Reelin in the yields

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richard
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Reelin in the yields

Post by richard »

There are few errors that are more expensive than chasing yield.

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http://www.ritholtz.com/blog/2011/11/re ... he-yields/
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nisiprius
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Re: Reelin in the yields

Post by nisiprius »

That's a pretty loose definition of "yields." Mortality credits in immediate fixed annuities are not investment yields, for example. As to "would you believe 15% yield," no, I would not--other than in the limited sense in which a winning lottery ticket could be said to have a 1,000,000,000% yield.

There's sloppiness through and through. To describe an immediate fixed annuity as being "illiquid" is like calling Mount Everest "illiquid." Real estate is "illiquid," an immediate fixed annuity is beyond illiquid, it's irrevocable.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.
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stratton
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Re: Reelin in the yields

Post by stratton »

The high yield percentage in REITs are for mortgage REITs (mREIT) which aren't included in most (all?) REIT indexes because mREITs aren't considered actual real estate. Think a mortgage bond fund highly leveraged up 3x or 4x or more. The very definition of extension risk on duration!

Paul
...and then Buffy staked Edward. The end.
nhdblfan
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Re: Reelin in the yields

Post by nhdblfan »

Well its certainly a "chose your poison" chart !
Been very happy with my MLP's over the last 5 years,I will take the "change in tax status" risk and bet it won't .
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