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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (41770)	9/17/2005 10:52:59 AM
From: zebra4o1	Read Replies (2) \| Respond to of 110194

Grant's love of NLY is hard to figure out. He has been warning about banks, etc getting hit by yield curve flattening for at least a year. But at the same time he was positive about NLY. He thinks its a good idea to short high yield bond funds, but he thinks you should buy NLY. Maybe he got too close to these NLY guys - an interest rate junky dazzled by some interest rate maestros. Seems like a universal problem for newsletter writers and journalists. How can you write something negative about people you like and respect and depend on for info? Then again, maybe I just didn't understand what Grant was saying about NLY - the guy can be a bit cryptic. I guess part of his argument was that you were getting paid to take the risk with NLY. If you get 20% interest for 3 years, that kind of makes up for a 50% drop at the end (especially if that 20% was was reinvested). But why not make 20% for 3 years, then sell before the big drop?