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Many investors are concerned that AI will upend the software sector. BDCs specialize in providing credit to small or struggling firms. Their shares are down more than 10% this year.
BDC exposure to software is higher than other category's exposure to this sector.
AI's impact on software—and consequently on BDCs and private credit markets in general—is very uncertain.
No one knows. But, I feel (IMHO) that top software stocks may have bottomed 1-2 weeks ago. At least for a while. These things always get exaggerated, and present buying opportunities.
I did not step into the breach this time though. I was burned on a couple purchases that I made in the preceding months/year: ADBE, TRI, AVGO. I didn't have the gut feeling to double or triple down this time. The macro is too chaotic.
TRI and AVGO have almost gone black in my accounts. The ADBE I bought middle of 2025 and got scorched. All 3 are basically small positions, in context. I feel they have nowhere to go but up, from here. But, if they were "left behind buys" in the latest run up, they may be raging buys now?
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I did not step into the breach this time though. I was burned on a couple purchases that I made in the preceding months/year: ADBE, TRI, AVGO. I didn't have the gut feeling to double or triple down this time. The macro is too chaotic.
TRI and AVGO have almost gone black in my accounts. The ADBE I bought middle of 2025 and got scorched. All 3 are basically small positions, in context. I feel they have nowhere to go but up, from here. But, if they were "left behind buys" in the latest run up, they may be raging buys now?