Monday, November 10, 2014

The Twelve Yield Illusions of Christmas (Musical Tribute)

November 5, 2014
Forbes: Twelve Yield Illusions

The Fed money-printers are on the loose. Rates are depressed—coupons on bonds, yields on stocks. In this income-starved world, investors, especially those in retirement, suffer illusions about what income they are getting. They are easy prey for Wall Street hustlers who feed those illusions.

November 5, 2014
Forbes: Twelve Yield Illusions, Part II

This is a continuation of a depressing tale about why your investment yield is not what you think it is.

I might be biased, but this is very much a must read. That's especially true if you are chasing yield.



On the twelfth of Christmas
Wall Street gave to me
Twelve tax deductions
Eleven junk bond real yields
Ten trust delusions
Nine structured notes
Eight returns of cash
Seven options seen
Six leveraged margins
Five hidden calls! (Scream it! :))
Four calling hazards
Three hidden losses
Two junk defaults
And a "cheap" stock with a fat yield

Sing-along! You know the words!

No comments:

Post a Comment