Be careful, this is not always true. Many times, they drop on impulse and end up a few days later. Its about the margins & BV. The interest rates do change book value which in turn can hurt if a company is over levered as BV drops. However there are times when BV drops and margins widen. Look at history.
All that said, I have a feeling that long rates will remain at below 5% for a very long time. Probably at least 2-3 years if not 5-6 years. Further, despite fed tapering, interest rates have actually declined in the last 6 months which means that the rates were actually artificially inflated by investors on the news and only fell back to what they are supposed to be over time which seems to be the low 4% on the long term. Again, be careful. Look at the long term graph vs. interest rates. Higher rates do not always result in lower price nor does the opposite guarantee higher prices.
Hillsdale, I understand you. I did the same thing with TWO - was in the red but with all the dividends paid I ended up selling and still making a profit even though the price I sold for was below what I bought per share. I am doing the same thing with HCP-not so much risk since it's a medical/hospital/nursing home REIT. I think the baby boom generation is going to keep this stock very safe and it pays a nice dividend. Way to go on your hold for a positive return. Sometimes all it takes is a little patience.
So much for my move positive. Only down 2%, so not a big deal, but it was nice being green.
I'm still long and accumulating on the dips.
management ? NLY get a lot of heat - and deservedly so as others have pointed out - management is on the
"family plan" at NLY and this is not good for NLY shareholders. I never see positive news for NLY = why ?
This is the normal post-X drop timed with the fool. I just covered my short position this morning. (My 11.5 short calls got assigned on Friday.) I'm still comfortable with all my 11.5 short puts. If the price drops below 11, I'll be selling $11 puts. Look at last quarter's price action.
LOL. youre a rookie. Taking investment advice from a blog? Graham would be ashamed.
On the positive side, now that you are out of NLY, you have no reason to post here anymore!