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Strategies & Market Trends : Young and Older Folk Portfolio

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To: Max2.0 who wrote (21525)	10/21/2025 3:34:49 PM
From: QTI on SI	Read Replies (1) of 21904

Re. I make it rule not to hold a CEF with a yield above 12% or 13%. This is under the theory that it is really hard for a CEF to consistently generating enough income to cover the distribution. Max, I think it's a good rule to have. I learned a lesson after holding THQ/THW that were yielding that high. There was a constant barrage of articles on risk of distribution cuts. Eventhough, they did not cut distribution (AFAIK), I just don't want to hold something where I've to constantly worry about distribution cuts. Also, if and when the cut occurs, it would be quite difficult to replace that high yielding lost income. Anyway, I'm going to have the same rule as yours, but even tighten it to around 10% yield for a cef.

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