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Strategies & Market Trends : Young and Older Folk Portfolio
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To: jritz0 who wrote (21085)10/8/2025 2:15:46 PM
From: Rincon v2.03 Recommendations

Recommended By
agniv
Smart_Asset
Steve Mac

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Re: PDI's has been going from top left to bottom right, so it's not investable for me at this time.

Okay. Follow your instincts. But that graph could be of any interest rate sensitive fund over last five years. It isn’t a PDI story. It’s an interest rate story and the plot has a twist. Interest rates are now being cut. The storyline has reached its nadir. The script has turned a page to the ascending plot arc.

The graph is also old, it only shows the past. That’s not how I invest. Was it Wayne Gretzky who said, “Skate to where the puck is going to be, not where it has been"? The chart accurately shows where many funds have been, not where they’re going to be. It also shows opportunity, decadal lows. It’s most definitely investable for me at this time.

As I said earlier, I don’t really care where in particular PDI goes. It’s a small position. I bought it strictly for the cashflow. PIMCO is an outstanding manager. If they could carry the distribution without a cut over the last five years in a challenging, rising interest rate environment, they will have zero problems maintaining it in a positive, declining rate environment. They’re earning a premium for a reason. That is why I own CEFs: distributions.

From what you’ve said, it seems that you trade CEFs? Maybe the premium spread is useful for that? I have no idea. It isn’t useful for my purposes. Best of luck with your strategy. You have your gurus. I know that SA crew trades in and out of CEFs. Different strategies have different objectives and therefore different tactics. We have diverging purposes for the same funds.
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