More good points! As far as I know, ETJ is not a smart beta fund that alters its strategy depending on what the manager thinks. it is always writing calls and buying puts, so in that sense it will indeed underperform considerably during an extended bull. The pricing and NAV bear that out. That is why I said it will be a short to medium term holding for me. Once I am confident the market has bottomed, I will rotate out of it and into one that does not buy puts.
My taxable account is not set up for option trading, although I guess I could make that change. Thus for now I have to depend on these funds to do it for me.
It's also the yen carry trade being in back in favor for now as before USD/JPY had retraced all the way to 111. Kuroda and friends were not happy about that at all.
2008 was a once in a generation opportunity to load up on various amounts of risk for pennies on the dollar in some cases. 2016 may get there, although I kind of doubt it. Central banksters are all in now and will sell their souls (do they still have them?) if that's what it takes to stabilize markets. I think right now offers some value in various sectors but still a lot of over valued fluff. I personally am hoping for another 10-25% move lower before I go all in again with my cash. We may have started a short term relief rally though which is nice for folks who want another chance to de-risk a bit.
I have fallen into that average down again and again (and again) trap before, and it is almost always costly in the end. I hope NMM can do right by you moving forward. Navios has cost a lot of people a lot of money with every investment they IPO. NM, NM preferred, NMM, NNA are all trading hugely off of their IPO prices. Even NAP is way down from the IPO price, and it's only been around for a year.
China is playing a tricky game. Yes, they do want to see the renminbi/yuan fall to protect their exports. But, they are also seeing a *massive* amount of capital outflows, as those with the yuan also see the writing on the wall and want to convert it into something else before it is too late. Also, the currency is under hedge fund attack with Soros leading the way.
Hence, China has been blowing through their reserves in order to stabilize the yuan at a pace of over 100 billion per month. This has dropped their currency reserves from 3.6 trillion down below 2.8 trillion. So, if they have no interest in protecting their currency, why are they doing that? It is because they are fighting battles on multiple fronts.
You are right, I forgot that monday was a holiday. You are also correct that I mistakenly said ex-div and not record date. No need to be so snarky though, here have a cookie (and an up arrow!)
Dang, that is quite the horror movie over there! Kind of funny how a country with a debt to GDP of 300% still has a currency that investors flock into when times are tough. It is causing a lot of angst and anxiety with the BOJ and other top muckymucks, ha ha ha. 2016 is some year indeed.
I wonder if Kuroda and friends are now regretting opening pandora's box and going NIRP?
Yeah, even though they are still paying out $0.20/quarter in divies, the risk is that it craters much like FSAM. All the asset managers have just been putrid the past few months.
Good thoughts yieldinvestor. ETJ does buy puts in addition to selling calls. I see what you mean about the tradeoffs in playing options in a bear market. Puts are priced at a premium when folks are nervous. In any case though, ETJ did hold up fairly well in 2008, way better than owning Nasdaq straight up or S&P. It is an imperfects solution to try to own something that pays out yield while also being defensive just in case. In a bull market it gets left behind though.
It *seems* like a good deal at that price. You should read the seeking alpha take on earnings by Factoids and also the comments. Some good info and analysis there.
I saw that on my watch list and did a double take. Man, these asset managers are having an awful time of it lately. FIG is on the ropes as well. Blackrock and another one I can't remember the name of also not good.
Not too late to buy into a gold miner fund like GDX if you think precious metals still have room to run. They were trading at lows never seen before in history just a few weeks ago. They have had a very nice run but could still be a triple or better depending.
amazing isn't it? OHI should not be trading below $30 with the consistent great earnings results they produce, yet here we are. Bear markets just couldn't care less about sorting through the winners and losers.
mark - did you read Kyle Bass' latest where he says that China is in fact already broke in terms of FX reserves to keep protecting the yuan and their markets. According to IMF calcs, China needs 2.8 trillion handy to deal with running the economy week to week. They are already below that level now. I think the time to buy back into the markets is after China capitulates and devalues the yuan again and unleashes the FX tsunami around the world. Maybe a few weeks after that carnage is a good time when everybody else is panicking over their lost retirement savings.
bonds are still on a historic run. If one had been wise enough to put $100,000 in long term treasuries 30+ years ago when rates were at 18% and just held them all the way, one would be a wealthy person!
I find it hard to understand why folks would want to invest in PSEC when there are lots of other beaten down BDCs with much more respected management teams to choose from. Yes, PSEC is trading at a higher discount to NAV than any other, but the difference is not that large. Also, the fact PSEC NAV still is dropping so fast should be alarming.
I am looking at PFLT, TCPC, TPVG, GSBD
By my count this is like the 9th or 10th rumor being floated of a cooperative production cut. The previous 8 or 9 rumors proved to be false. I'm guessing this one will end up as false. Seems like various parties like to start these rumors going just to spike oil (and the markets) up a bit for whatever reason.