Today in the market, Friday August 15, 2008: The market turned in a mixed performance with a lot of seesaw action. The market was nervous about the slowing economy, crude oil prices, and whatever. The major averages ended mixed; the S&P500 was up +0.41% and the Nasdaq was off a miniscule -0.05%. Today’s action was almost a nonevent to end the week.
ETF/CEF Catch a Falling Knife on the Road to Recovery (FKRR):
- EVG – Eaton Vance Short Duration Diversified Income Fund buy now
- EVV – Eaton Vance Limited Duration Income Fund buy above $13.80
ETF/CEF Discussion: Again, RSI is going the conservative route and picking high yielding closed end funds (CEF). EVG pay a yield of 8.70% and EVV pays 10.59%. As the chart illustrates, these two are not high flyer, but I think you can buy this dip, gather the monthly dividends and wait for the price recovery. They look as if they can book a 10% or so capital gain. Just a thought.
My apology for posting at such a late hour last night. I try to get this blog out in early evening and rarely do I publish later than 10:00PM Mountain Time (midnight Eastern). Last night was one of my few exceptions.
While I have been shifting my investing style and emphasis on this blog, I have been putting this methodology to good use in my own personal account. In the past few weeks I have purchased the following:
BEO – Enhanced S&P 500 Covered Call Fd Inc, 15.10% yield
EVG – Eaton Vance Sht Duration Diversf Incm Fd, 8.67% yield
IGM – iShares S&P GSTI Technology Index Fund
IJJ – iShares S&P Midcap 400 value index Fund
IYW – iShares Trust Dow Jones US Tech Sector
PBW – PowerShares WilderHill Cln Energy Portf
PFN – PIMCO Floating Rate Strategy Fund, 9.14% yield
PIV – PowerShares Value Line Tmlnss Slct Prtfl
PWB – PowerShares Dynamic Lg Cap Gwth Portf
SJT – San Juan Basin Royalty Trust, 10.16% yield
TLT- iShares Tr Lehman 20+ Year Treasury Bd, 4.66% yield
VGT – Vanguard Information Technology ETF
XLK – Technology Select Sector SPDR Fund
XRO – Claymore Zacks Sector Rotation
As you can see, I have invested in ETFs and CEFs that RSI has recently selected. I eat my own cooking, so to speak. Since I am retired, I like to have some of my holdings generate income. Likewise I want portfolio growth to counter the ravages of inflation. Yes, I did bet on the two “trickery” funds for the reason that I believe the methodology behind the funds will outperform passive index funds. What did I sell in order to purchase these funds? For months I have been lightening up on gold, energy, materials and foreign funds and stocks that have served me well in the past, but whose time has come to an end.
Well that’s it for tonight…have a great weekend.
