In Plus episode 464, we review how floating rate U.S. Treasury bonds are structured and why the iShares Floating Rate Treasury Bond ETF (TFLO) has a tiny bit of volatility compared to a money market mutual fund. Why different preferred stock issues from the same issuer have different yields. We discuss actively managed preferred stock strategies. Can we use the same methodology to value income-producing and non-income-producing assets? Do we need to invest in individual country ETFs to … [Read more...]
461 Plus: Updated Expected Returns, Index Rebalancing, and Portfolio Questions
In Plus episode 461, we review the changes to the Money for the Rest of Us Plus expected return assumptions and discuss the resources available on the site for modeling portfolios using the return assumptions. We answer a question on how stock index providers, such as S&P, handle share count changes for determining the weighting of a holding within the index. Finally, David answers some questions on his portfolio, including a review of the asset category ranges he has had for the past … [Read more...]
453 Plus: Investing in Mortgage Backed Securities and Mortgage REITs, Old 401k Plans
In Plus episode 453, we explore the current environment for mortgage-backed securities and why mortgage REITs are struggling. We discuss the options of what to do with 401k plans held at former employers. … [Read more...]
452: Beyond Stocks: The Allure and Strategy of Credit Investments
Investing in non-investment grade bonds, leveraged loans, and preferred stocks is potentially more compelling than investing in common stocks at present. Topics covered include: Why Howard Marks told institutional clients to sell stocks and buy high-yield bonds instead The contractual agreements comprising bonds, leveraged loans, and preferred stock give them an advantage relative to common stocks How preferred equity exhibits attributes of both bonds and common stocks What … [Read more...]
Portfolio Trade: Adding to Existing Equity REIT and Preferred Stock Holdings
424 Plus: CLO ETF Trade, Bonds vs Stocks, Preferred Stock Dividends, and AI ETFs
In Plus episode 424, we review a recent portfolio trade David made. We look at the valuations of stocks versus bonds. We consider why more preferred stocks are non cumulative versus cumulative. Finally, we review an ETF that invests in AI. … [Read more...]
418 Plus: Mortgage REIT Preferred Stock, Debt Ceiling Standoff, and Fallen Angel Bonds
In Plus episode 418, we review the current status of mortgage REITs and analyze the mortgage REIT preferred stock David recently purchased. We consider whether investors should move assets out of cash until the debt ceiling standoff is resolved. We consider options the U.S. Treasury has to meet its obligations including minting a trillion-dollar coin. Finally, we look at two ETFs that invest in bonds that have recently been downgraded to non-investment grade from investment grade. … [Read more...]
347 Plus: A New Actively Managed Preferred ETF and Three Pillars of Stock Returns
In Plus Episode 347, we review recent portfolio changes David made to his portfolio. We introduce the new retirement spending calculator. We analyze the new Fidelity Preferred Securities and Income ETF (FPFD), and we review an article by Mark Hulbert on the three pillars that have contributed to above average U.S. stock returns. … [Read more...]
343 Plus: Mid Month Update, Adaptive Model Portfolio Changes, and Preferred Stocks
In Plus Episode 343, we review the latest data including Federal Reserve minutes and Japan's economic challenges. We discuss the recent adaptive model portfolio changes, the new holdings, and the rationale for the changes given the increased risk of higher inflation. Finally, we review why preferred stocks have tended to outperform bonds during periods of rising interest rates. … [Read more...]
335 Plus: Mid Month Update, Preferred Stocks and Direct Indexing
In Plus episode 335 for the week of March 20, 2021, we review recent asset class performance, discuss economic growth expectations and consider the role of preferred stocks in a rising interest rate environment. We also look at developments in direct indexing that could lead to individuals constructing separately managed accounts without using an investment advisor. … [Read more...]
