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Strategies & Market Trends : Young and Older Folk Portfolio -- Ignore unavailable to you. Want to Upgrade?

To: chowder who wrote (960)	5/23/2022 1:57:38 PM
From: chowder	1 Recommendation Recommended By red cardinal Read Replies (1) \| Respond to of 21789

Re: Young Folk Portfolio -- Trimming This portfolio has several CEF's that have high yields and I have them set up on dividend reinvestment. I use these companies as cash machines where I can trim them and buy other equity positions. In this portfolio, a full position is $4,000 and UTG has risen to $5,500 so I trimmed it back to a full position and this gave me $1,500 to work with. This was done in the Roth account so this wasn't a taxable event. I was looking for companies selling at a steep discount to fair value. Fair value is relative to the condition of the market. You have Bull, Bear and Neutral or Base scenarios. Since the market has been in a bearish mode, I have been looking for companies that sell at a discount to the bear scenario, in other words, worst case situations. There are three companies selling at a discount to a company's intrinsic value using the bear scenario, those three are: DHI .. a 40% discount MS .. a 48% discount PRU .. an 8% discount Keep in mind, these discounts are based on a bear scenario. When the market turns, it should recognize the intrinsic value of these companies and my hope is that they have substantial upside as long as they can meet future expectations.