Focusing On Lower Risk Shares (And Updated Charts For High-Yield Stocks)

Group 1 - The current market is experiencing high volatility, making it challenging to publish frequent updates and forecasts [1][3] - There are emerging bargains in the price-to-book ratio space, with prices fluctuating significantly compared to book values [3][5] - The spread between Treasury rates and MBS rates remains wide, which could benefit future book values but also introduces more volatility [3] Group 2 - Agency mortgage REITs typically have book values close to their fair market values, while non-agency mortgage REITs can have book values exceeding fair market values [4] - A previous warning about AGNC being overpriced was validated as shares declined over 20%, indicating a disconnect between book values and share prices [5] Group 3 - The uncertainty surrounding Federal Reserve leadership and interest rate predictions complicates investment strategies in Treasury ETFs [6] - Investors do not necessarily need to predict Treasury rates but should focus on the valuation of stocks within the sector to assess investment odds [6] Group 4 - Preferred shares are favored for their lower risk and better yield stability compared to common shares, although they still carry some risk [7][8] - The potential for multiple cuts to the Fed Funds rate could lower floating-rate dividends, making investment in this sector more challenging [8] Group 5 - The portfolio currently holds about 33.2% in cash, with expectations to reduce this ratio over time as more investments are made [14] - The focus is on lower-risk shares that can withstand economic downturns while still providing upside potential during recoveries [11][12] Group 6 - The article includes comparisons of various companies and their preferred shares or baby bonds, highlighting specific mortgage REITs and BDCs [15][19] - Detailed charts provide insights into preferred share prices and yields, indicating potential investment opportunities [25]