It might provide a good opportunity to get in at decent prices on mreits and bdcs
I added PSEC @ 10.66.
I added FSC @ 10.53
If we get more downward pressure on some reits like MTGE, AGNC, WMC, etc.
The prices will start to look attractive.
Nice work to those of you who sold AGNC over $33 last week.
I think we will see a summer swoon and much lower prices across the board. The pattern we have seen over the last few years has been to go up over 10% to start the year, lose most or all of the gain over the summer, and to go back up towards year end. I dumped almost all of my PSEC and am mainly in cash. I do have 4,000 shares of ARR with a cost basis of $6.35. Typically reits are not very correlated to the general market, but as today shows, they do move with the general market to some degree. I think putting some dry powder away will offer some real good opportunities in a few months, especially the BDC's which will fall hardest if I am correct and we get the same pattern. GLTY.
Just throwing it out there.. the 2x mreit and 2x bdc funds. They seem to rebound nicely on some of these dips.
They are both down a bit over 4%.
MORL 29.20 -1.24 (-4.07%) 59.36M
BDCL 25.54 -1.17 (-4.37%) 87.46M