Post by FD1000 on Oct 26, 2022 23:04:16 GMT
Norbert asked me why not CEFs, especially PDI?
First the obvious:
Investing success is measured by risk-adjusted returns, not income., after all total return matters most.
Extremely high ER. Every year, PDI starts at 2.6% behind VOO because if it's ER=2.64%.
The 2008 meltdown in MBS + finance collapse created an easy buy at a huge discount, we don't have it this time. Most of the losses in the last year in CEFs are because of leverage, more sellers than buyers and rates hike. Sure, after 20% losses, they are a better buy. The 2008 CEFs great trade finished at the end of 2017. This is why US stocks have done better. The rebound of stocks after 03/2020 was much better too.
On the other hand, US stocks are an easy choice for decades. US value + SC + healthcare were better in 2000-2010. US growth was better in 2010-2021. And starting in 2021, value and high div are better, I posted about it in 01/2022. One of the easiest funds to hold is SCHD. I discussed it for years. Later, I mentioned HDV, this fund can be in your explore portion. Then you can find other managed funds:
The key to better risk-adjusted performance, FOR MOST, are limited numbers of funds. Why do you need to own many funds and be diversified too much?
In my world, I don't compromise. If value+high div are better, I only hold that category.
BTW, HDV performed better when stocks went down, but also better from the last bottom.
Lastly, instead of asking why stocks, the real question is why CEF,PDI based on a risk-adjusted?
First the obvious:
Investing success is measured by risk-adjusted returns, not income., after all total return matters most.
Extremely high ER. Every year, PDI starts at 2.6% behind VOO because if it's ER=2.64%.
The 2008 meltdown in MBS + finance collapse created an easy buy at a huge discount, we don't have it this time. Most of the losses in the last year in CEFs are because of leverage, more sellers than buyers and rates hike. Sure, after 20% losses, they are a better buy. The 2008 CEFs great trade finished at the end of 2017. This is why US stocks have done better. The rebound of stocks after 03/2020 was much better too.
On the other hand, US stocks are an easy choice for decades. US value + SC + healthcare were better in 2000-2010. US growth was better in 2010-2021. And starting in 2021, value and high div are better, I posted about it in 01/2022. One of the easiest funds to hold is SCHD. I discussed it for years. Later, I mentioned HDV, this fund can be in your explore portion. Then you can find other managed funds:
The key to better risk-adjusted performance, FOR MOST, are limited numbers of funds. Why do you need to own many funds and be diversified too much?
In my world, I don't compromise. If value+high div are better, I only hold that category.
BTW, HDV performed better when stocks went down, but also better from the last bottom.
Lastly, instead of asking why stocks, the real question is why CEF,PDI based on a risk-adjusted?
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