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For a while I've had an eye on PDI, always waiting for a dip. Now it's come and I'm scared to pull the trigger, of course. I know a few posters here own one or both -- any thoughts on whether the magic is ending (leverage is now more expensive, no more money-good subprimes sold off in the GFC left to buy, etc) or if now is the time to buy?
I can't give you a yes or no answer because I don't know your total situation. I can tell you that PDI is still trading with at a premium, earning it's distribution, has a negative z-score and provides a +10% distribution.
My average cost basis is still below the current market price and I am reinvesting the coming dividend. If 'I' had more money I might buy more shares but that's me. If I can't trust PIMCO to manage that part of my portfolio well .....
Howdy @expatsp We've not had PDI or PCI in our holdings; but took a curious look from a technical angle of this complex holding. The recent price action through Thursday showed continued strong downward pricing; and apparently final distributions have already taken place for the year on Dec. 12 and/or 14. We look at charts like this short term view for watching the moving average lines and which directions they are traveling. In particular the 50 day and its current trend. I've looked at 20 day too; for something we may have an interest in buy or sell. PDI, 6 months, daily pricing chart This 5 year is more of an overview of the longer term trend, just to look, eh? PDI, 5 years, daily pricing chart NOTE: The 5 year chart pricing suggests there is some correlation to the trend of U.S. equity; as with the 2015-16 period of down and sideways for equity. As to "income" oriented investments, as with this product; in spite of the hard equity crashes taking place now, even the U.S. treasury issues can not hold a rally into safety assets. I would not expect PCI to benefit from any flight to quality/safety.
I can only offer the chart actions overviews above; for my 2 cents worth. Take care, Catch
@Derf How pricing is calculated for distributions and whatever price premium exists for a purchase or a sell is beyond my time allotment. Others here are more familiar. However, according to this chart; the recent high price was Oct. 2 and the close on Dec. 20 indicates about a -18% in this time frame; with the YTD of about +.8%.
My simple minded way of looking at PDI is to consider buying it only if it is currently trading at a discount. PDI was in that camp as recently as the early part of 2016....I suspect it will be there again, maybe fairly soon.
As nasty as this selloff has been, I'm waiting for support that holds and an uptick over a target (e.g., 20d ma at minimum) before re-entering Pimco CEFs. Falling knives can be dangerous. (The formerly huge premia must be responsible for the differences in performance of Pimcos during this selloff, compared to some other CEFs.)
Comments
My average cost basis is still below the current market price and I am reinvesting the coming dividend. If 'I' had more money I might buy more shares but that's me. If I can't trust PIMCO to manage that part of my portfolio well .....
Hi expats... Did buy this for mom portfolios few months ago and did add a little last wk. I would probably add or buy very in Dca slowly over time.
Everything do cheap now compared to 6 months ago. But again we dont know nor unable to predict a true ↘bottom
We've not had PDI or PCI in our holdings; but took a curious look from a technical angle of this complex holding. The recent price action through Thursday showed continued strong downward pricing; and apparently final distributions have already taken place for the year on Dec. 12 and/or 14.
We look at charts like this short term view for watching the moving average lines and which directions they are traveling. In particular the 50 day and its current trend. I've looked at 20 day too; for something we may have an interest in buy or sell.
PDI, 6 months, daily pricing chart
This 5 year is more of an overview of the longer term trend, just to look, eh?
PDI, 5 years, daily pricing chart
NOTE: The 5 year chart pricing suggests there is some correlation to the trend of U.S. equity; as with the 2015-16 period of down and sideways for equity.
As to "income" oriented investments, as with this product; in spite of the hard equity crashes taking place now, even the U.S. treasury issues can not hold a rally into safety assets. I would not expect PCI to benefit from any flight to quality/safety.
I can only offer the chart actions overviews above; for my 2 cents worth.
Take care,
Catch
That -18% was figured on NAV.
Derf
How pricing is calculated for distributions and whatever price premium exists for a purchase or a sell is beyond my time allotment. Others here are more familiar.
However, according to this chart; the recent high price was Oct. 2 and the close on Dec. 20 indicates about a -18% in this time frame; with the YTD of about +.8%.
https://stockcharts.com/freecharts/perf.php?PDI&p=4&O=011000
Okay.......away I must be.
As of Fri 12/21/2018 5:59 PM EST -- Last Actual Disc/Prem -0.77 %
PDI will get included in my thinking as I complete my year-end portfolio update.....
@expatsp Thanks for posting about this one....