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User 181456

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  • Atlas Resource Partners' Distribution Is Compromised [View article]
    The preferred share dividends are fixed-rate contractually and "cumulative". If preferred dividends are ever suspended, common distributions would be contractually barred unless and until all preferred distributions (fixed rate) are brought current. Thus, cut in preferred dividend most likely to never happen unless and until the the company is facing bankruptcy or other receivership process.
    Nov 25, 2015. 08:38 PM | Likes Like |Link to Comment
  • Atlas Resource Partners whacks distribution in return for lender concessions [View news story]
    off the cuff, only explanation for pricing of preferred D and E versus less risky bonds would be preferred stocks probably have longer duration (I know not the bonds). This may tilt you in favor of the preferred if you are unworried about ARP survival, and thus willing to accept the risk of being subordinate to debt. With the preferred D trading at $7.50, investors should hope rather than worry that might "suffer" exercise of the call feature in the years ahead. I own the preferred D, now one of my larger holdings outside my ETF cores, though I understand why the bonds may be favored by many on a risk/reward basis.
    Nov 23, 2015. 09:31 PM | 1 Like Like |Link to Comment
  • Time Management? [View article]
    "Given enough time, risky investments become safe, and safe investments become risky."

    Well stated! For individual events or investments, riskier often means a high probability of total, irreversible failure (e.g., bankruptcy). But while some "risky" investments fail altogether before they have time to become safe, there is assurance here for the well-diversified investor who can afford long patience. Riskier categories can sometimes take more than a decade to prove out the risk premium (studies of value over growth, and small cap over large come to mind) but time and statistics are on their side. Thanks for the fine article.
    Oct 13, 2015. 12:31 AM | Likes Like |Link to Comment
  • Are Negative Yields Making Bonds A Form Of Insurance? [View article]
    Thanks for posting this. I still need clarification. It has seemed to me that a lender should not want to loan its cash at negative rates unless it is threatened with some penalty for hoarding too much cash (confiscation, tax, restriction on its ability to do business, etc.) If the effective value of the penalty equals, say, 2% per annum, and if the lender has no desire to spend the cash on goods, services or assets, then the lender may be happy to lend money at a negative rate, as long as the rate is less than the penalty. Deflation is not a reason to lend at negative rates. Am I correct?
    May 22, 2015. 10:28 AM | Likes Like |Link to Comment
  • Lower GDP Growth Will Be New Normal [View article]
    Yes, there remains a significant global wage gap and that many jobs are overseas as a result. I only added that taxes, regulation and other governmental activities are significant governmental factors in GDP growth or stagnation. You said that our slowed growth has nothing to do with the policies of presidents. Micoz seemed to believe the complete opposite. The truth is often more complex; both politicians and globalized capitalism have effect, for better or worse.
    May 21, 2015. 05:44 PM | Likes Like |Link to Comment
  • Lower GDP Growth Will Be New Normal [View article]
    Hello David,

    Let's be balanced, and admit that you both made good points, but that both globalization and liberal US political economics have significantly depressed this recovery. In a free economy, businesses purchase labor for the best price available. Many liberal policies increase the cost of labor and deter investment. Right to work laws (less expensive labor) drew Boeing investment dollars to South Carolina from the states of Washington and California. $15 minimum wages in Seattle and elsewhere may have noble purpose, but they will reduce the supply of entry level jobs, particularly hurting those without skills and seeking employment for the first time. Complex regulations and unfunded liabilities (e.g., increased mandates for unemployment, sick leave, etc.) placed upon employers also discourage hiring and make other states and countries relatively more attractive for investment. You are free to argue that the benefits promised are real, economically efficient and worthy of the cost. We can save that debate for another time. What is inarguable is that there is no such thing as a free lunch. Taxes and a host of regulation deter investment and inhibit growth. The real debate is not whether but how much.
    May 20, 2015. 01:25 PM | Likes Like |Link to Comment
  • Stock Dividends: Underrated Component of Investment Return [View article]
    Thanks for the article. Just received the March dividend from SDY, 20 to 24% less than the previous quarters. It could be because of rebalancing effects, but still surprised that the rate would drop like that. Any further knowledged about that? Also, I ran a total return study of DVY against SDY, VIG, RSP, SPY, et. al. and it did not do so well. Pummelled in the Oct 07 to Mr 09 bear market. Probably because of indiscriminate retention of overweighted financials during the crisis. SDY and VIG seemed much healthier in the down draft.
    Mar 31, 2011. 10:08 AM | 3 Likes Like |Link to Comment