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  • I Was Asked: Whatever Happened To Inflation After All This Money-Printing?  [View article]
    Wolf, interesting article. Do you know what percent of income comes from wages, interest and dividends? Does the above figure only include income growth for wages? I recall reading that interest and dividends make up 50% of income, and with Zirp, interest income was lost. Since many people used interest for living, their income was decreased which has reduced the growth in the CPI. So if the FED wants the CPI to hit 2%, maybe raising interest rates will put more money in the pocket of spenders and cause this to happen.
    Dec 27, 2015. 07:34 AM | 6 Likes Like |Link to Comment
  • S&P 500 Weekly Earnings Update: Q4 '14 Earnings Were Strong, Think 2015 Will Be Fine  [View article]
    Stephen,

    Please look at it again. I think the $26.78 is with only 84.3% of the companies reporting.
    Feb 15, 2015. 12:11 PM | Likes Like |Link to Comment
  • Can mREITs Live Happily Ever After?  [View article]
    Professor,

    Thanks for writing all these great articles. In your table, I think the last column should be "spread notes-bills" and not "spread notes-bonds" so it agrees with the text.

    Is it true that the Federal Reserve has to return to the treasury 90% of the interest collected on the bills, notes and bonds that they hold? Also, what if the Federal Reserve decided to forgive the Treasury debt?
    Jul 29, 2014. 03:20 PM | Likes Like |Link to Comment
  • Fed May Help Open Crack In Correction Door  [View article]
    The US economy added 1.2 million jobs in the last six months and the GDP is going down? Is productivity dropping such that we are producing less with more workers? I think the GDP calculation with the large revisions maybe misleading.
    Jul 26, 2014. 01:03 PM | Likes Like |Link to Comment
  • Oxford Lane Capital's New Rights Offering: Not The No-Brainer Of A Year Ago  [View article]
    Steven,

    Thanks for the update on OXLC. I own shares. I am not sure if I should buy more or sell. CEFConnect as of January 28, gives the NAV at $16.13. So the rights are pricing the shares above the NAV. The one year RTN on NAV is 3.28% and the the 3 year RTN is 6.98%. The NAV does not appear to be updated often. That must be due to the nature of the assets. So I expect one day to see a big jump in the NAV. Also, how can they continue to pay a distribution that is about double the 3 year RTN?
    Jan 29, 2014. 01:26 PM | Likes Like |Link to Comment
  • Larry Swedroe Positions For 2014: Risky Equities Always Trump Chasing Yield  [View article]
    Thanks! I will have to read those articles and study it more, and run some scenarios to see the effects. I understand that allocation and risk plays major factors in the success of your financial plan. Also how much do you really need to live on, and do you want to take on more risk if you do not need the extra income. I just retired and converted a 401k to an IRA. So I am working on a financial plan and trying to determine the allocation to bonds. I know I have to add some risk to keep up with inflation. So your article is very enlightening.

    Thanks again.
    Dec 25, 2013. 04:47 PM | Likes Like |Link to Comment
  • Larry Swedroe Positions For 2014: Risky Equities Always Trump Chasing Yield  [View article]
    Larry,

    Thanks for the reply. I see how you consider social security as part of your financial plan to estimate the investment needed to support a retirement. It reduces the need to take risks to get your number. But if one is already retired, and receiving social security benefits and taking money from an IRA, would you look at it differently? Would the social security allow one to take more risk in stocks to assure income would last 30 years?

    I am also confused by the 4%, now 3%, guideline for withdrawals. Is the idea to take out 3% of the investment portfolio each year no matter whether the portfolio has a gain or loss? So the amount could increase or decrease each year. This would affect your standard of living. I thought the guideline was only to establish the amount needed, and the first year withdrawal. After the first year, one would increase the withdrawal by inflation to maintain a standard of living. The percent withdrawal could be greater than or less than 3% of the investment. With the right mix of stocks and bonds, Monte Carlo simulation showed the investment could last 30 years. So can I use the social security as part of the equivalent bond investment to increase the stock portion? As I understand it, you need the stock investment to offset inflation.

    Thanks again and Merry Christmas.
    Dec 25, 2013. 01:50 PM | 1 Like Like |Link to Comment
  • Larry Swedroe Positions For 2014: Risky Equities Always Trump Chasing Yield  [View article]
    Larry,
    Do you consider social security benefits in your portfolio balance, and if so how much of a replacement for the high quality bonds?

    Thanks for the great article. It provides great advice and a lot to think about.
    Dec 25, 2013. 10:52 AM | 2 Likes Like |Link to Comment
  • CEF Premiums: Getting All The Risk, But Only Some Of The Reward  [View article]
    Thanks for the information. I will have to study NHF more to better understand the risk. The management has made some great investments.
    Dec 21, 2013. 02:07 PM | Likes Like |Link to Comment
  • Is The U.S. Bankrupt?  [View article]
    Is the US bankrupt? I thought you were bankrupt when your debt exceeded your assets, and no one would lend you more money. I see a lot of discussion on the US debt, but not on the assets. What is all the Federal land worth? There are plenty of lenders ready and willing to lend money. So the US is not bankrupt.
    Dec 21, 2013. 01:43 PM | 3 Likes Like |Link to Comment
  • CEF Premiums: Getting All The Risk, But Only Some Of The Reward  [View article]
    Thanks for the quick reply. I screen CEF Connect to compare funds. For senior loan funds NHF stands out because the 1year Return on NAV is 66% and the 3 year is 22%, and the high discount. The other funds are between 8 and 12% and the distribution is only a bit higher. The other funds over the last year have gone from premiums to discounts. I am trying to understand what NHF is doing that they can increase the NAV much faster than the other senior loan funds.

    I am also long OXCL for the 14% distribution and increasing distribution next quarter from $0.55 to $0.60 per share. There is also an extra special $0.10 for that quarter. According to CEF Connect the one year return on NAV is only 3.3%. So if you add the distribution to the one year Return on NAV, the total return is not much greater than the other funds. But the high distribution appears to have created value since OXLC is trading for a premium.
    Dec 21, 2013. 07:01 AM | Likes Like |Link to Comment
  • CEF Premiums: Getting All The Risk, But Only Some Of The Reward  [View article]
    Steven,

    Thanks for writing all the informative articles. Since you are long OXLC, what is your opinion on NHF, another senior loan CEF? The NAV is going up faster than the price. The discount is between 18 and 20%.
    Dec 20, 2013. 07:53 PM | Likes Like |Link to Comment
  • When The Fed Stops Buying These mREITs Could Be Flying  [View article]
    RS,

    I understand that as long as the short term interest is ZIRP, and the long term interest rates go up, the mREITs make more money on the spread. But if short term rates rise, and the mREITs have lent long term, won't the mREITs have the same problem like the savings and loans had in the late 80's? The spread will shrink on the existing long term loans as the short term loans are replaced with higher rates.

    Thanks for writing this article.

    MSW Engineer
    Apr 6, 2013. 04:05 PM | 1 Like Like |Link to Comment
  • Netflix: Don't Give In To The Hype And Buy  [View article]
    In the last 3 days about 53 million shares have traded. There are 56 million shares outstanding. Any shorts left?
    Jan 25, 2013. 03:08 PM | Likes Like |Link to Comment
  • Eagle Bulk Shipping: Another Drybulk Equity To Avoid  [View article]
    Erik,

    Do you have an opinion on Safe Bulkers (SB)?

    Great articles. Thanks!

    JLM
    Jun 4, 2012. 05:33 PM | Likes Like |Link to Comment
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