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Re: Activity August 5Seems to me that momentum has shifted on fixed income whether Preferred or CEF and may be it is best to stand on the sidelines and stay out of harms way. More or less what I have been doing. The Preferreds and F.I. CEF's on my Watch List continue to decline so the question is when should I jump in and buy something. On Preferreds I am following a few which have declined sufficiently to now offer 7%. So I will most likely begin to buy one or two in this category. I think my plan will be to watch Preferreds I like and buy when they get to a 7% payoff. Hope that is enough yield to satisfy the hounds who are worried about rising rates. May even settle soon in some cases for mid to high 6% yield on the quality names. NEE-H now at 6.2%, GS-I now at a 6.2% yield, TCO-J now at a yield of nearly 6.7%. . Preferreds of this top quality would be most desirable if they decline a bit more and up their yield somewhat. On CEF's, just watching, not too enthused at the moment about buying any. Some of the popular ones have taken a large fall, PDI as an example has gone from a high of $33.97 to $27.54 at today's close and an intraday low of $27.17 today. PKO has gone from a high of $32.90 to today's close of $27.29. And so it goes. Some terrific yields out there in CEF land but a bit too rowdy yet for me to jump back in the pond. I miss the daily action but to me it makes little sense to buy for a 6% or 7% yield and watch your holding decline by 6% or 7%. I know there are those investors who shout "I don't care what the share price is I only care about the income". But I am one of those who does care a lot about the share price and net asset value. But of course I am content to sit with a lot of cash and wait even though that is not an easy thing to do, trying to stay away from the losses. Regards from Orchid |
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Msg # | Subject | Author | Recs | Date Posted |
195 | Re: Activity August 5 | hendi_alex | 0 | 8/6/2013 8:38:12 PM |