Look up the definition of libel, before loosely throwing around terms like "Ponzi scheme.". I think discretion is the better part of valor; especially in view of the fact that Prospect has a team of lawyers on full-time staff. Free speech is well and good, as long as it doesn't cross over into defamation of character.
Sure, there will be another downtown--count on it. It is called the business cycle. PSEC was down to about 8, I believe, at one time However, those who didn't panic, held fast, and collected a dividend, eventually saw their capital regain its value, suffered no losses---and were paid to wait. PSEC in my estimation is a fine company, with great management; I have been to NYC and met them, so I feel reasonably confident that they are trustworthy, diligent, and intelligent gentleman. To intimate that the company is running a Ponzi scheme borders on libelous.
"Nevertheless, Wells remain optimistic about Russell maintaining its BDC exposure as an integral part in representing small-cap stocks.
“Willingness to represent the small cap reality—and the BDCs are a major/growing part of the small cap market,” according to Wells. “Russell Indices receive acclaim because they are willing to provide investors access to the true investable small cap universe. To the extent BDCs are excluded, this would deprive investors the opportunity to invest in what has become a very large/growing industry.”
Who knows? It is all a (somewhat) educated guess.....
.......owned by the top Institutional owners, as listed on Yahoo, of which the indices involved in the discontinuation mentions are part, represents less than 7% of the total share count, or roughly 21 million shares. How long does it take to dispose of 21 million shares, assuming all the index funds do so? Not long at all, based on the average daily volume. The conclusion is that this downdraft probably will be short-lived, even if ancillary "panic" sell-off volume is included.