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Strategies & Market Trends : Young and Older Folk Portfolio

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red cardinal
To: CrabbyTurtle who wrote (905)4/8/2022 3:03:31 PM
From: chowder1 Recommendation  Read Replies (2) of 21937
 
I don't see anything wrong with the equities listed but the CEF's that carry leverage, I have been replacing with CEF's that don't carry leverage. I will have a couple of exceptions, but very little levered funds.

As interest rates rise, I can't help but think the cost of holding leverage will rise and although these funds may be meeting the current distributions okay with high leverage, I'm concerned about it once interest rates are up at 2% or more.

If we get a recession or a serious slowing down of the economy due to inflation and higher interest rates, funds using leverage will take huge hits. So, I've been getting out of them.
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