Delojozafado

What to Buy and Why: Barron's 2009 Roundtable, Part II

I am left to wonder in these volatile markets whether or not Mr Gross has already exited some of his position in PHK, since it has had such a run up. The large premium is somewhat reflected in the share price yield of 22%. The theory being that not all the junk will collapse and that MR Gross & his "expert" minions will deftly navigate the perilous swamp of junk debt. Well a lot of investors thought Munis were relatively safe as managed by Pimco/Allianze, then the ARPS blew up at PMX and the others... I would think that PERHAPS an investment in CIK might make a better alternative in the category. It's discount and yield are commensurate with the risk. Some autos in there so I am waiting for a shoe to actually fall there. Perhaps by the end of March. A very decent alternative to junk these days is a portfolio of high grade corporate, US Gov't and Developed nation's bonds with the inflation protection. A combo of BDF,ICB,MIN,WIA (the TIP at a huge discount with double the yield) & +/-10% TBT, could still give you a +6.5% yield. That's double the one year CD. In terms of the beaten down and out there certainly seems to be value in the international REIT sector. If you are not afraid of just a little WEFIF in your portfolio then SLS is certainly compelling. I am sure that many malls in Tokyo, "Singapore", and Dubai will still cut the mustard and their tenants will continue to cough up the rent. SLS recently announced the dividend cut/policy change all knew was coming and now the shares seem fairly valued at $4.80. The shares have either reacted or perhaps over reacted?
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I believe the EWS actually has some solvent banks in it, if that is possible. I think the foreign theme is indeed interesting but look closer to home as most of these currency prognosticators seem to think there is major support at 130/.77 for the Loonie. We are very close to that but the Loonie rallied sharply after midday on 1/21 as oil advanced $7 in the wake of the near term option expiration. If oil is to trade in $30 to $50 range then dividend paying stuff like TRP might have some merit if the pointy billed bird were to rally.