It's lost about a dollar in the past week. At what point does one decide "cheap enough"? My weak understanding of technical analysis suggests it has a way to go on the downside, but in absolute terms it's tempting to buy the 8.5% yield and stuff it in a drawer forever. This assumes of course that BKT can sustain something resembling its current dividend.
One of the reasons I question charting on bond cefs is demonstrated here. BKT has violated its 30 month MA in a significant fashion THREE times in the last three years. It rallied substantially after each violation all the way back through its 10 week MA(now around $7.75). It is my contention that the current value proposition drives its movement entirely. I have added on every dip and lightened up on each rally. More likely to add BKT than anything else on a settling down of volatility here.
BTW, BKT maintained their divvy throughout the '99-'00 Fed tightening, and increased it in '02 plus a 50% YE special.
Owned it for many years and would like to add. Any particular price level we should be looking for? Also captain, any thoughts on ADF? It traded down to 7.52 on Thursday. Would you take a nible if we see that level again? thx