The market did not really drop that much this morning, then the DOW dropped almost 90+ points and it came back. However, I have been noticing many of the REITs in my watch list were in the RED and more and more BDCs in my watch list (more than half) started turning RED. This scenario was quite similar to that of last week when the market indexes barely went down, yet almost all of the dividend stocks got hit hard. The good news is all of the pref. stock CEFs (except two) are in the green right now and if most of them started turning red, better watch out, that may indicate the overall market will tank again and no REITS, BDCs or evern Pref. Stock CEFs will be exempt. Goldman Sachs had just warned their clients yesterday that there would be another 7-9% market correction before the end of this year. Also, the chance of the fiscal cliff being solved before the end of the year is about 55%. Bernake today warned that if we do not solve the fiscal cliff by the end of this year, the chance of another recession is almost unavoidable. There are many tell-tale signs indicated that the market will tank again if our politicians drag their feet in solving the fiscal cliff. I just do not believe they will come to any agreements next week and the market will tank after the holiday. Therefore, be very very cautious with trading in this market and have at least 10-20% cash on hand because there will be many great buying opportunities of good dividend stocks including PSEC before the end of 2012.
If for some strange reasons, we have another UP day like yesterday and the DOW went up another 150 points, better load up with DXD or QID. I even bought some QID in the after hour market yesterday. I will continue to buy AUY, GLD and SLW. Jade
For those of you who had predicted PSEC will go back up to 12.25 by Thanksgiving or to $12 at no time, or climbing back up to 11.25 by Christmas, etc. etc., I do not want to spoil your fun because today's trading volume of PSEC: 1,326,889 was significantly lower than its daily average of about 4.4M, probably due to the Thanksgiving holiday but it never even reach 10.70 today even in this thin market. Next week, you will see some actions and if enough crazy investors or large hedge funds started buying them before the end of month, you would probably see its price rise on early next week and then drop abruptly by the end of the week which happens to the end of the month. The cease fire in Gaza was uncertain at best and the European leaders could not come to an agreement in extending further bailout for Greece and the honey moon for the fiscal cliff negotiation will be over by Dec. 10 the latest, according to CNBC. Therefore, you may have a very narrow window to sell some of your PSEC shares if you DO NOT intend to hold any or too many shares of it in the next 7-10 days. After that, unless the fiscal cliff is solved, peace in Gaza and problem with Greece is being solved, the overall market will be downhill all the way till the end of this year and PSEC will tank with it. Beware.
Where are the long buy hold investors on this board? I have a large position in PSEC accumulated in the last two years and could not be more pleased as earnings and dividends are increasing. They just raised north of $350M to address attractive deals in their pipeline. I could care less about the day to day,just the fundamentals.
So when it goes from 9.81-10.72 in a few trding days and insiders are buying like crazy people, you say "sell"? This stock is undervalued, significant UPSIDE , under NAV still. Your oil holdings and purchases after selling psec will suffer far greater loses if what you predict comes to fruition.
This is truly a "ROCK SOLID" balance sheet. Holding here
With Obamas win it should be more of the same buy and sell.Hopefully catching each downfall selling each upturn.What help PSEC is it's internote bonds and the ablility to acess more cash.As long as NAV and earnings go up,I see PSEC doing what it's been doing.