TABLE OF CONTENTS

 
Introduction: The Bulls are Running!
9
1 But There Is a Problem! 11
Income Investing Is Always “Safe”? 12
Income Statistics Are Badly Misused 14
Agency Ratings Provide a False Sense of Security 17
Know Thy Market Benchmark 17
2 Basic Rules For Income Investing 19
Nothing Is New 20
Owning and Loaning—The Core Basics 20
Many Bond Markets 22
Income Investment Costs 25
Diversification 25
Investing’s Two Biggest Dangers 26
Inflation, Taxes and the U.S. Dollar 28
Interest Rates and Investment Returns 29
Income Mutual Funds 33
     Asset Turnover 33
     Bond Mutual Funds Versus Buying and Holding Bonds 34
     Open-End Versus Closed-End Funds 34
     Management Fees 34
     Monthly Income 34
     Account and Transaction Size 35
3 Preferred Stocks-, A Wall Street Orphan 37
What Is a “Preferred” Anyway? 41
Where to Find Them? 42
Preferred Stock Long-Term Performance 42
Preferreds’ Performance Versus Other Income Investments 43
Advantages 46
Disadvantages 47
     
4 Winans International Preferred Stock Index™ (WIPSI™) 49
History 50
Current Components of WIPSI (Even Weighting) 51
Supplemental Information 52
Applications 52
5 Investment Analysis of Preferred Stocks 53
Basic Analysis of the
Winans International Preferred Stock Index™ (WIPSI™) 56
     Data Examined 56
     Moving Average Analysis 56
Basic Analysis of Individual Preferred Stocks 63
     Selection Process 63
     Data Filtering Analysis 63
     Fundamental and Ratings Analysis 63
     Moving Average Analysis 66
6 Portfolio Management: Bringing It All Together 73
Setting a Realistic Performance Goal 74
Executing the Investment Game Plan 75
Monitoring the Portfolio 75
Portfolio Performance 76
Portfolio Health and Quality 78
Rebalancing the Portfolio 80
7 Preferred Practical Tips 83
8 Advanced Analysis of the WIPSI™ 87
Charts Types And Data Examined 88
Charting Techniques 94
Moving Averages 115
Oscillators 126
Relative Strength (Ratio Charts) 130
9 Advanced Analysis of Individual Preferred Stocks 137
Individual Preferred Stocks Used in This Analysis 138
Data Filtering 138
Charts and Data Examined 138
Charting Techniques and Volume Interpretation 139
Moving Averages 149
Oscillators 163
Relative Strength (Ratio Charts) 170
Fundamental and Ratings Analysis 178
Research Conclusions 181
10 Summary 187
11 Appendices 189
WIPSI™ Specifications 190
     Index Construction 190
          Data Used 190
          Data Categorization 190
          Data Examination 191
          Index Composition 191
          Replacement Components 192
          Exclusion from the Index 192
     Index Weighting 194
     Calculations 195
     WIPSI Use and Licensing 195
Preferred Stock Information 196
List of Charts 197
List of Exhibits 201
List of Tables 202
Sources 203
Disclosure Page 204
About the Author 205