I've had the fund for almost 23 years and chose to have the dividends reinvested. Needless to say I built up a nice chuck of change in the security in that time span. I've seen a couple of other times during that period where the fund has tanked but I think this time is different in that municipalities are really in deep trouble. I don't see the fund recovering and like you I want to try and at least cut my losses.
I have thought about selling everything at $13.25 but guess I'm just going to prolong my misery and set up loss limit's down every dollar or so.
If we only had a crystal ball, right?
You did well in selling 1/2 of your holdings at $14.30. There are times to retreat and this certainly seems like one of those times.
Best of luck to you regardless of what you decide to do.
I sold 50% at 14.3 and am regrettably holding the rest... but everyday I keep thinking it will go back up, but it just goes down. I really want to unload my last half of these shares, but would be locking in a loss if I do so... I don't know if I can take it anymore. Why don't you just sell all of your shares at $13.25?
If you look back to the end of 2008 the fund took even more of a severe hit going all the way down to $12.60/share both in October and December.
If you feel the fund took an undo beating now could indeed be the time to buy some shares. I've owned shares in the fund for some 22 years and to see it go down .39/share in two trading days is unheard of. You have to remember that just two and a half months ago the fund was trading as high as $14.90/ share which was the highest close in several years. Not sure what changed in that period to warrant such a drop in share price. I believe all the attention and articles related to California possibly defaulting on its state bonds fueled this massive sell off. Also the state is going all out on trying to sell even more municipal bonds which makes this fund less attractive to some investors based on the average duration of the bonds within the fund.
It should be very interesting to see what happens with this fund the rest of the year.
Best of luck to all who own it....
The fund is California Municipal bonds. If you have read about the situation in California you would know why this fund is tanking. Two and a half months ago it was at $14.90/share. The recent daily drops have been huge, pretty much unprecedented for this fund since it's inception some 27 years ago. California is in deep trouble and their have been suggestions that they might default on their state (municipal) bonds. They are also issuing even more bonds which isn't helping either.
Don't know when the bloodbath will let up here.