Been looking at CYS for a bit. I may bite. I think it hits 11.50 but this price is ok.
Why is AGNC going up? I notice CYS EPS is well above the div/s. I see this as good. To me it means the div is strong. Other REITs are just par which they should be. So how does CYS get away with it? I think the special div in Dec corrected that. Cool.
What I have just noticed is All REITs along with TLT and muni ETF stocks (HYD and PZA) are down too and falling. NOTE: HYG and JNK have sub par yields for for being riskier corporate bonds. The effect of low interest rates I think. Zombie companies can continue.
So why are REITs falling now? Psychology again I think. S&P and DOW at a triple top. Result of the FED.
I think I wait and see what the squester does to jobs first. We will know by the end of March. But then we have the continuing resolution. And after that the debt ceiling. Lot of interest rate sensative things happening.
Result is most REITs may take some hit I think. Especially with the FED backing the market at all time highs.
What I see is this is good for CYS possibly - rates will be low forever. The sequester will eventually kill more jobs. If the Republican Tea Party holds true more will follow on the resolution - which means the FED keeps rates low forever as promised as well as and the FED buys 85 billion a month in assests forever. Market stays up. People flee REITs for a bull market they see more attractive. I see it as a possible Bull trap 0 note the low volume and Apples fall from grace - it may be a good time to pick up some CYS as they may be stable.
The word is REITs are stable and aborb a huge market corection much better. But all with the FED at their back rates stay low forever.
Don't really know all this for sure. But something I think is changing.
The special dividend was required to maintain REIT status. This company pays dividends that are greater than most MLPs and no K-! to deal with at tax time. Buy low and collect great dividends, Buy lower and collect greater dividends.Re- invest your dividends when the price is as low as your fear complex allows you. Better yet, never allow your emotions to get involved with your investment strategy. Cost average down works.
lol, yes, maybe they should reinvest that dividend. That's why I'm not buying at this time. maybe tho if they were buying contracts I might through them some additional paid capital.agnc is buying contracts I think I like that idea. they say contracts are at a low level so grab them while you can.