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

To: cole505 who wrote (4104)	6/7/2024 3:47:54 PM
From: jritz0	Respond to of 22059

" I don't currently own any CEFs, and my understanding of them is that they generally carry a lot higher risk with leverage etc involved so it might not make sense for me at this point. If there are other thoughts about them I'd love to hear it." If you own BDCs you own CEFs, they are basically Closed End Funds. BDCs at their core are highly leveraged.

To: cole505 who wrote (4104)	6/7/2024 4:05:27 PM
From: chowder	Respond to of 22059

Re: I was looking a bit at HTGC ... I think that's a great choice. You might want to look at BXSL as well. These should compliment what you already own. >> Do you have a target allocation to BDCs? << Not really. I don't want to overweight a position and I do want a good number of them so I can spread out income risk. I think 8 is a good number.

To: cole505 who wrote (4104)	6/7/2024 4:08:04 PM
From: chowder	2 Recommendations Recommended By Markbn Tam3262 Read Replies (1) \| Respond to of 22059

Re: I don't currently own any CEFs, and my understanding of them is that they generally carry a lot higher risk with leverage etc There are many CEF's that carry no leverage at all!

To: cole505 who wrote (4104)	6/7/2024 9:35:01 PM
From: jritz0	2 Recommendations Recommended By chowder Waitress Respond to of 22059

" I don't currently own any CEFs, and my understanding of them is that they generally carry a lot higher risk with leverage etc involved so it might not make sense for me at this point. If there are other thoughts about them I'd love to hear it." Sorry for my curt reply earlier. I wanted to expand on my comment but my lovely wife cut me off telling me it was time to head out for some cocktails and dinner. What I want to expand on is that if you are comfortable researching and investing in BDCs then CEFs should not be any harder to research because like I mentioned BDCs are essentially CEFS. I think you would find equity CEFs easier to research because you to don't have to pay too much attention to NII and you can invest in CEFs that don't use leverage or use very little. Many CEFs us options to produce extra income which means they aren't taking on the added risk of leverage, however, they will cap the upside in an up market particularly a quickly rising market.