By Brad Thomas:
Now that I’ve finished my third in a series of “sucker-yield” articles I’m ready to dive back into some BUY recommendations. I like switch hitting though, as I feel as though I become a more critical journalist; that allows me to gain incredible insight into vulnerable business models that don’t offer a lasting model of repeatability.
It’s clear that every investor views the world of risk on a completely different level and while some would agree that Annaly Capital Management (NYSE:NLY) is a “sucker-yield” investment, others would argue that the risk premium is adequate.
Risk Premium: The return in excess of the risk-free rate of return that an investment is expected to yield. An asset’s risk premium is a form of compensation for investors who tolerate the extra risk – compared to that of a risk-free asset – in a given investment. Source: Investopedia
I’m not finished with my