Assorted Friday Tidbits

Thanks for all comments about the Hawaii post and the Japan post.

The folks at Macquarie have IPO'd another infrastructure product on the NYSE, the Macquarie Global Infrastructure Total Return Fund (MGU). Despite the Total Return part of the name, as I read the prospectus, there will be no option selling in this fund. Macquarie has two other products, that I am aware that trade in the US; Macquarie/First Trust Global Infrastructure/Utilities Dividend & Income Fund (MFD) and Macquarie Infrastructure Co Trust (MIC). Like MGU, MFD is a CEF. MIC is a trust. I'll spare you trying to explain the difference.

I first wrote about MIC, skeptically, on May 12. I was skeptical because they had not yet paid their first dividend and there was no explanation on the company web site. Since then time has gone on, the price has stayed stable (what I perceive it should do), the fund has caught up on the dividend and given Macquarie's expertise I bought some personally a few weeks ago and also for a few volatility adverse clients. My expectation is similar as that for the call writing CEF. Very low volatility and a high yield.

On July 31 I expressed some concern about how much optimism there was about the equity markets. I wrote that I thought 1190-1200 might be a logical bottom, short term. Aside from being shocked that I have a shot of being right about that, what matters now is what is next. Sentiment has deteriorated, that is a positive. The catalysts that have made me optimistic going into year end are still in tact. I will either be right or wrong about this and act accordingly if the market cracks. I have said before that being right about a prediction is a lot less important than what I do with client money.

Lastly, Hugh Hendry from Eclectica (whom I have quoted on this blog before) said on CNBC Europe that he sees the Nikkei going to 40,000 by 2015. How's that for timing on my post from this morning?