enron_by_the_sea

[bearishgurl]

[quote=enron_by_the_sea][quote=bearishgurl]birmingplumb, I recently received this tip from a fellow “boomer” as a “safer” income investment:

http://investing.money.msn.com/investments/stock-price/?symbol=JHP

I’ve never been good at picking investments. Any more well-versed Piggs care to comment here?[/quote]

Does a “safer” investment drop 80% in ~ 1 year?

http://finance.yahoo.com/echarts?s=JHP+Interactive#symbol=jhp;range=5y;compare=;indicator=volume;charttype=area;crosshair=on;ohlcvalues=0;logscale=off;source=undefined;%5B/quote%5D

I just found this … from the horse’s mouth:

http://www.nuveen.com/CEF/Product/Overview.aspx?FundCode=JHP

Investment Strategy

The fund invests at least 80% of its managed assets in preferred securities, and up to 20% of its net assets in debt securities, including convertible debt securities and convertible preferred securities. The fund invests predominantly in securities that are rated investment grade (BBB/Baa or better by S&P, Moody’s, or Fitch) at the time of investment, and may include up to 10% in securities that are rated investment grade by at least one of S&P, Moody’s, or Fitch, and lower by another. The fund uses leverage.

It appears the month(s) it lost 80% of value correlates with the time frame of the highest amount of foreclosures all over the nation.

Could it be that the fund invested in subprime mortgages and/or residential mortgage-backed securities that were worthless? If so, does it still invest in residential mortgages today?

This merits further research. I don’t know if the “recommender” was invested in the fund in 2009 but is happy with it now.