Ask Rande 10,000+

Top 686. Jan 12, 2002 12:56 PM

» mitelo - Re. Strips

Rande,

I have some Treasury zeroes and strips that are now at a premium that mature in 1-2 years. They are in tax deferred accounts. Is there a reason to sell as opposed to holding, or would that just be a guess on the direction of rates in that period and when the premium might max out?

Thanks.

-- posted by mitelo

Top 687. Jan 12, 2002 1:35 PM

» mdorsey - Re: Re. Strips

In response to message posted by mitelo:

IMO you might squeeze a little more out of those strips in the next few months. What else can you do with the money? Stocks are overpriced. MM is paying 2 1/2%. Maybe a total bond market fund to reduce your interest rate risk.

-- posted by mdorsey

Top 688. Jan 12, 2002 2:22 PM

» mitelo - Re: Strips

In response to message posted by mdorsey:

md,

These are part of a laddered portfolio, so the funds will go back into a similar investment. With that in mind, the issue of near term rate change is probably less relevant. The more I think about it, the more it seems that it really doesn't matter what I do if I am staying in the same asset class.

My confidence in funds is less than yours, so I like to stay with the laddered approach. I appreciate your comments.

-- posted by mitelo

Top 689. Jan 12, 2002 7:57 PM

» David_Korn - Investors Intelligence

Sir Rande, I am doing some research on the infamous Investors Intelligence survey. According to what I found, the correct name is the Investors Intelligence Advisory Sentiment Index.

Do you know if that is the proper name? Do people just refer to it as the Investors Intelligence survey out of habit, or shorthand? Thanks

-- posted by David_Korn

Top 690. Jan 13, 2002 6:19 AM

» Rande - Re: Re. Strips

In response to message posted by mitelo:

mitelo,

Treasury zeroes can be speculative or conservative, depending on how they're used. Since they're very sensitive to interest rate fluctuations, they move around in price with the slightest change in rates. But, since they have a set maturity value, they are also ideal for a conservative approach to funding a future obligation (such as retirement). If you have already decided on an appropriate fixed income allocation for your time horizon, the Treasury zeroes are an excellent way to implement in deferred accounts. I'd forget about current rates and just stick with whatever long-term plan you have in place.

-- posted by Rande

http://www.chartcraft.com/

Top 691. Jan 13, 2002 6:31 AM

» Rande - Re: Investors Intelligence

In response to message posted by David_Korn:

Daved,

The survey is done by Chartcraft. Here's a link:

They call it the "Advisory Sentiment Index," but put it out in a bi-weekly newsletter called "Investors Intelligence."

-- posted by Rande

Top 692. Jan 13, 2002 6:34 AM

» mitelo - Re: Re: Re. Strips

In response to message posted by Rande:

Thanks, Rande.

-- posted by mitelo

Top 693. Jan 13, 2002 7:30 AM

» David_Korn - Re: Re: Investors Intelligence

In response to message posted by Rande:

Thanks Rande. I assume that bi-weekly is used in the non-standard sense to mean twice per week? It must be, because it is reported every week in Barron's.

-- posted by David_Korn