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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Grommit who wrote (32937)	12/3/2008 7:47:24 PM
From: Paul Senior	Respond to of 78671

I'll go for a few shares of the CLP-D preferred. These preferreds which now offer yields comparable or superior to stock price performance (the ole Ibbotson 10.7 annualized number) have got to be considered. Perhaps some of these companies will default forever (the preferreds are cumulative so skipped div's have to be made up -- IF the company survives enough to do so), but there will be preferreds (companies) that muddle through. So I am hoping/expecting. And unless there's hyperinflation where treasuries yield 8,12, 16 or more percent, these preferreds at current price have got to be considered for a portfolio. Maybe not bought, but considered. -g- . I'll be a buyer of some. Here's where my preference would be a managed fund. The problem is these funds use leverage to hype the yield and juice the assets (managers being paid on assets under management, not on their fund's price performance). And that leverage is in arcane (arcane to me anyway) stuff that's frozen or otherwise scary.