Hey iwog, still holding NAC?
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Hey iwog, still holding NAC?

By anotheraccount following x   2016 Nov 10, 5:58am 1,370 views   10 comments   watch   sfw   quote     share    


@iwog I bought some and will keep buying into weakness. I guess if Republicans and Trump put on more debt than Bush and Obama it might finally burst the bond bubble. That would be a risk.

1   FP   ignore (1)   2016 Nov 10, 6:49am   ↑ like (0)   ↓ dislike (0)     quote      

I hope you are not buying NAC just because Iwog recommended it.

2   anotheraccount   ignore (1)   2016 Nov 10, 6:56am   ↑ like (0)   ↓ dislike (0)     quote      

I waited till it sold off before I started it buying. For someone living in California it effectively yields more than 7%. This bond sell off reminds me of the sell off in 2010 when Republicans got elected. In the long run rich will come back to bonds. And if they don't, I don't have that much invested in this one yet.

3   FP   ignore (1)   2016 Nov 10, 7:11am   ↑ like (0)   ↓ dislike (0)     quote      

I don't say it's a bad investment, just do your own research and see how it fits your portfolio. My personal opinion, among the CA funds, NAC is the most attractive right now; I have a substantial holding. Had a couple other CA munis but swapped them for national funds, which have market yields > 6% right now (e.g. NZF).

4   anotheraccount   ignore (1)   2016 Nov 10, 7:15am   ↑ like (0)   ↓ dislike (0)     quote      

FP says

I don't say it's a bad investment

Bonds have been in the last day. EM local currency bonds moved 7% down since yesterday. I don't remember a move like that. Is this a good buying opportunity or are we in a new world?

5   errc   ignore (2)   2016 Nov 10, 7:26am   ↑ like (0)   ↓ dislike (0)     quote      

Buying opportunity

Nothing changed

6   HEY YOU   ignore (7)   2016 Nov 10, 8:05am   ↑ like (0)   ↓ dislike (0)     quote      

tr6 says

I guess if Republicans and Trump put on more debt than Bush and Obama

Good point! Thought I had thought of everything. Missed the debt situation.
Any problems the USA has will be on the Republicans.
There will be no Clinton to blame.

errc says

Nothing changed

One must be brilliant to change The Rigged Wall Street Casino.
You gamblers,please set a limit for you losses!

7   FP   ignore (1)   2016 Nov 10, 8:23am   ↑ like (0)   ↓ dislike (0)     quote      

With bond funds, if your investment horizon equals the duration of the fund (check it on Morningstar) variations in interest rates are not important. If rates increase, bond prices fall but yields increase and over the duration of the fund the two cancel out. In my taxable account, where my muni funds are, I don't trade much, just buy with new cash and do tax harvesting now and then. WIth NAC, I'll wait a bit longer before buying more. CEF funds are like trains - once they start going in one direction it takes a while to stop them.

8   iwog   ignore (3)   2016 Nov 10, 1:27pm   ↑ like (0)   ↓ dislike (1)     quote      

Yup still perfectly happy. I recommended NAC in 2014 and it's still worth more than when I bought it. It's being hit hard by the spike in interest rates following the election of Trump but my long term outlook remains lower interest rates so it will recover and move higher at some point.

Until then just enjoying the income.

9   anotheraccount   ignore (1)   2016 Nov 13, 3:11pm   ↑ like (0)   ↓ dislike (0)     quote      

iwog says

Until then just enjoying the income.

It's trading at 10% discount to NAV which is way wider than in 2013. I am about 1/4 way in. Hopefully it sells off just a little more.

10   Mick Russom   ignore (0)   2016 Nov 13, 5:28pm   ↑ like (2)   ↓ dislike (0)     quote      

iwog says

Until then just enjoying the income.

Which is why you love the status quo. Protect the landed gentry while living on top of the lower classes.


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