Five Offbeat Ways to Generate 10% Yields [View article]
I am a big fan of option #4 on your list. My addition to owning JNK also includes DHY, DHF & PHT. They are all near the 10% mark. As far as risk, yes some of their holdings are going to default but the diversity and exposure to any single vulnerability is small.
New JP Morgan Inverse Treasury ETNs Provide Dual Reset Mechanisms [View article]
I don't know, sounds like flim flam to me but I'm just not sophisticated an investor to even think of investigating these "short" funds.
Questions I'd ask if I were to investigate these: What happens during QE2 if the treasury buys up all these bonds - where are they going to get enough to cover?
What happens when they default on their contracts?
Where is the demad coming from to buy these?
Are these actually backed by securities or are they just short positions to the short takers who eventually get it in the shorts? LOL.
Will Financials Be Joining the Party Anytime Soon? [View article]
I'm with you all the way on this one Alan. Thanks for your analysis and helping to build confidence. Building of confidence seems to be the biggest battler for the financial sector. Its just getting too battered by worry - the latest being the mortgage foreclosure fiasco that seems to be more journalistic headline grabbing than anything else.
Its hard to believe that a healthy and profitable financial sector is to be forgone in the economic recovery. This worry spells opportunity.
I have a lot of exposure with a couple of items you mention in your analysis along with a fairly large position in BAC with warrants that have many years to go before they expire. My need for current yield is well covered with high yield bonds funds that include JNK as you mention and I am wrestling with DHY and their interesting watch on what the warrant exercise will be at mid-month.
The rally still has a long way to go and with the financial being left behind - we may just get our big reward. Its only a guess of how soon.
How to Profit From China's Growing Retail Industry [View article]
Thumbs up on the ready to eat theme for China. Also include all products that are income elastic. I would toss in soft drinks and tobacco. China would be the greatest target for the tobacco industry. Domestic brands would benefit tobacco merchants such as UVV and AOI who would sell leaf tobacco to their cigarette companies. I believe the Chinese have a larger growing proportion of their population that smoke. Its probably not taxed as much as in Western countries.
September Stock Performance: Nothing to Get Excited About [View article]
Sobering analysis. We are just seeing a financial recovery thus far. Hopefully the real economy will follow. The fear of inflation makes me think how to prepare. I am refinancing my mortgage on one property and will start to pay down principle on another. If businesses can do the same, these saving should flow to the bottom line but continued sluggish progress in the recovery will hurt sales. My fixed income items continue to rally but I am starting to trim down. I am targeting for sale anthing that can be called where par is below the current market price.
21 Foreign Stocks Yielding More Than 5% Dividends [View article]
I'm adding you to my follow list liking your coverage of Brazil. My only current holding is TSP on it. Nice dividend as you say but uncertain amounts and the payouts seem to come irregular. These companies need to get their dividend payouts on a more regular/quarterly basis. Income investors do need the income because its just as good as cash. (another Yogi?)
Best Ideas of the Week: Energy, Economy, and the Morality of Chinese Growth [View article]
Steve
Like advice to your daughter. Don't look back - look straight ahead concentrate on your stride. Keep your shoulders level. Analyze your foot action. Take smaller quicker steps. Don't dig your heals in too hard and put more strength into your toes pushing off. Don't kick too high but if you are dragging your foot on the ground before pushing off - lift a bit higher.
Best Ideas of the Week: Energy, Economy, and the Morality of Chinese Growth [View article]
I believe with Chinese growth we are all economic winners. More for them means more for us. Lower cost products from them increased demand for technology, mineral inputs, heavy machinery, ag. Commodities, etc. from us.
More is the key. MORE. This was the theme of one lecture when I took Econ. 101. "We are going to have Trillion dollar economy," as the professor wrote out the figure in big numerals on the black board that covered two panes of slate. We have done much better and much is due to international trade.
The faster they grow - the better for our economy.
John Paulson Says to Buy Dividend Stocks and Houses, Sell Bonds [View article]
Location Location ..... Before you buy look who has been buying in the area of interest and find out what they intend to do with the property.
When you see foreclosures being aggressively bid at auction and the ones nearby to be flipped with reconstruction/rehabil... tear downs and complete new construction going on full blast - I'd be a buyer.
If they are just going to rent out and not improve the property - I'd stay away and sell what I have before the area turns into a complete slum.
Are Unemployment Claims as Bullish as They Seem? [View article]
I like a risk reward analysis. Of course the richer you are the more risk you should tolerate but it doesn't work that way. The richer investors are usually older and more conservative.
Tax implications hold sway but I have found that buying or selling for tax reasons never has been an advantage for me.
The FDA approval plays are pure speculation. Not about what the company is doing but how investors anticipate the news. Even good news can bring on a decline from too much anticipation and then selling into the rally to kill it.
I picked up VVUS recently on the sell off on the FDA "bad" news. The buying in anticipation created a big bubble that burst. But its still alive and the rewards tremendous if anywhere's successful.
I am only risking a very small amount on it - less than 1 percent of my portfolio.
The best way to make money in the market is to not lose it. (Almost a Yogi.) It sounds like you have plenty of time to get rich slowly.
Prechter Says Dow 1,000; I Say 'Not Possible' [View article]
I'm a bit late into the frey on this coming in from the road yesterday and now back in Mt. Vernon from my 2nd home in Asheville, NC.
Rebutting unconstructive criticism needs little effort - in fact it should be accepted as the best complement one can receive. Your analysis I find very valuable.
As late as I reply - I sense that you read all. This unending quest to glean every bit of information is impressive. But how to weigh and consider all into an investment decision?
Being a professional statistician, I use a weighting approach. Any possible event has a probability. The risk of decline has to be compared to the probability of reward. On the down side, the risk is very quantifiable but on the reward side, the advance in a stock's price can be limitless. Then there is the tax consideration and an individual's personal wealth/income situation along with tolerance on the risk side.
I'd hate to be an advisor - you have to know your client very well to get an accurate picture and make a prudent decision on any contemplated investment.
Does anyone have an algorithm or spreadsheet model for this type of decision process?
26 Conservative Dividend Stocks That Should Beat Bonds [View article]
The fear of LT bond decline when the Fed starts to raise rates is not entirely warranted. The fear to increase rates in the first place would be inflation. Inflation is the biggest fear for the LT investor.
Right now inflation is not a problem. To see EXC now offering a 30+ at 5-3/4 makes me scratch my head hmmmm...
I have found in the past when the Fed takes aggressive action with inflation - LT bonds rally. I would not be surprised to see the bond rally continue and to see the EXCs new issue be oversold and bid to a premium its first year out.
Monday Options Update: BAC, WYNN, SVU, ISLN, XRX, MNTA & CVX [View article]
Five Offbeat Ways to Generate 10% Yields [View article]
My addition to owning JNK also includes DHY, DHF & PHT.
They are all near the 10% mark.
As far as risk, yes some of their holdings are going to default but the diversity and exposure to any single vulnerability is small.
New JP Morgan Inverse Treasury ETNs Provide Dual Reset Mechanisms [View article]
Questions I'd ask if I were to investigate these:
What happens during QE2 if the treasury buys up all these bonds - where are they going to get enough to cover?
What happens when they default on their contracts?
Where is the demad coming from to buy these?
Are these actually backed by securities or are they just short positions to the short takers who eventually get it in the shorts? LOL.
Will Financials Be Joining the Party Anytime Soon? [View article]
Its hard to believe that a healthy and profitable financial sector is to be forgone in the economic recovery. This worry spells opportunity.
I have a lot of exposure with a couple of items you mention in your analysis along with a fairly large position in BAC with warrants that have many years to go before they expire. My need for current yield is well covered with high yield bonds funds that include JNK as you mention and I am wrestling with DHY and their interesting watch on what the warrant exercise will be at mid-month.
The rally still has a long way to go and with the financial being left behind - we may just get our big reward. Its only a guess of how soon.
21 Foreign Stocks Yielding More Than 5% Dividends [View article]
How to Profit From China's Growing Retail Industry [View article]
21 Foreign Stocks Yielding More Than 5% Dividends [View article]
This from my Schwab IRA account. Looks like it runs about 15%.
05/04/2010 TSP TELECOMUNICACOES DE ADRFSPONSORED ADR
type: CASH DIVIDEND $167.87
05/04/2010 TSP TELECOMUNICACOES DE ADRFSPONSORED ADR
type: FOREIGN TAX PAID -$25.18
12/29/2009 TSP TELECOMUNICACOES DE ADRFSPONSORED ADR
type: CASH DIVIDEND $229.55
12/29/2009 TSP TELECOMUNICACOES DE ADRFSPONSORED ADR
type: FOREIGN TAX PAID -$34.43
September Stock Performance: Nothing to Get Excited About [View article]
The fear of inflation makes me think how to prepare. I am refinancing my mortgage on one property and will start to pay down principle on another. If businesses can do the same, these saving should flow to the bottom line but continued sluggish progress in the recovery will hurt sales.
My fixed income items continue to rally but I am starting to trim down. I am targeting for sale anthing that can be called where par is below the current market price.
21 Foreign Stocks Yielding More Than 5% Dividends [View article]
Best Ideas of the Week: Energy, Economy, and the Morality of Chinese Growth [View article]
Like advice to your daughter. Don't look back - look straight ahead concentrate on your stride. Keep your shoulders level. Analyze your foot action. Take smaller quicker steps. Don't dig your heals in too hard and put more strength into your toes pushing off. Don't kick too high but if you are dragging your foot on the ground before pushing off - lift a bit higher.
Best Ideas of the Week: Energy, Economy, and the Morality of Chinese Growth [View article]
More is the key. MORE. This was the theme of one lecture when I took Econ. 101. "We are going to have Trillion dollar economy," as the professor wrote out the figure in big numerals on the black board that covered two panes of slate.
We have done much better and much is due to international trade.
The faster they grow - the better for our economy.
John Paulson Says to Buy Dividend Stocks and Houses, Sell Bonds [View article]
Before you buy look who has been buying in the area of interest and find out what they intend to do with the property.
When you see foreclosures being aggressively bid at auction and the ones nearby to be flipped with reconstruction/rehabil... tear downs and complete new construction going on full blast - I'd be a buyer.
If they are just going to rent out and not improve the property - I'd stay away and sell what I have before the area turns into a complete slum.
Are Unemployment Claims as Bullish as They Seem? [View article]
Tax implications hold sway but I have found that buying or selling for tax reasons never has been an advantage for me.
The FDA approval plays are pure speculation. Not about what the company is doing but how investors anticipate the news. Even good news can bring on a decline from too much anticipation and then selling into the rally to kill it.
I picked up VVUS recently on the sell off on the FDA "bad" news. The buying in anticipation created a big bubble that burst. But its still alive and the rewards tremendous if anywhere's successful.
I am only risking a very small amount on it - less than 1 percent of my portfolio.
The best way to make money in the market is to not lose it. (Almost a Yogi.) It sounds like you have plenty of time to get rich slowly.
Prechter Says Dow 1,000; I Say 'Not Possible' [View article]
Rebutting unconstructive criticism needs little effort - in fact it should be accepted as the best complement one can receive. Your analysis I find very valuable.
As late as I reply - I sense that you read all. This unending quest to glean every bit of information is impressive. But how to weigh and consider all into an investment decision?
Being a professional statistician, I use a weighting approach. Any possible event has a probability. The risk of decline has to be compared to the probability of reward. On the down side, the risk is very quantifiable but on the reward side, the advance in a stock's price can be limitless. Then there is the tax consideration and an individual's personal wealth/income situation along with tolerance on the risk side.
I'd hate to be an advisor - you have to know your client very well to get an accurate picture and make a prudent decision on any contemplated investment.
Does anyone have an algorithm or spreadsheet model for this type of decision process?
26 Conservative Dividend Stocks That Should Beat Bonds [View article]
Right now inflation is not a problem. To see EXC now offering a 30+ at 5-3/4 makes me scratch my head hmmmm...
I have found in the past when the Fed takes aggressive action with inflation - LT bonds rally. I would not be surprised to see the bond rally continue and to see the EXCs new issue be oversold and bid to a premium its first year out.