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Strategies & Market Trends : Young and Older Folk Portfolio -- Ignore unavailable to you. Want to Upgrade?


To: jritz0 who wrote (7817)8/10/2024 12:51:44 PM
From: Max2.01 Recommendation

Recommended By
jritz0

  Respond to of 22039
 
Excellent Video, thanks! It spells out exactly what is going on and the performance characteristics involved. Dividend Futures contracts are still a bit alien to me as it is hard to understand why there would be a market for such a thing. It was clear the presenter provided a balanced perspective. The take away is 4X the S&P yield, slightly less overall risk coupled with slightly less total return averaged over all market conditions. I will start a modest position soon as this meets my portfolio objectives.



To: jritz0 who wrote (7817)8/10/2024 2:03:36 PM
From: Charliebrown7211  Read Replies (2) | Respond to of 22039
 
A very interesting video and pdf. Thank you for posting.

Still difficult for me to understand completely, but to this simpleton, it appears that QDPL is buying the future 1, 2, and 3 year dividends at a discount? So QDPL's return would be the dividends received minus the price of the futures contract? Would this market inefficiency not eventually be recognized by the market as a whole and dry up?

I did a google search for the professor mentioned in the video and found numerous papers he has written and collaborated upon. One subject was valuing future dividends, so maybe that paper was the basis for QDPL. I tried to read it but was lost after the 2nd page...