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Dave Kress

Dave Kress
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  • The "ETF bid" in which indexed parts of the high-yield bond market (likely to be owned by HYG and JNK) rise faster than the rest when times are good works in reverse too as May saw the ETFs decline far more than NAV. What about for preferred shares? Investors pulled a relatively modest $300M from the $12B PFF in May and the fund was down 2.8%, but it's off another 1.6% since. "It stands to reason the same yield-seeking investors dumping HYG (and REM) are turning on PFF too," writes Brendan Conway. [View news story]
    PFF was a large disappointment along with HIX, PCI, PAUAX and
    other yield rich "safe", "conservative plays whether bonds or preferreds. Even short matuity term bond funds like CSJ are misbehaving as the interest rate scare has
    permeated ANYTHING that spells like a yield play. Also note
    SJNK, and JNK. What is an investor to do? Sit on Cash which is
    also not worth holding? Retired investors are screwed taking even
    conservative risk to get some payout to live on.
    Jun 12, 2013. 10:43 AM | Likes Like |Link to Comment
  • GE's Dividend And A 4.8% Yielding Alternative [View article]
    Interesting. I agree with the writer. I bought, held, and sold GEB, GEC, GEJ preferreds at above par in my IRA's and they were excellent 6-7% yielders plus I got capital gains to boot for about 3 years.

    Last year I sold them all because they were callable at any time , were at a premium, and could revert to par at GE's calling any day so I sold them and took the a premium. No complaints. Guess what. I then bought GE common, its up, I dont care about the dividend as my cap gains are more than the preferred yields!

    GEB may be worth buying again as it is noncallable for 4 years.

    I won both ways but believe I will stay in the common because that is where the action is at in todays cap gain hungry market also seeking the hint of higher yields which GE offers.

    The GE preferreds, in my opinion, are yesterdays mashed potatoes in an environment where interest rates will eventually rise. My alternative to the GE preferreds is PFF, an ETF covering many more preferreds not immediatley callable and yielding better
    than GE. Still, you can own both GEB and GE and be fairly safe
    but today I prefer the latter.
    Feb 3, 2013. 11:26 AM | 1 Like Like |Link to Comment
  • The next big move in the bond market will be down," says Goldman's Abby Cohen, speaking at the Bloomberg Hedge Fund Conference. Trotting out the same report she seems to use every year, Cohen says the S&P will rise 10-15% in 2013. She's particularly bullish on what she says are cheap European valuations. [View news story]
    Scuttlebutt amongst my wags is if we do go over the fiscal
    cliff the following will occur:

    1. Precious metals will rise quickly anticipating a bond debacle,
    degrading, and U.S.credit rate lowering.

    2. Dividend paying stocks will be the only game in town with
    mountains of cash sitting on the sidelines and corporations
    buying back stock plus continuing to issue special dividends
    in an opportunity limited investment economy

    3. Europe will probably snap back as Abby says as it has been
    in it's own recession and funk and is due for some gains based
    on being the only other game in town along with U.S. high
    dividend paying stocks.

    4. Government Bonds and some munis will trash except for
    high yield, higher quality issues in any government.
    linked to stocks both U.S and European.
    Dec 6, 2012. 09:25 AM | Likes Like |Link to Comment
  • What Nobody Tells You About JPMorgan Chase [View article]
    Too put a final nail into JPM's coffin Suman should investigate the
    huge value of the silver commodity shorts liability JPM has been publicly scandalized over because it doesnt have it and cant deliver the metal.

    JPM has 2/3rds of the world's annual silver production shorted
    and dont own enough physical ounces and cant get it except at huge premiums in the market which would get silver prices to soar.

    So to keep a lid on this it is reputedly paying 15-20% premiums to those holding their shorts so they dont demand physical delivery. CME does not have the silver in stock to deliver at any price.

    This will be the next JPM crisis and they are only avoiding D-Day by getting low to no cost financing from the FRS to pay the premiums to the shorts so they dont demand delivery.
    Oct 22, 2012. 09:13 AM | Likes Like |Link to Comment
  • Don't say you weren't warned. Seventy-five percent of the preferred market is trading above par, according to BAML, and nearly the entire market is callable. [View news story]
    Of course it is trading above par! It is only one of several safer
    high yield investment ETF's of better quality issues that you can get any return on! IT IS WORTH IT! I received high yields, capital gains
    and, total satisfaction on General Electric's GEC, GEJ, GER that are
    all in the same category as PFF. Result? I am doing it again in PFF
    this year. 6-7% payouts, modest capital gains. I call that heaven
    on earth in a near zero yield "safe" market of Treasuries, agencies, etc.
    Oct 14, 2012. 02:43 AM | Likes Like |Link to Comment
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