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Lee Eugene Munson

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  • EEM With Lower Volatility And Higher Dividends? [View article]
    Thanks for the positive feedback.
    Good luck with your investing!
    Mar 24 06:07 PM | Likes Like |Link to Comment
  • EEM With Lower Volatility And Higher Dividends? [View article]
    DEM is very similar. I think you can toss a coin. They do have different stuff and DEM has larger names. I wanted a smaller cap bias right now, but really, don't over-think it. We are still in some sort of beta rally in equities right now. When that ends, there could be a rational thesis for larger names like DEM.
    Mar 24 06:06 PM | Likes Like |Link to Comment
  • EEM With Lower Volatility And Higher Dividends? [View article]
    Its heavy in Taiwan. That is no small issue. Think of companies in that country as really outsourced tech manufacturing for the US and China.
    Mar 24 06:02 PM | Likes Like |Link to Comment
  • Lee Munson Positions For 2012: Keeping Risk Constant [View article]
    Very good question with simple answer. I prefer ETFs, period. Our firm does have clients that desire individual securities. Also, we have a lot of talent that still has the passion to pick those stocks. If you have lots of time and want to experience your own personal hell, then picking securities is for you! I oversee the process and enjoy the challenge, but the individual investor would do better to stick to baskets of securities. Stocks are best chosen by pro's and even they have an overall bad track record. That being said, there are many who can pull it off, including our firm, but only because we are small and not running a mutual fun.
    Jan 9 12:55 PM | 2 Likes Like |Link to Comment
  • Beating The ETF (Part 2): XLK Or AAPL [View article]
    I appreciate your feedback. It is crazy how quickly AAPL became the dominating force of XLK in only a couple of years. I write this comment on a Mac with an iPhone next to it.
    Dec 18 11:37 AM | Likes Like |Link to Comment
  • Beating The ETF (Part 1): XLK Or AAPL? [View article]
    Thanks for the kind words Edgar, one of the big things we found was how dramatic the change of top holding are over just a few years time. If it proves one thing - backtesting is dangerous.
    Dec 18 11:35 AM | 1 Like Like |Link to Comment
  • VXX or VIXY: Note, Fund, Or Stupid? [View article]
    A lot of the time increased vol will be a byproduct of the market going down. Long term it is important to watch the vol, but if you trade it is best to work on being directional the markets you trade. In general, you are playing with fire trading any form of vol. When we do it at the firm, there is always a spread to lower risk exposure. I prefer to watch . . .
    Aug 1 03:46 PM | Likes Like |Link to Comment
  • VXX or VIXY: Note, Fund, Or Stupid? [View article]
    FYI - I will follow this up tomorrow with an analysis of how well a long VIX trade would have done. Regardless of my feelings about the product, we still need to see the results of playing the news. I am not long or short any VIX products, options, futures - just watching.
    Aug 1 03:43 PM | Likes Like |Link to Comment
  • Swapping JNK With AMJ [View article]
    I have little concern about JPM, which the government has deemed too big to fail. It is not junk paper. Also, a better understanding of the debt structure is a common issue among individual investors. I hear the concern, and with risk management techniques you can address them. The main issue is why you would be long anything, including MLPs, during a credit crisis? Did anyone look at MLP performance in 2008? It was a horror story. One would want to be out of the class long before major money center banks (of which none went bust in 2008) start to get into trouble.
    Jul 30 11:22 AM | Likes Like |Link to Comment
  • Swapping JNK With AMJ [View article]
    Only issues there is leverage on the CEF and liquidity. Too many retail investors get stuck in illiquid CEFs, then don't realize that a portion of the yield is return of capital. Outside of leverage, return of capital, and liquidity - you just end up paying a higher fee for a basket that usually is managed 'lightly'. Meaning, CEFs are often actively managed, but get less attention from the PM.
    Jul 30 11:16 AM | Likes Like |Link to Comment
  • JNK: Chasing Yield Is Not a Plan [View article]
    They are about the same in terms of the risk, only slightly different qualities that I prefer for certain portfolio mixes. Junk bonds can be used for specific purposes in more sophisticated risk budgeted portfolios. As I mentioned in the article, there are a few forms of trusts that pay out dividends and interest only. If you can simulate the risk of a moderate mix with a high degree of junk yield, you have something very useful to the end client. Again, I wouldn't go and do this on your own. Our firm uses high end quant programs to get the risk replication right, and you have to adjust the mix every month. A pain, but for some trusts it is a lifesaver.
    Jul 30 11:13 AM | Likes Like |Link to Comment
  • JNK: Chasing Yield Is Not a Plan [View article]
    I appreciate the feedback. You should also check out wolframalpha.com - it can be a great, free, and easy to use tool in seeing the statistical side of your portfolio. For instance, a client said they liked stodgy stocks like KO and GE. Then I illustrated how GE was twice as volatile as the S+P500, but KO really did have low vol.
    Mar 10 11:42 AM | Likes Like |Link to Comment
  • JNK: Chasing Yield Is Not a Plan [View article]
    Please! You have to utilize risk budgeting. What if junk bonds were twice as risky as their historical norm? Would you own 5% then??? But, if junk was half as risky as the norm, why not consider increasing the allocation?
    Thanks for the comment Diego!
    Mar 9 05:13 PM | Likes Like |Link to Comment
  • Fixed Income Fund Alternative to Bond ETFs [View article]
    I was referencing the H shares that are load free. While there are returns, I will not argue that the fees are higher than a low cost ETF. There is no reason anyone should pay a 5% load for anything.
    Jan 14 03:31 PM | 1 Like Like |Link to Comment
  • 3 ETFs to Protect Against the Interest Rate Risk in 2011 [View article]
    You are making a leveraged bet by doing that. The context of this piece is about how to address a more conservative portfolio that needs to have a fixed income allocation.
    If you want to speculate or trade, I would say short TLT. TBT is really not the most efficient vehicle out there.
    Keep in mind we don't really know if rates will rise - that is why it is a threat, not something that must happen.
    I hope this helps.
    Jan 4 04:07 PM | 1 Like Like |Link to Comment
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