CD's are maturing. Looking for steady managed accounts...

Discussion in 'Trading' started by DisciplinedHedg, May 6, 2008.

  1. Many of my CD's which were earning 5% have expired or are about to expire soon so I'm looking for alternative investments.

    Please post in this thread any managed accounts info or sites which have long term positive records. I'm not interested in anything with negative years. At the same time, because of this, I know the returns won't be anything like 20 or 30%.

    Basically, long term record, no negative years, low drawdown, and 5% or greater return every year.
     
  2. wb
     
  3. Toby Crabel?

    Uncorrelated- Think its $500k + though.

    Barron's is good for fund info but buyer beware- I think their numbers are month to month drawdowns not peak to through- they mask alot of volatility.

    Might want to read the Black Swan in passing- because you might get teased by premium sellers.
     
  4. I have three words: Auction Rate Municipals

    As long as they last (prob 4-6 mos) they are the closest thing to free alpha I have seen in many years. You have weekly to monthly liquidity, highly-rated securities, and a 4%-15% tax free return.

    ARS have been in the news because of some highly-publicized auction failures. But, if you read the prospectus you can stay away from securities with auction failure interest reset rates that are very low. It's those auctions that have been failing.

    I suggest some Washington DC General obligation resets yielding 3.7-4.25%, Connecticut state GO's at 4%, and anything that has been called for redemption or has a final maturity of less than 10 years and a yield of 4.5% or more.

    Today i bought $100k in healthcare munis that have been called for a 5/21 redemption at a yield of 5.223%. Last month I was getting 10% on Philly school bonds (which are essentially guaranteed by the state due to state law) and 14% last week on some Detroit airport bonds which reset at 5.23% today.

    Most of these things are "A" or better underlying.
     
  5. Anyone have any experience with bonds from Orange County?
     
  6. LOL ... I hope that isn't in response to the comment about auction rate muni's.

    They seem to offer a lot of upside for the risks involved.
     
  7. The thing is ....

    1. how long is it until inflation gets out of control... rendering fixed income ineffective

    2. how credit worthy are any bonds in this environment- government sponsored or not...

    Seems like buying a building and renting to people might make sense at this junction...
     
  8. Interesting. I would be interested in the tax exempt high single digit returns at least. Around 4% and you can already get that from savings at a few banks.

    Where do you go to purchase and research the auction rate municipals?
     
  9. Maverick74

    Maverick74

    Two words...life settlements.....10% to 15% annual returns.
     
    #10     May 7, 2008