do you think all of those statistics really say? We both know one thing to be a fact; FAX's market value decreased from approximately $10 to $5.30 and its NAV didn't fare much better. Please explain in your own words what kind of a future that you think FAX has based on what you posted.
I think FAX is a good buy at these levels. I feel that way because the AUS Dollar is closer to its lows than to its highs compared to the US Dollar. It's selling at a healthy discount to its underlying NAV. There are several other compelling reasons, but I've been wrong before. I'm interested in what you think. Please share.
Hello everyone - I posted the FAX statistics for point of information only. I think FAX has great value right now - especially if you have a IRA and don't have to pay taxes on the dividends. I'm 66, and I've been invested in and out in FAX since it's beginning, and made big loads of money.
Recently I walked it down all the way to 5.50, then purchased $80,000 worth. At this time I am not afraid of what it does. As long as I am getting those lush dividends, the NAV can stay where it is forever.
I want to invest even more now, but you guys have me scared to do that. I'm just thinking that I should pull out of open end mutual funds at these levels. Cheers- Cajun Joe
If you looking for decent capital gains from FAX, my advice is look elsewhere. Closed End funds in general pay out the max. in current income, principle value in general is secondary in what I've seen.
The US bond market has exploded on the upside in the last 10-15 years, but look at the NAV's of most bond funds, down. Over the long term they drop. If bond rates went up a lot in the next 5 years I'd expect most bond fund to decrease to almost nothing after payout and bond value drops. DOn't let that happen to your money.
If you want to secure your principle better then you may buy the bonds directly as they have a definite maturity. Otherwise use stop losses and move on. These are not Bank CD alternatives but more like stocks, iMO. Have a fail safe system in mind to protect your principle.
IMO, if the AUD goes up a lot then you'll see dividend increases, NOT money reinvested to protect NAV value. It's the nature of the beast.