[GregWeld]

A NOTE OF CAUTION SHOULD BE POSTED - By ME!


Remember that I always use "examples" -- real life they might be -- but I also want to poke everyone reading -- that what I do -- is not what you should do!

I pay attention to my investments. I have several accounts - each with at least a VP or SVP adding their input/guidance/headsup. You get that "treatment" even at Schwab if you have enough in your account. So what I'm saying here is --- that when I post up the returns on some of these "names".... I will be long gone if I even WHIFF an interest rate increase. High yields are RISKY! They carry the risk of a tax change from Congress.... they carry risk if the FED signals that the economy is going well and they're going to raise the rates... Trust me -- when they do this -- there will be a big haircut in your capital!

So unless you're on top of your game... I'd stay out of the NLY's - the JNK's - the HYG's of the world. They might be crazy good right now... but these are not names you buy and hold forever. They don't actually even make anything! They're just "yielders" - financial instruments that spin off outsized dividends (right now).

So the caveat is --- Nobody is going to wake up in the morning and ride a horse through town yelling "the FED IS RAISING RATES".... and by the time many of you would figure this out -- it'll be too late you'll already have the haircut.

I'm not saying that I'll be any better at reading this - or be that far ahead of the curve. But I have 30 years of "experience" and pay attention to every nuance EVERY DAY -- Day in and day out. It's my job to keep my "employees" sharp and out of harms way. I'm going to ASSume that many of you will carry on your life and NOT be as attuned to the market and might fall into complacent investing (as some WERE before getting this thread!). You don't want to be falling asleep! This is why it's so important that not only are you getting a decent yield -- but that the UNDERLYING COMPANY is where you want to be.