Investing 102

[fleetus macmullitz]

Heard this today..."Too many people buy things on a 'lay-awake-plan'.

[Bucketlist2012]

Originally Posted by compos mentis

Heard this today..."Too many people buy things on a 'lay-awake-plan'.

Haha. I have Insomnia due to anti seizure medication, but NEVER do I lay awake thinking about what I am Invested in.

If What I am Invested in keeps me up at night, it is the wrong investment.

You have to know why you own what you own, and what your strategy is. Short, Mid, and Long term.

Otherwise sell it...And buy something you can sleep with.

Also being debt free except the fixed low rate home loan and not in debt up to your eye balls, and also having the stormy day fund of several months available will let you sleep well.

Being Leveraged heavily is not a good thing. Owning what you have and living within your means is King.

Too many did not do that and 2008 wiped them out... That is insane...

OK, enough of my soap box...

[96z28ss]

Looking at my IRA this morning, noticed that 2 of my stocks are doing pretty well.
I purchased COP (Conoco Philips) back in april. The company split off a division Philips 66. So they gave shareholders half as many shares in the new ticker PSX.
PSX is up 36.7%

My other one is T (AT&T) since april its up 26.1%

My total account is up 7.3% since april. I really happy with the return. I also can't believe I used to be one of the guys that never looked at the account and just forgot about it.

[Bucketlist2012]

Thought I would share.

I am up 18.2% plus dividends...

There should be a good run up through the rest of the year...

2013 ? Who knows...

[GregWeld]

For those of you that maybe don't keep up on day to day news etc.... Annaly Capital Management (NLY) which we've discussed here many times -- CUT it's dividend to .50 from .55 this quarter.

They adjust their dividend payout based on the quarters profitability. Unlike most companies that just pay a straight dividend - NLY pays a percentage of earnings out. Obviously if they don't earn as much - they pay out less. It's STILL a 11.6% dividend at todays price.

I'm holding 35,000 shares of this name.... but like junk bonds and high yield bonds (JNK and HYG) I keep a VERY CLOSE EYE on these holdings. Their totally interest rate plays and they play the "spread" which when it goes flat or inverted - you get KILLED. I use these to park cash - and to raise my overall yield. PLEASE do not buy and hold these names in an account you pay no attention to! The yield is great - but the slope is steep and fast!

[Bucketlist2012]

Originally Posted by GregWeld

For those of you that maybe don't keep up on day to day news etc.... Annaly Capital Management (NLY) which we've discussed here many times -- CUT it's dividend to .50 from .55 this quarter.

They adjust their dividend payout based on the quarters profitability. Unlike most companies that just pay a straight dividend - NLY pays a percentage of earnings out. Obviously if they don't earn as much - they pay out less. It's STILL a 11.6% dividend at todays price.

I'm holding 35,000 shares of this name.... but like junk bonds and high yield bonds (JNK and HYG) I keep a VERY CLOSE EYE on these holdings. Their totally interest rate plays and they play the "spread" which when it goes flat or inverted - you get KILLED. I use these to park cash - and to raise my overall yield. PLEASE do not buy and hold these names in an account you pay no attention to! The yield is great - but the slope is steep and fast!

I remember you saying that in a previous post...Good to re post it for those that may have bought some...You have given them a heads up and now if they own it, they know what to do..

[Bucketlist2012]

I saw a graph yesterday that shows when an Incumbent wins, the market shoots straight up.

This is an interesting time in history. Not being political, but the economics of it are amazing.

In the short term, the end of the year should be a nice run up...The first of the year ? Probably a good run as well..

2013 as a whole ? Possibly ugly, or maybe not... I don't know.

But for those that have been in the market for a length of time now, know we have had a great run..I mean 17% ? That is crazy...

But pull your seatbelts tight one more time, and check your mirrors...At the very least, this is going to be a wild ride...

[GregWeld]

Politically -- the market has proven to perform BETTER long term under Democratic president. I personally think part of that was the numbers under Bill Clinton - and while he couldn't keep it in his pants... the world was okay under his presidency. But gawd almighty - if my wife looked like Hillary - I'd play around too I guess...


Nobody has a crystal ball -- and just when you think you do - you'll be proven wrong. This is why I say to pay attention - be aware - understand what you own and why... and remember that things can and do change. But that's when you go back to your charts - stretch 'em out.... and see that the presidents don't really matter. They're a mere blip.


EEEEEEEEEEEEHHHHHHHHAAAAAAAAAAAAA

[Bucketlist2012]

Greg,


Good point. I always tell people 537 politicians don't run MY economy...

But we do need to pay attention to what they do.

Like in one of my other posts, I don't lose sleep over what I own, or the Politics, but I do pay attention..

Whoever wins, I win, but short term, i may change some of my strategy, but the Bulk of it is long term Investing...

[WSSix]

Alright, I have time finally so I'll post how my stuff is doing.

From March of this year my stocks are doing the following

OXY- -13.36%
WFM- +18.98%
KO- +9.79%
SO- +1.09%

KMP I've had since May and it's at 3.49%

My mutual fund that makes up the remainder of my ROTH account and what I took my money out of in order to buy the stocks, is +5.19%.

Using the quick equation Greg mentioned, puts me at mid 3% with my stocks overall. That means I'm getting my ass kicked apparently, lol.

If it weren't for the OXY, I'd be doing better. Oh well. I'll make a change later on.