This and That. A Little of Everything
By: Tim McPartland,
The 2014 model portfolio stands at +10.1% YTD with a few tenths of a percent of dividends yet to be earned this month.
The Short/Medium Duration Income Portfolioperforms exactly as designed. It has been in range of +.4% to -.2%. Current Yield of 6.67%.
Crude oil remains just 92 cents/barrel above the critical $80 support level tonight–we think a slow drift won’t be a disaster to MLP prices, but a $2 or $3/barrel plunge could create panic.
Bunches of European banks flunk their stress test–this should be of no surprise to anyone and we don’t think the markets probably care much.
Interest rates are about at the top of the short term ‘range’–we don’t think they are likely to go much, if any, above 2.3% (on the 10 year treasury).
An investor could take the Short/Medium Duration Income Portfolio and add a super charged issue or 2 to it to raise the current yield. For instance 75% in the model (or similar) and add FS Investment (ticker:FSIC), a investment grade BDC yielding over 8.45%, LinnCo LLC (ticker:LNCO) with a current yield of 12.23% and maybe another BDC yielding 8-12%. You would have a current yield around 8%. We may model this thought.
We may add FS Investment (ticker:FSIC) to the model this week–great yield and a very well managed BDC.
The sailboat near our house was brought to Minnesota after Katrina–bought from an insurance company. It has been under renovation ever since–someday it will probably be finished. (From a reader question).