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I Went on a Buying Spree–Relatively Speaking

In one of my accounts I went on a buying spree of sorts–I hope not too early.

I opened starter positions in a number of issues today as the ‘baby went out with the bath water’ and investment grade utility and CEF issues presented what I thought was a buying opportunity. We will know in a month whether this was a wise decision.

Remember that most of these are just starter positions and if they fall more I almost without a doubt would add more.

Here is what I added today.

More Ellsworth Growth and Income 5.25% perpetual (ECF-A) at $24.70.

DTE Energy 5.375% baby bonds (DTJ) at $23.49.

DTE Energy 6.00% baby bonds (DTY) at $24.99.

Duke Energy 5.625% baby bonds (DUKB) at $25.05.

Entergy New Orleans 5.50% baby bonds (ENO) at $24.39.

Nextera Energy 5.65% baby bonds (NEE-N) at $24.86.

I think being able to secure some investment grade issues around 5.75% to 6% current yields is a small gift–but we will see.

Note that some of these issues have 2, 3 or 4 years of call protection some do not, but at these prices I am not concerned.

I can’t predict tomorrow, but I hope to move to a different account looking for some quality issues.

As many of you know WHEN we come off the bottom it will be the middle grade (and even junky issues) that will head higher 1st and strongest–BUT this is when we come off the bottom and we don’t know when that will be, but we will be holding cash to do some buying there in select higher yielding issues.

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