EDIT: At the time this blog entry was posted I had a Youtube video here. That has been removed but I want the rest of my content to be remain. Nothing hidden no past mistakes ignored. All out in the open.
Ok I admit in this video I am talking too softly.
PSEC is going to make a big impact on the Active Accounts monthly income. The question is WHEN do I buy it. I might be able to wait and get a 10% better price looking at the 2012 low. I also have that SPY Put and my thought is we are getting a market pullback.
However, when a company is undervalued is the market going to pull it down? PSEC is already paying a 12% yield, one of if not the highest currently for BDCs. Oh and then there is the fact that their 2012 NII is +50% more then 2011 yet share price has risen only 20%.
The question comes down to... is PSEC something I want to nitpick and risk 10% gain in shareprice and possibly miss out on?
Investing and Trading Account: $7,080.41
Total Return: -3.01%
Est Monthly Income: $12.41
Trading: $3,419.85
Total Return: -6.27%
Stock
NOK: -8.7%
Options
SPY 152 May PUT: -30.37%
Cash: $2,834.46
Investing: $3,622.64
Total Return: 0.34%
Stock
AFL: -5.44%
HAS: +11.77%
SPLS: +10.49%
STX: +4.53%
PSEC: To be purchased this week
Energy
WHZ: -11.75%
Gold
IAU: Sold. Waiting for price action to level off.
Bonds
BLV: -2.08%
JNK: -0.85%
PCY: -3.40%
Cash: $1,282.52
ETF Account: $7,238.15
Total Return: -0.85%
Est Monthly Income: $14.15
US Stock
SPY: +2.40%
XLV: +2.87%
VNQ: +2.09%
International Stock
EWZ: -3.55%
PXR: -4.00%
Gold
IAU: Sold. Waiting for price action to level off.
Bonds
BLV: -2.00%
JNK: -1.21%
PCY: -3.27%
Cash
Cash: $2,874.96
Permanent Portfolio: $7230.45
Total Return: -0.95%
Est Monthly Withdraw Rate (4% rule): $21.95
Listed by weighting
SPY: 25.21%
GLD: 23.27%
TLT: 24.28%
Cash: 27.24%
Disclaimer: The investments and trades in my videos and blog entries are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.
I would get PSEC as soon as possible. I think it will be better positioned for interest rate hikes compared to my REITs.
ReplyDeleteI respect TCAP too, aside from the 10% daily drop that it had last year, I have never had the chance to cost-average down on my shares. PSEC has been steady-priced and the monthly dividends are always nice. I will not drop TCAP until it crosses through the 30$ mark though.
bearish engulfing candle today... may wait a day or 2
ReplyDeleteYeah I made no purchases today. I'll wait for the dust to settle.
ReplyDeleteToday is exactly why I bought that SPY put. I am sure there is more downward price action to come too. Actually sold ABT from the old Model Portfolio this morning. Seemed like a good time to take profits when I'm expecting a pullback in the general markets.
I am also looking to establish a position in PSEC. However I just recently openened a position in Apple and am now almost fully invested. Need to wait a bit before opening up a position in PSEC. Hope it does not skyrocket anytime soon.
ReplyDelete