Investing 102

[GregWeld]

Originally Posted by GregWeld

Back to Investing 102 ---- today's action is why it's so hard to be OUT of the market waiting for something to happen. This is why I park cash in an investable spot rather than just sitting on cash.

I consider parking cash in ETF's such as JNK - HYG - NLY... where you get a pretty dang good dividend -- the share prices are "relatively" stable. I currently have quite a bit parked in JNK and NLY... and while NLY has been drifting lower (it's very interest rate sensitive).. overall when I see the dividends I've collected and the increase made on JNK has offset the loss I have in NLY... and overall that's the objective. I look at my account as a whole not as individual performance... and you MUST included the dividends in the calculations.

So just to show what I'm talking about....


I currently show (can't say HAVE because I haven't sold so just have a paper loss) a loss in NLY of $16,500 but consider the dividends -- I don't really have a loss.

I currently show a gain (again just paper gain) on JNK of $39,800

Just the gain in JNK cancels out the loss in NLY -- but lets consider the dividends collected:


10/29/2012 NLY ANNALY CAPITAL MGMT REIT
type: ORD DIV - CASH
$17,500.00
07/26/2012 NLY ANNALY CAPITAL MGMT REIT
type: ORD DIV - CASH
$19,250.00
04/26/2012 NLY ANNALY CAPITAL MGMT REIT
type: ORD DIV - CASH
$13,750.00
01/26/2012 NLY ANNALY CAPITAL MGMT REIT
type: CASH DIV
$14,250.00


and JNK


12/11/2012 JNK SPDR BARCLAYS ETF HIGH YIELD VERY LIQUID
type: ORD DIV - CASH
$13,354.56
09/12/2012 JNK SPDR BARCLAYS CAPITAL HIGH YIELD BOND ETF
type: ORD DIV - CASH
$6,682.32
08/09/2012 JNK SPDR BARCLAYS CAPITAL HIGH YIELD BOND ETF
type: ORD DIV - CASH
$2,296.25
07/11/2012 JNK SPDR BARCLAYS CAPITAL HIGH YIELD BOND ETF
type: ORD DIV - CASH
$2,356.51
06/11/2012 JNK SPDR BARCLAYS CAPITAL HIGH YIELD BOND ETF
type: ORD DIV - CASH
$2,368.39
05/09/2012 JNK SPDR BARCLAYS CAPITAL HIGH YIELD BOND ETF
type: ORD DIV - CASH
$2,462.88
01/06/2012 JNK SPDR BARCLAYS CAPITAL HIGH YIELD BOND ETF
type: LT CAP GAIN
$1,320.39
01/06/2012 JNK SPDR BARCLAYS CAPITAL HIGH YIELD BOND ETF
type: CASH DIV
$1,093.49



Notice that as the "fiscal cliff" talks seemed to be falling on deaf ears - I increased my JNK holdings significantly... because I had cash on hand - took some year end LONG TERM capital gains (locking in the 15% rate)... so all in all these are making me money SO FAR. That can change in a heartbeat - but for now the strategy is working. IF -- BIG IF -- these clowns can get their act together -- I'll scale out of these and work towards normal company specific positions.

Since I posted this ----- we can change the numbers


Annaly Capital Management (NLY) is now UP $6033. In the Green


JNK is now positive $56,587


See what a couple of days can do?