As soon as the FED raises interest rate, a market correction will start, probably not getting too bad until the third rate increase and if they do not time the rate rising right, the chance of having a recession as early as Q4 2015 or as late as Q1 2017 will be quite likely. Of course, Yellen can always change her mind and re-start QE again with a scale so large that it will make Japan blushes. With Euro continues to drop and US dollars continue to rise, it will have a very negative impact for those US companies that depend on exports. The rise of may stocks are mainly due to shares buying back and that will soon stop. In short, the earings of many large US companies will fall and that will impact their share prices negatively.
Many of these so called "PSEC Longs" bought tons of PSEC shares (according to them) because they enjoyed its high dividend and as long as they received their FAT dividend check on time every month they are happy. But if getting a 13% yield is so easy, everybody who invested in PSEC would be a millionaire by now, or are they?
The problem is recession is already in Europe, a triple-dipped recession is already in Italy, France will be the next, the PIGS are goners and even England is in troubles, now Germany is in troubles:
"A key survey shows that business confidence in Germany – the region’s main engine of growth – has fallen for five months in a row to its lowest for more than a year.
The Munich-based Ifo think-tank’s monthly business-climate index of 7,000 firms dropped from 106.3 in August to 104.7 this month. In a report, it said: ‘The German economy is no longer running smoothly.’"
In short, the whole Europe will soon be in a recession and you do not think it will affect USA?
judging by the continued tankings of many small caps and almost the whole BDC sector. 95% of stocks in S&P were down today. You better take a long and hard look at all of the stocks in your portfolio especially those that are paying high dividends. Those that cannot sustain their dividends will not fare well in a market correction.
There are a lot of BDCs that might be already in corrections:
GLAD reached its 12 mo low of 8.06 yesterday.
ARCC closed today at 16.25, only a few pennies away from its 12-mo low of 16.21 on 8/5/14.
BDCL, the 2x BDC ETN, closed at 24.93, not that far away from its 12-mo low of 24.11 on 5/15/14.
BKCC closed at 8.72, getting closer to its 12-mo low of 8.25 on 5/1/14.
FGB, a BDC ETF, dropped 3.74% and closed to 8.23, getting closer to its 12-mo low of 7.50 on 5/9/14.
FSC, closed today at 9.33, getting closer to its 12-mo low of 8.94 on 12/13/13.
FSFR, the floating rate capital of FSC, also a BDC, dropped 2.1% again today after climbing back to around 12, flirting with its 12-mo low of 11.51 (9/15/14)
FULL, reached its 12-mo low of 6.05 yesterday.
Even MAIN, the blue-chip BDC, continued to tank, almost daily, down from 32.60 on 9/11 to today's 30.97.
That is a 5% drop in less than two weeks, without any bad news.
MCC dropped to its 12-mo low of 11.92 yesterday.
Of course it may be the best chance to buy some good BDCs but that may just be the beginning of a market correction, especially for the BDC sector, only time can tell.
Hogwash. If you do not buy RIG when it reached its 12-mo low, when would you? Now it has a 8.02% yield and its downside is limited.
No, their EPS, even dropped to 1.02, would be more than sufficient to sustain their 0.24 qtr dividend.
I am kind of surprised to see so many trashes being posted by one person, sole purposes of which are to bash TAXI.
But why? If you hate it so much, why do you not short it to death with all of your money? Why kept bashing it? Did you lose all your money because of it? Just wonder.
If life is that simple, things will indeed go as you predicted and everybody will be happy and we will have more newly minted millionaires .....................or NOT
That is why none of you are millionaires because if you are, you will care about every single dollar if it belong to you. How do I know, because I am one. LOL
Read your own du mb remark:
"It has been my worst purchase in years...I bought @10.79.... The only reason I'm not totally sick about it is because PSEC has a history of this and the monthly dividend is comforting. My position is currently worth about $250k."
like you said ".you'_re an idiot."
I bought PSEC at 9.30.
You are a fool:
Checked its volume, on 6/3, it was 12.3M when it dropped to as low as 9.55. This has become a trading stock on days when it dropped big and it will happen again and again.....
Any data that may be worth watching is the amount of margin debt. Margin debt had reached its ALL TIME high of 450.2B (billion) at the end of March, 2014, started dropping off to 437.1B at the end of April. If this trend continues at the end of May (date not out yet), then watch out because last time Margin Debt reached its then all time high at the end of July, 2007, the market started tanking badly about 6-7 months later. Of course, history does not necessarily repeat itself and on one single factor can predict a market correction. Thanks to the ECB, QE has now started in Europe and there may be a lot of legs left with the stock market.
Not trying to spoil any of your fun because it was indeed exciting to see PSEC rose all the way to 9.85 today and my accounts shot up, thanks to my significant PSEC holdings and I am not selling any of it, at least not yet because where can you find a 13%+ yield good till this year?
However, do not get too excited because today's trading volumes are quite low:
PSEC, its average daily volume (last ten days) is 6.47M, today so far is 4.28M.
For the DOW, average daily volume is 62.8M, today so far 38.3M.
For NASDAQ, daily average: 425.5M, today 254.9M
S&P, daily average: 386.4M, today 222.9M
with about 1 hour and 15 min left before the market closes.
They were talking about this on CNBC earlier that it did not appear too many investors wanted to buy in the rally.
So you mean "Effects"?
Affect is a verb, not a noun.
What PSEC did is nothing new. Quite a few BDCs have subsidiaries under which applied for SBIC licenses and make SBA loans. A few have floating rate capitals, such as FSC has FSFR, PNNT has PFLT, making loans between parent company and its subsidiaries. ACAS, a BDC, owns and manages both AGNC and MTGE, both REITs and a floating rate capital, ASCF.
In short, if SEC really wants to dig deep into the accounting of these BDCs or REITs, they will find something.
PSEC is not and will not be the first BCS who is investigated by SEC.
May be you should consider buying either MAIN or TCAP, they both pay special dividends.
Well, why would any ETN pays you a whopping 16% yield if it is not risky. You are betting on BDCs and therefore on small caps. You would be highly rewarded if you are right or greatly punished if you are wrong. May be you should buy some insurance on both? I would rather buy CHKR than BDCL, yield is higher, risk is almost equal.
when PSEC dropped to as low as 9.61today, which is more than $1 below its recent NAV, with a whopping 13.8% yield, and so many of you were so busy running your mouths, some even proudly claimed that they had put buy orders for it at $6. Goodness, are they so low-witted? I already told you that it would indeed drop and now would be the time to buy instead of talking. I did. Boys would be separate from MEN. You all just keep on talking and I would keep buying. LOL