Best Investments for 2012

Comments on article "Best Investments for 2012"
Name Views and CommentsDate
Lorne What do people think of this as an investment "tactic", as opposed to dignifying it with the term strategy.
1. Purchase shares of American Capital Agency Group (AGNC).
There is a dividend of $1.40 per quarter per share which works out to about 20% per annum. The shares are very liquid and trade within a fairly narrow range.
2. Since 20% does seem too good to be true and there is a possibility that the price will crash, one could insure one's capital by buying put options at or near the money.
3. Since the shares don't move up or down a lot, it's possible to add a bit to one's revenue by selling covered call options against one holding. If the shares do get called away, they can be rebought. It's hard to imagine they would ever go up all that much beyond the strike price plus the premium.

I'm looking for a weak spot in this and I'll be darned if I can find it.

As a Canadian, there's also the chance of picking up a bit on the exchange rate if the $Cdn. takes a tumble.

AM I BEING GREEDY OR STUPID?
9/26/2011
SME excellent information... 7/4/2011
Andre by charlie s? lol charlie sheen? lmao! :P 3/31/2011
Green-Gods Sounds like a promo for corporate america 1/9/2011
Michele Thanks for the effort but this generality would apply to any year and as such is not an enlightenment on 2011
-from one of the 'common' people who found the article a little insulting, it was so simple
12/28/2010
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