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Strategies & Market Trends : Technology Stocks & Market Talk With Don Wolanchuk -- Ignore unavailable to you. Want to Upgrade?

To: Winfastorlose who wrote (133935)	3/17/2020 11:26:05 PM
From: Sun Tzu	Read Replies (1) \| Respond to of 207411

I cannot remember a single decade in which a major crisis did not happen, do you? Like clockwork, every 10 years there is a huge crisis and someone needs to be bailed out. When it happens with so much regularity, you have to admit that it is a characteristic of the system, even though it looks different each time. You are presuming that a better system cannot be had. What do you base that on?

To: Winfastorlose who wrote (133935)	3/19/2020 11:42:13 AM
From: IC720	2 Recommendations Recommended By CrashDavis Winfastorlose Respond to of 207411

Hope you don't mind. Sent to someone who's been in banking all his life. imo very encouraging. I added this.. Have read 2011 was closest (within hours) to complete global financial collapse. Assume between that and 08 a floor may be created. That is why there is a point at which no further melt down can be allowed." Dundies wrote ............ honestly, we're there right now. as in today, this week. the past 13 years showed us the CBs would do EVERYTHING to save the financial system as we know it, and I am confident that they are not going to stop now. they will do everything - fiscal and monetary stimulus, to preserve the system. contrary to popular belief, financials are the safest they have been in decades because there was never going to be a 2008 redux unless the real economy led the way... and even then, what we're seeing now is the monetary/fiscal authorities supporting banks so they can support the broader economy. no bank or insurance company is struggling with liquidity at the moment - and they won't unless the ENTIRE system collapses... which isn't going to happen. that's why i can't be short here... i can see scenarios where maybe we briefly trade down further below the lows in the 2300s by a little bit, but there is far too much on the line to allow for that for any more than intraday, maybe overnight. i'm careful being on the long side, but i've been waiting a decade for this type of dislocation to take my excess liquidity and deploy it. even my wife, who is more conservative than me, understands that. i'm as bearish as anyone and think the entire system is going to come crashing down later this decade (after PL's supercycle ends) - but i know it will not happen now. FWIW also posting this.... definitely NTA, but sharing this for the longer-term / dividend seeking members of the community there are some monthly dividend paying hybrid/preferred security ETFs (e.g. DFP, JPC) that are yielding 13-15% at the moment these are baskets of securities that are issued by mostly financials (some energy) and every security is senior in teh capital stack to common equity... so as long as you think those issuers are not going to default - and especially if you think they'll continue to pay at least some common dividend, even if they cut it - these dividends HAVE to be paid in 2009 many of these traded down to 40-50% of par, only to ride all the way back up at the moment, these baskets of securities are trading collectively at 40-50% of par, which is something I truly truly truly cannot understand - it's purely fear driven if you believe the monetary authorities are going to save the financial system for at least the time being (and I know they will), these are phenomenal opportunities for both IRAs and traditional cash accounts do your own research, but holy moly... Former broker responded with this..................... Prof D, I know you know this, but for everyone else...These are closed end funds. They can sell for above or below their inherent value (net asset vale, or NAV). In times of market stress, like now, the discounts can be Huge! In addition, preferred stocks normally hold their value and are less volatile than common. Due to panic selling (I assume) many preferreds dropped 20% yesterday. Most preferreds are perpetually callable, but by buying a basket of them (ETF) you can negate the call risk. I am buying PFF and PSK - yields in the 7-8% range. You can research closed end funds here cefa.com and preferreds here preferredstockchannel.com. Or, as always, seekingalpha is a good resource.