How To Convert A Portfolio Of Index Funds To Dividend Stocks? [View article]

If you want to convert your funds to dividend stocks, and are concerned about capital gains taxes, one simple strategy comes to mind:

1) Calculate your current after tax yield from SPY (or whatever funds you own). 2) Calculate your theoretical after tax net from selling SPY. 3) Calculate your theoretical after tax yield from investing 2) in your selection of dividend growth stocks. 4) If 3) is greater than 1) then you have a logical reason to bite the bullet and pay the capital gains tax.

10%-Yielding HDLV May Be A Good Choice If Interest Rates Remain Low [View article]

The price / product supplements clearly state that they pay a coupon, which is consistent with being Notes (as in ETN). A coupon is interest so is taxed as ordinary income.

The Efficient Market Hypothesis May Be Gaining Ground [View article]

Michael,

I have followed technicals for decades and my experience, like yours, is that when any correlation method becomes popular, it ceases to work. My experience is with Joe Granville and his On Balance Volume. When this was a niche method, it worked fairly reliably. Once it became well known, it ceased working. This is just one, there are many others; the Death Cross and the Golden Cross come to mind.

An Update On UBS's ETRACS 2X Leveraged ETNs [View article]

FrankEllis,

"The current out-of-favor pricing is actually beneficial because distributions buy a greater number of shares at the lower price..."

While this is true, there is a countervailing force working against you. To understand this you must understand what happens when leverage is reset each month.

After the last trading day of a month, the Current Principal Amount [CPA] is recalculated. This is the indicative value at the close on that day. The absolute amount of leverage per share is adjusted to match the new CPA. If the new CPA is less than the previous CPA, then the absolute amount of leverage per share must be decreased. The only way this can happen is for UBS to sell some shares in the underlying index. This will cause the dollar amount of the next coupon to also decrease, assuming that the underlying index constituents do not change their dividends during that time.

Thus, while your ETN share count increases with your reinvestment, the coupon amount per share decreases.

If the new CPA is greater than the previous CPA then the exact opposite happens, and your DRiP is supercharged.

An Update On UBS's ETRACS 2X Leveraged ETNs [View article]

Fees are deducted from the indicative value, i.e. the NAV, with exceptions noted in the pricing supplements. The exceptions are the quarterly payers. One of the fees, I think the tracking fee, is deducted from the coupon amount. I researched this in the past but my memory is a bit hazy beyond the fact that one I researched did this, I don't remember which, but it was quarterly.

For those who don't know, trades center closely around the indicative value.

The foray into BDC lending is worrying. These are distinctly different businesses. I find it hard to believe that WPC could be as competent a small business investor (and advisor!) as MAIN or ARCC.

This reminds me a bit of PSEC going into the REIT business. Diversification for its own sake? Conglomeration? I am at a loss to understand this.

The Efficient Market Hypothesis May Be Gaining Ground [View article]

There are more facts than anyone can possibly know or account for, therefore it is not possible to not ignore facts. All explanations are approximations.

The Efficient Market Hypothesis May Be Gaining Ground [View article]

rippoxl,

"... noise would have to disappear as well."

You got me thinking. Here is my theory:

Noise is a manifestation of chaos. No matter how well we try to discover current (i.e. initial) conditions, they are never entirely knowable and so their consequences are never entirely predictable. We are continually playing catch-up, doomed to always fail. It is the unknown unknowns at all scales, from smallest to largest.

## China, Not The U.S., Is Now Confirming The Austrian Thesis [View article]

I remember Japanese junk. Then along came the Z car.

## How To Convert A Portfolio Of Index Funds To Dividend Stocks? [View article]

1) Calculate your current after tax yield from SPY (or whatever funds you own).

2) Calculate your theoretical after tax net from selling SPY.

3) Calculate your theoretical after tax yield from investing 2) in your selection of dividend growth stocks.

4) If 3) is greater than 1) then you have a logical reason to bite the bullet and pay the capital gains tax.

## 10%-Yielding HDLV May Be A Good Choice If Interest Rates Remain Low [View article]

## An Update On UBS's ETRACS 2X Leveraged ETNs [View article]

Sorry, I do not follow CEFL so I have no idea.

## An Update On UBS's ETRACS 2X Leveraged ETNs [View article]

[1] http://bit.ly/1hzx2Nq

## The Efficient Market Hypothesis May Be Gaining Ground [View article]

I have followed technicals for decades and my experience, like yours, is that when any correlation method becomes popular, it ceases to work. My experience is with Joe Granville and his On Balance Volume. When this was a niche method, it worked fairly reliably. Once it became well known, it ceased working. This is just one, there are many others; the Death Cross and the Golden Cross come to mind.

## An Update On UBS's ETRACS 2X Leveraged ETNs [View article]

"The current out-of-favor pricing is actually beneficial because distributions buy a greater number of shares at the lower price..."

While this is true, there is a countervailing force working against you. To understand this you must understand what happens when leverage is reset each month.

After the last trading day of a month, the Current Principal Amount [CPA] is recalculated. This is the indicative value at the close on that day. The absolute amount of leverage per share is adjusted to match the new CPA. If the new CPA is less than the previous CPA, then the absolute amount of leverage per share must be decreased. The only way this can happen is for UBS to sell some shares in the underlying index. This will cause the dollar amount of the next coupon to also decrease, assuming that the underlying index constituents do not change their dividends during that time.

Thus, while your ETN share count increases with your reinvestment, the coupon amount per share decreases.

If the new CPA is greater than the previous CPA then the exact opposite happens, and your DRiP is supercharged.

## The Efficient Market Hypothesis May Be Gaining Ground [View article]

EMH = efficient market humbug

## An Update On UBS's ETRACS 2X Leveraged ETNs [View article]

For those who don't know, trades center closely around the indicative value.

## Durability Test: W.P. Carey [View article]

This reminds me a bit of PSEC going into the REIT business. Diversification for its own sake? Conglomeration? I am at a loss to understand this.

Once again, worrying.

## The Efficient Market Hypothesis May Be Gaining Ground [View article]

## The Efficient Market Hypothesis May Be Gaining Ground [View article]

The law of large numbers exempts no one. In your opinion, when will the law of large numbers catch up with AAPL? Is it already happening?

## The Efficient Market Hypothesis May Be Gaining Ground [View article]

"... noise would have to disappear as well."

You got me thinking. Here is my theory:

Noise is a manifestation of chaos. No matter how well we try to discover current (i.e. initial) conditions, they are never entirely knowable and so their consequences are never entirely predictable. We are continually playing catch-up, doomed to always fail. It is the unknown unknowns at all scales, from smallest to largest.

## Lift Your Income With A Barbell [View article]

Thanks for that link. iShares also has a laddering tool: http://bit.ly/1EuxAQL

You have to register to get the tool. And you have to register as an advisor.

## 10%-Yielding HDLV May Be A Good Choice If Interest Rates Remain Low [View article]