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

To: Max2.0 who wrote (21525)	10/21/2025 3:34:49 PM
From: QTI on SI	Read Replies (1) \| Respond to of 22001

Re. I make it rule not to hold a CEF with a yield above 12% or 13%. This is under the theory that it is really hard for a CEF to consistently generating enough income to cover the distribution. Max, I think it's a good rule to have. I learned a lesson after holding THQ/THW that were yielding that high. There was a constant barrage of articles on risk of distribution cuts. Eventhough, they did not cut distribution (AFAIK), I just don't want to hold something where I've to constantly worry about distribution cuts. Also, if and when the cut occurs, it would be quite difficult to replace that high yielding lost income. Anyway, I'm going to have the same rule as yours, but even tighten it to around 10% yield for a cef.

To: Max2.0 who wrote (21525)	10/21/2025 3:52:01 PM
From: jritz0	1 Recommendation Recommended By macbolan Read Replies (1) \| Respond to of 22001

RE: I make it rule not to hold a CEF with a yield above 12% or 13%. This is under the theory that it is really hard for a CEF to consistently generating enough income to cover the distribution. I agree but with the exception of trying to create alpha with a buy and sell. AGSI being an example. They upped their distribution but happened to be a timely move as infrastructure was catching a bid. They were earning their distributions without leverage or options. I sold when they announced they were going to merge with the Japan Fund. I took my gains and will bide my time to decide if I want to re-enter. I'm more comfortable earning those types of yields with equity option ETFs.