suburban blues

PIMCO Global StocksPLUS & Income Fund Looks Overvalued

And a stopped clock is right twice a day.. This reminds me a great deal of all the naysayers against the present rally...eventually they will be right. but they sure passed up a lot of profits.


On Nov 13 12:32 PM Joe Eqcome wrote:

> The historically unsupportable CEF premiums you note are illustrative
> of the pricing bubble being built by a continuation of the Fed’s
> zero interest rate policy. I understand and support their policy
> but note the aftershocks it could produce.
>
> The Fed's zero funds rate policy has driven down these CEFs' cost
> of capital to tenths of a percent. As a result it has allowed for
> unprecedented spreads between the asset yield and the cost of capital.
>
>
> This spread translates into attractive, but unsustainable, distribution
> yields accessible by retail buyers in a low yield environment. This
> retail buying of these high yields is driving the share price up
> and unmooring it from NAV. So, there is a disconnection between the
> two and the creation of a valuation bubble.
>
> As I argued here before, unsuccessfully, in the case of the Pimco
> CEFs, Pimco’s managements are the ones valuing the NAV on level I
> & II assets in their CEFs. They’re presumably the best in the
> business and they’re telling you that the stocks are overvalued!
> Nature speaks; it is we who fail to listen.
>
> However, investors have been emboldened by the Fed's declaration
> of a continuation of this policy. Nonetheless, once rates begin to
> rise, these CEF stock prices will plunge like Kamikaze pilots on
> to the decks of the retail investor.
>
> Remember, financial suicide is not illegal.

PIMCO Global StocksPLUS & Income Fund Looks Overvalued

Good point, Mavericks

11 Stocks Selling Below Cash

cash per share...thoughts on QXM ?

Cramer's Now a Market Timer?

Get over it Schwarz..Cramer has the show and the money, and you don't.

Eight ETFs to Preserve Your Wealth

The thesis has merit..Advice please from the seasoned veterans amoung you.. best foreign bond etf.....

India's Recent Economic Growth Causing Infrastructure Problems

Okay, so how do you make an obscene profit on this?

Short Seller Prods Internal Accounting Probe Of Focus Media

Boo hoo hoo! A short seller shorted a stock that wouldn't go down (it was an idiot's choice to short FMCN). So now he tries to orchestrate a market event so he can cover his ass one way or another. I think the SEC should be looking very hard at this short seller and his sheister lawyer.

Anatomy of a Chinese Bubble: A Checklist For Spotting Bubble Tops

Thoughts...what about the lower PE Chinese stocks like ADY or CAGC? Or where the PE is much less than the growth rate like FMCN (PEG is about .70)? Or reasonable valuation vs growth prospects like GIGM? Are they part of the "bubble"?....seems to be some cross currents in the Chinese markets.. Thoughts?