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The Fed Should Raise Rates Now; However, It Won't
Thu, Sep. 11 • 10 Comments
- All eyes are on the next FOMC meeting, which takes place September 16-17, 2014, regarding the future state of monetary policy.
- Based on the traditional Fed mandate, the Federal Open Market Committee should raise rates now to stave off inflation and promote a strong dollar policy.
- Using previous guidance, the Fed will not raise rates at the next FOMC meeting as markets would be spooked; however, forward guidance may suggest an earlier-than-expected rate hike.
Realty Income Appears Undervalued
- Once an investor determines his asset allocation, it is essential to pick great funds and/or individual stocks to create a low risk, balanced portfolio.
- When it comes to real estate investment trusts (REITs), investors achieve property ownership alongside high income associated with the particular REIT's profitability.
- Realty Income Corporation is a domestic REIT that offers long-term dividend growth with a forward yield of 4.84%.
- When measuring Realty Income's FFO yield versus the 10-Year U.S. Treasury Bond yield, the stock appears undervalued in terms of short-term normal company pricing.
Realty Income Price Swings: Too Risky To Buy Now?
- Realty Income Corporation is a stable company that has experienced severe price swings since the beginning of 2013.
- Another author has suggested that the current valuation may not present a good risk-adjusted purchase.
- Based on investing 101 guidelines, a new solution is presented to give investors a lower-risk entry point into the stock.
American Realty Capital: Setting The Record Straight
- ARCP is a real estate investment trust that has gained heavy coverage over the past 12 months due to a high dividend and rapid short-term company growth through major acquisitions.
- Recently, investors have been given false information regarding ARCP's valuation, although this is not the intention of other writers, let's allow the facts to speak for themselves.
- Versus top peers and REITs in general, the current ARCP valuation is so compelling that U.S. investors should consider the company for further research.
$1 Million Perpetual Income Fund: Q2 Update
- The REVCO Growth & Income Fund is a hypothetical portfolio that was created in March 2014 with $1 million to showcase implementation of the 4% plan.
- A comprehensive mid-year update reflecting the REVCO fund performance through Q2 2014 measured against the S&P 500.
- Macro analysis of the fund strategy with performance-related evidence regarding domestic and global macro trends, specifically investing alongside the theme of "currency risk.".
- 2014 Investor Outlook.
Forget Fleckenstein And 'Bearology,' Buy Stocks Now
- In all up markets there are both eternal optimists as well as popular pundits who shout for doom and gloom.
- Look to arguments for downside risk that use logic, rather than negative buzzwords and blanket sell-side statements that are poorly constructed.
- Stay bullish on stocks due to investor sentiment, valuation and the state of the political economy.
Biotech Sell-Off Brings Value To U.S. Healthcare Stocks
- Biotech stocks have been under heavy pressure over two trading days due to U.S. lawmakers raising concerns regarding Gilead Sciences' pricing of its new Hepatitis C drug, Sovaldi.
- Broad-based healthcare stocks and funds have been hit, which can be seen as "throwing the baby out with the bathwater."
- Long-term growth investors should look at this pullback as an opportunity to buy into the ex-biotech domestic healthcare sector, as secular growth remains intact.
Whale Watching: Possible Huge Interest In Select U.S. REITs
- U.S. real estate investment trusts (REITs) were poor performers in 2013 due to the "rising rates" macro theme that emerged in late-May.
- The new 2014 macro theme of "currency risk" is now pushing interest rates down and supporting the uptick of domestic and IR-sensitive high-yield stocks, specifically U.S. REITs.
- In comparing the trading volume on select U.S. REITs on 3/21/14 versus the average volume, one may suggest that whales have begun to feed on undervalued names in the sector.
Drive-Thru Dividend Growth Investing: Yay Or Nay?
- Drive-thru restaurants have thrived in the U.S. since first coming to fruition over 60 years ago.
- Income investors should look at drive-thru restaurant chains for long-term dividend growth options.
- When investing in industries that you support financially, it often pays to invest in companies you find best-of-class as voted by your personal pocketbook, however, not always.
- As a consumer, I can relate to 14 drive-thru options, of which half are public companies.
- The best-of-breed drive-thru that I want to own is Starbucks Corporation, however, the valuation is a bit pricey today for income investors.
'Fedspeak' Puts 2 High-Yield REITs On Sale Now
- On Wednesday March 19, Fed Chair Janet Yellen instates a second round of tapering, to the tune of $10 billion per month.
- The ensuing spike in the 10-year U.S. treasury bond may be a temporary phenomenon, as currency risk may prove to be the 2014 macro theme.
- The yield spike in the 10-year caused a drop in U.S. REIT prices across the board.
- Leading U.S. net-lease REIT ARCP now has a forward yield of over 7% in addition to huge growth prospects.
- The U.S. healthcare REIT MPW, a small-cap hospital pure-play with a forward yield of 6.7%, offers compelling upside from current pricing.
The $1 Million Perpetual Income Portfolio: ETF Edition
- The 4% plan showcases a portfolio asset allocation strategy designed for income investors to provide stable, growing income distributions.
- The 4% plan incorporated as a new, $1 million perpetual income portfolio that only uses ETFs in an effort to mitigate risk.
- Review of the investment targets, allocations and equity portfolio allocations.
- The future trading strategy of the fund designed to ensure both stable, growing distributions and long-term capital appreciation.
Introducing The Earnings Yield Growth Root
- The widely-used P/E ratio is a limited stock valuation tool.
- The best stock valuation tool is the earnings yield, which has more functionality than the tired price-to-earnings ratio.
- The PEG ratio is an attempt to value stocks while accounting for short-term growth, however it too has a limited use.
- The Earnings Yield Growth Root is a new metric that offers a solution to better grade company valuations while accounting for both earnings and growth.
Buy Freedom, Not China
- The Index of Economic Freedom provides a country-by-country ranking system regarding the freedom of the individual.
- Investing in countries with higher degrees of freedom are advised as these societies are more likely to prosper.
- Countries with a low ranking, such as china, should be avoided to mitigate risk, increase returns and support collective human freedom.
- The Utility And Infrastructure CEF Report: 6%+ Yields And Deep Value
- 2 High-Yield REITs With Heavy Upside Potential
- The $1 Million Perpetual Income Portfolio
- The 4% Plan: March 2014 Allocation Update
- Kayne Anderson: The Best MLP Fund To Buy Now
- It's Time To Bait The REIT Hook
- Currency Risk To Push U.S. And European Stocks Higher
- 5 Beat-Up, Solid Dividend Growth Stocks
- How Obama's 'MyRA' Plan Will Impact The U.S. Economy
- 2 High-Quality REIT Arbitrage Plays
- Bill Gross Picks For Barron's Roundtable 2014
- Correction Fears Are Overblown: Buy The Dip
- The Ultimate PIMCO High-Yield Bond Portfolio
- Why Instagram Is Facebook's Ticket To The Moon
- Analysts Are Not Always Right: Buy These 2 Stocks Now
- Interview With Lauralee Martin, CEO Of HCP, Inc.
- 2014 Income Investing In The Fast Lane
- 3 High-Yield Income Investments On Sale Now
- 5 High-Yield Monthly Income Investments For 2014