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Morgan Myrmo  

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  • The Ultimate High-Yield Bond Portfolio [View article]
    Hi Lawrence,
    I haven't calculated the Sortino or Sharpe ratio on these components or portfolio.. perhaps a good idea moving forward. As far as going on margin, I'd rather recommend investors pay an asset manager for leverage. It's easier to manage and requires less sophistication. Of course options can increase returns as well, however once again we encounter the same dilemma.

    As far as correlation, you are perhaps correct here as well. The important thing is that each fund represents a different strategy, so for the low cost of trading I believe it benefits the individual investor to reduce risk through several funds.

    Thanks for the comment. Looking forward to hearing more from you moving forward. It's a real treat to publish on SA and feedback like this is very motivating.
    -Morgan
    Mar 31, 2015. 12:45 PM | 1 Like Like |Link to Comment
  • The Ultimate High-Yield Bond Portfolio [View article]
    Downtown,
    Thanks for the comment, very important considerations. Was looking to showcase diversification in the CEF fixed-income space, as such LDP was picked and is my top choice for a preferred stock fund today.
    -Morgan
    Mar 31, 2015. 12:39 PM | Likes Like |Link to Comment
  • The Ultimate High-Yield Bond Portfolio [View article]
    Great entry point to PDI.. while the yield is slightly less than peer PIMCO funds, the potential of capital appreciation is higher.
    -Morgan
    Mar 31, 2015. 12:37 PM | 1 Like Like |Link to Comment
  • The Ultimate High-Yield Bond Portfolio [View article]
    Hack,
    Glad you like CEFs, I believe they are a great way to invest in the market for both bonds and equities.

    As far as the rant.. each industry is different however the aggregate employment situation is improving dramatically, as such, aggregate wages will increase. As far as getting work, I'd suggest everyone looking for a new or better income opportunity have a great attitude and visualize their job, rather than have the mindset of employer rejection at the forefront of their thinking.
    -Morgan
    Mar 31, 2015. 12:36 PM | Likes Like |Link to Comment
  • The Ultimate High-Yield Bond Portfolio [View article]
    John,
    This is my ultimate bond portfolio. I do like PONDX as well. I was not attempting to claim this as "superior," I apologize if you believe that to be true. As stated in a previous comment, I am only looking to get the ball rolling to showcase how a bond portfolio could be created to achieve higher yields in today's low-yield environment.

    Also, as stated in the intro quote, the fruit is on the limb. So I went out on a limb, I do hope you enjoyed the read. Thanks for commenting.
    -Morgan
    Mar 30, 2015. 08:18 PM | 1 Like Like |Link to Comment
  • The Ultimate High-Yield Bond Portfolio [View article]
    To address higher rates, I stated:

    "What investors must note is that the Fed is likely to raise rates at a very slow pace. With this in mind, bond values will continue to increase as they mature as long as the positively-sloped yield curve remains intact."

    When you hold a 5-year bond for a couple years, the value increases with a positively-shaped yield curve. Here's an article link to the yield curve to help explain: (http://bit.ly/1CF2V5q). Rates will rise slowly, bond investors will continue to achieve results.

    I hope this helps.
    -Morgan
    Mar 30, 2015. 08:16 PM | 1 Like Like |Link to Comment
  • The Ultimate High-Yield Bond Portfolio [View article]
    Agreed Smith, CDs and bank yields are horrid. Also, gold yields nothing, leaving the retirees in a bind. As such, the search for yield requires risk.
    -Morgan
    Mar 30, 2015. 08:13 PM | Likes Like |Link to Comment
  • The Ultimate High-Yield Bond Portfolio [View article]
    Jwalker,
    That type of thinking presents value for investors who realize that PIMCO is best-of-breed, regardless of where Gross puts his desk.
    -Morgan
    Mar 30, 2015. 08:12 PM | 1 Like Like |Link to Comment
  • The Ultimate High-Yield Bond Portfolio [View article]
    Berloe,
    Thanks for chiming in. Excellent point.
    -Morgan
    Mar 30, 2015. 08:11 PM | Likes Like |Link to Comment
  • The Ultimate High-Yield Bond Portfolio [View article]
    Alpha,
    I would suggest a bond portfolio in the 20% range of their total portfolio for the time being. To lower costs, mutual funds are great here. If you can get the following two funds with no trading fees or loads, I suggest them highly. They are PBDDX (investment grade corps) and PONDX, the latter which has a more broad portfolio and higher yield.

    When looking into CEFs, watch for big discounts, such as the one in PCI. PDI, another fund mentioned, will likely lead the pack in capital appreciation, which could help the portfolio moving forward.
    -Morgan
    Mar 30, 2015. 08:11 PM | 2 Likes Like |Link to Comment
  • The Ultimate High-Yield Bond Portfolio [View article]
    Hi Hack,
    I do have a degree in economics.. to weigh in I see wages increasing from the bottom-up this year. It could happen faster than expected, which I believe is the reason the Fed is so concerned about raising rates sooner-than-later.

    To read an analysis why, here's a link to an article on where to profit from wage gains (http://seekingalpha.co...), published March 24, 2015.

    I hope this helps.
    -Morgan
    Mar 30, 2015. 08:08 PM | Likes Like |Link to Comment
  • The Ultimate High-Yield Bond Portfolio [View article]
    Air,
    I appreciate the comment. I've written extensively on these funds in the past and will include more links to the previous articles to expand on risk/reward. The purpose of this article was to create a simple bond portfolio using leverage to enhance results. Also, this article was to be an entry-point into more diligence, I do agree there are many more considerations on these funds.

    Also, the thesis of this article could be summed as I stated above, "Income investors would be wise at this time to continue to operate a strategic bond portfolio, of which the following options collectively represent a yield over 8%." This was just a sample portfolio of my top-rated funds as an example to get the ball rolling for investors to create their own portfolio, using diversification, yield and above-average discounts to create additional value.

    Also, I agree that several utility and REIT funds in the space are great bargains, such as UTF, UTG and RQI. However, this was only an article for income from the bond area of the portfolio, which I capped at 20%.

    I would never pass something to SA readers without careful consideration to the merits of the thesis. I was hoping to generate discussion here, I do appreciate your compliment that you find some of my other work as top-notch. When I have the time to write here, I look to make every word count.

    I hope this helps!
    -Morgan
    Mar 30, 2015. 08:05 PM | 2 Likes Like |Link to Comment
  • The Ultimate High-Yield Bond Portfolio [View article]
    Mar,
    Yes, 82% is in PIMCO. I don't see much risk here now that the figure-head has left the building. If you think about it, he didn't manage ~$2 trillion on his own. They still have the best team in the business, in my opinion.

    Also, this may have helped cause less-expensive entry-points into the CEFs mentioned above. I hope this helps.
    -Morgan
    Mar 30, 2015. 07:58 PM | 2 Likes Like |Link to Comment
  • The Ultimate High-Yield Bond Portfolio [View article]
    Aveguy,
    Thanks for the comment. PONDX is an excellent mutual fund, I highly recommend it if you are able to purchase it with no transaction fees or loads.
    -Morgan
    Mar 30, 2015. 07:56 PM | 1 Like Like |Link to Comment
  • This REIT Yielding 7.4% Should Benefit Investors When Rates Rise [View article]
    Excellent article, thanks for sharing Brad.
    -Morgan
    Mar 29, 2015. 01:56 PM | Likes Like |Link to Comment
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