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Circa 2000: "But it's different this time!"@MikeM
Maybe rebranded beverage companies are the way to go!
This week, two beverage companies—Long Island Ice Tea Corp and SkyPeople Fruit Juice—saw huge stock gains after renaming their companies with cryptocurrency terminology.
https://qz.com/1163073/beverage-companies-are-juicing-their-stocks-by-rebranding-with-cryptocurrency-jargon/?mc_cid=8b7d0c9026&mc_eid=858fcae90a
Good find @Hank!!Appendix: I struggled to uncover the options trading in which PRWCX engaged at one point. Geez - had to go way back to their December 31, 2011 Annual Report to locate it.
FWIW - “Before we review the portfolio, we want to briefly discuss the Capital Appreciation Fund’s covered call overwriting strategy, which we have employed for more than three years. Covered call overwriting involves buying a stock and then selling a call option—a contract whereby we agree at a future date to sell the stock at a predetermined (strike) price if the stock is above the predetermined (strike) price. In return for selling this call option, we are paid a premium (typically 3% to 6% per annum) that provides extra income to the fund and its investors. While this strategy caps our upside in an individual stock (usually 10% or higher), it provides incremental income that can enhance total returns and lower our downside risk. Over the last three years, this strategy (return combination of underlying stocks, call income, and dividend income) has generated a stronger return than the fund itself and has done so with materially lower risk. As of December 31, 2011, a little more than 20% of our equity holdings have calls written against them. Given the excellent returns and even more excellent risk/reward profile of this strategy, we believe it will continue to play a meaningful role in your fund.”
It’s a small niche mostly mid-cap fund that morphed into a bloated large-cap mostly blue chip fund than transformed itself into a pseudo hedge-fund trading options on its equity positions for defensive purposes. Some call it balanced. Price says it’s closed - but otherwise isn’t saying exactly what it is.Just finished reading 'The Wizard of Lies' aka Bernie Madoff, and got to wondering if PRWCX could be a.....nah? Or could it.....nah.
@Old_Skeet I'm still missing your point why this matters for withdrawals in general. I see where it is comforting to you to know you are drawing from an income stream only and aren't drawing down principle, but in general, why would it matter where the RMD or any draw-down came from if all taxed the same? Actually, you aren't drawing from your income, you are drawing from your IRA as a whole.Generally, my traditional ira account generates enough income (interest, dividends, capital gain distributions) to meet my annaul RMD.
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