RE:RE:BK unit nav to OCT 14 = approx: $19.87Wahooo wrote: How do you assess the impact of inflation/recession fears? I own both FTN and BK because banks tend to protect their bottom lines in times like these. Their respective NAVs have a comfortable cushion for now which I like.
No one is arguing that there is a comfortable cushion. It just doesn't make sense to hold onto an investment vehicle, even with a decent distribution that is still losing money in your portfolio, with an ever increaseing NAV and the payout is less than half when it comes to covering the loss.
You're better off to just have cash in your account and when a bottom appears to be in, then repurchase MORE units at a much lower price with the extra cash in your account.
Most people holding BK and other splits for income, receive most or all of their distributions in their trading accounts and they are later transferred to cash accounts as income to live on.
It worries me that BK may make another public offering, which has all sort of conotations, which will likely lead to cutting the distribution back to 10% or less if the upcoming recession is harsher than predicted