*Investors Blog*

[SC Maintenance]

Strange Morning. They seem to be pumping the markets with Friday "peace talks" news? Do I sell or hold USO?

Why is BAC/PRB up so much when rates are rising. Maybe time to sell that?

JPY intervention. Maybe time to go long dollar, or short Yen?

Odd morning. Probably time to do nothing.

 

[Zee09]

Strange Morning. They seem to be pumping the markets with Friday "peace talks" news? Do I sell or hold USO?

Why is BAC/PRB up so much when rates are rising. Maybe time to sell that?

JPY intervention. Maybe time to go long dollar, or short Yen?

Odd morning. Probably time to do nothing.

Like I always say, be careful of Fridays especially late afternoons

 

[Pablo]

Strange Morning. They seem to be pumping the markets with Friday "peace talks" news? Do I sell or hold USO?

Why is BAC/PRB up so much when rates are rising. Maybe time to sell that?

JPY intervention. Maybe time to go long dollar, or short Yen?

Odd morning. Probably time to do nothing.

Don’t sell BACPRB You will regret it

 

[SC Maintenance]

Don’t sell BACPRB You will regret it

OK, not saying your wrong, but walk me through the math. Its already over par paying less than 6%.

If rates go down it could appreciate, but not much. Would be much better off with a long treasury paying 5% if rates fall.

Or a short corporate paying close to 7% if I just want yield?

 

[Pablo]

OK, not saying your wrong, but walk me through the math. Its already over par paying less than 6%.

If rates go down it could appreciate, but not much. Would be much better off with a long treasury paying 5% if rates fall.

Or a short corporate paying close to 7% if I just want yield?

I assumed you bought under par??

 

[SC Maintenance]

I assumed you bought under par??

Yes I did, and now am wondering if I should sell over par?

I am unsure how what I paid has to do with it? Its what its worth now?

 

[Pablo]

Yes I did, and now am wondering if I should sell over par?

I am unsure how what I paid has to do with it? Its what its worth now?

Your call completely

What you paid should be how you compare yield

Corporate bond yielding 7+ % has to be more risky

 

[SC Maintenance]

What you paid should be how you compare yield

Please explain?

Lets say I buy something for $100 today that yields 10% - so $10 per year.

Value of that security goes to $110. I can sell at market for $110 - then buy another security that pays 10%, I now make $11 per year.

I don't understand why I calculate yield based on anything other than current mark-to-market?

 

[Pablo]

Please explain?

Lets say I buy something for $100 today that yields 10% - so $10 per year.

Value of that security goes to $110. I can sell at market for $110 - then buy another security that pays 10%, I now make $11 per year.

I don't understand why I calculate yield based on anything other than current mark-to-market?

There is more than one way to compare

Current yield is fine

Say in your example you paid $50 would you so easily give that up? You have less money tied up.

 

[SC Maintenance]

You have less money tied up.

I am just trying to understand. Not saying your wrong. But the part I quoted above is where we differ in opinion. I have whatever money tied up that I could sell that item for today. No more and no less. So in my example I have $110 tied up if that is the current mark to market, irrelevant if I paid $50 or $200 some time ago.

 

[Zee09]

Simple calculation for the slightly advanced bunch here...

I bought these shares for $48k and now they are $57k.... I could really use that $9k and I'm really happy with that gain....

OK I'm selling.......
Techno drama for those who love to thrill themselves like those guys that live and die on approvals they ignore when they get an oil deal....

Same for the anal oil filter bunch
Ready to be slapped

 

[Pablo]

I am just trying to understand. Not saying your wrong. But the part I quoted above is where we differ in opinion. I have whatever money tied up that I could sell that item for today. No more and no less. So in my example I have $110 tied up if that is the current mark to market, irrelevant if I paid $50 or $200 some time ago.

I can post some links explaining when I get home next week

 

[gfh77665]

I am just glad I didn't listen to the bears along the way...

 

[Pablo]

You should consider both **current yield**, which reflects the annual dividend relative to the current stock price, and **yield on cost**, which is based on the price you paid for the stock at the time of purchase. This approach helps you evaluate the investment's performance over time and its potential for income generation.
https://duckduckgo.com/?q=with+divi...hase?&t=iphone&ia=web&assist=true&assist=true

 

[Pablo]

I am just glad I didn't listen to the bears along the way...

People can’t time the market

Not saying they can’t be @Zee09

 

[Pablo]

Excellent week in every way. Zooming back might be an understatement!

I didn’t have to sell with the wind at my back but it sure made feel like a genuine genius! And of course I am not. I just saw the dip as we all do and stuck some money in and shook it a bit.
+++++++++++++++

And most everything is paying me at the same time so to speak

Simple interest and compound interest neither simple nor confounding.

I want to know what it pays me first and how frequently second. Not % but in dollars. Not yield yet.
Study the risk factors, for bonds duration etc
Then look at current yield which of course is yield at time of purchase (cost).

Simplistically standard bonds and preferred payouts don’t change but common stock dividends can and do change so current yield can take on a more significant meaning.

When the rate is not variable I obviously care about how much in dollars I am getting from my tied up investment and yes again that cost yield is just one metric.

PS seems like BACPRB is close to par currently

PSS Preferreds don’t automatically reinvest the dividends like common shares

 

[SC Maintenance]

PS seems like BACPRB is close to par currently

Yes, I should have followed my intuition and sold. Live and learn.

Probably a buying opportunity now.

 

[Pablo]

Yes, I should have followed my intuition and sold. Live and learn.

Probably a buying opportunity now.

View attachment 335658

Ex-dividend May 01

Not sure what type of account if you had wanted to “buy the dividend” or not. You held so you get dividend so just wait for the creep back up, or sell one of @Zee09 recommendations and buy something solid
Edit: removed account number added words of encouragement

 

[Zee09]

Yes, I should have followed my intuition and sold. Live and learn.

Probably a buying opportunity now.

View attachment 335658

I have faith in you SC
My advice for you is if you are uncertain about your success in the market have a backup plan like becoming a Amsoil dealer...

 

[Pablo]

I have faith in you SC
My advice for you is if you are uncertain about your success in the market have a backup plan like becoming a Amsoil dealer...

I heard @Zee09 selling his business. We all like BB guns