Two points: 1) Sometime back, Mr. Gross also said that the Dow would go to 5000; I believe it was at about 10000 at the time. Wasn't really a very good prediction. I hope he is as correct on the 1% because... ...2) If the prime rate goes to 1% there would have to be a really serious, as in BAD, economic reason for it - I'm talking about a trip to "DEFAULT CITY", when both NAV and dividends go to hell in hand basket; best hope that scenario never plays out. Having said that, I'm an owner and will sit tight and keep a close watch on what the payout rate is versus the fund's income.
the market is down of credit and finacials worries, OK? today PHK is down a little. meanwhile, XLF, RHK(bank ETF's) and some bank funds(FF) are all up. maybe a little of the fear is going away? bargain hunters trying to buy the bottom of financials, maybe some short covering? still nice to see some numbers in the green.