T
Tiger
Guest
What funds do you own for their high yields?
High yield funds are way overpriced right now. Better to go with a total return type fund.
Audrey
What funds do you own for their high yields?
I own AFBIX, a fund which creates the inverse of a high yield index. The only way to fly right now.
Ha
Interesting. But I wonder what is a better (long term - years) defense: the inverse exposure to junk from AFBIX, or the 7% dividend that the (Vanguard) junk provides?
Seems whenever I get tempted to short something, that something just decides to meander, and all I do is pay expenses and miss other opportunities.
-ERD50
These are not long term buy and hold strategies.
Ha
I just can't come up with enough of a feeling on this to get me off the fence to take action and sell it. To buy what?
If I take action and sell my junk, I'll wish you luck with your AFBIX (but not until then!).
-ERD50
I hope you took action ERD 50. This junk market has nowhere to go but down.
Ha
Do the individual stocks you guys mentioned pay dividends that qualify for the low 15% federal tax rate?
I know the usual statement is 'junk isn't paying enough premium compared to investment grade'. I won't disagree, but in a way it is not Apples-to-Apples. So let me turn it around a bit and ask, where can I get a safer 7.6% yield?
-ERD50
No high yield funds for me, but I do own individual securities that barf out a lot of cash. EGLE, DSX, STON, starting to buy AFN, although I am probably early. Sniffing over TMA, although I am not really interested until 24 or so.