Why so glum? If you've read my prior posts you know history is on your side. And, there were numerous times to buy ahead of the dividend where you'd be doing just fine, even with today's crummy close (plus your 1.82 dividend). If you'd bought at the close during the two week buying period that I advised, there were 8 days where you'd still be sitting on a gain! The good news is that the markets are behaving in a historically rational manner again. The market goes down and gold goes up, for example. No easy money. No anomolous carry trades. It's back to basics, Carny.
Folks like Bill Gross state the recession started in December, and I'm inclined to believe him. If that's the case, the fed rate cuts will prove well-timed and additional cuts will come and limit its duration.
The big question - by the time Regional Bank margins are nicely restored, will there be any borrowers? Maybe not right away. However, to paraphrase Jim Rogers, the money is just sitting in the corner here. Let's go pick it up. (which is not to suggest Jim Rogers would have us buy FF right now. I think he's literally moved to China!)
a point I try to make on income boards is about the technique of buying into an income CEF. do not take $10k or whatever, decide you like something and buy it. shop, do the DD, keep shopping, buy little 100 share nibbles, keep doing the research, buy more shares on dips or crashes. do not buy the tops. (if you don't want a part time job running an income portfolio, ladder the money into CD's, etc., go fishing.)
Uneasy ahead of Citi Jan 15: 5:50a Futures drop ahead of earnings from the financial firm, which is widely expected to announce a major restructuring plan. Citigroup suffers nearly $10 billion loss.......
FF doesn't own any C, but this kind of news takes FF down. have to wait for banks to replace current, failed CEO's, maybe get some new laws and structure to operate under. could be a year or so before the sector starts to turn around.