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Buy ... Sell ... and Ponder (Fall Investing Season ... September, October & November)
Hi @johnN: Thanks for posting the Zacks report on three funds to buy from Pimco found at the bottom of page one of this thread as this comment begins page two. Of the three mentioned Old_Skeet owns one of them which is PCLAX their commodity strategy plus fund. I started buying this fund back in the summer of 2017 and with this my average cost is back of $6.00 per share. It has paid out thus far, to me, about $1.04 per share plus I have grown my principal since owned. Being an aggressive fund I hold it in the growth area of my portfolio and not the income area although it does kick off a good income stream (paid quarterly). Morningstar list its TTM yield at 12.66% and its 12 month return at a little better than 20%. I have linked its Morningstar report below for those readers that might find an interest in the fund. I consider it one of my "cash cow" positions.
@Old_Skeet: I took a quick look at PCLAX. About 60% cash & bonds , 40% other. Do you have any idea what the "other" is invested in ? I'll take a peek at Chuck's place & see what they have listed on the fund. Derf Back at you: Sector weighting; 57% financial & 12% info tech. Top 25% last 2 years & YTD ! Long & short cash & bonds.
@Derf: I am in a rush to get out the door this morning so this will be a short answer. The other is mostly commodity paper (held in the Pimco Cayman Commodity Fund) where most of the profit/income is generated. Another commodity fund that Pimco has is PCRAX. I favor PCLAX over PCRAX which I have also owned in the past. Skeet
Interesting to read the comments about PRGTX. I'm a long term holder in an IRA (10 years) and probably won't ever sell it even after I retire because technology in the broadest sense is the only future of the human race. Most of my funds are overweight in tech, even small company funds like BCSIX. I did sell the under-performing but competent BPAVX this month (gain of about 55% over 3 years) to raise cash to sit on the sidelines for the inevitable correction. I'm looking at WSMNX in particular. I'm also very overweight in small-mid company funds. 20 years to retirement.
@Simon- Sounds like a very decent fairly aggressive approach for someone your age. You have plenty of time to recover from the inevitable downturns which will occur before retirement. Using your own observation re the "future of the human race", my only suggestion would be to also include a broad spectrum Health Care ETF, unless you already have that included under the general heading of "technology".
Lightening up on FI CEFs, concentrating now on Pimco multisectors with significant non-agency mortgage stakes (PCI, PDI, PKO), and adding to FI credit OEFs that are working (loans, mortgages), mainly IOFIX, SEMPX, and EAFAX. Modest equity exposure now, most of it in JENSX, and barely any rate-sensitive fare.
P.S. Of the funds in John's earlier post, be aware that the mortgage fund PMRAX is almost entirely agency mortgages, which are rate sensitive - with little in the still-excellent non-agencies.
P.P.S. Don't tend to post as much at MFO now, given that the retirement-investing style I generally prefer these days -- lots of FI, mostly credit, overall with some equity correlation but lower than equity risk, combined with low equity exposure -- is a pretty rare bird here, so there's not much discussion around it. I just don't spend very much time researching stocks/stock funds -- at least for now.
Hi @AndyJ: Thanks for stopping by and for making comment. Many of us on the board are in or near retirement. For myself, being in retirement, I have been reducing my equity allocation over the past five years, or so, from upwards towards 70% now down to the low 50% range. I am also in the process of raising my fixed income allocation (currently around 27%) up towards 30% or better over the next year or so. I plan to do this at a pace of about 1% per quarter until I reach an allocation I feel comfortable with. Even in retirement I thinking I need a good bit of equity exposure so my five year asset allocation target is to be somewhere around 40% fixed, 40% equity and 20% cash and cd's by then.
Since, you feel a good number of the threads are geared more towards equities (over income) why not become more active and start posting what you are seeing on the fixed income side of investing? Interestingly, on my buy list my 1 week and 1 month leaders, that I follow, I'm finding a good number are fixed income funds. Since, the US 10 Yr is now paying 3 percent, or better, I'm beginning to see most of my funds found in my fixed income sleeve starting to make an upward move. I'd think that now that interest rates are rising their nav's would be going the other way. Interesting? Yes.
Any way FWIW ... I'm thinking you'd draw a good following.
Thanks again for stopping by and for making comment.
Been away on a cruise of St Lawrence River from Montreal and Quebec City, Maritimes and then Maine and Boston, saw virtually little color change of fall, but came back to seeing lots of red in market. Did start putting the money to work I had from taking some profit off the table in two tech funds. Today put it in VOO and small amount in AOFAX, even thought the latter has been falling more rapidly, but been adding on down days periodically. Also added to POGRX from some of the tech money a couple of weeks ago.
Hi @slick: That sounds like a nice cruise you took, My wife and I will be taking a weekender soon to the North Carolina mountains to view the fall folage. I've been thinking of adding to AOFAX myself. However, I hold this fund in one of my taxable accounts and I'm thinking I'll be buying a capital gains distribution should I purchase equity funds in the nearterm. With this, I probally wait till after capital gains season to add to AOFAX and possibly a couple of others. Still thinking on adding a micro cap fund to my portfolio. Looking at WMMAX and IGWAX. Do you have any thoughts on this?
@Old_Skeet, I hold AOFAX in taxable and in my Roth, and since I use only my taxable account for modest withdrawals, I am not concerned too much about the cap gains, will just take it as ordinary income and leaves more cash in account. Besides, half of my taxable account is in muni bond. AOFAX has taken a big hit over the last 2 months, but holding, I like the manager and everything is getting hit.
Regarding the two funds you mentioned, I always like Gabelli, but I am sure he will retire soon, and although it has a large management team, I get the impression he is the master of his universe. It has been around a while, and have heard about it for years, but never sought to buy it since I liked others I had better. Regarding the Ivy fund, used to own its tech fund, but had to sell it when I moved from ML to Fido, they did not carry their funds at the time, bought PRGTX to replace it. I see they do sell them now, with IGWAX load free and ntf. Morningstar gives it only one star based on its fees, not taking into account it is sold some places without the high fees. That fund looks like it would be a nice complement to aofax, with larger amount of microcap and no mid cap, but it sure can be volatile, but with your diversification, it most likely would not bother you too much
Now that I am beginning to collect October mutual fund income disbursements, within my portfolio, Old_Skeet put his buying britches on yesterday and did a little equity buying in EADIX which is a global equity fund that makes monthly income disbursements. Today, I plan to buy a little in my convertible securities fund (FISCX). And, tomorrow probally a little more buying in something (possibly FRINX) while the markets are in their throw back stage. All of these funds in some form or fashion generate income. Now being in retirement I am starting to rebalance my portfolio from a growth and income allocation towards an income and growth allocation. Some might ask ... What's the difference? Well, the income and growth allocation has a greater focus on income generation and usually carries a higher weighting in income generating securities over equity securities. For me this will be an allocation of somewhere around 20% cash, 40% fixed income & 40% equity. This means, for me, I'll have to reduce my equity allocation by 10% and raise my cash and my fixed income allocations by 5% each.
Comments
https://www.morningstar.com/funds/xnas/pclax/quote.html
Derf
Back at you: Sector weighting; 57% financial & 12% info tech.
Top 25% last 2 years & YTD ! Long & short cash & bonds.
P.S. Of the funds in John's earlier post, be aware that the mortgage fund PMRAX is almost entirely agency mortgages, which are rate sensitive - with little in the still-excellent non-agencies.
P.P.S. Don't tend to post as much at MFO now, given that the retirement-investing style I generally prefer these days -- lots of FI, mostly credit, overall with some equity correlation but lower than equity risk, combined with low equity exposure -- is a pretty rare bird here, so there's not much discussion around it. I just don't spend very much time researching stocks/stock funds -- at least for now.
Since, you feel a good number of the threads are geared more towards equities (over income) why not become more active and start posting what you are seeing on the fixed income side of investing? Interestingly, on my buy list my 1 week and 1 month leaders, that I follow, I'm finding a good number are fixed income funds. Since, the US 10 Yr is now paying 3 percent, or better, I'm beginning to see most of my funds found in my fixed income sleeve starting to make an upward move. I'd think that now that interest rates are rising their nav's would be going the other way. Interesting? Yes.
Any way FWIW ... I'm thinking you'd draw a good following.
Thanks again for stopping by and for making comment.
Old_Skeet
Regarding the two funds you mentioned, I always like Gabelli, but I am sure he will retire soon, and although it has a large management team, I get the impression he is the master of his universe. It has been around a while, and have heard about it for years, but never sought to buy it since I liked others I had better. Regarding the Ivy fund, used to own its tech fund, but had to sell it when I moved from ML to Fido, they did not carry their funds at the time, bought PRGTX to replace it. I see they do sell them now, with IGWAX load free and ntf. Morningstar gives it only one star based on its fees, not taking into account it is sold some places without the high fees. That fund looks like it would be a nice complement to aofax, with larger amount of microcap and no mid cap, but it sure can be volatile, but with your diversification, it most likely would not bother you too much
Derf
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