They can get a lot cheaper, the QQQ's after 2000 went from 120 to 17 and they represented the composite 100 index (100 largest stocks in the composite). 2008 was nothing compared to what happened back then.
You do not have to have your settled funds rolled into MM funds, change your acct settings. Personally I stopped using MM's years ago when they started paying zip and the risk of a minus return became real with them......
ahoo (YHOO) had one mission in its fourth-quarter earnings report and the actual earnings didn't have much to do with it. Instead, investors wanted to see the company's plan for a tax-free spin-off of Alibaba (BABA) shares -- and they got it.
Yahoo shares jumped over 7% to $51.49 in after-hours trading.
In a transaction that will create an additional publicly-traded company, Yahoo said it would transfer its remaining 15% stake in Alibaba, 384 million shares, plus what it called "legacy, ancillary businesses" into a new unit dubbed "SpinCo" in the press release. Shares of the new unit will be distributed to current Yahoo shareholders.
The spin-off move could save $16 billion in taxes on the $40 billion stake.
Sentiment: Strong Buy
I not disagreeing either, but would like to know why you consider it one of the best? It is a puzzling stock. It has been pretty much following the market on small down days and then today only goes down .03 when the overall Dow gets hammered. The management is not saying anything definite about spin offs and no regularly reported good news. But no regularly reported bad news either. So, other than a good divy return rate, what other part of the company do you see that makes it one of the best? Not kidding, I really want to know.
"As long as PSEC management is not manipulating the loan loss reserves, PSEC pps will head back to 10% yield level." .. can you explain pps going to a level where the yield is 10%??
slick had been predicting a BLACK SWAN for a long time now. He even called the drop of oil price as one. I do not know if he expect another one again. Best consult him. LOL
Actually you can get hurt in cash because new SEC rules regarding MM funds would become effective in the second half of 2016. Money market funds for institutions are supposedly to have a floating NAV, in short, those MM funds would behave like bonds. It is supposedly not affecting retail customers, but do not hold your breath because the institutions would pass their costs to their customers, guaranteed. How do I know? During the last stock market crash, I was in almost 100% cash in my retirement accounts at work and while I did not expect to have a lot of gains on my MM funds, I did not expect to see losses. Then I found out what happened was while my MM funds did receive a 0.1% interest but their management fees were 0.7%. Wow!!! That does not even consider inflation. Of course if you believe what the government told us: there is no inflation, only deflation, then you do not worry about it. The Swiss now pay their bank customers - 0.75% (negative) for their deposits. That means the longer their deposits sitting there, the less they would become.
===== Your take on BBEPs big jump==== I don't own it. So I have no opinion. By the way about 15% of DNP's portfolio consist of MLP's and DNP was trading at a 52 week high today.
Don't know that I'd buy crash. I define a crash as a 20% or more drop over a very short time frame, however I do think we are well overdue for a meaningful market correction of at least 10 and maybe up to 15%. PSEC has already taken around a 25& haircut from last Feb. so maybe we will be a bit safer if and when it comes. My hope is people will run to high Div stocks as a cushion, but its the stock market and one never really knows for sure. Just got to stay vigilant.
Can't get hurt in cash. Personally, I think that a market crash seems unlikely with the entire world pouring money into U.S. bonds and equities.
As long as PSEC management is not manipulating the loan loss reserves, PSEC pps will head back to 10% yield level. Most of the other higher yielding BDC's have portfolios that are small and heavily weighted in non-first lien bank loan risk. ARCC and PSEC are large, diversified portfolios with 85%+ secured bank loan risk.
Yes, I'd rather be investing in an FDIC insured CD at half the yield of these BDC's. It doesn't exist so I move to the next best thing. And today's earnings releases showed you that Dow large caps were not good dividend plays at 2%-3% yields. If you prefer cash yield today, you will move into the best BDC's - and those are ARCC and PSEC.