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Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (24116)	12/26/2015 8:39:46 PM
From: E_K_S	Read Replies (1) \| Respond to of 34328

Yes, I think BDCL is a great investment. It's a 2x leveraged basket of 20 or 30 BDCs I would take a lower payment and have no leverage if i planned to hold for more than a year. It's just not worth having the leverage that may/could force the ETF/CEF fund into 'forced' sales if coverage covenants were exceeded. This happen to some MLP's CEF and those sales were at lows even though NAV were much higher. Good luck w/ your BDC investments. EKS

To: Elroy who wrote (24116)	12/26/2015 8:48:12 PM
From: JimisJim	Read Replies (1) \| Respond to of 34328

Holding 2X leveraged ETFs IT or LT is one of the the surest ways to decrease one's net worth -- the math on this has been posted many times on this board and others, but basically it is because to achieve that leverage, they don't invest in actual shares of actual BDCs (in this case), they invest in options and derivatives and they reset every day -- the daily reset is where one's money slowly but surely drains away, in what had been termed "leakage"... check the fine print and you'll see that these leveraged ETFs are in reality ETF companies/people daytrading options and derivatives... one possible way to play them that would avoid "leakage" would be to short an inverse/negative/short 2X ETF, thus being net long... but I digress... I really see no reason a dividend investor would want to hold leveraged ETFs when they are so poor over the long run... they are daytrading/swing trading vehicles, not "investments"... fwiw, I'd rather trade my own options if I want income boost or "insurance" on my long positions.