and other riskier assets now or reduce them significantly.
Watching CNBC earlier, they said S&P just issued a warning some two hours ago, saying there will be a 8-10% market correction starting next week. I have never heard anything so strange because it was so specific. This is not an April Fool's joke but so far I could not confirm it on internet. Anybody heard the same?
The thing is the watch list of pref. stock CEFs I used as a barometer for the market because they are the most stable one but today 15 of them are in the RED and only 4 in the GREEN, worse, FFC and FLC dropped almost 1.5% and today are not their ex-div days. Not a good sign if investors are selling them.
So far, about 2/3 of the BDCs in my watch list are in the RED. Almost 80% of REITs are in RED.
ffc the premium is not too high. This is why i have a limit order to sell it. I tink monday it will go. I loved FFC when small discount but now it is not worth the risk of the dividend reinvestment as the 5.33% premium and lower yield. I wonder if this is how things like PGP with 60.24% premiums get their start? Dividend reinvestment? If it is on CNBC I wonder who the shorties is feeding them the info? cramer? bill gross? who? red green sounds like you bought that stock sofware that tells you when to buy and when to sell the day traders all have that i do not. i make my own choices CNBC is not so smart. If PSEC goes down divy goes up I buy more goody !!! Word about risk. You can not live on .032 of 1% like my checking pays. risk may be i will get 10% is it worth the risk?
You told us not to listen to analysts and here you are panicking over something S&P said. Geezus H. Kreist, are you a schizo?
I have a lot of preferreds (individual, not CEFs) and they did fine today. Go see a shrink and take the prescribed dosage. Haldol, Thorazine, whatever you need to become functional.
I believe if it falls below 10, at around 9.79, about 10% less than its closing price today, will be a great entry price. It may not drop that low that quick though since there are still a bunch of dividend chasers out there. Its yield was indeed attractive though it really cannot cover it with its future NII.
I am making my prediction now. There will be a drop of 1 to 3% next week not a large correction. Market will bounce back for more gains. Unemployment numbers promising today. Economy moving slowly in the right direction. More promising economic data ahead mixed with some economic data that is not so promising. But overall the economic outlook will head positive. I will hold onto PSEC for now and wait and see what happens. Am I right- maybe not but we'll review next week. If a 10% correction really happens I will look at it as a buying opportunity.