Investors....come in please!

[Tempest]

Originally Posted By: tpitcher
mREIT's got hammered lately & trading well below book value. I picked up 20k ARR & AGNC for my regular acct. today.


Aren't those being beat down by QE3?

 

[Turk]

Originally Posted By: Tempest
Originally Posted By: tpitcher
mREIT's got hammered lately & trading well below book value. I picked up 20k ARR & AGNC for my regular acct. today.


Aren't those being beat down by QE3?


Yes.

Like an indirect tax that I'm paying.

Oh well, I'm buying more in the IRA as well to reduce my cost basis.

Dirt cheap now.

 

[Drew99GT]

Could be wrong here, but I've looked at the charts of AGNC and the others that are heavily invested in agency MBS, and like I thought, they actually outperform when interest rates drop, because the bonds they invest in rise in price. If we're at the precipice of much lower interest rates, they REITs might start doing well again. The panic selling was a fear of rising interest rates from QE3. The exact opposite has occurred to rates. The exact expected opposite of all markets occurred after QE3.

 

[friendly_jacek]

Today it felt like blood on street for gold/silver miners, especially since metals themselves did OK.

Unfortunately I was long, ouch! A few days too early.

 

[Pablo]

Today was brutal. Period. My insurance is only so good.

Somebody announcing a 1.6Trillion $ tax hike is never gonna turn out well.

I got a bit of a haircut and I am barely exposed, I can only imagine Joanne-Bob looking at the old IRA/401K right about now....and SELLING tomorrow....or Friday.

Look for bargains carefully.

 

[Warstud]

Ignore the media..Watch the charts.

 

[Turk]

TCAP got whacked along with the panic selling yesterday, should be a buying opportunity, but will watch it close thru the day....

TCAP = 9.2% Dividend.

BDC's & mREIT's should be screaming buys if the sell-off is over!

 

[GROUCHO MARX]

Originally Posted By: Warstud
Ignore the media..Watch the charts.


yep

 

[Drew99GT]

Bought FSA this morning. It's finally catching a bid.

 

[Turk]

Got a ton of ARR this morning at 6.02 before the run-up.

Also some PGH & NYMT before its run-up.

 

[Tempest]

Europe in an official recession:
http://www.cbsnews.com/8301-505123_162-57550532/return-of-europe-recession-is-bad-news-for-u.s/

 

[buster]

Possibly a global recession. Europe has monetary structural problems which makes it that much more difficult.

http://economistsview.typepad.com/economistsview/2012/09/paul-krugman-europes-austerity-madness.html

 

[Turk]

Make money wherever you can out there.

Take profits where applicable & buy after a bloodbath.

 

[Tempest]

Originally Posted By: buster
Possibly a global recession. Europe has monetary structural problems which makes it that much more difficult.

http://economistsview.typepad.com/economistsview/2012/09/paul-krugman-europes-austerity-madness.html

I love this. Spain had relatively little debt before the collapse. And now it is borrowing massive amounts of money (from 36% of GDP to 90.5% in 5 years) to "stimulate" the economy, and yet it still has very high unemployment (>25%).

So he provides the proof that what he wants (Keynesianism) doesn't work!

Spain's deficit is 7.4% of GDP and it was 9.4% last year.
http://www.reuters.com/article/2012/09/29/us-spain-deficit-idUSBRE88S07Z20120929

 

[GROUCHO MARX]

This is the material movies are made of : Bearer Bonds

 

[Tempest]

Investment by major companies looks rather bearish:
http://online.wsj.com/article/SB10001424127887324595904578123593211825394.html

Foreign investment into the US is down sharply over the last few months:
http://online.wsj.com/article/SB10001424052970203406404578074683825139320.html

 

[buster]

The U.S. is still the best house in a lousy neighborhood.

 

[cjcride]

This^^^

 

[Tempest]

The next big bubble burst?

Quote:
figures released today from the Federal Housing Administration (FHA) throw a sobering splash of cold water. FHA's FY 2012 Actuarial Study for its main single family program shows that its capital position has turned negative, by $13.5 billion. That's a shift of $23 billion in economic value in a single year, and it puts the 78-year-old agency $34.5 billion short of its legal capital requirement.

If it were a private company, it would be shut down.

Quote:
Research published last fall by the American Enterprise Institute showed that the agency had become as overleveraged as Lehman Brothers and Bear Stearns before their fall.

http://www.theatlantic.com/business/arch...the-fha/265359/

Quote:
Right now the critics are starting to look pretty prescient. By law, the FHA is supposed to hold reserves equal to 2 percent of its portfolio. But an independent, actuarial study released Friday showed that expected losses are so high that the FHA’s reserves will be the equivalent of negative 1.44 percent, or $16.3 billion, for fiscal 2013

http://www.washingtonpost.com/opinions/a...b531_story.html

 

[Pablo]

Thread clutter in the investment thread needs to be kept to a minimum.

I took the dive into the some high yield covered call CEF's this last week. All yield 8-10%.