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Strategies & Market Trends : Young and Older Folk Portfolio
SLV 92.90+6.6%4:00 PM EST
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To: Don01022 who wrote (176)7/13/2021 7:58:12 AM
From: Rarebird1 Recommendation

Recommended By
Graustus

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A number of years ago I had a portfolio composed exclusively of BDCs, CEFs and munibonds. I did quite well with them. The key was knowing when to buy and sell when the discount/premium became attractive and compelling. A lot of people don't understand or like BDCs or Muni- bonds. These investments tend to do very well in a decreasing and low volatility environment. BDCs like a strong growth, low volatility setting. These are not blue chip investments and need to be monitored on a daily basis. I don't view them as long term buy and hold investments like a JNJ, for instance. Many of them can have big drawdowns in volatile environments, partly due to leverage and partly due to retail traders/investors getting shaken out.

Moreover, part of the problem with these investments are that retail traders go into these vehicles purely for the dividend and get easily shaken out, causing big drawdowns.

I found I can accomplish the same, if not better return with less volatility by not investing in these vehicles. They are short to intermediate term trading vehicles, not long term Buy and hold investments. That is my read based on my experience with them and I had a good experience with them. JMHO.

PS I am long UTF.
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