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INCOME INVESTING IN A GLOBAL DEBT CRISIS

Explore strategies for income investing in the midst of a global debt crisis in 2012. Learn about top investment opportunities, dividend growth, and diversification to offset risks in a volatile market.

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INCOME INVESTING IN A GLOBAL DEBT CRISIS

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  1. INCOME INVESTING IN A GLOBAL DEBT CRISIS ROGER S. CONRAD AAII WASHINGTON 2012

  2. WHERE WE STAND • INVEST FOR 2012, NOT 1932 • NO INFLATION • US ECONOMY GROWING SLOWLY • SENTIMENT BETTER BUT SKITTISH • STRONG WILL SURGE, WEAK WILL STUMBLE

  3. CHEAP MONEY

  4. STOCKS FIRST • ONLY LIVABLE YIELDS • DIVIDEND GROWTH ACCELERATES • CONSERVATIVE IS COOL • DIVERSIFICATION AND BALANCE OFFSET RISKS • MUST LIVE WITH VOLATILITY

  5. ECONOMIC SENSITIVE • NOT FOLLOWING INTEREST RATES • RE-PRICING RISK TO DIVIDENDS • RALLY BEGAN IN OCTOBER: NOT EVERYTHING IS A BARGAIN NOW • WATCH REVENUE RELIABILITY, NEAR-TERM DEBT

  6. HOW THEY RATE • BUY THE BUSINESS • PAYOUT RATIO: WHAT IS PROFIT? • DEBT: WHAT’S COMING DUE? • REVENUE: RELIABLE AND TRANSPARENT • VALUE AT PRICE

  7. WHERE THE BUYS ARE • UTILITY BEDROCK • MLPS: PROFIT IN PIPES • HIGH YIELD COMMUNICATIONS • CONSERVATIVE CANADA • BARGAINS DOWN UNDER • BIG YIELD HUNTING

  8. MLP PROFITS • ,MASSIVE DEMAND FOR SHALE • A LACK OF INFRASTRUCTURE • CHEAP CAPITAL • INVESTMENT = DIVIDEND GROWTH • BEST: GEL, ETP, BPL, NS • WATCH THE PRICE: EPD, KMP • A WORD ON TAXES

  9. UTILITY BEDROCK • CAPITAL SPENDING + REGULATORY SUPPORT = HIGHER PROFITS, DIVIDENDS, SHARE PRICES • BEST: EXC, D, WTR • KEY RISK: WATCH THE REGULATORS

  10. THE DATA EXPLOSION

  11. BETTING ON CONNECTIVITY • GLOBAL CONNECTIVITY BOOM • BIG PLAYERS BENEFIT MOST • HIGH YIELDS ABOUND • T, VZ, WIN • KEY RISK: TRANSITION FROM 20TH CENTURY WIRES

  12. CANADIAN YIELDS • LEGACY OF INCOME TRUSTS = THE DISCIPLINE OF DIVIDENDS • SOLID COUNTRY/SOLID CURRENCY • RETURN TO DIVIDEND GROWTH • COMING TO NEW YORK • AT, JE, STB, PWE • PBNPF, BRPFF

  13. BARGAINS DOWN UNDER • SOLID COUNTRY/SOLID CURRENCY • DIVIDEND FRIENDLY/RESOURCE RICH • APA (APAJF), TLS (TLSYY) • A WORD ON FOREIGN DIVIDEND TAXES

  14. BIG YIELD HUNTING • RISK PERCEPTION DRIVES PRICE • RISK CAN BE OVER-PRICED • BARGAINS BEST WHEN GLOOM IS GREATEST • TEF, NMM

  15. AVOIDING BLOWUPS • AVOID CARRIED INTEREST MLPS, LONG MATURITIES, BLACK BOXES • KEEP UP WITH YOUR COMPANIES • LEAVE EMOTION OUT OF IT: NO POLITICS, NO AVERAGING DOWN, NO STOPS • CUT LOSSES

  16. FOR MORE INFORMATION • www.utilityforecaster.com • www.canadianedge.com • www.mlpprofits.com • www.australianedge.com • www.pfnewsletter.com • www.RogConrad.com • hoodie, fever

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