I woke up today, logged into my brokerage online and came across an interesting development. I have my taxable account and rollover IRA with the same broker, so it is rather easy to compare the two. On the positive side, my rollover IRA made a new all-time high this morning before pulling back a bit late in the trading day to finish flat. I contrast that with my taxable account which just made a new 2015 low. The balance is a touch misleading since I do not reinvest the dividends/distribution but live off them, but it does show that I'm bleeding principal. My taxable account is focused on sustainable high yield (I had hoped) investments. I've been picking on payouts, not so much on growth. My IRA is the complete reverse, trying to focus on cheap value stocks more than focusing on dividend payouts.
It just underlines the fact that high yield stocks have been a challenging mine field lately. Lots of volatility and blowups. Not to mention 35% of my tax account is in energy names EPD, MMP, and TRGP which have been really struggling lately. It would have been even worse had I not sold my upstream MLPs before the true carnage got underway. Add all that to a few of my other positions which blew up in my face (AI, FSAM, AWLCF), and it's easy to see I need to re-evaluate what I'm doing. I only have a tiny position in AI and sold AWLCF before my losses became too huge, but I am still a FSAM bag holder. have been de-risking some which is affecting my income I receive. Still, if I don't start doing a better job with risk management, I will be looking for a job within another year or two. I could start drawing on my IRA, but I'm trying hard *not* to touch that until I reach 60. I got a ways to go before then.
Moral of the story is high yield = high risk. Easy to get burned if one falls asleep for even a minute.
That's an interesting gamble, good luck to you! Reminds of the 2008 days when one could buy some REIT preferred shares yielding 40% and with the possibility of 500% gains should they get back to par.
It's pretty amazing given roughly 20% of the able bodies US population is out of the work force still. Wonder what all these people are doing/thinking? I guess a lot of these people just refuse to do anything seen as manual labor and/or just don't possess the skills or work ethic to pursue those types of jobs.
What makes you think the shorting is naked? Normally you only see naked shorting if a stock's shares are on the 'hard to borrow' brokerage list. I don't think that's the case for PSEC.
At the date the article was penned, who knows, perhaps AWLCF was the world's most undervalued company. Thing is, a lot can change in the world any given week/month/year. Oil going from over $100 to under $45 can kind of put a dent into how some things are valued, doncha think? Last time I checked nobody had a crystal ball to forecast these kinds of things.
Not only that, but US oil production is at a 40+ year high I read even with 13 more rigs being taken offline. We live in crazy times where prices for all kinds of things are disconnected from reality.
The whole MLP sector has been selling off lately. Same with REITs. Probably the two weakest sectors in the US stock markets right now. Looks like a new taper tantrum taking place where big money is rotating out in anticipation of rising rates. Could be a buying opportunity....or.....
I hereby nominate lakeed98 to retire from the FRO board and put in an application to the Baltimore polioce department to 'show 'em how to do their jobs properly'. I'm sure the Baltimore thugs (oops I mean saints) will welcome you with open arms. We will miss you on this board (not).
Sucks, I almost bought SFL a few days back to go along with my DHT, EURN, NAT, NNA
I have a feeling it was due to the revised agreement with SFL that cut the profit sharing SFL gets but gave SFL 55 million shares in FRO in return.
Disagree with you regenwulp. Sad reflection at yahoo, but more or less every board I check on for stocks I own is besieged with spammers. There are few (no?) exceptions. The only boards that seem to escape it are the ones that are ghost towns and get no posts at all.
Now you could be right that PM boards receive more FUDsters than most other boards.
I think the Fed has a just a teeny tiny bit more to do with markets being at all time highs than the current administration in the white house. Zero percent rates = ridiculously easy share buy backs while paying little to accumulate debt = record profits/share. There is a reason why all the money is going towards corporate share buybacks and M&A instead of using it to grow the business. Eh, why do even bother?
Right, because Bloomberg is the beacon of truth, ha ha ha ha ha ha. Look, the problem with politics is there is no convincing either side that they are not 100% right in what they believe. That's why it's best to not bring politics up on yahoo finance boards. It just distracts from what we ought to be focusing on. Namely, why MMP is all of a sudden seriously underperforming the Alerian MLP index.