April 8, 2020. First up, we caution you NOT to get caught up in the current ‘head fake’ rally. The “bottom” is NOT in and we anticipate further declines to “THE” bottom. (between May an August)
We HAVE been buying gold in the Core Portfolio and will probably buy more today.
Continue holding the income producing Corporate Bonds.
Bought an Individual Corporate Bond yesterday:
CUSIP: 56035LAD6 MAIN STREET Yield 7.3% IF HELD TO MATURITY. We have owned MAIN in the past. Note we are not buying the stock or preferreds: we like the corporate bond. (more info)
|FUND DESCRIPTION: Main Street Capital Corp. is an internally managed, closed-end, non-diversified management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. INVESTMENT OBJECTIVES: Main Street Capital Corp. provides long-term debt and equity capital to lower middle market companies and debt capital to middle market companies.|
GOING FORWARD: The intent is to hold a lot of cash, waiting for that magical day when it appears the “bottom” is in, and we can start looking forward to a rising market.
When is that you say? Well, that is the $64,000 question. It could have been March 23 when SPY hit lows (not likely) , or it could be sometime in the future.
Lessons Learned: For those people who have not “saved” money in a 401K or savings account, life is tough right now. Going forward, think seriously about increasing your savings rate.
NOW IN OUR 8TH YEAR. NOTE TO NEW READERS: Before you buy anything we discuss here, GO to the Core Portfolio tab to see a CURRENT listing of holdings. Don’t forget to hit the like button. Our host WordPress is running ads in the blog and we receive NO compensation from this advertising.