It’s an interesting day in markets—lots of ups and downs, but no real change in the news relative to tariffs. Markets went parabolic for about 30 minutes on rumors of pauses in tariffs–but that rally went away pretty quick.
I made two small purchases this morning. I added to my position of the RiverNorth Opportunities Fund 6% term preferred (OPP-C) at $10.10. This was kind of an accident as I had a good til cancelled order in from a couple weeks ago that executed–nothing hurt, but not what I really intended to buy.
Also I initiated a position in the Affiliated Managers 4.75% baby bond (MGRB) at $16.90 as it fell 40 cents or so in early trading.
I won’t make any other buys today because no one is giving me bargains as good as I want–we’ll see what happens the rest of the trading day.
The intraday volatility makes swapping among issues from the same company interesting. I had a couple I swapped multiple times within the day. Not making huge bucks, but relatively safe.
I started picking up a few more shares of non-US Miners (and flipping them a bit along the way too) like BHP, RIO, etc.
I think they will do OK in the tariff world because demand for non-US materials should spike in China, etc. If not, I don’t mind owning them (or what I still have after flipping opportunities dissipate).
That all said, I am mostly sitting on the sidelines.
I bought a wee bit of AGM-F for the safer bucket and some SYF-B for the higher yielding bucket. These are the only two things that hit my super low ball bids. Struck out on everything else. Week is young yet.
Down 1.82% today. Painful.
-1.26%. Yes painful. Was outperforming PFF but not today (-1.12%)
Pretty brutal day, down roughly 1.25%. Been a very long time since pig pile 150 has given up more than the market. It’s not enjoyable.
I picked up some more ET-I this morning at around 10.60ish.
Dan,
Just remember that ET-I has UBTI on its K-1, so be careful if you own it in an IRA or other tax advantaged account.
Thanks for letting me know Private. I might need to sell it before ex-date.
Won’t the K-1 reflect your share of the firm’s finances for the period it was held, without regard to any distribution dates?
snewman,
yes, the K-1 will reflect finances for the holding period. there may be some UBTI in it, but it will likely be small if you buy and sell relatively quickly (not guaranteed, but likely).
selling before the ex-date keeps you from receiving the tax deferred distribution, which will be recaptured as UBTI when you sell. Recapture UBTI is usually the bigger UBTI problem.
If you hold it in a tax exempt account like an IRA, you can trip over the $1000 annual UBTI exemption and your broker will have to file a tax return (and pay UBTI tax) for you. Unfortunately, the UBTI tax is not recoverable anywhere (you can’t use it to offset any other tax, take it as a deduction, etc.). Just a fun gotcha in the tax code.
Swapped MITP for MITN more than a dollar cheaper basically the same thing. TWO-B cheap and it jumped over $1 but I only got 100 shares. Wild things happen when panic sellers are afoot. Several minor swaps for stacking nickels not a big deal but more of them than normally available.
Added CCIA today at 25.05