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Strategies & Market Trends : Retirement - Now what? -- Ignore unavailable to you. Want to Upgrade?

To: SAM who wrote (81)	2/7/2005 10:02:47 AM
From: OldAIMGuy	Read Replies (1) \| Respond to of 288

Hi SAM, I do some portfolio adjustment from time to time with my income producers. With Closed End Funds we see price swings that follow the market plus some extra range because of Premium to Discount moves as well. This gives some better "amplitude" to the price movements. The better amplitude means I have a bit better opportunity to capture some of that range in a profitable trade once in a while. It's rare that I sell even as much as 30% of my income fund position in a cycle, but probably average about 25% sold. Then when the cycle reverses, I can pump those dollars back into the fund at a nice price and a better yield. I'd call this trading around a core position. I usually look for a 30% LIFO gain when making these small trades around the main holding. That means the cash can sit in a money market fund for quite a while before the loss of dividend is a net loss to the account. Best regards, Tom