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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?


To: Paxb2u who wrote (14167)2/3/2013 9:43:01 PM
From: Steve Felix1 Recommendation  Respond to of 34328
 
No idea if this will be worth watching:

Have Higher Interest Rates Hurt Preferred Stock Prices?

February 1, 2013 6 pm

Conventional wisdom is that as interest rates rise values of income oriented securities fall (preferred stocks, debt of all sort etc.).
While in general we know this to be true we question whether it as pure and easy as the smart guys want us to think.

In an attempt to answer this question we are working up some new 'indexes' and charts that will attempt to quantify what level of
interest rate increases really damage income investments.

Our 1st Index we are calling the DYH Preferred Stock Closed End Fund Index. This index is composed of the total value of a share
of each Preferred Stock Closed End Fund we follow on our Preferred Stock - Closed End Funds and ETF page (divided by 2 to make
the number manageable). We then track that Index against the 10 year Treasury. We update this on Friday of each week. It should
be noted that all of the closed end funds are leveraged so the movement is exaggerated---but directionally the same as a non
leveraged fund.

We will be doing the same with the Preferred Stock ETF's which are non leveraged--we will launch this one next week.

Here is the first chart of the DYH Preferred Stock Closed End Fund index versus the 10 year Treasury.

dividendyieldhunter.com