A.I.M. Users Bulletin Board

[ls7550]

Re: -35% vWave

Thanks minstrlman

The UK's All-Share dividend yield is at a relative historic high of 5.7%. However yields of 6%, or indeed 8% (and even 12% during the 1970's) have occurred and will likely reoccur at some point in time. This could be one such time, no one knows for sure, and if so then a yield of 8% would indicate a further 5.7/8 = 28.75% further potential downside for stock prices.

VL would have you move 100% all-in with 35% of that in long doubles at the present time. At that rate I would suspect after a further 30% fall in stock prices they would have you 100% in long-doubles. Potentially a strong play, but just too hot for me personally.

Best. Clive.