rumi
Ensign
Posts: 40
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Post by rumi on Oct 24, 2022 21:07:45 GMT
Fair point. I think I just sleep a bit better understanding how things work under the hood. Unfortunately, I don't think I'll ever truly feel comfortable in my understanding of all the risks at play with PIMCO CEFs. But having some information beats not knowing and going by faith alone. Again, you are raising a good point. However, my experience with PIMCO has been very positive. Remember that my PDI investment has lost about 15% this year. I do not consider that loss as a loss because these shares were bought when PCI shares were merged. I bought the PCI shares even with 25-30% discount during the pandemic. So, I am happy now. The "-15%" is just a number for me. But, PIMCO has always paid me more than 10% (APR) on a monthly basis ever since I started back in 2017. My only regret now is this: I reinvested all those distributions in the equity shares of QQQ, VGT, and VOO and lost a lot there. If I had reinvested back in PCI (and PDI), my share count will be far more, and my income would have been growing at 1% per month. That is a phenomenal growth rate, well compared to the equity growth.
Anyway, I am happy that I am buying PDI shares cheap now, and my personal yield is close to 13%. That is good enough for me.
I too bought some PDI at a 13% recently. I'm looking to add more shares of PCN, PCM, PDO and PTY. Just to have it somewhat diversified. And yes, I know they're still all PIMCO funds. Also, I'm considering putting a piece of the distributions into Hedgefundies Excellent Adventure, which is a funny name for a 3x leveraged 60/40 portfolio (using tickers UPRO and TMF). It went viral over on the Bogleheads forum. I think it will do well over the very long term. Here is a good summary on it: www.optimizedportfolio.com/hedgefundie-adventure/ |
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Post by retiredat48 on Oct 24, 2022 23:37:10 GMT
rumi,...Thanks for link, rumi. R48
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Post by ECE Prof on Oct 24, 2022 23:38:33 GMT
Hedgefunds - Not for me. No thanks. I will stay with VOO, VGT, IVV, IYW, HDV, SCHD, SPY, SPYD, .. This week, I dumped all my cash in IVV, HDV, and IYM. I will be ok with these 6-pack Joe ETFs and remain local too.
My wife keeps complaining that I lost a lot of money this year. So did a lot of people. I am not unhappy. I sleep well at night in spite of all these equity losses. Why? In about a week, I will be happy to see a lot of cash (some reinvested) in our accounts. My wife does not see that, and so she is unhappy.
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Post by ECE Prof on Oct 24, 2022 23:40:50 GMT
rumi ,...Thanks for link, rumi. R48 +1, add me in the same. |
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Post by FD1000 on Oct 25, 2022 9:17:50 GMT
What does positive mean in a vacuum?
PDI, managed by the best fixed income team in the world, is trailing the "stupid" no brainer SP500 for 3-5 years by a huge margin of at least 48%. PDI lost over 16% total in 3 years and made only about 10% total in 5 years. But wait...PDI volatility is higher than SPY.
Seriously, anyone who understands simple math can't hide these facts.
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Post by Norbert on Oct 25, 2022 9:33:30 GMT
What does positive mean in a vacuum? PDI, managed by the best fixed income team in the world, is trailing the "stupid" no brainer SP500 for 3-5 years by a huge margin of at least 48%. PDI lost over 16% total in 3 years and made only about 10% total in 5 years. But wait...PDI volatility is higher than SPY. Seriously, anyone who understands simple math can't hide these facts. Yup, the S&P 500 has outperformed PDI in the recent past. That's a fact, which you have repeated ad nauseam on multiple forums. We get it. Really! And Growth has outperformed Value in the last decade. That's another fact. But, anyone who understands simple logic knows that we invest for the future, not the past. Do you have anything of substance to say about the future? Why is PDI a good or bad investment now? |
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Post by FD1000 on Oct 25, 2022 9:43:45 GMT
What does positive mean in a vacuum? PDI, managed by the best fixed income team in the world, is trailing the "stupid" no brainer SP500 for 3-5 years by a huge margin of at least 48%. PDI lost over 16% total in 3 years and made only about 10% total in 5 years. But wait...PDI volatility is higher than SPY. Seriously, anyone who understands simple math can't hide these facts. Yup, the S&P 500 has outperformed PDI in the recent past. That's a fact, which you have repeated ad nauseam on multiple forums. We get it. Really! And Growth has outperformed Value in the last decade. That's another fact. But, anyone who understands simple logic knows that we invest for the future, not the past. Do you have anything of substance to say about the future? Why is PDI a good or bad investment now? Only problem about the above, I have been saying it for 3 and 5 years. I also have been saying not to invest in EM since 2012...and here we are. Wait, you forgot to mention the yield. Basically, any time you want to look an riskier assets, look at US stocks first and only then look elsewhere. That includes value, growth, SC, and categories too. |
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Post by Norbert on Oct 25, 2022 11:09:27 GMT
Yup, the S&P 500 has outperformed PDI in the recent past. That's a fact, which you have repeated ad nauseam on multiple forums. We get it. Really! And Growth has outperformed Value in the last decade. That's another fact. But, anyone who understands simple logic knows that we invest for the future, not the past. Do you have anything of substance to say about the future? Why is PDI a good or bad investment now? Only problem about the above, I have been saying it for 3 and 5 years. I also have been saying not to invest in EM since 2012...and here we are. Wait, you forgot to mention the yield. Basically, any time you want to look an riskier assets, look at US stocks first and only then look elsewhere. That includes value, growth, SC, and categories too. You didn't answer the question. Fixed income CEFs have outperformed stocks in the past. The S&P 500 went nowhere 2000-2009. PDI was great coming out of the subprime crash. The question is about PDI going forwards, starting today. Am not asking for meaningless generalities. |
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Post by uncleharley on Oct 25, 2022 14:32:09 GMT
"The question is about PDI going forwards, starting today."
The disty assures me that I will have enough money to pay for assisted living when I will probably need it. Let me explain. I am 80 yrs old, in good health, and currently live in a satisfactory degree of comfort. Headline inflation is largely irrelevant to my personal inflation rate. Primarily because my housing expenses are mostly fixed. Yes, my taxes, ins, & maintenance increase a little, but the house payment is fixed. The rent for an assisted living apartment is not fixed, consequently if I should need to move in 5 yrs or whenever, my housing costs could be dramatically higher. The current 13.5% yield on PDI should go a long way toward covering that higher cost. I also feel that while the disty is not guaranteed, I feel that it is assured by the track record of PIMCO.
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Post by ECE Prof on Oct 25, 2022 15:01:41 GMT
FD I love to use other people's cash investment (OPM) to make more money. That is, in itself, very positive, for me. Besides, the loss is not a loss because it is a loss from a gain. Do you hear the sound of cash flow every month, as steelpony10 says? I do, and so, I am happy with that sound. |
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Post by richardsok on Oct 25, 2022 16:49:21 GMT
"The question is about PDI going forwards, starting today." The disty assures me that I will have enough money to pay for assisted living when I will probably need it. Let me explain. I am 80 yrs old, in good health, and currently live in a satisfactory degree of comfort. Headline inflation is largely irrelevant to my personal inflation rate. Primarily because my housing expenses are mostly fixed. Yes, my taxes, ins, & maintenance increase a little, but the house payment is fixed. The rent for an assisted living apartment is not fixed, consequently if I should need to move in 5 yrs or whenever, my housing costs could be dramatically higher. The current 13.5% yield on PDI should go a long way toward covering that higher cost. I also feel that while the disty is not guaranteed, I feel that it is assured by the track record of PIMCO.
That's a good point. I always felt we home owners were on the same escalator with all the others, but never considered property ownership as a factor in our personal inflationary pressures as a total. |
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Post by retiredat48 on Oct 25, 2022 21:59:30 GMT
"The question is about PDI going forwards, starting today." The disty assures me that I will have enough money to pay for assisted living when I will probably need it. Let me explain. I am 80 yrs old, in good health, and currently live in a satisfactory degree of comfort. Headline inflation is largely irrelevant to my personal inflation rate. Primarily because my housing expenses are mostly fixed. Yes, my taxes, ins, & maintenance increase a little, but the house payment is fixed. The rent for an assisted living apartment is not fixed, consequently if I should need to move in 5 yrs or whenever, my housing costs could be dramatically higher. The current 13.5% yield on PDI should go a long way toward covering that higher cost. I also feel that while the disty is not guaranteed, I feel that it is assured by the track record of PIMCO.
That's a good point. I always felt we home owners were on the same escalator with all the others, but never considered property ownership as a factor in our personal inflationary pressures as a total. Guess that's why I own three houses! R48 |
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