There is a TIME to buy and there is a time to sell....
Today is time to sell, sold off half of my PSEC shares, admittedly my timing may suck and PSEC will very likely to continue to rise closer to 10.90 if the fiscal cliff talk succeeds, but do we want to count on a whole bunch of politicians? LOL
Always good to take profit and have powder ready, however, why not collect that extra 10 cents? I believe it will be higher on the 27th then we are today
Sentiment: Strong Buy
You can be correct especially if our politicians can solve the fiscal cliff by the 27th but the chance of that happens is quite low, IMHO. It would be a miracle if it can be solved by the end of this year and then stock market will indeed get a boost and will continue to make new highs and PSEC will indeed surpass $12 a share again.
However, with all these conflicts in Gaza, the so called cease fire may not last long. Israel now has a very limited time window to bomb Iran's nuclear facility in the next 30 days. The European nations could not come to terms in bailing out Greece. France is in recession and Japan will soon follow. Even China is in bigger troubles than most people realize (most of their companies have more than 50% debts because they could not collect their account receviables) In short, I believe there would be global recession in 2013 and 2014 and if we cannot solve the fiscal cliff by the end of the year, we would be in another recession ourselves also. Therefore, forgive me for being pessimistic, I just cannot see the continuation of a bull market unless everything I mentioned above will come to a satisfactory conclusion. I would rather believe in tooth fairy than trusting all these world leaders to solve their fiscal problems. In short, all dividend stocks will be very volatile in the next six months, affecting not by their fundamentals but by rumors and news, sadly. Most BDCs will have nowhere to go but down after Dec. 10, IMHO. The good news is you will have ample opportunities to buy PSEC at prices you want in the next few months....Goldman Sachs had already warned their clients that there would be another 7-9% market correction by the end of this year. I hope they are wrong, for all our sakes. If not, PSEC will drop below $10 again, probably by the end of this year.
All the signs are in place, it appears the market will drop again after the holiday, the latest, some time next week and PSEC will be dragged down with the market. Yesterday, DOW rose some 200 points but the volumes were extremely LOW, not a good sign. France was just being downgraded, and with Israel's conflict with Hamas, Greece and fiscal cliff.... Just one bad news will torpedo the market..
Buy DXD, QID and AUY, GLD
Just bought more GLD. AUY is still not a bad buy. I am not going to sell it but will hold on to it for insurance. It is both a gold and currency (Canadian dollar) play. Double insurance. Time to also get some DXD for extra insurance. Israel is READY to go to war and if that happens, watch out. Better be prepared
Bought a bunch of OIL stocks (CVX, TOT, PSX, all gone up today) and AUY last Friday. You need to be at least one step ahead of everybody, in order to make money in this market. Again, early birds get all the worms, Of course I can be wrong and it is not the first time.
This Yahoo message board sucks BIG time. Have to post one message three separate times.