April 19, 2018
We bought RA back in 2017. This turned out to be a mistake as it has dropped $2 per share. That’s the bad news.
But…..the total return is about breakeven, as the dividends received have made up for the share decline. Still, this is not our goal!!! In essence this has been dead money.
So here is the good news. The technicals are telling us that this thing has bottomed and is now turning up. Paying almost 11%, RA is a buy.
FUND DESCRIPTION: Brookfield Real Assets Income Fund, Inc. is an exchange-traded closed-end fund or a closed-end ETF which is officially described as a diversified, closed-end management investment company. INVESTMENT OBJECTIVE: The Brookfield Real Assets Income Fund, Inc. seeks to provide a high total return, primarily through high current income and secondarily, through growth of capital. FUND STRATEGY: The Fund seeks to meet its investment objective by investing primarily in securities and other instruments of companies and issuers in the real assets, asset class, which includes the following: Real Estate Securities; Infrastructure Securities; and Natural Resources Securities (collectively, Real Asset Companies and Issuers). FUND MANAGEMENT: Brookfield Investment Management Inc. is the Investment Adviser of the Fund. Schroder Investment Management North America Inc. (SIMNA) is the Sub-Adviser for the Fund’s investments in mortgage-backed securities.
Here is a very interesting piece of information that we came across. Many of the financial ‘experts’ that are out there will tell you to ‘sell everything’ if the market drops below the 200 day moving average.
“In fact, the S&P 500 has crossed the 200-day moving average 150 times since 1997. If this were a perfect signal, that would imply 75 separate market corrections.
In reality, in that time, there were only 11 market corrections when stocks fell 10 percent or worse. That means the majority of the time when the S&P 500 went below the 200-day it was a head fake, when investors sold out of the market only to buy back higher.”
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