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American Capital Agency Corp. Message Board

  • elkinssm elkinssm Dec 4, 2013 12:05 PM Flag

    i am 67 and need to go look for a job. don't buy

    i thought I could retire on these mreits. I feel so stupid. good luck to all

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    • go up to the first floor and jump!

    • Did you sell, I hope you did, you got out at 20-21. You are a winners, there are still fools holding this at 19 it will go below 18 target, rates are rising again.

    • elkin , New login and 4 post history. If you think these posts put a dime in your pocket you should feel stupid.

    • elkissm,

      I truly feel sad for you, investing in mREIT's can be very tempting and complex to understand. For instance if some simpleton looked at AGNC since inception for about 5 years, they would have seen that till about 6 months ago it did great, with nearly 20% div and stock appreciation. It is very understandable how some one can be lured into investing into it and other mREIT's when they see excellent performance year after year. I for one made that mistake at the wrong time when the ride was nearly over - my caution was thrown away when I kept watching year after year of splendid return, was lucky to get out with my shirt.

    • Dont sell you stocks they are doing to this what they did in 09 just hold it and keep collecting divys or buy more stock with it thats what i did when everybody paniced i just keep buy more and i have done ok iam also retired and will need the income soon

      Sentiment: Hold

    • You still may if you stick with it. The dividends are what matter.

    • Hang tough Elk , sometimes stops are a good thing concerning ones retirement equity, always remember 1st loss is best loss , go get um bud!

    • Sorry but before you invest in mREITs you need to understand interest rate cycles and what happens to mREITs when interest rates go up. Never invest in something you do not understand. And never put all your eggs in one basket. And remember, higher returns always equals higher risk.

      No one has made very much money on mREITs with a buy and hold method. The people who made money bought AGNC in the 20s and sold in the 30s and collected dividends in between. Everyone else has hasn't made very much unless they got in at the very beginning which is not the case for most. You can't make a very creditable point if you cite the rare exceptions only.

      This is basically true about all stocks. The people who make money are the ones that knew when to sell. Everyone else is losing money or breaking even at best. The 90s was an exception. It didn't matter what you did back then. But that is not likely to happen again in the near future because everyone has wised up. No one buys stocks with PEs of 300 anymore and expects not to lose their shirt. So it won't happen again until that episode is forgotten which will be another 20 years or more.

      Basically the same rules about investing that applied 100 years ago apply today. Valuation and timing count. You have to be aware of why a stock is trending up or down so you can know if it is the right time to buy and sell. If that sounds too difficult then it isn't your cup of tea.

      This experience can be a lesson learned but if you didn’t learn anything then is should be a warning to leave. Because the same thing is going to happen over and over again. It always does. And if all you do is the same thing you did before then you will repeat the same mistakes you made before. And at 67 you do not have any more time for mistakes.

      At 67 I would be 40% equities at most.

      • 1 Reply to raybans2
      • I once read an article, comparing low dividend (yield) stocks, medium yielding...and high yielding...Was interesting to find that the medium yielding stocks performed better than the other 2. But nothing is ever that easy - but in a way, that's why I opted for "preferreds", with their lower yield than common stock mreits, but at least they had a FIXEDrate payout...so, I'm lost less (hahaha)...But my strategy is purely on nominal cash flows, without any major regard for my 'balance'...Pretty much like a bond investment, actually, where bond prices have dropped lately, and rates rose a bit, and payouts remain fixed...but for someone like me, I just won't be selling my preferred holdings...I only want that nominal cash flow (luckily, I still have a few years before I actually have to use the dividends as a supplement to my retirement, so I'm still able to reinvest the divys every quarter, and increase the cash flows every quarter, even tho the stocks themselves have bled, and I'd assume my preferreds will bleed more, as rates rise - but I'm just gonna ignore it, and just plow the divys into more. I guess it's an old man's strategy...not for everyone perhaps. (NRF-C /NRF-D / RSO-B ...all over 9% yield, fixed)

    • Hello Elk, I am 78 young fellow, research these stocks before you buy. ARP is a good one, beat down but will come back up, Pays a nice Div, is an MLP also long in ATLS and ALP. Cim is another good one. Good LUCK

    • I'm very sorry to hear that - but I'm sure you are not alone (not that it's of any comfort). I know my dad used to just put his money into CD's and get a good 7% return on that money, guaranteed...But then rates dropped, and The Fed pushed em' down even more, later...and basically forced (pushed) many retired people to search for better yields, to survive...And well, my dad and many other older people are not what you'd call 'sophisticated' in the markets...So, I personally feel that the FED pushed many older people into making some 'bad choices', with their artificial tinkering in the markets...Seniors have not done well, with fixed income instruments....Borders on 'criminal', but Washington (and the FED) does what it wants "for the greater good" (nice ol' Commie slogan). As for me, well, I put my money into non-residential (commercial) preferred stocks, like NRF-C / D & RSO-B...I've also had "bleeding"...comes with the fear of rising rates which pushed down fixed income instruments...but at least the payouts are fixed, unlike AGNC common, etc etc...So, it's really like a "bond strategy", where I get 9%+ on those instruments 9cash flow not affected & for now, I just reinvest the divys into more preferreds)...and have to IGNOREthe balance / prices....So, very much like bonds which pay out a fixed amt, but can loose face value, in the interim... until they mature...then you get your principle back (*preferreds are callable at par/face value, like a bond, but can go well beyond the call dates, which is fine with me...don't have to hunt for a new home, for the money). Anyway...yeah, very sorry to hear your story...sadly, you're not alone...many got hit. Thank you BEN ...and Yellen (to come)...the lil' tinkerers, who think they have all the strings to pull, to make everything 'oke dokey'....until it doesn't work anymore...and the pendulum swings back, hurting the unsophisticated....

 
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