Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: chowder who wrote (7751)	8/9/2024 10:01:57 AM
From: Markbn	1 Recommendation Recommended By chowder Read Replies (1) \| Respond to of 22002

RE: Am I off in my thinking? If so, ideas would be appreciated. Personally, I don't think anyone here is "off in their thinking". Everyone is living a different situation, and each one requires a specific plan that is tailored to fit them (no pun intended). I believe that you think ahead regarding variable dividend assets is correct. While the effect may not be in lockstep with actual Fed rate cuts, it should follow shortly thereafter. Emphasis on the word "shortly". I do not have any such assets except for monies in a money market fund awaiting deployment, and the below on, so this does not really apply to me. I have been replacing my CDs in a taxable account with SGOV, which tracks the 0-3 month Treasury market. There are tax advantages for a person living in New York, and the current yield is just above 5.2%. For a NY resident, that is somewhat higher. SGOV is also fairly stable, as the share price trades in a tight range. It trades very close to par, on average. When rates start declining at an accelerated pace, I intend to stretch the investment out up to the 6 month range. Slightly more risky, and there will be some additional fluctuation of the share price, but it should be manageable.

To: chowder who wrote (7751)	8/9/2024 10:49:47 AM
From: jritz0	Read Replies (2) \| Respond to of 22002

" I'm actually thinking of trimming any asset with a variable dividend. When interest rates start declining, I'm thinking the yields will drop and since the yield isn't static, like say it is on O, then maybe those variable dividends will decline as interest rates decline, especially on anything dealing with floating loans." I agree with you on floating rate securities like some preferred shares and CEFs and BDCs, however, variable dividends particularly option funds are more at the mercy of the volatility of the market plus gains or losses in the underlying securities.