What to buy in this market?
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I will neither confirm nor deny this... ...but yes it's true Foot, it's background really. I'm 28, also inexperienced (3 yrs in) but differ in how I would express myself than Ice does. Attitude does not discriminate against age or experience, imo.ana - seriously, get over it man. I know you love me.
Sorry to digress, but has anyone looked at Franklin Income lately? The buy signal on that used to be when NAV got below $2. It's 15% below that yielding 8-ish%. HY, Utilities, Pharma, beaten down bonds...what's not to love.?
I used to have a ton of this back in the day, relooking at it but not jumping in head first.I have always loved this fund, nice steady divs as well as a nice y/e cap gain. As it fell under 2 bucks a share, I have been loading up on it for nearly each household. I can only hope we dont see a div cut anytime soon. This fund fits nearly every objective except tax free income…
Since we are talking fund issues now (isn’t that a relief Ice!)anyone concerned yet about the upcoming slap in the face to our clients…
Embedded capital gains that funds will be throwing our way in a month or so. Correct me anyone please, but won't all the redemptions that have occured create more tax headaches than ususal? I can see the conversation now with clients....Mr. and Mrs. Jones, I know your account is down 30% this year , please get ready to write a check to Uncle. Your loss is their gain.... I am on a campaign to head that off at the pass. Even DFA has capital gains (static strategies) so you can imagine the pain that AF and all the others are going to have. Never again will I add mutual funds (unless they are tax efficient) in a taxable account. FKINX has been killed this year, historically a stable fund. Ideas anyone....[quote=footsoldier]Since we are talking fund issues now (isn’t that a relief Ice!)anyone concerned yet about the upcoming slap in the face to our clients…
Embedded capital gains that funds will be throwing our way in a month or so. Correct me anyone please, but won't all the redemptions that have occured create more tax headaches than ususal? I can see the conversation now with clients....Mr. and Mrs. Jones, I know your account is down 30% this year , please get ready to write a check to Uncle. Your loss is their gain.... I am on a campaign to head that off at the pass. Even DFA has capital gains (static strategies) so you can imagine the pain that AF and all the others are going to have. Never again will I add mutual funds (unless they are tax efficient) in a taxable account. FKINX has been killed this year, historically a stable fund. Ideas anyone....[/quote] Tell your clients not to pay the taxes (But only if the rest of the country goes along with it too). If a few people evade, they may go to jail. If millions do it, they can't go after everyone. That's how revolutions start.Another worry - as if you needed more to worry about.
In severe downdrafts many income managers sacrifice income at the alter of total return. They are very focused on near term perfermance. It it seems counter intuitive to slash dividends when rates bond prices are down and yields are up, it is. Yet mangers justify such cuts, bringing their yields back to historic trading levels, by pointing to the total return column. That this screws long term shareholders in these funds falls on deaf ears. Not only do these moves cut income they also destroy any possibility of those investors being made whole as bond prices cycle back the other way. Talk with the reps from funds you own. Get on conference calls with managers and ask them point blank if they're plan is to cut the divs. Unfortunately, history shows us that funds who take this route greatly out number those who stick with the original game plan.Don’t look now but munis are tearing it up! My Eaton Vance National was up 5% today! I won’t mention the multiple dollars in NAV it’s pissed away in the last year or so. I was reading an article talking about bond etf’s (not cef) trading at a discount to NAV. I guess you have to be careful how you index.
Because I like rubbing salt in my wounds I did the calculation on SDS (S&P Ultrashort) since I mentioned it on October 5th. Yeah, it’s up 40%. I jokingly said a year ago that I should short Wachovia with the money they gave me for sticking.
I need to pull a Costanza and do the opposite of whatever I initially think I should buy. It's too easy a trade to just be a Roubini bear at this point. That seems like a crowded trade but it keeps working, day after day. I bought CDs, Munis, corporate bonds, and dividend paying funds today so whatever the opposite of that it, go nuts!I am a little slow on the uptake- so you sell a put on say GE (if that is still considered quality) and if the stock moves down you buy it minus the premium you got? Probably TMI but what stocks, how far out, that sort of thing. I’ve only been selling some calls on BAC but they are about worthless at this point.
It’s difficult to know with any conviction what to do currently. One strategy I have been implementing with new money and in tax loss harvesting situations is buying closed end funds. I am using closed end funds, that don’t use leverage, and that are trading at least a 15% discount to their NAV. The spread between the nav and the trading price is at a historic high. I figure I am getting a discount on a discount. Anyone else looking at these?
I’ve heard some guys looking at some muni cef yielding over 6% at a discount but they use leverage. ETJ has hung in there better than some as it sells calls and puts. I wouldn’t go too heavy into CEF as they can get wildly irrational and can freak clients out who aren’t risk tolerant. The Eaton Vance fund I bought (open ended, no leverage) yielded right at 10% and the Gabelli Utilities fund is over 14%.
The Rydex Managed Futures fund has gone ballistic lately. When I make those observations, the fund is usually set to dramatically underperform. That being said, I am glad I own it and plan on dca’ing into it down the road.
Speaking of underperforming, anyone plan on listening to the Ivy Asset Strategy conference call tomorrow? Last quarter, everyone on the call was like "Great Job guys!". I am guessing it might be a little nasty tomorrow.Anyone here using or heard of Hussman Strategic Growth / Total Return funds? Both look good from S&P’s September 2008 reports in terms of not having any negative return years since 2001 / 2005, respectively.
. I am using closed end funds, that don’t use leverage, and that are trading at least a 15% discount to their NAV.
How 'bout some names? I noticed NCZ and PFN have stopped paying out for now so I'm concerned about others I've got. I may consider swapping from lvg to non lvg. if I can