In reading these CEF threads, I'm getting the impression that many of you have heavy stakes not only in CEFs but are heavy into income alone.
There also seems to be a tendency to buy/sell when the price moves as little as a buck or two.
Sincere question: Am I reading all this correctly? My portfolio is about 70% growth and 30% income with my three CEFs being 10% of the 30%.
Once I hit a sense of equilibrium, I might hold for years, but my 30% income plus whatever dividends the growth side delivers nicely covers about 140% of my spending needs.
After all this time, maybe I'm discovering a whole world that I wasn't aware of (?). Or are these threads narrow in their focus of CEFs and you all have a broader portfolio profile than it appears?
Disregard if none of this makes sense!
Each one of us can only speak for oneself.
For me: I'm 99% Pimco CEFs.
Why? By the time I realized I was in deep***s trouble w/ almost zero money for retirement. The only investment that could deliver monthly income was CEFs. I was in my mid-sixties....so oldish.
Most of the folks here who are heavily invested in CEFs are older, at least the ones i'm aware of. We're all in our 70's and 80's. I'm 78 and Dick is a couple years older than I.
Dick also only had the freedom to invest when he retired in 2008. I was 61 in 2008 and had less than 200k to my name.
Why sell when I do?
In order to get more $$$in the distribution, I need to have at least 9000 shares of PDI. So, even when the price goes down some fifty cents.......it's a large loss. My total shares of PDI are at 17k at this time. So 17k down only 5 cents ='s $850. For me that's just too much loss to deal w/. This swoon was a truck load more than a mere 5 cents.
Would I recommend what i'm doing (out of necessity due to AGE and NO $$$), nope.
Everything you wrote made perfect sense to me and that's why I have replied. It only makes sense to wonder about folks like me who are basically 100% in Pimco CEFs & a couple others.
I would never own any equity cef........not ever. I only own the leverage/bond CEFs that Dick wrote about back in 2008 & 2009. He did a lot of research and settled on Pimco bond-ish (his term) CEFs. I simply followed him b/c he made so much sense explaining his method.
PLUS: I lost everything in that 2008 crash. I was very depressed and angry at myself for not selling.
good luck & I wish you lots of success
edit: also I was working full time and had my folks to take care of and a house to maintain....so I was not following my investments... not an excuse, but still....my plate was full back then
