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  • 4 Reasons Why Oil Will Not Trade Much Below $40  [View article]
    All depends on your time line - "lower for longer" is the current mantra: but what is longer? If you accept that the world's population is expanding and that energy needs are congruently increasing and that profit motive is still extant then oil price will eventually rise. Next month, next year, in five years? Who knows the timing; but if you are not a short term trader and are in truth a long term investor then the energy space currently is a fertile ground.
    Aug 10, 2015. 10:01 AM | 1 Like Like |Link to Comment
  • Retired Investors Don't Buy Bonds Until?  [View article]
    One may also recall that not all bonds (and bond funds) are the same. Municipal bonds of high quality (or funds such as CEF Munis that don't trade bonds but hold until call or expiration) have tax implications that may well make them and their real "spendable yield" attractive to certain high bracket retirees.
    Jul 29, 2015. 12:02 PM | 1 Like Like |Link to Comment
  • Energy Transfer Partners declares $1.03 dividend  [View news story]
    Dividend Raise = One of the better measures of a company's good health...
    Jul 23, 2015. 05:58 PM | 3 Likes Like |Link to Comment
  • Kinder Morgan - The Time To Buy Is Now  [View article]
    Not an equity for a trader but an excellent holding for the long term income investor whose energy portfolio should consist of blue chip companies with solid high moat business models providing generous dividends. Many of these are now on super sale as traders, momentum investors and energy tourists are leaving the space. Residents think KMI, EPD, MMP, SEP...excellent opportunity.
    Jul 22, 2015. 06:11 PM | 4 Likes Like |Link to Comment
  • Equity CEFs: Back Up The Truck On SCD  [View instapost]
    Jul 1, 2015. 06:29 PM | Likes Like |Link to Comment
  • GasLog Partners to buy vessels from GasLog for $483M, to offer 7.5M units  [View news story]
    Solid company. Nice buying opportunity.
    Jun 22, 2015. 04:52 PM | Likes Like |Link to Comment
  • Weighing The Week Ahead: The Market Message For The Fed  [View article]
    I agree with a CEF as being a potentially good bond fund structure for a rising rate environment. In particular a Muni holding CEF does not make its income from trading bonds but from most often levered holding of muni bonds until maturation or call. The CEF market price may fall with holder sales induced by fear of rising rates (providing a better entry point and greater "discount" to holdings) but the income provided by the CEF's holdings being not dependent on trading and in a CEF structure not forced to be sold by managers to meet redemptions remains reasonably stable and therefore the dividends provided are reasonably safe. The cost of leverage will increase with rising rates but as some compensation the bonds purchased to replace matured/called bonds will provide greater yield in this environment.
    Jun 14, 2015. 03:12 PM | 2 Likes Like |Link to Comment
  • Utility CEFs For Defensive Income  [View article]
    Shell Midstream Partners LP in the BUI holdings table is SHLX (not RDS.A) - an excellent MLP if a bit over priced currently. BUI appears to be a timely place to hold for a while.
    Jun 12, 2015. 09:47 PM | 1 Like Like |Link to Comment
  • Equity CEFs: Buy Alert On DSE Right Now  [View instapost]
    The DSE payout according to CEFconnect (http://bit.ly/1KIV3Uk) is Return of Capital as is the most part of all MLP distributions and accordingly will lower your cost basis when sold. I am not sure whether the CEF is organized as a C Corp in which case the ROC reduction in basis activates the application of a capital gain tax rate (which is better) or whether they pass through the MLP ROC which activates an ordinary income tax rate on the basis reduction. I suspect the former or too many K1s would be mandated.
    Jun 11, 2015. 08:35 PM | 1 Like Like |Link to Comment
  • Equity CEFs: Buy Alert On DSE Right Now  [View instapost]
    In general MLPs are better held in taxable accounts to take advantage of a deferred tax if sold (time value of your holding on to $$ as opposed to giving these $$ to the govt.) or never paying tax if held until they become part of your estate at which time the basis is stepped up for your heirs.
    Jun 11, 2015. 03:39 PM | 1 Like Like |Link to Comment
  • Why We're Dumping Kinder Morgan Right Now  [View article]
    The "Chicken Little" club now including Meredith Whitney, Hedgeye, and Valuentum...
    Jun 11, 2015. 01:52 PM | 28 Likes Like |Link to Comment
  • CEF Strategies: Municipal Bond CEFs Back On Sale  [View article]
    Unless one is a short term trader the purchase of these CEFs is about obtaining substantial tax free income. As most of these funds do not make their income from trading their bonds but rather usually hold them until called or maturity the income derived by the holdings is dependent upon bond quality and leverage (with its attendant costs). With a rise in interest rates the value of the funds holdings at any given time may well be diminished but if the bonds are not traded and the fund's income source is not dependent on bond trading then the income source and therefore the source of paid dividends is not compromised and is safe. With a rise in interest rates it can be expected that the leverage costs would increase but on the flip side, bonds purchased by the fund to replace their called/maturing bonds would also be expected to have a higher yield in this environment. With this perspective, these Muni CEF funds appear to be an excellent source of income in a balanced portfolio.
    Jun 8, 2015. 07:20 PM | 10 Likes Like |Link to Comment
  • Equity CEFs: Follow The 800-Pound Gorilla  [View article]
    Thanks for the confirmation that I have passed your course - I independently have screened CEFs recently and as a result of applying knowledge gained have been adding to my ETY and BXMX.
    Jun 1, 2015. 10:45 AM | 2 Likes Like |Link to Comment
  • Equity CEFs: How To Buy The Dow Jones Industrial Average At A 10% Discount And A 6.9% Yield  [View article]
    You might want to learn more about ROC.

    May 19, 2015. 03:34 PM | 1 Like Like |Link to Comment
  • Verizon Might Have Hit A Home Run With AOL  [View article]
    I suspect Verizon is playing the game a few moves ahead and attempting to avoid ending up a dumb and heavily regulated pipe.
    May 13, 2015. 05:29 PM | 5 Likes Like |Link to Comment