| 2008 and the Mistakes Made |
11 |
| The Financial Hurricane of 2008 |
12 |
| Financial Hurricanes Since 1900 |
13 |
| Tragic Chain of Events |
14 |
| Review of 2007 |
15 |
| Review of 2008 |
21 |
| Review of 2009 |
25 |
| Investor Mistakes |
28 |
| ~ Mistake 1: Income Investing Is Always Safe! |
31 |
| ~ Mistake 2: Income Statistics Were Badly Misused |
33 |
| ~ Mistake 3: Agency Ratings Give a False Sense of Security |
36 |
| ~ Mistake 4: Misuse of Market Benchmarks |
37 |
| Investing 2010 and Beyond |
39 |
|
|
| Basic Rules for Income Investing |
41 |
| Nothing Is Really New |
42 |
| Owning and Loaning—The Core of Investing |
42 |
| Financial History as a Teacher |
43 |
| Many Bond Markets = Shop for Yield |
49 |
| Income Investment Costs |
51 |
| Diversification |
52 |
| Investing’s Two Biggest Dangers |
53 |
| Inflation, Taxes, and the U.S. Dollar |
55 |
| Interest Rates and Investment Returns |
59 |
| Bond Mutual Funds |
62 |
|
|
| Preferreds: An Investing Enigma |
65 |
| What Are Preferred Stocks Anyway? |
66 |
| What Are the Pros and Cons of Preferreds? |
69 |
| Preferred Practical Trading Tips |
71 |
| How to Find Preferred-Stock Opportunities |
72 |
| Which Index to Use to Track the Preferred Stock Market? |
73 |
| How Did Preferreds Compare to Other Investments? |
79 |
| Ugly Times: 1965-1981 and 2000-2009 |
81 |
|
|
| Analysis of the Preferred-Stock Market |
83 |
| Using Index Charts |
84 |
| Is It a Bull or Bear Market? |
86 |
| Shopping For the Best Investment Yield |
91 |
| Yield Spread Chart |
91 |
| Advanced Analysis of the Preferred-Stock Market |
101 |
| Chart Types |
101 |
| Trendline Analysis |
105 |
| Regression Lines and Standard Error Channels |
109 |
| Moving Averages |
111 |
| Wilder Relative Strength (RSI) |
119 |
| Stochastic Indicator |
121 |
| Ratio Charts |
123 |
|
|
| Investment Analysis of Preferred Stocks |
125 |
| Issuer Screening Process |
126 |
| Security Screening Process |
129 |
| Investment Candidate Selection |
131 |
| Technical Analysis of Preferred Stocks |
131 |
| ~ Using Stock Charts |
135 |
| ~ Winans Preferred Stock Chart |
135 |
| ~ Integrating Market Analysis |
137 |
| ~ The Ratio Chart |
139 |
| Technical Indicators |
151 |
| Differences from WIPSI™ |
151 |
| ~ Regression Lines and Standard Error Channels |
153 |
| ~ Wilder Relative Strength (RSI) |
157 |
| ~ Moving Averages |
161 |
|
|
| Coordinating Research |
163 |
|
|
| Portfolio Management: Seeing the Forest from the Trees |
167 |
| Performance Goal and Asset Allocation |
168 |
| Time Frame Used |
169 |
| Establishing the Performance Goal |
169 |
| Asset Allocation |
171 |
| Initial Portfolio Construction |
176 |
| Monitoring Investment Portfolio |
177 |
| Portfolio Performance |
177 |
| Portfolio Health and Quality |
181 |
| Portfolio Monitoring Checklist |
183 |
| Rebalancing the Portfolio |
184 |
| ~ Money Managers and Their Clients |
185 |
|
|
| Summary and Final Thoughts |
187 |
|
|
| Appendices |
191 |
| Winans International Preferred Stock Index (WIPSI)™ Specifications (as of July 2010) |
192 |
| Supplemental Information |
192 |
| Index Time Frame Covered |
192 |
| Components of WIPSI |
193 |
| Index Rebalancing |
194 |
| Component Weighting |
194 |
| Other Preferred Indices with Exchange Traded Funds |
195 |
| Data Release Time |
195 |
| Data Source |
195 |
| Applications |
195 |
| Index Use and Licensing |
196 |
| Index Construction History |
196 |
| ~ Data Used |
196 |
| ~ Data Categorization |
197 |
| ~ Data Examination |
197 |
| ~ Index Composition |
197 |
| ~ Issuer Consistency |
197 |
| ~ Longevity of Issuer Itself |
198 |
| ~ Call and Convert Features |
198 |
| ~ Trading Activity |
198 |
| ~ Replacement Components |
198 |
| ~ Exclusion from Index |
199 |
| ~ Final Component Selection |
199 |
| ~ Possible Component Changes |
199 |
| ~ WIPSI Changes Since Initial Construction |
199 |
| ~ Data Extensions |
199 |
| ~ Multiple Securities from Single Issuer |
200 |
|
|
| Preferred-Stock Information Sources |
201 |
|
|
| Data Tables |
|
| ~ Preferred-Stock Performance 1900-2009 |
202 |
| ~ Corporate Bonds Performance 1900-2009 |
204 |
| ~ Yield Spreads 1900-2009 |
206 |
|
|
| List of Charts, Exhibits, and Tables |
210 |
|
|
| Bibliography |
214 |
|
|
| Disclosure Page |
216 |
|
|
| About the Author |
217 |
|
|
| About Winans International |
219 |
