At the time of my purchase it was paying a 15.1% yield. At yesterdays closing price of $15.28 it was at 13.21% -- still a very healthy yield -- and I received the following comment to the original story.

• Teresa wrote: Hi, I just wanted to express a little distress with this stock NLY, I bought in a month ago Jan 09 and I already lost 925.00, Whats up with that??? I was depressed!! Question: should I hold tight and have faith or sell, sell sell.

On January 9, 2008 the closing price for NLY was $15.89, trading within a 38 cent range during the day. The short answer is that I would hold on and I am holding on. However, the more important question is -- what in the world are you doing in the stock market if you cannot tolerate 4% volatility? The market can and has done that in a day.

Why do you ask this question now since the stock hit a low of $14 during your holding period? Teresa was losing more at that point and has recovered from that low. The stock is trading up further today. To lose $925 we are talking about almost a $30,000 investment in a single stock, so our nervous Nelly is no small player unless she has not diversified her holdings. Hey Teresa please tell me that ain't so!

I see no reason to be worried about this this stock. The only things that I can think of that would affect my opinion would be if the Federal Government made some noise about not backing up the home mortgages or the long and short term interest rates converged to the point that NLY could not squeeze out any profit.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I own shares of NLY.