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  • ETN Showdown: Are MORL - And All mREITs - Doomed By Rising Rates? [View article]
    LRET is linked to the same index of equity (not mortgage) REITs that VNQ is linked to. Think of LRET as 2x leveraged VNQ.

    LRET's fees are much higher than MORL's. LRET costs you 1.65% + 3 month LIBOR, MORL costs you 0.80% + 3 month LIBOR.
    May 14, 2015. 08:49 PM | 3 Likes Like |Link to Comment
  • ETN Showdown: Are MORL - And All mREITs - Doomed By Rising Rates? [View article]
    CMO is an mREIT that owns agency ARMs (adjustable rate mortgages) almost exclusively. I own some. James, can you comment on their strategy?
    May 14, 2015. 08:42 PM | 1 Like Like |Link to Comment
  • Dividend Growth Investing Requires Perseverance [View article]
    Morningstar reports TTM EPS as $3.06. At today's close of 79.70, the P/E is 26. The FAST Graphs earnings estimate for next year is $4.20, which at today's close is a P/E of 19. I don't recall how FG calculates its blend.
    May 14, 2015. 01:47 AM | 1 Like Like |Link to Comment
  • Inside New Leveraged REIT ETN Issued By UBS [View article]
    Stanford Chemist,

    You have said that before and frankly I forgot. You made me think, thank you.

    Continuing your thought: The expense ratio of VNQ is 0.10%. Since VNQ is an unleveraged fund, and LRET is essentially VNQ x 2, LRET's expense ratio would have to be 0.20% to be comparable.

    Realistically speaking, I have not shopped my brokerage for their margin rates, but I doubt I could get anywhere near as good a deal as UBS charges.

    Some other factors in LRET's favor:

    > the leveraged ETNs are the only way I know of to obtain margin in a qualified account, and if I were to own LRET it would be in a qualified account

    > an owner of LRET will never get a margin call (assuming one does not own LRET on margin)
    May 13, 2015. 06:06 PM | 2 Likes Like |Link to Comment
  • SPY: Unlocking The Secret Of 'Timing The Market' [View article]
    My suggestion is to study a number of rolling 20 year periods.
    May 13, 2015. 05:46 PM | Likes Like |Link to Comment
  • Inside New Leveraged REIT ETN Issued By UBS [View article]
    I have been looking forward to this ETN with the intention of earning a higher yield on equity REITs. However, the 1.93% expense ratio, while taken out of the indicative value rather than the distribution, will nonetheless have a noticeable cumulative yield drag over time. If the current downward pricing pressure on VNQ continues, the higher yielding eREITs will get closer to 7%, and owning them near that yield will not include the leverage risk.
    May 13, 2015. 03:50 PM | 2 Likes Like |Link to Comment
  • Inside New Leveraged REIT ETN Issued By UBS [View article]
    Check the current yield of VNQ. LRET delivers almost exactly 2x the VNQ yield, and LRET is essentially VNQ leveraged 2x, so the LRET yield is correct.
    May 13, 2015. 03:32 PM | 1 Like Like |Link to Comment
  • Are REITs Overvalued? Only A Fool Believes (Video) [View article]
    Try that same chart with VNQ. Very similar result. Then expand to 6 months. You will see that the 50 DMA is trending down and is on a path to cross the 200 DMA.

    I try to use VNQ as my sector reference when looking for oversold conditions in individual REITs.
    May 13, 2015. 03:16 PM | Likes Like |Link to Comment
  • Hercules Technology Growth Capital: What Comes Next? [View article]
    I have a position that I plan to hold for the long term. I like have a piece of the VC action and think this is a way to participate in a growing part of our economy while not being totally dependent on Mr Market to harvest income.
    May 13, 2015. 03:10 PM | 4 Likes Like |Link to Comment
  • Inside New Leveraged REIT ETN Issued By UBS [View article]
    The fees you reported for LRET and MORL are both incorrect.

    LRET: 0.85% tracking fee + 0.80% financing rate + 3 month LIBOR (currently at ~0.28%) = 1.93%
    MORL: 0.40% tracking fee + 0.40% financing rate + 3 month LIBOR = 1.08%

    You must read the pricing supplement to get the complete fee structure.

    Readers might also be interested to know that LRET is linked to the same index that is used by VNQ.
    May 13, 2015. 03:04 PM | 7 Likes Like |Link to Comment
  • I Told You To Sell Your Stocks, And Then Stocks Went Up. Was I Wrong? [View article]
    "When volatility spikes, it makes sense to scale back your stocks..."

    That is exactly backward. When volatility spikes, the markets are dominated by fear. If you decide to sell when everyone is fearful, you have done exactly the wrong thing. That volatility is an opportunity. Be ready for those infrequent VIX spikes and when everyone else is selling, buy bargains.

    "... and when volatility is low, as it is now, then you can have a riskier asset allocation with more stocks in it."

    A low VIX is not nearly as useful signal as a high VIX, but it is certainly a warning. A low VIX measures greed, and when everyone else is greedy, it is probably a good time to sell, if you have some need to sell. If you invest for income, you can ignore the irrational bids made by Mr Market.
    May 12, 2015. 04:29 PM | 4 Likes Like |Link to Comment
  • 5 Reasons Bond Bears Are Wrong [View article]
    Under 'Bond Market Seasonality' you said:

    "The 10-year Treasury yield has hit a two-year high..."

    When I look at the FRED chart of the 10 Year Treasury Constant Maturity Rate[1], I see that the two year high was on Dec 31, 2013, at 3.04%, which is a lot higher than today.

    If you meant the 30 year yield[2] then it is also not at a two year high. Its high was reached on the same day at 3.96%.

    [1] http://bit.ly/1Jsj1Eq
    [2] http://bit.ly/1FVUO6p
    May 9, 2015. 12:24 PM | Likes Like |Link to Comment
  • Are REITs Overvalued? Only A Fool Believes (Video) [View article]
    waldipup,

    Did you know that when you use a symbol like O on stockcharts that you get a dividend adjusted chart? If you precede the symbol with underscore, like _O, you get non adjusted prices. I prefer the latter.
    May 9, 2015. 02:06 AM | Likes Like |Link to Comment
  • With mREITS Janet Yellen Is Your Friend [View article]
    Ajay,

    Add mighty MO to that chart and look at how poorly it performed in 2000. It was shunned during the dot com bubble. Sticking with SPY would have been a very large lost opportunity.
    May 7, 2015. 03:56 PM | Likes Like |Link to Comment
  • Are REITs Overvalued? Only A Fool Believes (Video) [View article]
    We can thank the popularity of VNQ for this effect.
    May 7, 2015. 03:43 PM | Likes Like |Link to Comment
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