OK Lib you question NLY [so do I] but I also am suspect about a high flying utility that may get burned by California changing a contracted price for energy a year ago so DUK may fall further from it's $40 high.Persh has chased high yields & may regret it!AOK lives on high yields so do I just save cash wait for war to start by 28 Feb then buy on dips? GE is another one which can fall on energy crisis in California.Still have faith in ABBOTTS!
What team shall I cheer for so that people around me don't hit me on the head. I keep getting informed by the paper, but all these 1/4back and 1/2back names are very confusing fer sherr. Maybe I better just sit their silent and smiling.
Which team is supposed to win, help me, help me aok ...
San Diego and most of the rest of California have a visceral hatred of the RAIDERS. It won't be fun down there... even my 85 year old aunt talked about it on the phone today. Aside...defense made the Niners...Lott the catalyst to the HOT LICKS...gotta have it first. Hacksaw Reynolds...you betcha... Romanowski...the Raiders.
I was going to stay out of this...hornet's nest with a baseball bat...you're naughty, Pluto. I'm amazed at NLY's performance to date, but it has a five year record of success even in rocky interest rate environments...inverted yield curve. It has sixteen employees...a brain trust which is highly respected in the bond world.
I suggest that you read NLY board. There is a lot to learn there that can't be learned anywhere else...particularly Bond Daddy... but also a cast of international owners. Amazing site. Pluto, you'd be interested in the guy from Taiwan...stories of living there...8% income tax...beautiful women. He doesn't partake, of course.
I don't live on those dividends. I reinvest them. The first dividend bought 300 more shares. The next dividend will buy 300 more and so forth. I expect the average annual yield to be about 10%. That seems to be the street's expectation, too. I'll take it. The sweet spot is likely to be here for some time. What would a Greenspan increase in rates do to the market now or in the forseeable future? Uh-huh...DISASTER. Also, deficit will keep pressure on rates farther out.
The current 15% comes in the sweet spot on the steep interest rate curve. NLY has low leverage now because of that, but as the yield narrows, they employ greater leverage. Most of their paper is, in effect, guaranteed by the USA.
You took too many chances already to fret over NLY anyway...you need your beauty sleep. Forget about NLY. Sleep in the grace of Mother Abbott and her future glory...praise Heaven.
I will say no more about NLY. Watch the market.
You're the voice of reason about NLY, I am 100% with you on this. Few people understood relativity when Al Einstein came up with that crazy theory fer sherr.
Will post my final solution for skunks, I lost it twice because of damn AOL cutting me off every 5 minutes.
Why bother with anything risky? Just buy something safe and live with a little less income. It takes a whole lot of yield to make up for capital losses that you might incur chasing yield.
All the news feels terrible right now. It's one of those atmospheres where you just feel like the world situation will always be a mess and that the market can never go up again. That's the emotional reaction. Logic says that we may be approaching a great buying opportunity. MOABO as Bob Brinker calls it. The Mother Of All Buying Opportunities. But right now it feels bad.
Plute. I would sell all Abbott. You've read the posts. The employees are starving, selling their homes and cars, and committing suicide over the 6 month wage freeze. The entire economy of Lake County, Illinois is on the verge of collapse because of it. The only thing booming in the Lake County economy is the sale of Prozac and generic Prozac, as all the Abbott employees pull themselves out of the deep, dark depression that they are in over the wage freeze. If you don't believe me, just read the posts. It's devastating out there. The fact that Abbott is going to make more money in 03 than ever before in its history is irrelevant. The fact that employees get profit sharing is irrelevant. If you don't believe me, just read the posts. It's horrible out there. Just horrible. I heard that Newby was taking all his kids' clothing to the resale shop before they've even outgrown the stuff, he needs money so bad. It's terrible out there.
Lib - I do believe you are right don't chase yield & I don't need income anyway as I get hit by AMT each year.But you know it's a game try to beat the analyst!I do feel sorry for those poor folks in Lake County maybe someday I should visit but it's really too depressing.Really great to have financial security why be greedy?