Investing ideas - grinding out a good low risk return

[SBR_John]

I like what are called Floating Rate Funds. They will not get killed when rates rise. One I like is http://www.nuveen.com/CEF/FundDetail...ode=JRO&tab=FO its paying about 7%.

My favorite bond fund is cye it pays about 10.25%.

The idea on these is not to buy em for a trade. Buy them for the dividend for a long term hold. They each hold several hundred different holdings so you get some stability.

[JoshW]

Hey John,

You ever heard of Hussman Funds http://www.hussmanfunds.com/ ?

Guy is pretty conservative, but I am thinking of using him. He uses SP100 shorts to hedge his value portfolio when he thinks the market will go down (as he does now), but can removes the hedges when he thinks things are favorable.

I used to not believe in market timing, but now I don't even know if I believe in the market at all. I don't see us ever going back to the consumption of the past couple decades, and I am still waiting for the other shoe to drop on commercial real estate.

[jjgold]

Best way to grind out returns is rental property involving apts not commercial property or Dow Jones Stocks long term.

[Housemoney]

Half way agree JJ. Never had the funds to try apts. The foreclosure market is booming right now. I bought one in Myrtle Beach for $114,000. It sold for $185,000 3 years ago. It only needed @ $1000 in repairs, which I did myself. Net $300 a month from the tenant that is in it now. Hope to sell it in 3 years or when the housing market turns.

[compaqDikk]

we follow the munchkinman's otcbb plays

[BEANTOWNJIM]

HEY SBR JOHN YOU RACIST BASTARD WHY DONT YOU HAVE THIS FUND

(DE UNITED NEGRO FUND)

[1st and Ten]

No easy way to grind out a profit (including rentals, nothing is guaranteed)...I am happy with my certificate of deposit.

[dimewinner]

I like cigarette stocks like ticker symbols MO and RAI. They pay about a 7% dividend and tend to go up in price over time but they have a low beta (low volatility).

[SBR_John]

LOL Beantown

I'll check those out Josh.

Here is another but its a tad risky; Its RBS preferred stock.

http://finance.yahoo.com/q?s=RBS-PS

It pays 15% and has not missed any dividend payments through all those hard months for the banks.

[SBR_John]

I like cigarette stocks like ticker symbols MO and RAI. They pay about a 7% dividend and tend to go up in price over time but they have a low beta (low volatility).

Had Mo for years but decided to bail after the Kraft spinoff. Probably should have kept it.

[kokky]

If you are not shore where is lower risk, just look for the lowest return, they are almost always correlated

[SBR_John]

If you are not shore where is lower risk, just look for the lowest return, they are almost always correlated

Very true.... But the conservative stuff is only paying 2-3%. I cant pay my gambling debts earning a return like that.

You can still somewhat safely make a blended rate of about 7% in this market if you buy and hold diversified funds that invest in bonds, preferred stock, senior loans and dividend stocks.

[MilfDriller]

How about fading donjuan and monkey at the same time?

You can buy a donjuan doll as well. It will talk a whole mess of junk like Monkey. You just pull the string and it will mouth off about his excellence.

[dimewinner]

Real estate can be a good investment here in SoCal where the market has already hit bottom. Rental properties can cashflow 8% or more now with only 20% down if you buy in Riverside county. But you have to have good credit to get a loan.

[Boner_18]

John. I didn't read the prospectus for the floating rates but it sounds a lot like auction rate securities (ARS) which Nuveen was elbow deep in this time last year. I worked with a state attorney general to sue several banks who marketed Nuveen's products because the risk of illiquidity was not adequately highlighted. If the rate for these floater's is reset by way of Dutch auction be very wary as you may be stuck holding them till maturity marking a serious liquidity risk (when there are not sufficient bidders at auction to clear).

[SBR_John]

Thanks for the post. I bought them during the melt down and sold off quite a bit. What about their JGT? I have a lot of that and like the credit quality.

[Boner_18]

Cool. Yeah buying those floaters during November-February of '07-'08 was a dream come true if you were willing to hold till maturity. They were paying something like 10-30 YTM (depending on the cusip) through January '09 when many issuers were forced to redeem by Attorneys General.

Taking a quick look at the JGT it seems to be a good fund, closed end, good credit and very well hedged against the decline in the dollar.

[JohnAnthony]

I bought $ANX at 0.13 weeks ago.

Nothing like hyper-manipulated, pump-driven penny stocks.

[Boner_18]

I bought $ANX at 0.13 weeks ago.

Nothing like hyper-manipulated, pump-driven penny stocks.

as long as you are on the right side of the pump and not involved in any way whatsoever.

[FishFace5]

Best way to grind out returns is rental property involving apts not commercial property or Dow Jones Stocks long term.

Ever tried being a landlord????
Great way to lose $$$$$.
Strongly recommend against this.

[stevek173]

Half way agree JJ. Never had the funds to try apts. The foreclosure market is booming right now. I bought one in Myrtle Beach for $114,000. It sold for $185,000 3 years ago. It only needed @ $1000 in repairs, which I did myself. Net $300 a month from the tenant that is in it now. Hope to sell it in 3 years or when the housing market turns.

I close real estate loans for a living. The people I meet who do this always seem to be living well.

[JEK]

The one drawback to companies like these, a jury against these companies, and you can lose a significant part of your investment in one day.

As a general rule, I stay away from companies that can heavily regulated from the government.

I like cigarette stocks like ticker symbols MO and RAI. They pay about a 7% dividend and tend to go up in price over time but they have a low beta (low volatility).

[Masu485]

Ever tried being a landlord????
Great way to lose $$$$$.
Strongly recommend against this.

how is it bad?? my landlord is the happiest fukk in the world. wouldn't you like getting at LEAST $500/mth from 60 apartments? and that's just ONE building. if they own more, more money.

landlords don't do shit. takes them forever to turn on the heat in winter, hardly any maintenance, and collects massive money at the end of the month.

[SBR_John]

Ever tried being a landlord????
Great way to lose $$$$$.
Strongly recommend against this.

I strongly strongly STRONGLY recommend against it.

I think amateurs try real estate because they sorta understand it. Forget it. Its a money pit and a huge waste of time. If you really want to make a play in RE learn the ins and outs of commercial RE. Never buy a single family doweling as an investment. Never, fvcking ever.

[flyingillini]

Real estate can be a good investment here in SoCal where the market has already hit bottom. Rental properties can cashflow 8% or more now with only 20% down if you buy in Riverside county. But you have to have good credit to get a loan.

Agreed, I have taken out all the equity of my places and have invested heavily in Southern Ca. Not Riverside though, not a desirable place to live.

[mmike032]

Best way to grind out returns is rental property involving apts not commercial property or Dow Jones Stocks long term.

rental property is a losing propostion for most involved.
slum lords might be a different story