EverydayInvestor (< 20)

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March 04, 2008 – Comments (10) | RELATED TICKERS: RZV , SHM

In my real life portfolio I added RZV (small cap value ETF), TFI, and SHM (both of which are municipal bond ETFs). For those in the highest two tax brackets, municipal bonds are looking like a great deal now, yielding above treasuries. With current market troubles it pays to be diversified, and those who may need to sell in the next few years should stay out of long-term muni bonds.

10 Comments – Post Your Own

#1) On March 04, 2008 at 11:05 AM, FourthAxis (24.18) wrote:

...anything double short.

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#2) On March 04, 2008 at 1:41 PM, AnomaLee (29.35) wrote:

At least you can sell the ETF's of munis. Hopefully, and theoretically they should remain liquid even if the underlying assets do not, but I'm not in the highest tax bracket and I'm not considering to add anything until the market hits my 'magic' number.

DJIA: 11,900

S&P: 1,320

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#3) On March 04, 2008 at 2:20 PM, EverydayInvestor (< 20) wrote:

Anoma,

I'm not a big fan of 'magic numbers'. As my shorts have profited over the last couple months I have gradually been buying. No, I won't buy at the bottom, but that is not my goal. My goal is to get good returns with a minimum of hassle. I'll leave it to my short selling to get me great returns.

I should add that unless someone is in the top 1 or 2 tax brackets they should almost always prefer taxable bonds to munis. If my taxable income were lower I might buy some leveraged loan funds.

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#4) On March 04, 2008 at 2:22 PM, CycleFreak7 (< 20) wrote:

Well AnomaLee, you're almost there.

As I write this:

DJIA: 12056
S&P IDX: 1309

The DJI could easily slip another 150 pts before the week is done. I'm still not buying though. My magic crystal ball says that the major banks are going to report much larger than expected losses for 1Q2008.

The freefall will continue for a while.

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#5) On March 04, 2008 at 4:25 PM, floridabuilder2 (99.63) wrote:

i've been laughed at for my ultrashort on oil (DUG), so far that is working for me... I also picked up some solar (TSL) on the earnings beat............ I like owning stocks that sorta hedge each other......

also, is it just me everyday or is it fricking impossible to get on and stay on the top 20 board............. its really starting to cheese me off

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#6) On March 04, 2008 at 5:23 PM, EverydayInvestor (< 20) wrote:

Builder, it's just you. After my brief break this last week I am planning on staying in the top 20 for the next 8 years.

We'll see if that actually happens. :)

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#7) On March 04, 2008 at 5:55 PM, AnomaLee (29.35) wrote:

FB: I agree that oil is over-extended short-term both technically & fundamentally. However, long-term I think oil is still going higher for FY08...

EverydayInvestor: I think yields will move significantly higher in the next 3-5 years, so I firmly believe the principle on muni's be lower long-term, but they should remain better investments during the bear market that we are in.

My style of investing & trading is somewhat unorthodox. Historically, my portfolio has remained 40% invested in long-term investments and 40% invested in short-term trades, and I've always maintained a 20% cash position.

I think I'll disclose my positions, but I like to hear what some of the top players are doing...

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#8) On March 04, 2008 at 6:23 PM, goldminingXpert (99.73) wrote:

As long as crap like LSCG.ob exists, staying in the top 20 won't be too hard... I'm just about up to the top 500 on the back of LSCG.ob, CCYG.ob, TNRO.ob, and TSRA (which is such a piece of crap that it will soon be on the pink sheets...)

Speaking of LSCG.ob, my stock broker pitched that one today, and I was like, well, I've researched the company, and I'm definitely not interested, unless you have shares available to short... it was hilarious.

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#9) On March 04, 2008 at 8:02 PM, EverydayInvestor (< 20) wrote:

GoldmingingXpert--OMG, get a new stockbroker. Why do you have one anyway? Just get a discount broker; you seem smart enough to do it yourself.

I have a nice 30% gain on my real life short of LSCG.ob. TNRO.ob was also a profitable real life short. CCYG would have been, but I couldn't get more than a small number of shares to short.

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#10) On March 05, 2008 at 1:56 PM, goldminingXpert (99.73) wrote:

I have one because most of my money is in a custodial account--meaning I can't move it to a TdAmeritrade or other online place until I'm 21. He's actually not a bad guy... he convinced me to buy USO at 50 last year and told me to short the nasdaq right before Christmas, so he has some good ideas--not sure where the buy lscg.ob idea came from though. He said it is a takeover play with Phillips potentially buying it out. Sure, I'm positive that will happen.

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