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Post by bobfl on Aug 24, 2022 14:04:35 GMT
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Post by alvinthechipmunk on Aug 25, 2022 11:11:05 GMT
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Post by bobfl on Aug 25, 2022 11:41:08 GMT
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Post by alvinthechipmunk on Aug 25, 2022 13:07:47 GMT
it's new to me. i enjoy the discovery, but i will not engage. it's beyond my ken.  |
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Post by bobfl on Aug 25, 2022 13:23:19 GMT
it's new to me. i enjoy the discovery, but i will not engage. it's beyond my ken. Good move. :-) Here is another approach. They do all the work. :-) PGX and PFF PGX has a lot of the stuff I buy. I deleted most of my above. |
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Post by FD1000 on Aug 25, 2022 22:10:07 GMT
The following is the most common use of IG ( link). "Credit ratings provide a useful measure for comparing fixed-income securities, such as bonds, bills, and notes". It didn't mention preferred, convertibles, FOR A GOOD REASON. They are not IG bonds. Preferred ( link): "Within the spectrum of financial instruments, preferred stocks (or "preferreds") occupy a unique place. Because of their characteristics, they straddle the line between stocks and bonds. Technically, they are equity securities, but they share many characteristics with debt instruments. Every time, someone is looking for above normal income (preferred, convertibles, HY, MLP, leveraged CEFs), pay attention and be careful. Income should never lead your decision. First comes performance, then comes risk/SD. If these are so great, why Benjamin Graham, Buffett, and Bogle didn't recommend them? How can it be that this easy investment be a secret for decades? How can it be that the best managers in the world in flexible funds don't use these at a very high % and for many years? The Fed may support stocks+bonds but they don't care about preferred, convertibles, HY, MLP, leveraged CEFs. Can you make money in these categories? Absolutely, but the bigger questions are 1) can they beat stocks? 2) Are they a better risk-adjusted choice than stocks and some bonds? Sometimes, we have exceptions. PIMIX proved to be an exception for about 10 years, from 2008-2018, paying 5-5.5%, lower SD and making as much as allocation funds. PTY(CEF) did better than stocks from the bottom of 2009. So, are PFX,PFF the next exceptions? and why? See this ( link) explaining why preferred may be good, but these guys are traders. See below 2 attachments. The first shows that PFX,PFF lost as much as SPY in Q1/2020. The second show how SPY made so much more money in the last 3 years. Attachments:
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Post by steelpony10 on Aug 25, 2022 22:37:00 GMT
bobfl , Have you ever checked or compared Canadian banks to U.S. banks for what you’re looking for? XCB is the ETF if you’re interested.
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Post by bobfl on Aug 27, 2022 12:11:00 GMT
Aug 25, 2022 18:10:07 GMT -4 FD1000 said: "The following is the most common use of IG ( link). "Credit ratings provide a useful measure for comparing fixed-income securities, such as bonds, bills, and notes". It didn't mention preferred, convertibles, FOR A GOOD REASON. They are not IG bonds." FD1000, Of course, preferreds can be rated. And although they can be based on bonds, they are not bonds. They are company debt like bonds.The disadvantage is they can be redeemed in 5 years. That is why I redid my portfolio during this fabulous time, so I now own preferreds that should never be redeemed. Here is my gift to you. Go to quantumonline and search for USB-Q , just as an example. You are a very smart person. I know because you are well up for the year, as I am. :-) Time how many seconds it takes you to find the rating. If it takes more than 5 seconds, then try another. And if you click the Yahoo link on the page, it is now paying 5.16%. I bought it when it hit 6%. www.quantumonline.com/search.cfmIncidentally I have seen Buffet very active in preferreds. One minor example: www.reuters.com/article/us-goldman-berkshire/goldman-to-buy-buffetts-5-billion-preferred-shares-idUSTRE72H6IY20110319As of yesterday, I am now completely invested and optimized for this economic cycle. And unless JP Morgan, BAC, etc. go bankrupt, I wouldn't have to touch these for a while. Last time that happened is when oil crashed a few years ago and I locked in great rates on the pipelines. Now I can stop watching Bloomberg non-stop and finish building some cabinets. |
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Post by bobfl on Aug 27, 2022 12:48:19 GMT
bobfl , Have you ever checked or compared Canadian banks to U.S. banks for what you’re looking for? XCB is the ETF if you’re interested. Thanks. As of yesterday, I am finished for this economic cycle. I am thankful for the opportunities this cycle has provided. |
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