Often hear the saying if LT interest rate increased 1% your bond fund price will go d sown 10%. Does it basically mean it is safer to buy muni CEFs , which are highly leveraged, one for example MVF, when 10 yr treasury yields 4% (as they say 10 yr should yield 4% as fair value), to protect your principle?
Appreciate your thoughts.
I bought my first tax exempt muni bond CEF about 5 yrs ago, if you got a good entry price close to its historical lows, like MVF that I just bought 2 days ago , the yield is about7.2% tax free. Some tax free muni CEF has had a long years of history. I checked on Yahoo finance /price the history for their inception dates, price behavior/historical low and high, divy yield stability. Morningstar is a very good source to look up other details. In my view it is a quite safe investment, municipals will always need money to fund their existance, and the taxfree design spares me from the headache when filing income tax return. Besides I don't have any luck with stocks, everyone I touched became dirt. But CEF is not as liquid as stocks or ETFs, I wanted to add 500 shares of MYD the other day, only got 140 shares. See the definition of CEF in Investopedia. Do your own due deligent, I only have 5 yrs of experience. Good luck.
Just wondering why not put some money into tax exempt muni bond CEF? Prices have been crushed lately and yields very good. Pay monthly too.
I just read on Barron 11/26, by Mamudi, 'Two percent of S&P 500 FIRMS ARE DOING 88% OF THE EARNINGS WORK". AAPL, BAC, AIG, GS, these 4 companies contribute more than half of the arnings growth......
PTTRX performs extremely well this year, because interest rate so low hence its share price kept going up. Since 2000 it ever reached 11.70 level was Nov. 2010 for a few days only. I'm afraid the price is too close to its peak now. No one has a crystal ball, but for long term investment, people invest in a Bond fund when interest rate rises and share price drops. The 3.7% yield sometimes is not enough to make up for the loss caused by price drops. Just my humble opinion.
PTTRX is a Bond fund. A bond fund's share price goes up when interest rate comes down. PTTRX this year performs extremely well because interest rate low low low, share price up up up. I just checked its historical prices at Yahoo Finance, since 2000 its price has ever reached 11.70 range was Nov. 2010 . Usually people put their money in a Bond fund is when interest rate is high and share price is low. If economy improved, interest rate likely to rise and price will drop. The yield provides some cushion but sometimes not enough to make up the loss caused by price drop. I feel PTTRX share price at 11.60's is almost at its peak now, I'd rather wait.
The first time I got my divy from Annaly, two years ago, I had my house painted for the first time in 15 yrs; second divy, upgraded the bathroom a little bit; etc. etc., there must be lots of other small share holders like me who enjoy the fruit Annaly - a company well run by you, bears.
Thank you, Mike. God bless you always.
This ETF was priced 50' at its inception in May 2007, it's around 14.6 the last time I checked this morning. Does it mean good or bad when an ETF bevaves like this despite producing very nice devident?
Thanks in advance for your thought and comments.
Recently read an article (I forget the title), sort of about "best ETFs", MDY was one of the 5 ETFs picked by the author with an estimated approx. 550% total return since its inception in 1995, is it true?
Can some long time investors who know well about this ETF (and good at the calculator)comment on that please?
I invested my 403B biweekly contribution in 500 index fund (choice of the 403B plan)for over 10 years (during that lost decade) with dividends reinvested and gained $200 (two hundred dollars) when I converted into Roth and had to pay about 14K (over 20% tax) for the conversion.
Am thinking of investing some of my hard earned money in MDY, wise? what's the good entry point?
Appreciate your thought, thanks in advance.
Per Google Finance, DIA closed at 127.57 on 7/6 last Friday, EPS 8.41, PE 15.2 while Yahoo Finance shows PE 12, no EPS mentioned.
Can someone please tell me which one is right ?
It was many years ago I invested 25K in this fund, at that time it was the minimum required. Then in less than a year, it grew to 32K, I was real happy, never had such a luck since I started saving and investing at a younger age. I almost sold it, but there was a redemption fee if held less than a year. Then very quickly the price started dropping around the time of the Great Recession. Even with dividend reinvestment, It took me about another 2-3 yrs
to break even and got my 25K back.
Looking at the price history,it looks like there is a cycle, IMHO buy at the low and get out at the high is a better strategy than just faithfully hold it for years.
I just got back in at the low 60's for the initial $3000. I am watching the oil price to start adding at 52 - 45.
I think (correct me if I am wrong) it all started with the Operation Twist tha NLY prudently reduced it's leverage months ago hence decreased in income and dividend pay out and the share price kept dropping.
I had to sell some shares to protect my retirement $$ and lost quite a bit of money.
Is Operation Twist over or nearly over? Is NLY increasing its leverage again to booth earning? or....? Is it kind of safe to get back in for the next divy?
Ask too many qustions, sorry.
Any comments would be appreciated.
U got it right gq I bought it at 18 and have not got my money back yet, but IT OWES ME NOTHING. Buy or sell on one's own free will, nobody forces you to take risk.
Definition of shelf registration:
"A regulation that a corporation can evoke to comply with U.S Security Exchange Commission for a new stock offering for up to three years before doing the actual public offering....", "Sometimes current market conditions are not favorable for a specific firm to issue a public offering...By using shelf registration, the firm can fulfill all registration related procedures beforehand and go to market quickly when conditions become more favorable."
I think that NLY is preparing to come out of its hibernation. A little skinnier perhaps, but a sign of life again.