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  • What, Exactly, Constitutes 'Yield Chasing'? [View article]
    nivramkoorb,

    It appears that you don't understand the UBS ETNs as well as you think. Several problems with your comment:

    "UBS has investments in the index..."

    UBS does not disclose how it invests the funds it receives for these ETNs. The ETN performance is linked to an index, but there is no commitment by UBS to invest in the index components, and since an ETN is unsecured debt, even if UBS does invest in the index, that fact would have no relevance.

    "This is the same as buying on margin but without the risk of a margin call."

    No. Under certain circumstances, UBS can force your position to be cashed out, similarly to a margin call but without the option for you to put up more margin to maintain your position.
    Aug 21 11:52 AM | Likes Like |Link to Comment
  • Kinder Morgan: A Good Example Of Why Investors Should Never Pay Attention To Wall Street Analysts [View article]
    I do not think you have made your case.

    Consider the number one negative KMI/KMP issue that analysts and commenters have been harping on - the Incentive Distribution Rights. These have negatively impacted KMI's cost of capital, and analysts include the cost of capital in their evaluations.

    Should analysts have assumed that Kinder would somehow find a way to eliminate the IDR drag and therefore base their valuations on an unrealized hope? No, that would not be prudent.

    Elimination of the IDRs changes the valuation equation. The facts changed, and rightly so did the analysts' opinions.

    “When the facts change, I change my mind. What do you do, sir?” – J M Keynes
    Aug 21 11:32 AM | 1 Like Like |Link to Comment
  • AT&T Or Kinder Morgan For Your Retirement Portfolio? [View article]
    VASVX is not comparable to either T or KMI. Your last comment proves it. You have to pay taxes on those LTCGs, whether you sold the fund or not. You get stuck with those expenses when you own a fund but not when you own a stock.

    What is your investing goal? Income now, total return, income later, what? Did your father ask you that? A yield of 1.08% doesn't come close to providing income, and LTCGs are not income, so if you want to have the income to either spend or reinvest and compound, VASVX sounds like a poor choice.
    Aug 21 10:42 AM | 3 Likes Like |Link to Comment
  • What, Exactly, Constitutes 'Yield Chasing'? [View article]
    I am one of those who have commented favorably about some of the monthly reset leveraged ETNs. I think they have a legitimate place in a high yield portfolio, but I would never 'load up' on any of them. As a percent of the market value of my portfolio, I own:

    BDCL: 1.9%
    MLPL: 1.6%
    MORL: 0.1%

    At some point I expect to increase the percentage of my portfolio to the range of 5%-7%.
    Aug 20 08:11 PM | 1 Like Like |Link to Comment
  • Alerian MLP ETF Finally Admits Its 8% Expense Ratio [View article]
    Cal Boomer,

    You don't say where you own AMLP. If you own it in an IRA then you are missing the point about your RMDs being based on your total account value.
    Aug 20 01:21 PM | Likes Like |Link to Comment
  • Alerian MLP ETF Finally Admits Its 8% Expense Ratio [View article]
    Cal Boomer,

    Do you own AMLP in an IRA?
    Aug 20 01:17 PM | Likes Like |Link to Comment
  • Alerian MLP ETF Finally Admits Its 8% Expense Ratio [View article]
    Cal Boomer,

    Go one step further and use Morningstar to compare the 3 year compound annual total return of AMLP to MLPI. AMLP is 15%, MLPI is 22.6%. What you are missing is an additional 7.6% of compound annual total return. Why would you knowingly do this?
    Aug 20 01:10 PM | 2 Likes Like |Link to Comment
  • The Dividend-Growth-Devoid Income Portfolio [View article]
    Adam,

    Do you have an opinion about the fixed maturity bond ETFs?
    Aug 20 01:04 PM | Likes Like |Link to Comment
  • BDC Risk Profiles: An Introduction [View article]
    I accumulate dividends from MLPs, mREITs, BDCs, and ETNs, and DRiP my other dividends, all of which are C corps except KMR and LNCO. I keep a list of stocks I want to buy, and at what price. I use the accumulated dividends to either buy when opportunities present themselves, or to fund living expenses.
    Aug 20 12:59 PM | 2 Likes Like |Link to Comment
  • The Dividend-Growth-Devoid Income Portfolio [View article]
    PriusBob,

    If you are asking me, my portfolio is in my profile.
    Aug 20 12:16 PM | Likes Like |Link to Comment
  • Kinder Morgan: What Now? [View article]
    nicholas,

    You are incorrect. It is a tax-free exchange.
    Aug 20 11:03 AM | 1 Like Like |Link to Comment
  • High-Yield BDCs For Q3 2014: Part 3 [View article]
    jasneskis,

    The reinvestment issue is a problem caused by your broker. Have you shopped around for a broker that allows reinvestment? I am in the process of doing this since my broker imposes the same restriction.
    Aug 20 11:00 AM | Likes Like |Link to Comment
  • The Dividend-Growth-Devoid Income Portfolio [View article]
    I share your view of mREITs. We are in a distinct minority.

    I have read many comments (and articles) that claim that the mREITs were destroyed in the financial crisis. That is true for those that owned subprime mortgages exclusively, such as Thornburg, but it is demonstrably not true for the agency mREITs. During 2008 and 2009, (NYSE:NLY) increased its dividend, while uninformed investors sold it like crazy, creating a fantastic bargain for those that understood the agency mREIT model.
    Aug 20 10:54 AM | 2 Likes Like |Link to Comment
  • Alerian MLP ETF Finally Admits Its 8% Expense Ratio [View article]
    According to Morningstar, the 3 year total return of AMLP is 15%, MLPI is 22.6%, a difference of 7.6%. There is the penalty that Ron is talking about.

    Why would you own AMLP in preference to MLPI in an IRA? It makes no sense.

    Better yet, the 3 year total return of MLPL is 48%. Why would you own AMLP in preference to MLPL in an IRA? Makes even less sense.
    Aug 20 10:45 AM | 1 Like Like |Link to Comment
  • Alerian MLP ETF Finally Admits Its 8% Expense Ratio [View article]
    Ron,

    True, LINE is not an MLP, it is an LLC that chooses to be taxed like an MLP.
    Aug 20 10:38 AM | Likes Like |Link to Comment
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