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Post by Capital on Aug 21, 2021 16:55:05 GMT
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Post by steelpony10 on Sept 7, 2021 17:43:54 GMT
Ha Ha. My smart money secret is finally out. Maybe the posters struggling with low bond yields will discover CEF’s and finally admit more risk = more reward and let go of all the other jibberish. No more whining and nothing to do but tweak, game over. One can always hope. 😷 |
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Post by Chahta on Sept 7, 2021 20:10:46 GMT
Ha Ha. My smart money secret is finally out. Maybe the posters struggling with low bond yields will discover CEF’s and finally admit more risk = more reward and let go of all the other jibberish. No more whining and nothing to do but tweak, game over. One can always hope. 😷 Curious what happened to your portfolio last March 2020? Took the beating and kept collecting the yield? |
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Post by steelpony10 on Sept 7, 2021 20:36:13 GMT
Ha Ha. My smart money secret is finally out. Maybe the posters struggling with low bond yields will discover CEF’s and finally admit more risk = more reward and let go of all the other jibberish. No more whining and nothing to do but tweak, game over. One can always hope. 😷 Curious what happened to your portfolio last March 2020? Took the beating and kept collecting the yield? I guess everything is about mindset: Answering your question from memory about 2020: Equities mostly growth and tech, about 35%+ down. Where the smart money has been for awhile. CEF’s mostly held from the bank crisis, about 25%+ down. But I received all of my initial investment back by then (72/8,9%) so that was invested in the above equities over the last 10-12 years. This compounds 8-9% excesses to what turned out to be at 10-12% rates. Who knew? Beats 3-5% dividend increases from an old stalwart. I added 20% here anticipating future yield cuts flowing from FED rate cuts. So cash flow increased. The muni fund decreased in value about 10%. So I think overall I was down about 30% or so. The fantasy balance has recovered (all U.S in these 3 categories), the yield cuts which are happening now are covered somewhat and overall I think our PV is up another 15-20% since then, still mostly due to tech. |
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Post by rhythmmethod on Sept 7, 2021 21:05:52 GMT
Curious what happened to your portfolio last March 2020? Took the beating and kept collecting the yield? I guess everything is about mindset: Answering your question from memory about 2020: Equities mostly growth and tech, about 35%+ down. Where the smart money has been for awhile. CEF’s mostly held from the bank crisis, about 25%+ down. But I received all of my initial investment back by then (72/8,9%) so that was invested in the above equities over the last 10-12 years. This compounds 8-9% excesses to what turned out to be at 10-12% rates. Who knew? Beats 3-5% dividend increases from an old stalwart so I took the risk. The muni fund decreased in value about 10%. The income kept flowing in, but the cuts have started this year. I added about 20% more about 3/20 for more excess income not knowing when that would happen. Values are all in the black still. I only have CEF’s for the cash flow. I have the muni for safety. I have mostly growth equities for big purchases. Would you be buying FI CEFs now in today’s market? Don’t these things get their trees shaken about every 18-24 months! Seems like a lot of premium to me.I bet that tree shakes again in less than 12 months. But I’m a lowly market timer guesser. |
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Post by Capital on Sept 7, 2021 22:26:48 GMT
Oh Yeah - late March 2020 - I went in my house and only came out for food raids at Kroger where they brought the food to my car. Other than that nobody ever saw me.
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Post by Capital on Sept 7, 2021 22:29:17 GMT
Ha Ha. My smart money secret is finally out. Maybe the posters struggling with low bond yields will discover CEF’s and finally admit more risk = more reward and let go of all the other jibberish. No more whining and nothing to do but tweak, game over. One can always hope. 😷 , so now we know the secret  |
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Post by steelpony10 on Sept 8, 2021 0:32:35 GMT
I guess everything is about mindset: Answering your question from memory about 2020: Equities mostly growth and tech, about 35%+ down. Where the smart money has been for awhile. CEF’s mostly held from the bank crisis, about 25%+ down. But I received all of my initial investment back by then (72/8,9%) so that was invested in the above equities over the last 10-12 years. This compounds 8-9% excesses to what turned out to be at 10-12% rates. Who knew? Beats 3-5% dividend increases from an old stalwart so I took the risk. The muni fund decreased in value about 10%. The income kept flowing in, but the cuts have started this year. I added about 20% more about 3/20 for more excess income not knowing when that would happen. Values are all in the black still. I only have CEF’s for the cash flow. I have the muni for safety. I have mostly growth equities for big purchases. Would you be buying FI CEFs now in today’s market? Don’t these things get their trees shaken about every 18-24 months! Seems like a lot of premium to me.I bet that tree shakes again in less than 12 months. But I’m a lowly market timer guesser. Mine are getting shaken up right now. PIMCO is cutting some payouts. Others will follow. If you want to get your feet wet try PTY, which already cut its payout, when the dust settles soon. It’s the best of the best. Otherwise during corrections and market sales are good times to invest. Sure some added volatility due to using leverage to goose yield. At least add some CEF’s to diversify income and leave them alone forever. You have to look at premiums as reliable strong holdings everyone galvanizes to like a AMZN or AAPL with high PE’s. Reread that paragraph above about CEF’s and the proper mindset. Look at them another way like highly desired stocks. For us growth has a TR of 10-12% in recent years and our CEF’s 8-9%. Equities plunged around 35% and CEF’s about 25% in 2020. See a pattern? Risk = reward maybe? Here’s a stark example: do you want to invest 1m in stable dividends, diversify, allocate, go overseas, add safe bonds, buckets, TIPS, market guess and on and on to get 30k+ in dividends a year that grow 3-5% a year or: Invest 500k in 10 CEF’s yielding 6% overall making you 30k a year with no raises maybe even cuts, put 400k in a growth fund and 100k in a cash like holding. Leaving you enough to supplement your SS with CEF income maybe in excess to present needs enabling you to buy more CEF income with capital gains and that excess when needed maybe over 5% more? Growth, income and safety at your risk limits? Re read what happened to me in 2020. I just changed my pants at the end of March and looked for investing opportunities then and added 20% more CEF income. Of course after 40 years of this stuff I take BP pills now to get me through it. Lol. |
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Post by Chahta on Sept 8, 2021 0:58:33 GMT
I have generally bought and held equities, unless I was changing funds. I am getting real tired of trying to second guess bond funds. So I decided to buy quality at low prices and hold them. Everything goes up and down so it’s just part of the game. I can see the same for CEFs too.
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Post by steelpony10 on Sept 8, 2021 1:35:13 GMT
I have generally bought and held equities, unless I was changing funds. I am getting real tired of trying to second guess bond funds. So I decided to buy quality at low prices and hold them. Everything goes up and down so it’s just part of the game. I can see the same for CEFs too. Only magnified by leverage. That’s how I see it. |
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