Patient Investors: An Interesting Dividend Approach Using Your Home Equity [View article]
I meant for the article to be thought provoking. My basic point was that this shouldn't be done by most investors and that I personally have never really liked having any debt. However, for the right investor it might make sense. I certainly don't want anyone investing without having proper liquidity/cash flows/income to support their financial needs no matter what happens with their investment. There is substantial risk in investing. No one knows the future. Interestingly, I probably would have had a similar reaction as you had I read the article from someone else. Thanks for your comment.
Patient Investors: An Interesting Dividend Approach Using Your Home Equity [View article]
I am not advising that everyone go out and do this. I think it might make some sense for a small percentage of investors but not for most investors. I don't know any of the readers personal situations so I can't really advise them. I just thought it was an interesting concept (although not a new one) given the state of mortgage rates and other factors. I looked at it more as an exploratory exercise.
Patient Investors: An Interesting Dividend Approach Using Your Home Equity [View article]
Honestly, that is my general stance as well. I have always been anti-debt. On my first home, I paid off my mortgage within a few months. However, is there a point where rates are low enough that some investors should reconsider this stance. I guess that was what I was wondering. What if rates when to 1%? I was thinking about it for myself so I decided to write an article about it.
Patient Investors: An Interesting Dividend Approach Using Your Home Equity [View article]
I don't ten to think of homes as an investment (probably because I prefer productive assets) but I do think home prices will rise nicely over the long term. The cost of land and building will go up over time. The cost to build is already higher than the amount you can buy an existing home. Eventually, the extra inventory of homes including the shadow inventory will get completely absorbed. Just consider the rate of household formation. In my case, I recently bought a foreclosed home, renovated it and added a large addition to it. I just completed the addition, so I was considering doing this strategy myself which prompted me to write an article. I do use a line of equity on my last home which I rent to take advantage of opportunities or for extra available liquidity (I like to have multiple fallback positions) to back SPY puts that I have sold. My first article was about my put selling strategy.
European Stocks Are Worth The Risk: An Opportunity In VGK [View article]
I can completely relate to your comments. Very often I get irrated by commentators that hate individual stocks and the stock market as a whole when it is in the bargain bin and then suddently love them when they are hitting new highs. It is even worse when it is journalists who as you said "don't eat their own cooking". In my case, I do eat my own cooking. As a self-made (all blessing are from God though) decamillionaire, my cooking (aka dividends) feed my family and provide me with a continual flow of capital to deploy. I can relate to your use of puts as well. Check out my first article on selling puts. Anyway, I do own a large chunk of VGK that I bought under 40 and several individual European ADRs. That doesn't mean it is not a good investment now at 45. Personally, as a long-term value investor I would have liked to seen the market stay at its March 2009 lows. I bought a lot during the early 2009 time period. Does that mean I shouldn't have bought more in early 2010 when I had more capital to deploy? For me, I answer those questions by doing my own valuation and risk/reward analysis. Thanks again for reading my article and your comment. I would have probably thought the same thing if I had read it.
European Stocks Are Worth The Risk: An Opportunity In VGK [View article]
I agree...currency movements are very hard to predict with accuracy. It is worth mentioning that a lower euro allows the European companies' exports to be more competitively priced and/or more profitable.
Selling SPDR S&P 500 Puts - Getting Paid For Time Passing [View article]
Jerry, That sounds very interesting. I am familiar with the time decay aspect of the 3X etfs but haven't considered taking advantage of that via options. I will message you. Thanks!
Selling SPDR S&P 500 Puts - Getting Paid For Time Passing [View article]
As you probably know, right now option premiums are very low. I wouldn't even consider selling put options with the VIX below 20. I usually want to see at least 30 on the VIX.
We Should Want The Market To Drop [View article]
We Should Want The Market To Drop [View article]
Patient Investors: An Interesting Dividend Approach Using Your Home Equity [View article]
Patient Investors: An Interesting Dividend Approach Using Your Home Equity [View article]
Patient Investors: An Interesting Dividend Approach Using Your Home Equity [View article]
Patient Investors: An Interesting Dividend Approach Using Your Home Equity [View article]
Patient Investors: An Interesting Dividend Approach Using Your Home Equity [View article]
Patient Investors: An Interesting Dividend Approach Using Your Home Equity [View article]
Patient Investors: An Interesting Dividend Approach Using Your Home Equity [View article]
Patient Investors: An Interesting Dividend Approach Using Your Home Equity [View article]
European Stocks Are Worth The Risk: An Opportunity In VGK [View article]
European Stocks Are Worth The Risk: An Opportunity In VGK [View article]
European Stocks Are Worth The Risk: An Opportunity In VGK [View article]
Selling SPDR S&P 500 Puts - Getting Paid For Time Passing [View article]
Selling SPDR S&P 500 Puts - Getting Paid For Time Passing [View article]