The Losses are Out of This World–Update

UPDATE–the average $25 baby bond and preferred is now at $16.50/share.

Leave the office for 90 minutes and come back to dramatic destruction–I mean my little bit of New Residential NRZ-C down 40%–yikes!! I had a sell in, but obviously it didn’t trigger.

Utilities preferreds and baby bonds off 20%–the portfolio looks like swiss cheese (no disrespect to the Swiss people).

I would say there are massive bargains out there–but WHO can define todays bargains.

While we are off 10% for the year I feel fortunate–lots of cash on hand in accounts and some very successful hedging (until the last few days) have minimized losses.

Unfortunately the writers on Seeking Alpha are all playing the hero roll and continue to write ‘buy, buy, buy’what fools. Folks that interpreted their (the writers) success over the last few years as skill and wisdom will be down 75% before this is over–it may take a lifetime to recoup their loses–but most will liquidate and never ever invest again–instead opting for a mayonnaise jar in the back yard as a safe haven.

Early this morning I sold some of my VER-F 6.70% preferred and my AMH-F 5.875% perpetual–put the money in the cash stash.

Now I wait–obviously I am still heavily exposed to utility baby bonds, preferreds and CEF preferreds. I want more–but I guess I want them cheap–I mean really cheap.

99 thoughts on “The Losses are Out of This World–Update”

  1. “The 2017-2018 flu season was severe for all US populations and resulted in an estimated 959,000 hospitalizations and 61,099 deaths. This is the highest number of patient claims since the 2009 flu season. 186 pediatric deaths were reported to the CDC.” The CDC estimated that there 45 millions cases of the flu for the 2017-2018 season. How did we ever get through this without all the end of the world hysteria?

    1. Buongiorno TEF, vivo in Italia a Milano. Siamo nel pieno del dramma. Siate prudenti e preparatevi, non si tratta di una semplice influenza.

    2. Can anyone explain why legendary investor, David Tepper, spent $60 million yesterday to sign a backup quarterback, Teddy Bridgewater? Can anyone explain why Indianapolis NFL owner signed aging, 38 year old Philip Rivers to a one year $25 million dollar contract? Why did many other billionaire nfl owners spend hundreds of millions of dollars to sign athletes for the upcoming nfl season starting in July 2020. That’s a lot of confidence that lots of fans will sit in seats, players won’t get infected even though they are not all six feet a part. Even Tom Brady, worth over 250 million personally, is willing to jeopardize his life for a new contract of $30 million a year with no vaccine in site per the experts for a year. I just wonder if there is a drug that fights the virus already on the market that has fought ebola and sars effectively since they are all part of the RNA virus family. Maybe somebody could google the name of a drug that has worked since 2014 before they sell their portfolio in a panic.

    1. Gasoline usage has dropped pretty precipitously recently. Wouldn’t that hit EPD’s revenues at some point?
      The CEO just said they are going to review CAPEX.

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