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Tag Archives: mortgage

May 4, 2007

Watch for another pullback! Stock prices wriggled their way higher this week, with the blue chip S&P 500 index posting its fifth straight weekly rise. We’re enjoying every minute of it. But we’re also expecting another dip soon, a bit deeper than last Monday’s sell-off, that will give you a chance to finish up your buying if you haven’t done so already.

May 2007 Issue & Supplement

You can bank on it! Now that the stock market has found its roar again, investors are scrambling to figure out what to do. Is it too
late to buy? Clearly, the supply of bargain-priced stocks has thinned out in the past six weeks or so. But I’ve got good news
for you: There’s still a rich lode waiting to be tapped—right down the street from your house, at some of America’s
biggest and best-known banks.

In this month’s visit, I’ll show you how to cherry-pick, from the hundreds of publicly traded
banks, those with the brightest prospects for both current income (dividends) and capital growth. As you’ll see, the recent
hue and cry about subprime mortgages is only a diversion—the banks I’m recommending are strong and safe, and will navigate
through this media-puffed “crisis” with
flying colors.

Speaking of mortgages, I’m so convinced the issue has been overblown that I’m sniffing around for values
among the battered specialty mortgage lenders, too. On p. 3, I’ll introduce you to a handful of the healthiest, with dividend
yields as high as 5%, 6% and even 8%. If you’re an aggressive income investor, this may be your finest opportunity in years
to lock in a bonanza while the crowd is gazing the other way.

May 2007 Issue & Supplement

You can bank on it! Now that the stock market has found its roar again, investors are scrambling to figure out what to do. Is it too
late to buy? Clearly, the supply of bargain-priced stocks has thinned out in the past six weeks or so. But I’ve got good news
for you: There’s still a rich lode waiting to be tapped—right down the street from your house, at some of America’s
biggest and best-known banks.

In this month’s visit, I’ll show you how to cherry-pick, from the hundreds of publicly traded
banks, those with the brightest prospects for both current income (dividends) and capital growth. As you’ll see, the recent
hue and cry about subprime mortgages is only a diversion—the banks I’m recommending are strong and safe, and will navigate
through this media-puffed “crisis” with
flying colors.

Speaking of mortgages, I’m so convinced the issue has been overblown that I’m sniffing around for values
among the battered specialty mortgage lenders, too. On p. 3, I’ll introduce you to a handful of the healthiest, with dividend
yields as high as 5%, 6% and even 8%. If you’re an aggressive income investor, this may be your finest opportunity in years
to lock in a bonanza while the crowd is gazing the other way.

Housing: A Firmer Foundation

The housing market has been hurting lately — especially in parts of the country (such as the coasts) where prices climbed too fast. But I’m picking up indications that the bottom may not be far off.

Scratching for Bargains

After a huge stock market run-up such as we’ve seen over the past three months, it’s tough to find bargains. Most stocks are trading well above near-term support on their price charts. But a few good values are popping up here and there.

That Mean Old Yield Curve

It’s claiming more and more victims. Yesterday, investors were shocked to learn that one of the best-managed mortgage REITs, Annaly (NSE: NLY), was forced to cut its dividend 20%, partly because the company’s net interest margin (the difference between what it pays for short-term money and what it earns on mortgage investments) has shrunk.

Step Up For Safety

I haven’t talked much about step-up bonds lately. But it’s time to dust off the topic. Earlier this week, the Federal Reserve released minutes of its December policy meeting. Reading between the lines, it’s clear to me that several members of the Open Market Committee would like to quicken the pace of interest-rate hikes.

THE MORTGAGE MUDDLE

Investors have found another issue to fidget about in recent days. Everybody knows that the rise in mortgage rates over the past three months is going to cool the red-hot housing market. Now Wall Street is fretting that earnings for America’s leading mortgage lenders will collapse.

The Last Days of Saddam Hussein

President Bush’s powerful speech last night leaves little doubt that Saddam Hussein is in his final days as ruler of Iraq. Even the timid Europeans, who normally recoil in horror when Bush delivers a hawkish message, are celebrating this morning.