Investing 102

[Sieg]

Thanks GW!

1:15 and 40* here and the Real Feel is chill ya to the bone.

[GregWeld]

Well -- those pics are really from a dive in 2008.... but I was feeling under pressure to produce.


Here! Does this help? I always am trying to be helpful.....

[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.

[XLexusTech]

I just read a few articles on "Rules for investing" this one was pretty interesting... http://www.thestreet.com/static/25-rules.html

Thought it might be a good direction considering the new year.. what are the "LatG investing 102 thread" rules for investing...

I like the Homework one Cramer mentioned..

[ErikLS2]

Mostly for you Greg since you know NLY pretty good. I've been away for a while but going to re-do my whole stake along the lines of what's discussed here. I was just poking around today and found this:

http://seekingalpha.com/article/1067...ce=marketwatch

I'm wondering if you know anything about this company or have any comments on this article?

[GregWeld]

Originally Posted by ErikLS2

Mostly for you Greg since you know NLY pretty good. I've been away for a while but going to re-do my whole stake along the lines of what's discussed here. I was just poking around today and found this:

http://seekingalpha.com/article/1067...ce=marketwatch

I'm wondering if you know anything about this company or have any comments on this article?

I read the SeekingAlpha article and the writer makes many compelling points about EFC. I just trade NLY because it's a good name that I know and I can trust it. I park pretty large sums in some of this stuff -- and I have to be able to sleep well at night. Thus my "Buy names you know and trust" which I try to hammer home every chance I get.

There are ALWAYS better names -- or better peer performance. But can you sleep with them? What costs people money is that they panic at the first downturn or hiccup - and this panic is exaggerated when they put money into something they don't know anything about.

There is NOTHING wrong with learning about any or all of these company's and if you (you being the larger - any of you) feel this is a place you want to put money and like all the metrics etc over some other investment... then that's the best you can do. It's the best ANY of us can do. Many times - while researching a new name - you find out things about the company you might already be in! They'll all compare "their" company against the peer names. Sometimes you learn good stuff - sometimes you start to question the name you're in and go back and dig deeper... and I'm 200% for this type of self education! That is what we all should be doing and need to continue to do. Jim Cramer calls it HOMEWORK.

My son looked over my shoulder just a minute ago and said "dude - you've been doing that all day". True enough.... I'm always looking at this stuff - comparing - charting... reading. I love it as much as I do car stuff. My response to him was "yep - that's why I'm good at it".

[GregWeld]

By the way -- I'd have made more money using EFC than I have in NLY over the last 6 months or so!

Thanks for bringing up this name --- I'll do more poking around and put it on my "key an eye on it" list!

[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?

[GregWeld]

I just sent an email to my bond broker and instructed to sell my entire muni bond portfolio. I think we are going to start to see interest rates rise. Houses are selling. Employment seems to be improving. And in order to make money you must be AHEAD of the game many months. If I wait to be certain it can make a giant difference. As low as rates are right now, a very small move up would mean a huge drop in bond values. Since I have a nice capital gain now. I'd prefer to lock that in. And if I'm right I want to have even more money in equities.

[bdahlg68]

Originally Posted by GregWeld

I just sent an email to my bond broker and instructed to sell my entire muni bond portfolio. I think we are going to start to see interest rates rise. Houses are selling. Employment seems to be improving. And in order to make money you must be AHEAD of the game many months. If I wait to be certain it can make a giant difference. As low as rates are right now, a very small move up would mean a huge drop in bond values. Since I have a nice capital gain now. I'd prefer to lock that in. And if I'm right I want to have even more money in equities.

Will be interesting to see how NLY and the like mange the spread going forward if rates do in fact continue upward.