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BUY BUSINESS DEVELOPMENT COMPANIES

March 13, 2014

**********Go to “Investments Core Portfolio” for current holdings.**********

SPY 1872.00

Short and Long Term Outlook:  Bullish

HTGY is a baby bond for BDC Hercules Technology Growth Capital (HTGC).  IF, and only if, this gets down to $25.00 you should buy.  Pays almost 7%.  Do NOT buy unless you can get this for $25.00 or pretty darn close to 25.

BDCL is an Exchange Traded Note that contains numerous Business Development Companies.  This would be an excellent choice for those with small portfolios as you can gain exposure to a large number of BDCs with a small investment.  The BDCs have been dropped from the S&P indices and prices have been tanking.  This is a good time to BUY into the BDC arena.  Try to get BDCL at $28.00 or less…..pays almost 15.%.  Update Friday:  BUY!!

PSEC is a BDC in our core portfolio and you should be buying now.

Hre is a link to more BDCs to review:

http://seekingalpha.com/article/2039403-apollo-investment-should-it-be-upgraded

As far as the markets, the big money is waiting for the Fed’s meeting next week.  They want to see what Yellen says.  I don’t see a lot of action for the next week.  Just continue buying dividend paying investments when they are on sale.

If you bought GGN our gold position back in January you are one happy camper.  Continue to hold.

LNCO Update.  This position has been a disaster for me.  I own too much and didn’t sell when I should have.  Don’t make these mistakes!!  If you own LNCO hold it for the dividends.  But do NOT buy any.  The Company will not go under, and you will eventually get back your money in the way of dividends, and then you could sell it.

And they want you to think the economy is so great:  “On Friday, we were told that the U.S. economy added 175,000 jobs during the month of February.  That sounds pretty good until you realize that it takes almost that many jobs each month just to keep up with population growth.”

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2 comments on “BUY BUSINESS DEVELOPMENT COMPANIES

  1. […] declines.  I would certainly be very selective on what you are buying….but some sectors like business development companies are looking good to […]

  2. […] is looking good.  The BDCs are also a buy, including PSEC and BDCL…buy BDCL UNDER $28.00.  Keep watching HTGY and buy only if it gets very close to $25.00……this thing is tanking and it may take a week or […]

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