still hold a great deal of cash, more than usual. for the most part 90-100% invested in something.
it is hard and for me impossible to time the markets, and many corporations are cheap, however the amount of debt in the Euro zone is a concern.
Greece will have to default and the quicker the better probably, no sense dragging this out throwing good money after bad, the risk besides to banks holding this debt is other nations with debt concerns, Ireland, portugal, and spain.
in an ideal world the euro bond would work but not now...
1. it has to pass in every country in the euro, trying passing this in the countries that have to put up the money
2. German courts have basically rulled it out, stating short term help can be provided but not long term...bonds are ussually considered long term.
3. the countries that have a large debt would have time, but what if they fail to balance their budgets over time, what happens, penalties, really none, and then you have a bigger mess.
Prepetual Preferreds : were discussed at my monthly shareclub meeting, most members still like them. I just think there is a great deal of risk one is taking for a 4.5-5.5% yield.
if there is anying like a 2008 credit crisis the market value of these securities gets hit much worse than short term debt, all to make an extra 1-1.5%. seems crazy.
note : pass year you would have made 14-16% total return in the last year to 18 months, so have been wrong...still would avoid them, if rates go back up then these will have a large amount of risk. not worth the risk.
UBS is a bank that should have all of its management replaced. they will blame it on a trader.
however if you have one trader who worked themselves up in your organization, and was doing conservative trades, they should not lose you 2.3 billion. this is a lack of oversight. and that fall on managment, systems have to be put in place to always check for problems.
will slowly add to some positions, but will put in low bids for most days, one reit I follow went down 15% at one time and then recovered all of it in a day. very volatile markets, so you can try to buy cheap.
thanks
selkirk
it is hard and for me impossible to time the markets, and many corporations are cheap, however the amount of debt in the Euro zone is a concern.
Greece will have to default and the quicker the better probably, no sense dragging this out throwing good money after bad, the risk besides to banks holding this debt is other nations with debt concerns, Ireland, portugal, and spain.
in an ideal world the euro bond would work but not now...
1. it has to pass in every country in the euro, trying passing this in the countries that have to put up the money
2. German courts have basically rulled it out, stating short term help can be provided but not long term...bonds are ussually considered long term.
3. the countries that have a large debt would have time, but what if they fail to balance their budgets over time, what happens, penalties, really none, and then you have a bigger mess.
Prepetual Preferreds : were discussed at my monthly shareclub meeting, most members still like them. I just think there is a great deal of risk one is taking for a 4.5-5.5% yield.
if there is anying like a 2008 credit crisis the market value of these securities gets hit much worse than short term debt, all to make an extra 1-1.5%. seems crazy.
note : pass year you would have made 14-16% total return in the last year to 18 months, so have been wrong...still would avoid them, if rates go back up then these will have a large amount of risk. not worth the risk.
UBS is a bank that should have all of its management replaced. they will blame it on a trader.
however if you have one trader who worked themselves up in your organization, and was doing conservative trades, they should not lose you 2.3 billion. this is a lack of oversight. and that fall on managment, systems have to be put in place to always check for problems.
will slowly add to some positions, but will put in low bids for most days, one reit I follow went down 15% at one time and then recovered all of it in a day. very volatile markets, so you can try to buy cheap.
thanks
selkirk
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