Diver Dave

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  • The Great P/E Debate: Are Stocks Overvalued?  [View article]
    Emerald, "Simply put, when you artificially depress one variable (interest rates), you increase another variable (earnings for levered companies) resulting in a higher P/E ratio." If you increase the denominator - earnings, the P/E ratio drops. If the ratio is artificially lowered down like this I think the market appears to be less overvalued than it really is.
    May 16, 2015. 11:14 PM | 1 Like Like |Link to Comment
  • Retirees Please Don't Index, You Deserve Better Than Average  [View article]
    "Diver D,Thanks for sharing your success with us about the index funds! You are officially the first person I know to have grabbed the golden ring." I did it with actively managed funds, although some of the non-vanguard ones have been real clunkers. Since I am almost 56 and not working, it doesnt look like I will have a lot of growth from here on.
    Jun 2, 2014. 02:19 PM | Likes Like |Link to Comment
  • Retirees Please Don't Index, You Deserve Better Than Average  [View article]
    I am a mutual fund millionaire. Thank you Vanguard!.
    May 29, 2014. 11:50 PM | 5 Likes Like |Link to Comment
  • Why Bond Yields Are Falling  [View article]
    According to Don Deventer's articles (see the bond section), interest rates are going up in the next few years. I wonder who is right?.
    May 17, 2014. 10:03 AM | Likes Like |Link to Comment
  • The Perils Of Pauline And The Power Of Monetary Policy  [View article]
    Lawrence, Why does a single guy like me constantly have to subsidize everyone elses kids?
    Apr 18, 2014. 10:58 PM | Likes Like |Link to Comment
  • Rich And Retired? It Is ALL About Capital Preservation, Folks!  [View article]
    RS, Good article but you forgot that the 15 million needs to be preserved and grown to keep up with inflation so the kids get adequate inheritances.
    Mar 16, 2014. 10:24 PM | 1 Like Like |Link to Comment
  • Managed Duration Investment Grade Muni CEF: ~10% Tax-Equivalent Yield, 9% Discount To NAV  [View article]
    I looked on M* too and I see about 70% of the bonds mature in 15 years or more. Even if most are callable, this is a big concern for me. I made the mistake of buying a 2035 muni once that I am hoping gets called in 2016 as its trading well below what I paid for it. Do any of you guys see a concern with these long maturities in this fund?
    Mar 4, 2014. 08:38 PM | 2 Likes Like |Link to Comment
  • Dumb Investment Of The Week: Floating Rate Note Funds  [View article]
    As far as the borrowing company being "desperate" remember they can pay the loan back at any time before maturity if they so choose. What I like about buying bond or loan funds (with 10 years or less to maturity) is that even if the price of the debt securities decline, they will eventually come back to par as long as the company does not default - unlike stocks. The 75% recovery rate on a defaulted bank loan as well as the upside to interest payments also lessens the risk.
    Feb 26, 2014. 01:04 AM | Likes Like |Link to Comment
  • For Puerto Rico Bondholders, The Chickens Have Come Home To Roost  [View article]
    Jeff Gundlach thinks the PR bondholders will get their principle back at maturity. He thinks the island is "too big to fail" and the US taxpayer will come to the rescue. He will probalbly be proven right.
    Feb 14, 2014. 01:39 AM | 1 Like Like |Link to Comment
  • Bonds As The Ballast  [View article]
    "AGG currently offers a yield to maturity of 2.32%" Yes I know this is a safe investment, but it seems 2.32% doesnt even cover inflation.
    Feb 12, 2014. 01:56 AM | Likes Like |Link to Comment
  • Annaly Capital: The Share Price Has Increased, Are Dividends Next?  [View article]
    I wonder how much the share price will drop if the ten year traesury rate goes back above 3%?. I believe the 10 year rate will start heading up again now that the stock correction seems to be over and fed tapering starts to have a greater and greater effect.
    Feb 11, 2014. 08:38 PM | 1 Like Like |Link to Comment
  • Gary Kain Is The Warren Buffett Of Mortgages  [View article]
    Thanks Scott, Case closed! All you detractors need to learn from the experts - Gary Kain & Scott Kennedy!
    Feb 11, 2014. 08:25 PM | 1 Like Like |Link to Comment
  • The Debt Ceiling Impasse And The Outlook For Treasuries And Mortgage Yields  [View article]
    "2.The 10 year U.S. Treasury yield in ten years is forecast to reach 4.450%, 4 basis points higher than last week." Don is this a typo? I thought the 10 year yield was around 2.6%? Or am I not understanding?
    Feb 9, 2014. 08:32 PM | Likes Like |Link to Comment
  • 2014's Bad Start: Muni Bonds A Bright Exception  [View article]
    Broadcaster, I looked at these two funds and they seem to have long duration, is that something to be concerned about here?
    Feb 7, 2014. 12:55 AM | Likes Like |Link to Comment
  • How Obama's 'MyRA' Plan Will Impact The U.S. Economy  [View article]
    Ok, but if people were all of a sudden allowed to fund these private accounts then where would the federal government get the money to pay current retirees?
    Feb 5, 2014. 02:16 AM | 1 Like Like |Link to Comment