There are a lot MRiets like CIM, ATMG, etc. I own some NLY. They have a long history of producing results. I think with low rates and the spread being as it is I think they will be good for another couple years at least.
He said he didn't want to risk much. Gold is a safe haven and has been far longer then any fiat currency. Doesn't get much more safe than buying it on the dips. Whether the price of gold shoots up or the dow falls to meet the price of gold or more then likely a bit of both he was looking at little risk. 1:1 on dow:gold ratio hit in 1980. Not too long ago. If he is thinking long term without much risk high 1500's to low 1600's is a nice entry point. It's currently building a lot of support in this region. *Bottom line with everyone who responded to me is that we don't know completely this guys risk. His original post sounded to me like he was concerned with the risk. Gold is the ultimate safe haven and thus the reason while central banks all over the world have started stock piling it in recent years. They stacking it up for a reason.
Here is a decent screen I just kind of made up if you are looking for high div payers. http://finviz.com/screener.ashx?v=1...h_price_o5,sh_short_u10&ft=4&o=-dividendyield REMEMBER....DON'T BUY A STOCK SIMPLY BECAUSE YOU SEE A HIGH DIVIDEND YIELD! Make sure they have a history of paying out consistent dividends. Also find out what percentage of earnings they are using to payout their dividend aka dividend payout ratio. If it is a high percentage of their earnings then be cautious and recognize that the dividend can drop if earnings drop.
You do recognize that EVERYONE is assuming gold is a safe haven. It is not a safe haven. Your principle is not safe with gold. The only thing safe with it is the fact that it will be worth something in the future. You do realize gold was not a safe haven from 1980-2005, right? You got killed by inflation if you owned gold during that period. The S&P 500 has destroyed gold since 1980...the last time there was a run on gold and also the year I was born. S&P 500 is up about 1400% during that time and gold is up about 267%. I will repeatedly derail this thread when I hear people stating that gold is the ultimate safe haven ESPECIALLY after it has appreciated 500%+ in 10 years. Gold is safe to buy when no one cares about it....not when EVERYONE cares about it.
Why are you using an arbitrary time frame of 1980-2005, when gold hit a multi-decade high in 1980? The stock market from 1929-1950 would look like a worthless asset class as well if we want to pick and choose. If you just go back a decade earlier, in 1970 when gold was worth $35 bucks, it has out performed the Dow substantially in the 40 years since then. Do I think the ratio will go back to 1? Nah, probably closer to 2.
I just wanted to post a couple pictures from my class you can decide for yourself what is what. This is from the very beginning of when these assets were tracked back in 1802. If you were to place 1 dollar back in 1802 in any of those asset classes thats how much money you would have based on 2006. One is real returns and one is nominal returns. and the last picture is gold since 71 to now, its fair to say that they have outdone S&P by quite a big margin I guess its really up to you to decide which trend it is going to keep following.
The last graph shows how both have performed since we went to a fiat currency in 1971. Unless something fundamentally changes, I do not see the trend reversing.
Why does amzn have such a high P/E. AMZN ultimate aspiration is probably closer to WMT than a .com company which trades at a P/E of 13. However amazon has had a crazy P/E forever.
Buy low, sell high? Get out of town! You bought to write a book or something. it could be the next big thing
I agree 1000% - Though shorting puts on gold knowing there's a dedicated fringe of folks who believe otherwise makes it that much sweeter...
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