Archive for February 21st, 2007

Yield = Poison

Wednesday, February 21st, 2007

I have resisted writing this for some time, but there are certain points in the bond market where yield is poisonous.  I have a rule of thumb that says when spread relationships get too tight, give up yield to gain possible capital gains in the future.  That’s why I made the post at RealMoney late yesterday.  When everyone is grasping for yield, that is the time to avoid it, and aim for capital gains.  That is what I am doing now.

Posted in Bonds | 3 Comments »

A Modest Proposal Concerning The Satellite Radio Merger

Wednesday, February 21st, 2007

I have a simple solution for what the government should do regarding the Sirius and XM Satellite radio merger. Just have them give up one of the licenses, which the FCC will re-auction.

I can even guess who the likely buyer will be: Google. I can see it now: Google buys it to create the Google Satellite Data Network (using half the bandwidth), while creating satellite radio channels by aggregating terrestrial radio stations that use the web, plus podcast stations. What’s more, it will be free, though one will happily listen to Google’s creative ads. This is a deal where everyone can win, except perhaps the two that are merging. Such a deal!

Posted in General, Stocks | Comments Off

Disclaimer


David Merkel is an investment professional, and like every investment professional, he makes mistakes. David encourages you to do your own independent "due diligence" on any idea that he talks about, because he could be wrong. Nothing written here, at RealMoney, Wall Street All-Stars, or anywhere else David may write is an invitation to buy or sell any particular security; at most, David is handing out educated guesses as to what the markets may do. David is fond of saying, "The markets always find a new way to make a fool out of you," and so he encourages caution in investing. Risk control wins the game in the long run, not bold moves. Even the best strategies of the past fail, sometimes spectacularly, when you least expect it. David is not immune to that, so please understand that any past success of his will be probably be followed by failures.


Also, though David runs Aleph Investments, LLC, this blog is not a part of that business. This blog exists to educate investors, and give something back. It is not intended as advertisement for Aleph Investments; David is not soliciting business through it. When David, or a client of David's has an interest in a security mentioned, full disclosure will be given, as has been past practice for all that David does on the web. Disclosure is the breakfast of champions.


Additionally, David may occasionally write about accounting, actuarial, insurance, and tax topics, but nothing written here, at RealMoney, or anywhere else is meant to be formal "advice" in those areas. Consult a reputable professional in those areas to get personal, tailored advice that meets the specialized needs that David can have no knowledge of.

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