Should one be buying, selling or simply still just sitting tight?
Great question with no answer – 1 size doesn’t fit all.
My goal for this time is simply to come out of the virus situation with an average portfolio yield somewhat over the 7% area–maybe 7.5%–and to have 80-90% of my cash invested. The primary difference in what I hope to end up with is a portfolio that is much higher in quality overall–loaded up pretty good with utility preferreds and baby bonds of investment grade quality (or a notch under IG) bought at nicely favorable prices.
I will sprinkle in some mREIT preferreds–which in spite of the huge bounces in recent days are still providing 8-12% current yields. And when the time is right a few lodging REIT issues.
Also the Affiliated Managers 5.15% convertible trust preferred (AATRL) is giving us another shot at a investment grade issue with a current yield at 8.00%–I just added a little more at $32.75 (it is a $50 issue). This issue trade consistently in the $50/share area through most of this year. As I have mentioned before this one is a true gift.
So I am around 60% invested and will likely move a bit higher–but I really question whether we won’t have another shot at better prices–I though so, but so far I have been wrong–we’ll see. I don’t mind being wrong if I can get that 7-8% portfolio yield with decent quality.