But if I knew how to manage my portfolio safer and smarter than most hedge fund managers, I could realistically grow my wealth.
Why income stocks may be risky
There has been a shift to real estate (VNQ), utilities (XLU), and consumer staple (XLP) stocks in 2014 because investors are looking for equities with bond like characteristics that give them a higher income.
The United States seems to be in the process of departing a regime of financial repression, i.e. one where a government takes measures to channel funds into its own debt.
The proportion of the developed market population older than 60 years came in at roughly 15% in 1975, but it’s expected to double to 30% by 2025, according to United Nations estimates.
The front-month Ginnie Mae TBAs were bid up as bonds rallied ten basis points. Ginnie Mae TBAs began the week at 106 18/32 and lost up just about 7 ticks to close at 106 11/32.
Fannie Mae MBS rallied a bit on a strong bond market. The Fannie Mae 4% TBA started the week at 105 21/32 and ended up giving up a couple ticks.
There could be a bit of a bid in the bond market due to the Ukrainian situation and the Israeli situation, but this is probably de minimus.
Existing home sales did come in better than expected. The Chicago Fed National Activity index showed manufacturing decelerated a bit in June.
This week promises to be eventful for real estate–related companies, with the all-important jobs report, the FOMC meeting, and lots of earnings.
The latest deal between Exterran and Chesapeake is in line with Exterran’s strategic initiative to grow its core contract operations business
The assets from the latest deal are expected to add ~110,000 horsepower to the EXLP’s existing capacity.
Simon believes the industry will continue to grow.
Simon completed the acquisition of ownership interest in a number of projects internationally, particularly the McArthurGlen Designer Outlets.
Occupancy percentage increased to 96.5% from 95.1% a year ago—an increase of 140 basis points.
Simon Property Group is by far the biggest shopping center REIT in the U.S. with a market capitalization of $47 billion.
The 5.5% year-over-year gain puts the index back at July 2005 levels. The rate of price appreciation appears to be slowing.
Mortgage REIT investors have finally received a taste of what interest rate risk looks like over the past year. For most of the past 30 years, bonds have been a one-way bet.
Most corporations loathe cutting their dividend because of the message it sends to Wall Street, so volatile dividends are generally rare. For REITs, they’re a fact of life.
Because there’s no risk of principal loss—not to be confused with mark-to-market issues—the rate of return for mortgage-backed securities is generally low.
Dividend yield is typically why investors buy REITs in the first place. They tend to have much higher dividend yields than a typical S&P 500 stock.
CYS Investments (CYS) is a diversified agency mortgage REIT that invests all across the agency mortgage-backed security (or MBS) space.