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

To: Steve Felix who wrote (20166)	6/29/2014 7:17:01 PM
From: Elroy	1 Recommendation Recommended By fitzz Read Replies (1) \| Respond to of 34328

when the time comes that rates rise, I don't think looking at the leverage just on CEFL is going to show a good picture. Looking at the holdings of the CEFs you listed as CEFL's top holdings, what would a rise in rates have to do with anything? The top holdings look like normal large cap stocks. It's too bad CEFL wasn't around in Q2 2013. There was a large jump in rates in May/June in 2013, so if an increase in rates were so bad for the leveraged ETFs it should have shown up there. It killed all the mREITs, that was a painful experience. But the mREITs are leveraged around 7x, and their interest rate exposure is easier to understand since they mainly hold 30 year mortgages. I don't see how a rise in long term rates is necessarily so awful for Apple or Chevron.