Show Some Love

The most hated asset class has certainly received far more than its fair share of hate in recent days, courtesy of Chairman Ben’s warning that someday he might consider slowing down his purchases of said asset class.

So now you have 30-year Treasuries selling at a real yield of 3%. Not bad, I say, especially when compared to the overpriced stock market. But then I’m a lover, not a hater. Anyway, I expressed my love in tangible terms today. Annaly at current prices and dividends is yielding 13%, that’s not so bad either. Yes, it has doubtless taken an NAV hit from the recent bond selloff. So what? If you are worrying about NAV, you’re in the wrong stock.

Speaking of hate, though, check Dr. Copper. Not a cheerful prognosis from the good doctor, I must say, down 3% today. Probably the vicious selloff in Shanghai overnight is causing some liquidation by the pig farmers.

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