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Top 32. Oct 29, 2001 6:33 AM

» Rande - Re: Re: Re: Everyone is discussing value, how about discussing s

In response to message posted by mdorsey:

md,

Focusing on the short-term, anything and everything can look good or bad on a comparitive basis. It's a common enough mistake made by the average investor who is driven by emotion -- "Oh, bonds look good now, I better get out of stocks." Or, "These large-cap funds are doing lousy, better load up on small-caps." Or, "Why did I ever buy these foreign funds, the U.S. is the place to be." Etc. Great way to get whipsawed into and out of an appropriate long-term game plan. Diversification means having an appropriate all-weather allocation designed to make staying the course more realistic so as to avoid basing long-term goals and dreams on the emotion of the day. There will always be some portion of a diversified portfolio doing better or worse than others. That's the "cost" of reduced volatility over the long haul. Not a bad way to go, really, given the impossibility of being in the right short-term place with everything ahead of time on a consistent and accurate basis over one's lifetime.

Missed the game, but heard it was a good one if your a Bear's fan. At least the Rams lost.

-- posted by Rande

Top 33. Oct 29, 2001 10:40 AM

» R_Lewis - Re: Re: Re: Re: Everyone is discussing value, how about discussi

In response to message posted by Rande:

"Focusing on the short-term"

I have to focus on the short-term. I'm almost out of focus.

Richard

-- posted by R_Lewis

Top 34. Oct 29, 2001 10:51 AM

» Rande - Re: Re: Re: Re: Re: Everyone is discussing value, how about disc

In response to message posted by rich8rd:

rich,

Absolutely, time horizon is key. Retirement mode is no time to be thinking about capital accumulation. It's a time to be thinking about capital preservation.

-- posted by Rande

Top 35. Oct 29, 2001 12:13 PM

» ACousins - The yield on the 2 year treasury is the lowest since 1958?

The yield on the 2 year treasury is the lowest since 1958?

-- posted by ACousins

http://siliconvalley.com/docs/news/svtop...

Top 36. Oct 29, 2001 12:30 PM

» Kirk - Companies struggle with excess inventory

Amazing how much inventory is still out there

I wonder how cheap Palms are going for?

-- posted by Kirk

Top 37. Oct 31, 2001 8:14 AM

» smile_1 - BTTRX - zero coupon treasuries

Amazing run for this fund - high 34's (34.76) as of yesterday...

should blow up in value at today's close (36-37?) on the treasury news of discontinuing 30 treasury issues.

long treas yield yesterday was about 5.2% today it is below 5% heck of a move for those smart enough to hold on to BTTRX...

-- posted by smile_1

Top 38. Oct 31, 2001 2:56 PM

» ACousins - Apparently the loss of the 30 year treasuries will bode well for

Apparently the loss of the 30 year treasuries will bode well for reduction in mortgage rates which the Fed can't affect directly via rate cuts.

That would mean lots of refinancings providing more money for people to...buy things (maybe).

-- posted by ACousins

http://www.suite101.com/discussion.cfm/i...

Top 39. Oct 31, 2001 3:35 PM

» smile_1 - Brilliant move by Treasury & Administration officials

Brilliant move by Treasury & Administration officials... even better than my plan below....

BTTRX screaming up into the stratosphere today... @ 36.41 up $1.65 wow

mortgage rates coming down, everywhere except my mortgage company ... stuck @ 6.25% for 30 yr fixed.... speculation is person in charge of rate changes was asleep at the rate change switch....

___________

Date:
10/13/2001

Subject:
Economic stimulus - Bond Market & letter of concern

From:
Smile

Recipients:
President Bush ,
Vice President Cheney

Message:
God Bless You both and your families for your service to this country.

Please consider the following re: economic stimulus:

1) the biggest economic stimulus you could get with the least amount of cost is lower long term interest rates. The mortgage refinance market has the potential of putting back thousands of dollars in consumers hands which can be used for discretionary spending.

Funny thing is we were almost there.

solution: administration policies and statements consistent with sound fiscal policy promoting lower long term rates (retire 5, 10 & 30 year debt, no deficit spending etc).

If long term rates on 30 year mortgages fell below 6% you would see a wave of mortgage refis, which would work its way through the economy, and create real demand.

Corporations will spend on cap-ex when there is legitimate demand. Artificial supply created by tax incentives to encourage cap ex spending by corporations, is not beneficial in the long run, if true demand does not exist.

-- posted by smile_1

Top 40. Nov 1, 2001 8:10 AM

» Kirk - MCIT 5% quarterly dividend!

I hold a small postiion in MCIT from the WCOM spinoff. It was paying a high rate so I held my few shares... didn't seem worth a commission to sell but it dropped like a rock and now I got paid what amounts to a 5% quarterly dividend!

Check it out
http://finance.yahoo.com/q?s=MCIT&d=c&t=...
20% yield????

It REALLY is true as I have the 5% dividend FOR THE QUARTER credited to my account. I wonder if I should have reinvested it? smile

Price to book is 0.57!

I guess value investors see this as an annuity that will eventually go to zero?

http://biz.yahoo.com/p/m/mcit.html
4% of float is short so a nice bounce could be in the cards if they ever have to cover...

Wasn't MO and other "out of favor" dividend stocks paying HUGE dividends when tech was all the rage? Well, now telecom is about as out of favor as it gets.... and a 20% dividend could look pretty nice in a 2% treasury environment...

not a recommendation... I just have a few shares and am interested in your comments.

-- posted by Kirk