. That's what being an investor is all about imho.
    Mar 29, 2015. 08:01 PM | Likes Like |Link to Comment
  • Comparing Annaly Capital Management's BV, Dividend, Risk And Valuation To Several mREIT Peers - Part 2 [View article]
    Nice analysis as always. I submit that since NLY and CYS both pay a $0.30 dividend, in market terms either NLY is slightly over-valued, CYS is slightly under-valued, or both.
    Mar 29, 2015. 05:58 PM | 1 Like Like |Link to Comment
  • REIT ETF/ETN Showdown: REM Vs. MORL [View article]
    Thanks for reading, commenting and contributing, Stary kozel, much appreciated. The diversification and leverage of MORL works well in stable markets.
    Mar 29, 2015. 04:36 PM | Likes Like |Link to Comment
  • REIT ETF/ETN Showdown: REM Vs. MORL [View article]
    Thank you for reading and commenting, Dividends#1.

    "However, I wouldn't bet my financial life on diversification saving you if there is a general sell-off of income stocks (or all stocks, for that matter) due to, say, a sudden interest rate increase. Thus, these types of securities are best used in small doses to add spice to your portfolio, not as core positions."
    Mar 29, 2015. 04:13 PM | Likes Like |Link to Comment
  • REIT ETF/ETN Showdown: REM Vs. MORL [View article]
    Darren, diversification is the prime reason to hold any index product. You get diversification in exchange for associated fees, transaction and otherwise. Thanks for pointing that out, appreciate your contributions.
    Mar 29, 2015. 03:50 PM | Likes Like |Link to Comment
  • REIT ETF/ETN Showdown: REM Vs. MORL [View article]
    Thanks for contributing, Be Here Now. When I say .40%, that is the management fee, which is what most people look at when investing in these types of managed products. I believe in common usages that is the number that most people would point to as the fees. There are hidden transactional costs in many products. Singling out MORL for having some and not referencing other instruments that also have hidden costs is, to my eyes at least, comparing apples to oranges. As you point out, the transactional costs incurred by MORL are quite reasonable compared to what could be obtained by individuals. I should think that incurring a 1% fee or however you choose to define it in exchange for an additional 10% in coupon payments would strike most investors as a fair trade-off. I enjoy seeing this robust discussion and greatly appreciate your contributions.
    Mar 29, 2015. 02:54 PM | Likes Like |Link to Comment
  • REIT ETF/ETN Showdown: REM Vs. MORL [View article]
    There are many reasons not to hike rates imho, and the only reason to hike rates that I can see is because the Fed just thinks it has to do something, anything, to make itself relevant. Unemployment is okay but hardly stellar (especially when looking at U6), recent data has been pretty dismal (and it's always the weather's fault), if oil prices go back up that is going to severely crimp discretionary spending, there's an election next year, and so on and so forth. And the business cycle is moving along, raising rates in the teeth of a gathering recession would make no sense at all. So, the consensus wisdom that the Fed is suddenly going to start raising and raising and raising, well, personally I just don't see it. But then, I've been wrong before, so we shall all wait and see.
    Mar 29, 2015. 02:41 PM | 1 Like Like |Link to Comment
  • American Realty Capital to issue annual report, host call on March 30 [View news story]
    Yes, tennvol_30736. ARCP basically got 10% or something like that of the value of Cole and didn't have to give up anything. It was an awesome coup.
    Mar 29, 2015. 02:09 PM | Likes Like |Link to Comment
  • REIT ETF/ETN Showdown: REM Vs. MORL [View article]
    Thanks for the comment, Darren McCammon.

    If I had to give anyone the single most important advice about stocks that I know, it would be that it is all about money management. Building up a cash hoard and/or reinvesting some of the proceeds in other securities and/or reinvesting some of the dividends in the same stock at the proper times and/or buying more on dips and/or selling some on pops and/or keeping prudent stops in place and/or buying in increments rather than all at once and/or selling in increments rather than all at once and/or diversifying properly and/or doing your due diligence and/or proper risk allocation and all sorts of other prudent money management techniques are the way to success - NOT necessarily always properly divining which stock has the most upside potential and leaving everything on cruise control.

    More so than with many other investments, owning these ETFs/ETNs is like tending a garden (not to sound too much like Chauncey Gardner lol). They really respond best to a more active investor management style than some other securities.
    Mar 29, 2015. 01:59 PM | 2 Likes Like |Link to Comment
  • REIT ETF/ETN Showdown: REM Vs. MORL [View article]
    Thanks for reading and commenting, ReapertLynx. I suspect a lot of people do not reinvest the dividends both out of choice and, as you point out, because some brokers make it difficult.
    Mar 29, 2015. 01:54 PM | 1 Like Like |Link to Comment
  • REIT ETF/ETN Showdown: REM Vs. MORL [View article]
    I'll put that on my list, 31October, thanks for reading and commenting.
    Mar 29, 2015. 01:53 PM | Likes Like |Link to Comment
  • REIT ETF/ETN Showdown: REM Vs. MORL [View article]
    Thank you, Darren McCammon. Yes, the tax implications are the hidden benefit. I didn't really get into that except in passing because all the official documentation states that the tax effects are 'uncertain,' and even thought those documents are a couple of years old, I don't like to stray too far from the official documentation because people scrutinize these products more than just about anything on the site (and rightly so, I might add - I in fact did that with a fact and people correctly noted it, so I corrected it). But as far as I know, you are correct, and the coupons are taxed as dividends. Appreciate your reading and commenting and contributing to the discussion.

    One other factor I'd like to point out, since you kind of brought it up, is that not all mREITs react to interest rates the same way. There are many ways to hedge with swaps and so forth, and the guys who run these underlying stocks are not stupid - they know the odds are rising steadily of a rate hike. CYS, for instance, which I follow closely, has greatly reduced its exposure to rising rates (though some exposure always will remain). So, those looking for total collapse of these stocks upon a rate hike may be in for a bit of a surprise.
    Mar 29, 2015. 01:35 PM | Likes Like |Link to Comment
  • REIT ETF/ETN Showdown: REM Vs. MORL [View article]
    Thank you, KRT-investor. I corrected that in the article, you are 100% right. I had to go back to the IPO documents to satisfy myself that that was the case, because nowhere else does it seem to be explained. As for decay, it is no more decay than any other fund, and in fact less than most. Appreciate your reading and commenting and contributing.
    Mar 29, 2015. 01:33 PM | 1 Like Like |Link to Comment
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