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No. of Recommendations: 20
Do I get an "yes-you-told-us-so" from any old timers on this board?

I've been banging the drum to nail down yields and minimize call risk for the past 20 years. Remember when many on this board a few years ago were running for the exits on preferreds (and REITs in general) because of Fed rate increases? I explained then that long rates don't always follow short rates, and this time would be a case in point.

Raising short rates foolishly, when the economic strength and inflation threat weren't there to justify the raise, was bullish, not bearish, for long-dated fixed income investments.

See post 80497 (2016) for example: "My advice is the same as it has been for years: Worry more about reinvestment risk than the risk of rising rates." Earlier in that same thread I laid out the Macroeconomic case for that advice. (Reinvestment risk is the risk inherent in NOT buying long-term securities -- if rates go down your income goes down instead of your asset value going up. A holder of short-term securities must continually find new investments. If rates go down, as investments come due and are rolled over into new investments, income goes down. People seem keenly aware of the risk of capital loss when rates go up, but relatively blind to reinvestment risk. Minimizing reinvestment risk has been my guiding light).

Or post 80513 soon after "There will be a bottom to this long-rate yield cycle but I don't see evidence we have hit it yet. It's been going on since 1980 and has been quite a ride."

When PSA-D came out at 4.95%, many were amazed at a below-5% REIT preferred and called that the bottom on yields, predicting it would never be called. Brad Thomas was one. I (and a few others on this board) bought. Now it sells above par and faces a 2021 call date. It's time to harvest my capital gain, once again, and reinvest in the most call-protected things I can find.

Thanks, Martin, for doing some of the legwork.
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