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January24

January24
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  • GE reportedly sells apartment portfolio to Blackstone [View news story]
    GE will be a huge global company long after everyone who is commenting here is gone.
    Aug 12 07:35 PM | Likes Like |Link to Comment
  • Time to get greedy in fixed income? [View news story]
    I love my PCI. Get some while the price is cheap and the net asset value is high. A true bargain.
    Aug 6 12:54 PM | 1 Like Like |Link to Comment
  • GE Threatened By Seminal Event This Week [View article]
    Joe,

    I find that to be a fascinating concept -- the idea that American technology is more advanced than that of the Chinese. You said that the Chinese couldn't build a 787 if they had the prints and a plane in the hangar. Could you elaborate on that a little bit, please? What deficits are there in Chinese engineering that would prevent them from duplicating a 787? I am not challenging you; I think this is a very interesting comment. I have noted that China is still very primitive in many areas -- such as putting plastic in candy, a thing which I have actually experienced.
    Jul 1 09:41 AM | Likes Like |Link to Comment
  • GE Threatened By Seminal Event This Week [View article]
    Very true, Alpha. I've made this point many times. What you expressed was in fact the very thing which brought down the rest of the economy. Everything follows housing. As usual, the Democrats are the villains. But they keep getting voted back in because they have paid off their voter base.
    Jun 25 11:22 AM | Likes Like |Link to Comment
  • Closed-End Fund Discounts Widen: So What Are You Buying? [View article]
    Cash is always good!
    Jun 25 11:18 AM | Likes Like |Link to Comment
  • GE Threatened By Seminal Event This Week [View article]
    Oh, I understand, Banker.

    I understand that rates could rise beyond 4.5%. It's just that I don't think they will. I'm expecting a Japanese-style flat economy in the U.S. for a long time. How long has it been going on in Japan? Quite a while.

    Of course, I could be wrong and interest rates may spike up, as many are predicting. But I don't think so. I know that demographically there are fewer people -- now and in the next five years -- who are reaching the age where they will be entering the housing market.

    And, in any event, I see more and more people moving back in with their parents -- as you see in Italy and Spain. I think we'll see the resurgence of more three-generation families in America -- granny, the parents and the young adult kids.

    The generation that should be buying houses now is saddled with university tuition debt. Even at that, if they had good jobs, they would be able to buy houses anyway. They would be "house poor," but they would feel as though they were getting ahead. But there aren't that many good jobs.

    As I said, I could be wrong. I can't see around corners quite as well as I used to be able to -- partly because the economic times we're living in are utterly unprecedented.

    But I will tell you this: I called the collapse of 2008. All my friends and family were warned. I got out of the stock market and (surprise) loaded up on GE bonds at 6.5% and 7%. I also locked in some very long-term CD rates at percentages that nobody thought looked very good at the time -- like 5% and up.

    You know what happened next. So I sailed though the recession(s) with no losses and with a steady income. Things could be different this time.

    One reason I'm not terribly concerned about the very long term is that I'm older now. If in the very long term my GE bonds turn out to have been too conservative a call, it won't matter to me because I'll be gone.

    I think that your cousin should hang onto her gold. I believe that gold is to be held in one's physical possession -- stored away for a very rainy day. It's not really something to get in and out of. It's for emergencies.
    Jun 20 09:30 AM | Likes Like |Link to Comment
  • GE Threatened By Seminal Event This Week [View article]
    Because, Banker . . .

    For one thing, those are not my only assets.

    For another, GE is a sure thing -- an enormous behemoth of a global company. Nothing catastrophic is going to happen to GE unless it is so catastrophic that it also takes out Planet Earth as well.

    I've had some investments in the energy sector which didn't work out too well. I've learned that it's better to take a little less on a sure thing than a little more on something that's not quite so certain.

    On the other hand, to the risk side, I have quite a bit of PIMCO Dynamic Credit Income Fund (PCI), which at $25 per share pays 7.5%. At it's current price around $23, it's paying considerably more than that.

    The GE bonds are just my version of the way people used to invest in certificates of deposit. Not a tremendous amount of yield, but safe. As a matter of fact, bank certificates of deposit are only as safe as the FDIC is solvent. I'm not so sure that GE bonds aren't safer than bank CDs when you take that fact into consideration.

    I also have some cash, just in case inflation does shoot to the moon and there are some no-brainer investment opportunities at high rates.

    Plus, a little bit of gold. Physical. In my possession. Can't hurt.
    Jun 19 10:14 AM | Likes Like |Link to Comment
  • Bonds: Getting Kicked Off The Playground [View article]
    I'm keeping my PIMCO Dynamic Credit Income Fund. (PCI)

    It's paying 7.5% at the original per share price of $25.

    Now that it's trading a bit lower, however, it's paying a somewhat higher percentage. So, I bought $5,000 dollars worth more.

    I don't expect the net asset value to fluctuate much, and I especially don't expect it to fluctuate much to the downside.

    So I think the 7.5%-plus return is safe -- or at least as safe as anything is these days.

    I too have some gold and some cash. No stocks to speak of. Stocks are what feel dicey to me.
    Jun 17 10:17 AM | Likes Like |Link to Comment
  • GE Threatened By Seminal Event This Week [View article]
    I bought $100,000 worth of GE bonds recently (even though they have a maturity date which is so far distant that it might as well be the 12th of Never) because they're paying almost 4.5%.

    Why is that so attractive, you ask? Because I think we're in for DEFLATION. And GE is as good as any company to bet on for the proposition that it will be here for the long haul.
    Jun 16 10:43 AM | 1 Like Like |Link to Comment
  • Closed-End Fund Discounts Widen: So What Are You Buying? [View article]
    User,

    What are you invested in that you've beaten 99% of all other investors over the past five weeks?

    I'm not challenging you. I'd just like to know for my own edification. Thanks.
    Jun 15 09:51 AM | Likes Like |Link to Comment
  • Closed-End Fund Discounts Widen: So What Are You Buying? [View article]
    I have also been buying PCI on the dips.
    Jun 10 06:26 PM | Likes Like |Link to Comment
  • General Electric's (GE +1.4%) CFO Keith Sherin will become CEO of GE Capital this summer, replacing Michael Neal, WSJ says. [View news story]
    Yeah, but if Mike Neal has reached retirement age, can't this accurately be viewed as just business as usual?
    Jun 7 08:04 PM | Likes Like |Link to Comment
  • GE CEO Jeffrey Immelt says he would like to see 3-D printing used to build jet engines someday. He feels the practice has some practical applications, not so much in printing jet engines themselves, but in manufacturing their biggest parts. 3-D printing essentially eliminates the waste of excess material, Immelt says, and the efficiencies of the process would cut down on engine design and development times by half. [View news story]
    Gemmax,

    If you understood how 3-D printing works, you wouldn't lack confidence. It isn't really "printing," you know. It's just an efficient means of fabricating a part.
    May 30 04:10 PM | Likes Like |Link to Comment
  • The rest of the top 25 heavily shorted S&P 1500 stocks: ESI, GTAT, DGIT, LQDT, WRLD, JCP, GME, FRAN, SVU, ONE, AKS, CRR, EBIX, DDD, SPF, DMND, DECK, BKS, COCO, X[View news story]
    I'm holding my DDD. As well as my Stratysis and my DASTY.

    They're all up over the price I bought them at, so I could sell at a small profit. I'm not going to though. I think they all have room to run -- and will.
    May 13 07:18 PM | 1 Like Like |Link to Comment
  • Coca-Cola (KO) says it will cut 750 jobs in the U.S. The bulk of the positions being eliminated are in the Atlanta area. [View news story]
    I hate to say this when equity buyers are all gung-ho about the run-up of the stock market . . .

    BUT, I believe that there are red flashing signs everywhere that not only is the economy not picking up, it is continuing to flatten. Everywhere. The US. Europe. Even China. Japan has been totally flat for a decade now.

    That, I think, is the answer to why Coke is cutting jobs in Atlanta.

    In the February just behind us, Walmart had the worst month for sales IN SEVEN YEARS. There's a message in that, people. The media is cheerleading for the US government -- trying ever so hard to persuade people that housing is coming back, unemployment is going down etc. etc. etc. I just don't see that. And when I look around me at the situation on the ground, I REALLY don't see that.
    Mar 21 11:47 AM | 1 Like Like |Link to Comment
COMMENTS STATS
115 Comments
79 Likes